TaxTMI 
TaxTMI 
1974 (10) TMI 114
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....ralasseri High School Society and from that of the Manager and Correspondent thereof and directing him to render accounts of his management of the affairs of the said society and the school for the period commencing from 1st January 1963. The decree also declared that the plaintiffs, four in number who are respondents 1 to 4 in this appeal will be entitled to a scheme settled by the court for the management of the said society and the school on application made in that behalf. Further, the official receiver was directed to take possession of the properties of the said society and the school including the school building, their premises and playgrounds and other appurtenances as the Manager of the said school and manage the school. 2. The....
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....belonged; whether to the said society, or to the first respondent as contested by him formed the subject-matter of issues 2 and 3. These were the main issues in the case apart from the question as to whether the appellant was liable to account (Issue 5) and whether he was liable to be removed (Issue 6). 3. The evidence in the case was examined in detail by the learned Judge and he had no hesitation whatever in coming to the conclusion that the Keralasseri High School was started by the public and it was being managed by the Keralasseri High School Committee. On the question whether the school premises also belonged to the society the District Judge found that the premises were comprised in Ex. B-27 verumpatton chit and will be difficult ....
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....g done cannot also be altered. 6. All this we have said on the basis that the school and its properties and its monies formed a public trust of a charitable nature and that a suit such as the one envisaged by Section 92 of the Civil Procedure Code and which was the type of suit that was instituted -- it is not even suggested that this is not so--would be permissible and that the suit in question was maintainable and that the plaintiffs were entitled to sue. Regarding those questions the appellant's Counsel vehemently argued that there has been no trust at all justifying such an action. Our attention was invited to the decision in A.S. Krishnan v. M. Sundaram AIR 1941 Bom 312 and it was argued that the plaintiffs have no right to inst....
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....s of the society. This decision as is evident has no application to the facts of the case before us. For a suit under Section 92 there must be a public trust of the religious or charitable character. Herendra Nath Bhattacharya v. Kaliram Das AIR 1972 SC 246. The allegation in the plaint is that there is such a charitable trust and that the appellant acting as a trustee de son tort has misused the funds of the trust and have mismanaged the properties. If the existence of a trust as alleged is established the suit will have to be decreed. We shall presently consider whether there is such a trust as alleged. Before going to that question we shall refer to the other decisions as well relied on by counsel for the appellant. 7. Counsel very st....
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....e Devanga Community as Community took any interest or any steps in such a way as to make it possible to suggest that a specified item of property was dedicated by it, or some members thereof, to public purpose, viz. some welfare of the community at large." 8. On the other hand the facts of this case show that the entire community in the area took an active interest and contributed funds for the purpose of creating a "trust fund" in order that a school may be established. Though it was what was called the "Keralasseri Food Committee'' that first made a move for the establishment of a High School by submitting Ext. A9 memorandum to the Chief Minister, Madras, the public look up the matter and there was a meeting of the public on th....
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....e school. "A trust may be created by any language sufficient to show the intention, and no technical words are necessary. The use of such words as 'intent' or 'purpose' Or a direction that a fund shall be applied by, or be at the disposal of, a person for the charitable purposes intended, may be as effectual as the use of the word 'trust'. Even the words 'authorise and empower' may be enough, upon the true construction of the instrument'". (See Tudor on Charities, Sixth Edition, Page 128). 10. No corporation would be erected within the meaning of the word "incorporated'' occurring in Entry 44 of List 1 of the Seventh Schedule to the Constitution by the formation and registration of a s....