2023 (7) TMI 628 - HC - Indian Laws

Public charitable trust can sue third party without Section 92 CPC permission if not internal management

DR. NARASIMHALU NANDINI AND DR. MAHALINGA B. Versus JANATHA TRUST AND OTHERS

The Court determined that a public charitable trust did not require permission under Section 92 of CPC to file a suit against a third party if the suit ... Seeking for a permanent injunction against the petitioners herein and others from interfering with the peaceful possession of the suit land - whether a public charitable trust could be required to obtain permission from the jurisdictional District Court in order to file the suit against a third party? HELD THAT:- In terms of sub Section (1) of Section 92 of CPC, it is mandated that if a trust were to file a suit whether contentious or not, leave of the principal Civil Court of original jurisdiction or any other Civil Court empowered in that behalf by the State Government within the local limits of which subject matter is situate, would have to be obtained in order to institute the suit. The said provisions also details out the nature of the suit that would come within the purview of sub Section (1) of Section 92 of CPC - A perusal of the various matters enumerated under Sub Section (1) of Section 92 of CPC would indicate that a suit relating to removal of a trustee, appointment of new trustee, vesting the property in a trustee, direction to a trustee, accounts and enquiries of the trust, usage of the trust property for a particular purpose, settling the claim, etc. is carried under sub section (ii) of Section 92 of CPC. The suit filed by the trust against a third party as done in this case, would not come within the purview of Section 92 of CPC. The said suit having been filed in the normal operation of the trust for the trust to preserve and protect its properties and or claim such other properties and not relating to the management of the trust would be outside the purview of Section 92 of CPC. If such an interpretation is taken up, then a public charitable trust would never be able to file any suit for bare injunction, recovery of money, specific performance, declaration or the like, thus, impending effective functioning and operation of the trust. In that view of the matter the trial Court having considered several aspects relating to the dispute between the plaintiff and the defendants of the suit and held that Section 92 of CPC would not apply for the reasons stated hereinabove and that stated by the trial Court, there are no reason to interfere with the matter - petition dismissed. Issues Involved:1. Requirement of permission under Section 92 of CPC for a Public Charitable Trust to file a suit against a third party.The judgment addressed the issue of whether a public charitable trust is required to obtain permission from the jurisdictional District Court to file a suit against a third party. The petitioners contended that the trust filing the suit must satisfy the requirements of Section 92 of CPC, as the suit was akin to a representative suit. The Court examined Section 92 of CPC, which mandates obtaining leave of the principal Civil Court to file a suit related to public charities. The Court noted that the suit in question, seeking a permanent injunction against the petitioners, did not fall within the purview of Section 92 of CPC, as it was not related to the internal management of the trust. The judgment concluded that the trial Court's decision to dismiss the application under Section 92 of CPC was justified, as the suit by the trust against a third party was not subject to the permission requirement of Section 92. Therefore, the writ petition seeking to quash the impugned order was dismissed.Separate Judgment: NoJudge: Mr. Suraj GovindarajSummary:The petitioners sought relief through a writ petition to quash an order passed by the Additional Civil Judge and JMFC-III, Raichur, in a suit filed by a Public Charitable Trust seeking a permanent injunction against the petitioners. The petitioners argued that the trust needed permission under Section 92 of CPC to file the suit. However, the Court held that the suit did not fall under the purview of Section 92, as it was not related to the internal management of the trust. Therefore, the writ petition was dismissed.