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2022 Supreme(Online)(Mad) 60693

MADRAS HIGH COURT
N. Kirubakaran, J
Dr. C. L. Metha Educational Trust – Appellant
Versus
Tamil Nadu Chemists and Druggists Trust – Respondent
C.S.D.No.71418 of 2020



Advocates:
For the Appellants/Petitioners: Mr. V. Lakshmi Narayanan, Mr. Avinash Krishnan Ravi
For the Respondents: Mr. Om Prakash

The court ruled that substantial cause of action arose within its jurisdiction, allowing the plaintiffs to seek management rights of educational institutions despite objections on jurisdiction and mismanagement claims.

Headnote:(A) Civil Procedure Code - Sections 92 and Clause 12 of the Letters Patent - Leave to institute a suit sought for management rights of educational institutions - Court found substantial cause of action arose within its jurisdiction regarding the management of C. L. Baid Metha College of Pharmacy and C. L. Metha Sishya OMR School - Objections raised by the defendants concerning jurisdiction and mismanagement rejected - Clear evidence presented substantiating the management rights and relationship between the parties based on multiple agreements and resolutions - Findings affirmed that the plaintiffs sought rights to manage rather than recover land, making suit maintainable. (Paras 4-6, 30-43)

(B) Application for leave - The court asserted that scrutiny must focus solely on the pleadings in the plaint and not the defendants' objections - The plaintiff's right to manage was based on established documents and agreements, thereby justifying jurisdiction. (Paras 20-21)

(C) Objections to jurisdiction - The court clarified that suit was not a 'suit for land' under Clause 12 and therefore did not require leave under Section 92 of CPC. (Paras 23-29)

1. This application is filed praying for leave to the applicants / plaintiffs to institute the present suit against the respondents 1,3,4 and 7 / defendants 1,3,4 and 7.

2. The applicants are the plaintiffs in the suit.

3. The suit in C.S.D.No.71418 of 2020 has been filed for the following reliefs:
(a) to declare that C. L. Baid Metha College of Pharmacy is an institution owned, maintained and run by the first plaintiff;
(b) for permanent injunction restraining the defendants, their servants, agents or men, from in any manner, interfering with the ownership, possession, administration or management of C. L. Baid Metha College of Pharmacy;
(c) to declare that C. L. Metha Sishya OMR School is an institution founded, owned, maintained and run by the first plaintiff herein;
(d) for permanent injunction restraining the second defendant, its servants, agents or men, from in any manner, interfering with the ownership, possession, administration or management of C. L. Metha Sishya OMR School;
(e) to declare that the first defendant is defunct and the first plaintiff is the successor - in - interest of all its assets, liabilities and activities;
(f) for permanent injunction restraining the second to seventh defendants, their servants, agents or men, from in any manner, interfering with any activity of the first plaintiff in pursuing the objects of the first defendant,
(g) and for costs of the suit.




4. This application has been filed seeking leave of this Court under Clause 12 of the Letters Patent for the reason that the first respondent / first defendant - Tamil Nadu Chemists and Druggists Trust and the respondents 3, 4 and 7 / defendants 3, 4 and 7, are located outside the jurisdiction of this Court, though substantial part of cause of action for laying the suit arose within the jurisdiction of this Court.

5. The leave application is strongly opposed by the respondents / defendants.

6. Mr. V. Lakshmi Narayanan, learned counsel representing Mr. Avinash Krishnan Ravi, for the applicants / plaintiffs, at the outset, referred to different prayers sought in the suit. With reference to the prayers made in the plaint, the learned counsel drew reference to the sale deed dated 27.07.1960 between one R. Rajagopal Pillay and two others, in favour of C. Manickchand Jain and C. Lakshmichand Mehta, the latter being the father of the second applicant herein and the Founder and Managing Trustee of the first applicant - Trust. The third applicant is also son of the latter. The properties of an extent of 33.47 acres situated at Oggiam Thoraipakkam Village, Chengalpet District. According to the learned counsel for the applicants / plaintiffs, the sale transaction in which the property(ies) had been purchased, took place at Purasawalkam in the then Madras.

7. The learned counsel for the applicants / plaintiffs referred to the subsequent sale executed on 09.04.1975 in the then Madras by the above said C. Lakshmichand Mehta and others, in favour of the Tamil Nadu Educational and Medical Trust, with regard to the same extent of property at No.148, Oggiam Thorapakkam Village, Saidapet Sub-Registration District, Chingleput Registration District.

8. The learned counsel for the applicants / plaintiffs further referred to College of Pharmacy Trust Deed, created on 07.03.1980 executed by C. M. Metha and others, in which the father of the applicants 2 and 3 / plaintiffs 2 and 3, was a Trustee, and the said Trust Deed was also executed in Chennai.

9. The learned counsel for the applicants / plaintiffs also drew reference of this Court to the City Civil Court's proceedings, dated 30.06.2006 in O.S.No.12747 of 1996, wherein compromise was arrived at between C. L. Baid Metha College of Pharmacy College Committee, which is presently known as the first applicant / first plaintiff. In the said Compromise Memo, one of the clauses state that the President and Secretary of the Tamil Nadu Chemists and Druggist Association shall be the Special Invitee for the College Committee meetings.

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