TaxTMI 
TaxTMI 
2016 (9) TMI 1275
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....iff (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 Rajakaryasak....
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....rnment nominee/trustee, forwarded the letter of the plaintiff to the Government. Vide letter dated 30.09.1995, the plaintiff sought cooperation of the State Government in discharging functions by her as a Donor Trustee. However, there was no response from the Government and in the meanwhile Y. Ramachandra, Chairman of the Trust appears to have written a letter dated 15.09.1995 requesting the State Government to take over the Trust. It appears that the appellants appointed M.R. Sreenivasa Murthy (respondent No. 2 herein) as Donor Trustee vide communication dated 07.11.1995. 7. Communication dated 07.11.1995, issued on behalf of the appellants appointing Respondent No. 2 as Donor Trustee, was challenged by the plaintiff Ragini Narayan in Writ Petition No. 40933 of 1995 which was disposed of by the High Court leaving the plaintiff to avail the remedy available before the Civil Court, and a Committee of Chairman and Trustees appointed by the court was directed to manage the affairs of the Trust, in the meantime. Consequently the suit was filed. 8. Apart from the appellants, Respondent No. 2 (defendant No. 3 before the civil court) contested the suit. He filed his separate written....
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.... Deed 07,1957: - "IV(i) The management of "THE TRUST" shall vest in "THE COUNCIL OF TRUSTEES" consisting of five members. Sri B.S. Narayan "DONOR" hereto during his life time shall be a member of the council of trustees; and after him the successive senior most lineal descendant of the said donor (1) shall be one such trustee and shall have the powers and rights of donor "1" under these paras. If this mode of succession fails all the powers exercisable by the Donor (1) under terms of this deed, including powers of appointment of trustees under this deed, shall vest with the Government of Mysore." .... .... .... .... .... .... ... "IV(iv) For the purposes of sub para (i) of clause IV supra Donor (1) shall have the power of nominating in his place or any person for such period or periods as may be specified or for the life time of such member, to exercise all or any of the powers vested in Donor (1) under this deed as may be delegated and such nominee shall subject to the foregoing be deemed to be donor (1) within the meaning of the Deed." .... .... .... .... .... .... ... "VI(xii) Notwithstanding anything contained in these presents "The ....
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....s wife Minnie Narayan and there-after the successive senior-most lineal descendant of the said donor (1) or a member of the family nominated by donor (1) or his wife shall be one such trustee and shall have the powers and rights of donor (1) under these presents. If this mode of succession fails all the powers exercisable by the Donor (1) under terms of this deed, including powers of appointment of trustees under this deed, shall vest with the Government of Mysore. The management of "THE TRUST" shall vest in the "COUNCIL of TRUSTEES" consisting of five members. Sri B.S. Narayan "DONOR" hereto during his life time shall be a member and thereafter the successive senior-most lineal descendant of the said donor (1) or a member of the family nominated by donor (1) or his wife shall be one such trustee and shall have the powers and rights of donor (1) under these presents. If this mode of succession fails all the powers exercisable by the Donor (1) under terms of deed, including powers of appointment of trustees under this deed, shall vest with the Government of Karnataka. (emphasis supplied) 12. It is clear from the record that in the year 1957 B.S. Narayan was a bachelor. L....
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....ired or made, and not from the time of its registration" In view of the above provision of law, we are in agreement with the submission of learned counsel for the Respondent no.1 that the document registered on a subsequent date, operates from the date of execution, not from the date of registration. 15. However, what is more required to be examined in the present case is as to whether Resolution for amendment dated 10.12.1994 had its approval from the State Government or not. We have already quoted proviso to Para VI (xii) of the original Trust Deed which requires that any alteration of the deed or amendment therein would require concurrence of Donor Trustee and that of the State Government. 16. Though on behalf of the appellants and the Respondent no.2, it is contended that the State Government had not given any approval to the amendment relied upon on behalf of the plaintiff, but certain documents on record clearly show that there was approval of the State Government to the disputed amendment of 1994. One of such documents (dated 13.8.1995) is Annexure A-7 filed by the Respondent No.2 with the additional documents, which is copy of the 'Deed of Appointment' of the G....
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....th reference to the above mentioned Communication/documents, the Government of Karnataka has accepted the nomination as the Donor-Trustee of B.M. Srinivasaiah Educational Trust and is assuming the role of Donor-Trustee with immediate effect. Sri M.R. Sreenivasa Murthy, IAS, is hereby appointed to function as Donor-Trustee on behalf of the Government of Karnataka with immediate effect. Please extend all co-operation to him and assist him in the discharge of his functions. Yours faithfully, Sd/- (U.P. SHARMA) PRINCIPAL SECRETARY TO GOVERNMENT EDUCATION DEPARTMENT." 18. From the above mentioned letter, it is clear that Deed of Appointment dated 13.08.1995 was referred by the State Government, and it cannot be said that the State Government had not approved the Resolution dated 10.12.1994 on the basis of which Deed of Amendment was registered on 30.01.1995. That being so, now we have to examine whether it is the plaintiff who was validly nominated Donor Trustee or the State Government? From the para (IV)(i) of the original Trust Deed dated 02.12.1957, it is clear that B.S. Narayan was to continue as Donor Trustee during his life ....