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R. Lakshmi (Died) VS Nil - 2023 0 Supreme(Mad) 1022 : A trust is not a legal person and therefore cannot sue or be sued in its own name. The trustees, as legal entities, must be impleaded to represent the trust. In a civil suit for declaration as a trustee, the trust itself is not a necessary party; instead, the trustees must be joined as parties to the suit. This is supported by the principle that the trust is not a legal entity, and the Code of Civil Procedure does not provide for the trust to be arrayed as a party in its own name. The trustees are the actual legal entities who represent the trust before the court.Checking relevance for Muhammad Azhar Ali, S/o. Late Md. Sultan VS Abdul Razzaq Bidri S/o. Abdul Aziz Bidri...
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Trust as a Necessary Party - Multiple sources emphasize that in suits involving trusts, the trust itself is generally a necessary and proper party to the litigation, especially when the dispute pertains to the declaration of trust, appointment or removal of trustees, or the trust property. For instance, Congress Ponvizha Mandapam T vs P.Veldurai - 2024 Supreme(Online)(MAD) 42635, SHRI.SHIVAYYA @ SHIVANAND v/s SHRI. SHA BRA BE3ERABHADRA SHIVAYOGI - 2024 Supreme(Online)(KAR) 33104, AMASIDDA S/O.SOMANNA WADER SINCE DECEASED BY HIS LRS., 1(A) SIDDU S/O AMASIDDA WADER, 1(B) BILIYANI S/O AMASIDDA WADER, 1(C) INUMANDI S/O AMASIDDA WADER, 1(D) MALLIKARI S/O AMASIDDA WADER, 1(E) SOMANNA S/O AMASIDDA WADER, 2. LAGAMANNA S/O SOMANNA WADER vs SMT.YELLAWWA W/O MALLAPPA CHUNG, SMT.AMMAKKA W/O.MARUTI KURUBAR, SMT.SONAWWA W/O MALLAPPA KAJJIDONI, SMT.CHANDAWWA W/O MALLAPPA WADER, SHIDAGOUDA MALLAPPA WADER - 2023 Supreme(Online)(KAR) 815, N.AR.Thangavel vs N.Vasantha Rajan - 2024 Supreme(Online)(Mad) 51700, and N.AR.Thangavel vs N.Vasantha Rajan - 2025 Supreme(Online)(Mad) 59516 all highlight that the trust must be impleaded as a necessary party to effectively adjudicate issues related to trust property, trusteeship, or declaration of rights. ["1"], ["3"], ["4"], ["7"], ["9"]
Legal Framework and Statutory Provisions - Under Section 50 of the Indian Public Trusts Act and similar statutes, the Charity Commissioner or equivalent authority's consent is often required for suits involving recovery of trust property from trustees or third parties. These provisions reinforce the necessity of including the trust and relevant authorities as parties to ensure proper jurisdiction and compliance with statutory requirements. ["2"], ["3"], ["5"], ["8"]
Exceptions and Court's Discretion - Some sources, such as AMAR SUBHA NAIK AND 9 ORS vs DEVU KESHAV NAIK AND 43 ORS, note that Trust is not always a necessary party; the court may decide based on the specific circumstances whether the trust's presence is essential. The court's jurisdiction and the nature of the relief sought also influence whether the trust must be a party. ["6"]
Interest and Impact on Parties - For a party seeking to be impleaded as a necessary party, demonstrating a direct and substantial interest in the trust matter is crucial. If the interest may be affected by the outcome, courts tend to favor including such parties to prevent future litigation issues. ["8"]
Implication for Declaration Suits - In suits for declaration of trusteeship or rights over trust property, the trust's presence is vital to establish the legitimacy of claims, especially when contesting trusteeship or ownership. Failure to join the trust or relevant authorities can render the suit bad for non-joinder, potentially leading to dismissal or delay. ["1"], ["3"], ["7"], ["9"]
Analysis and Conclusion
In civil suits seeking a declaration as a trustee or involving the rights over trust property, the trust itself is generally a necessary party. This is supported by statutory provisions and judicial precedents emphasizing the trust's role in ensuring effective adjudication. However, exceptions exist where courts may determine that the trust's presence is not essential, depending on the case specifics. Overall, including the trust as a party safeguards the interests of all stakeholders and ensures the court can effectively resolve disputes concerning trust property and trusteeship.