SUPREME COURT OF INDIA
Ranjan Gogoi, Prafulla C. Pant, JJ.
Principal Secretary, Government of Karnataka and Another – Appellants
Versus
Ragini Narayan and Another – Respondents
CIVIL APPEAL NO. 8895 OF 2012
Decided On : 20-09-2016
(b) Interpretation of deed – Trust deed – Para VI (xii) requiring concurrence of Donor Trustee as well as State Government to any alteration or amendment of the deed – Amendment of 1994 – Material on record showing approval of State Government of amendment of 1994 – Registered document of 1995 empowering the Donor Trustee to nominate his Donor Trustee – Not invalid. (Para 18)
(c) Interpretation of deed – Trust deed – Para VI (i) and (iii) as amended in 1994 – Donor Trustee to be succeeded by senior most lineal descendant or a member of his family or his wife – Failing this mode of succession, State Government to exercise powers of Trustee failing – Respondent being legally wedded wife of original Donor Trustee, there is no failure of the mode of succession as amended and approved by State Government. (Para 18, 19)
Facts of the case:
The plaintiff (Respondent No. 1 herein) Ragini Narayan filed a suit for declaration that after death of her husband, she is the Donor Trustee of B.M. Sreenivasaiah Educational Trust, Bangalore.
Late Shri B.M. Sreenivasaiah started BMS College of Engineering in the year 1946. In 1957, the institution was transferred to BMS Trust by B.S. Narayan (son of B.M. Sreenivasaiah, since died).
The trial court, as well as the High Court, has decided the issue as to the validity of marriage of the plaintiff with B.S. Narayan in her favour. Both the courts have also found that B.S. Narayan had an authority to nominate his wife, and that the delegation of powers of Donor Trustee in favour of the plaintiff suffers from no illegality. The High Court has upheld the decree passed by the trial court in favour of the plaintiff.
Finding of the Court:
There is no error in the concurrent finding of the courts below.
Result: Appeal dismissed.
JUDGMENT
Prafulla C. Pant, J.
This appeal is directed against judgment and order dated 24.03.2010, passed by the High Court of Karnataka at Bangalore in R.F.A. No. 788 of 2009 (DEC-INJ), whereby said Court has dismissed the appeal. The appeal before the High Court had arisen out of the decree passed by the XXVII Additional City Civil Judge, Bangalore, in O.S. No. 2680 of 2000, whereby the suit seeking declaration that the plaintiff is Donor Trustee, was decreed by the trial court in her favour.
2. Brief facts of the case are that the plaintiff (Respondent No. 1 herein) Ragini Narayan filed a suit for declaration that after death of her husband, she is the Donor Trustee of B.M. Sreenivasaiah Educational Trust, Bangalore (for short “BMS Trust”). It is not disputed that late Shri B.M. Sreenivasaiah, a philanthropist, started BMS College of Engineering in the year 1946. After his death it was his son B.S. Narayan, who was running the institution. In 1957, the institution was transferred to BMS Trust by B.S. Narayan (since died). The then Government of Mysore (now Government of Karnataka) extended financial assistance to the Trust to clear its encumbrances, and agreed to establish the BMS College for Women by the Trust. It is stated that the appellant/Government of Karnataka gave grant-in-aid for the three colleges run by the Trust.
3. The plaintiff’s case is that she is legally wedded wife of B.S. Narayan (the original Donor Trustee) as she got married to him on 21.05.1984, after he divorced his first wife, namely, Smt. Minnie Narayan. It is pleaded that the plaintiff continued to live as his wife till his death on 23.08.1995. It is further pleaded that vide Trust Deed dated 02.12.1957, Dharmaprakasha Rajakaryasakta B.M. Sreenivasaiah Educational Trust was created by B.S. Narayan, his mother and step mother by transferring properties worth Rs.5000 crores. The Council of Trustees consisted of five members (trustees) with B.S. Narayan as a Donor Trustee. In terms of the Trust Deed B.S. Narayan and all his successors had the right to appoint three of the trustees while the remaining one trustee was to be appointed/nominated by the Government of Karnataka (defendant No 2/appellant herein).
4. The Council of Trustees in the presence of the then Chief Minister, in its meeting dated 12.10.1978 resolved to amend the Trust Deed allowing B.S. Narayan to nominate any person as Donor Trustee for life time and also provided for succession to the Donor Trustee. The State Government (appellant) approved said amendment vide communication dated 25.09.1979 and supplementary Trust Deed was executed on 25.06.1981, but the amendment regarding succession to the Donor Trusteeship was not carried out.
5. Dispute starts from the year 1994. On 10.12.1994 in another meeting of Council of Trustees, a resolution was passed to amend the Trust Deed to give effect to the succession to Donor Trusteeship, with certain changes from the earlier resolution mentioned in preceding para. In the light of the amendment made in 1994, a Deed dated 30.01.1995 was registered providing that after the life time of B.S. Narayan, his senior most lineal descendant or a member of his family, nominated by him or his wife, shall be the Donor Trustee. It is pleaded by the plaintiff that B.S. Narayan, exercising powers under clause IV(iv) of the Trust Deed, vide document dated 16.01.1995, nominated the plaintiff to be the Donor Trustee in his place with effect from 16.01.1995. The plaintiff has further pleaded that B.S. Narayan never revoked said delegation till his death. The document dated 30.01.1995 further provided that after death of B. S. Narayan his wife shall be the Donor Trustee under the Trust Deed.
6. Admittedly, B.S. Narayan died on 23.08.1995 in Workhardt Hospital where he was undergoing treatment for cancer of colon. B.S. Narayan died issueless leaving behind his mother Sm
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