TaxTMI 
TaxTMI 
2009 (10) TMI 1006
X X X X Extracts X X X X
X X X X Extracts X X X X
.....09.1975. The President of the AIWC was constituted as a Managing Trustee. The plaint further avers that the Trustees got the building constructed after spending about Rs. One Crore. The plaintiffs contend that Mr. Ashok Gupta was made the President between 1985 and 1990, during which time, the previous President Dr. Lakshmi Raghuramaiah continued as managing trustee till she was marginalized and ousted by the next batch of office bearers. The plaintiffs say that the construction of a multistoried building was for the purpose of women's welfare and in order to generate income so as to enable AIWC to carry out its projects and achieve its objectives. The plaintiffs allege irregularities and malfunctioning in AIWC after 1991 when new office bearers took over the society. The suit discusses in detail about the activities of the society and how money was given or advanced for various schemes. It is also mentioned that the first plaintiff/petitioner (hereafter referred to as Bahuguna) was targeted and relentlessly victimized by the new President and took over charge in January, 1991. Various acts of alleged victimization such as deduction of his salary - (since he was working as Adm....
X X X X Extracts X X X X
X X X X Extracts X X X X
....that under Section-92, the plaintiffs are interested persons being ex-employees and thus possessing the requisite locus standi to file the Suit to ensure proper management of the Trust. It is also pointed out that a Trust suit is pending on the file of the Court being Suit No. 314/1993 where leave was granted by a Single Judge, and where Division Bench of the Court on 20.07.1996 in the course of its judgment clearly observed that the allegations and materials placed on the record prima facie established that a Trust has been created for public charitable nature and that allegations concerning breach of trust had been made. It is submitted that the said judgment was carried in appeal to the Supreme Court by special leave (C.A.-1548/1997), which dismissed it by its order dated 22.09.2004. It is submitted that the said Suit was, however, later withdrawn and as a consequence, the acts requiring close scrutiny by the Court have assumed great criticality. 6. Relying upon decisions of Allahabad High Court in Shri Thakur Jee Maharaj v. Smt. Dankiya AIR 1996 All 247 and of the Madras High Court in Gopala Krishniar v. Ganapathiar AIR 1929 MAD 238, it is contended that anyone who has devot....
X X X X Extracts X X X X
X X X X Extracts X X X X
....onditions set out are fulfilled, i.e., a Trust must exist as on the date of filing the Suit; the Suit can be filed by two or more persons having interest in it and that leave should be obtained from the Court for instituting it. He relied upon the decision in Sugra Dibi v. Hazi Kummu Mia 1969 (3) SCR 3. It is urged that with the extinguishment and dissolution of the Trust (originally created on 1.9.1975) on 27.6.1997, there was no Trust in existence as on the date of filing of the Suit i.e. 31.03.2001. Therefore, the essential pre-requisite of existence of a Trust is not fulfilled and the Suit is liable to be rejected. It is contended that even otherwise under Section-5 of the Societies Registration Act, 1860, the property and assets of a Society (as the AIWC undoubtedly is) vest either in a Trust or in the absence of a Trust in the governing body of such Society. In the present case, AIWC's governing body is the Standing Committee. It is pointed out that so far as the second requirement is concerned, Bahuguna does not possess the locus standi since his services were terminated on 24.04.1995 and the present Suit was filed more than six years later. It is contended that Bahuguna....
X X X X Extracts X X X X
X X X X Extracts X X X X
....corresponding law in force in [the territories which, immediately before the 1st November, 1956, were comprised in Part B States]], no suit claiming any of the reliefs specified in Sub-section (1) shall be instituted in respect of any such trust as is therein referred to except in conformity with provisions of that sub-section. [(3) The Court may alter the original purposes of an express or constructive trust created for public purposes of a charitable or religious nature and allow the property or income of such trust or any portion thereof to be applied cy pres in one or more the following circumstances, namely: (a) where the original purposes of the trust, in whole or in part, (i) have been, as far as may be, fulfilled; or (ii) cannot be carried out at all, or cannot be carried out according to the directions given in the instrument creating the trust or, where there is no such instrument, according to the spirit of the trust; (b) where the original purposes of the trust provide a use for a part only of the property available by virtue of the trust; or (c) where the property available by virtue of the trust and other property ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....oned in the section.... As to what category of grievances can be legitimately be brought before the courts, under Section 92, was summed up, in the following manner, by the Supreme Court, in Swami Paramatamanand Saraswati v. Ramji Tripathi (1974) 2 SCC 695: A suit under Section 92 is a suit of a special nature which presupposes the existence of a public Trust of a religious or charitable character. Such a suit can proceed only on the allegation that there was a breach of such trust or that the direction of the court is necessary for the administration of the trust and the plaintiff must pray for one or more of the reliefs that are mentioned in the section. It is, therefore, clear that if the allegation of breach of trust is not substantiated or that the plaintiff had not made out a case for any direction by the court for proper administration of the trust, the very foundation of a suit under the section would fail; and, even if all the other ingredients of a suit under Section 92 are made out, if it is clear that the plaintiffs are not suing to vindicate the right of the public but are seeking a declaration of their individual or personal rights or the individual or per....