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Adarsha Sugama Sangeetha Academy vs Smt. Vrinda S Rao
2022 Latest Caselaw 11226 Kant

Citation : 2022 Latest Caselaw 11226 Kant
Judgement Date : 1 August, 2022

Karnataka High Court
Adarsha Sugama Sangeetha Academy vs Smt. Vrinda S Rao on 1 August, 2022
Bench: R. Nataraj
                            1


IN THE HIGH COURT OF KARNATAKA AT BENGALURU

       DATED THIS THE 1ST DAY OF AUGUST, 2022

                         BEFORE

        THE HON'BLE MR. JUSTICE R. NATARAJ

     WRIT PETITION NO.33264 OF 2016 (GM-CPC)

BETWEEN:

1.     ADARSHA SUGAMA SANGEETHA ACADEMY
       NO.22, 2ND FLOOR, SHOP STREET,
       BASAVANAGUDI, BENGALURU-560 004
       BY ITS DONOR TRUSTEE
       SRI. KRISHNAMURTHY KIKKERI

2.     SRI. KRISHNAMURTHY KIKKERI
       S/O B.S. NARAYANA BHAT,
       AGED ABOUT 47 YEARS,
       R/AT 22/6, EAST ANJANEYA TEMPLE STREET,
       BASAVANAGUDI, BENGALURU-560004.

                                   ...PETITIONERS
(BY SRI. RAJESH MAHALE, ADVOCATE FOR
    SRI. D.S.JAYARAJ, ADVOCATE)

AND:

1.     SMT. VRINDA S. RAO
       W/O B.N. SRIHARI RAO,
       AGED ABOUT 49 YEARS,
       R/A NO.11, SREESHA,
       5TH CROSS, SUPRAJANAGARA,
       KONANAKUNTE,
       BENGALURU-560 062.

2.     SMT. PUSHPA M.K.
       W/O SRI. VISHWESWARA
       AGED ABOUT 48 YEARS
                            2


     NO.13A, 1ST FLOOR, 5TH CROSS,
     SUPRAJANAGARA,
     KONANAKUNTE,
     BENGALURU-560 062.

3.   SMT. SANDHYA G.B.
     W/O G.Y. BHAGAWAN,
     AGED ABOUT 41 YEARS,
     R/AT NO.13, 1ST MAIN ROAD,
     GANDHIGRAMA, SRIRAMPURAM,
     BENGALURU-560 021.

4.   SRI. RAVINDRANATH
     S/O K.R. DORESWAMY IYENGAR,
     AGED ABOUT 53 YEARS,
     R/A NO.2598, 11TH MAIN,
     'E' BLOCK, 2ND STAGE,
     RAJAJINAGAR,
     BENGALURU-560 010.

5.   YOGESH
     C/O AMEEBA GROUP,
     NO.22, 1ST FLOOR, SHOP STREET,
     OPP. A.P.S COLLEGE GROUNDS,
     BASAVANAGUDI,
     BENGALURU-560004.
                                 ...RESPONDENTS
(BY SRI. A.V.SRINIVAS, ADVOCATE FOR RESPONDENT NO.1;
SRI. S.R.SREEPRASAD, ADVOCATE FOR RESPONDENT NO.2;
SRI. RAJATH H.V., ADVOCATE FOR RESPONDENT NO.5;
NOTICE IS SERVED ON RESPONDENT NOS.3 AND 4)

     THIS PETITION IS FILED UNDER ARTICLE 227 OF THE
CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED
ORDER DATED 06.02.2016 PASSED BY THE PRINCIPAL CITY
CIVIL JUDGE, BENGALURU, IN MISC. NO.548/2013 VIDE
ANNEXURE-E.

     THIS PETITION COMING ON FOR HEARING THIS DAY,
THE COURT MADE THE FOLLOWING:
                               3


                           ORDER

Respondent Nos.1 and 2 in Misc. No.548/2013 on

the file of the Principal City Civil and Sessions Judge,

Bengaluru, have filed this writ petition challenging the

Order dated 06.02.2016 passed under Section 92 of the

Code of Civil Procedure, 1908 (for short 'the CPC') granting

leave to the petitioners therein/respondent Nos.1 and 2

herein to file a suit against them.

2. The parties shall henceforth be referred to as

they were arrayed before the Trial Court.

3. A proceeding under Section 92(1) of the CPC

was initiated by the petitioners seeking leave of the Trial

Court to present a suit against the respondents in Misc.

No.548/2013. The petitioner No.1 claimed to be a Trustee

of the respondent No.1 while the petitioner No.2 claimed

to be a music aficionado and interested in the activities of

the Trust. The petitioners asserted that the respondent

No.1 was a public charitable Trust of which the petitioner

No.1 and respondent Nos.2 to 5 are the Trustees. The

petitioners alleged that the meetings of the Trust were not

conducted regularly and that not even a single Annual

General Body meeting of the Trust was held. They alleged

that one of the Trustees, Sri G.Y. Bhagwan died long back

and his place was not filled up. They also alleged that they

noticed irregularities and misappropriation of funds and

suggested to the respondent No.2 to induce democracy in

the functioning of the Trust. They alleged that the

respondent No.2 kept petitioner No.1 away from the

activities of the Trust. They further alleged that the

respondent No.2 was conducting the activities of the Trust

as if it was a proprietary concern and spending the funds

of the Trust at his will. The respondent No.2 was accused

of organizing music concerts in the name of the Trust in

foreign countries, proceeds of which were never accounted

for. With these and various other allegations, the

petitioners sought for permission to file a suit to frame a

scheme for management of the Trust. Along with the

petition under Section 92(1) of the CPC., the petitioners

also placed on record a proposed plaint.

4. Notice of the petition was issued to the

respondents and respondent No.2 who filed his objections

to the petition under Section 92(1) of the CPC., contended

largely (a) that the respondent No.1 was not a public

charitable Trust and therefore, the provisions of Section 92

of the CPC., were not applicable to the respondent No.1;

(b) that the petitioner No.2 was not interested in the

affairs of the Trust and therefore, the petition was not filed

by two or more persons having an interest in the Trust. He

denied the allegations of misapplication and

mismanagement of the funds of the Trust, but stated that

the Trustees worked hard to secure publicity, name and

earned goodwill amongst music lovers. He also claimed

that the petitioner No.1 has laid low for more than 16

years and has thereafter hurled allegations against the

respondents.

5. The Trial Court after hearing the parties, relied

upon the judgment of the Hon'ble Apex Court in R.M.

Narayana Chettiar and another v. N. Lakshmanan

Chettiar and another [1991 (1) SCC 48] and cursorily

passed an order dated 06.02.2016 allowing the petition

filed under Section 92(1) of the CPC.

6. Feeling aggrieved by the said Order, the

present writ petition is filed.

7. The learned counsel for the respondent Nos.1

and 2 / petitioners herein submitted that the respondent

No.1 was not a public charitable Trust and the petitioner

No.2 was not a person interested in the affairs of the Trust

and therefore, the Trial Court without considering the case

of the petitioners on the anvil of the above, allowed the

petition by relying upon a judgment of the Hon'ble Apex

Court in the case cited above. He submitted that a perusal

of the Trust deed does not disclose any charitable activities

of the respondent No.1 and that therefore, the respondent

No.1 does not qualify to be a public charitable Trust and

hence, the Trial Court cannot be clothed with the

jurisdiction to entertain a petition to present a plaint to

frame a scheme for administration of the Trust.

8. Per contra, the learned counsel for the

petitioners/respondent Nos.1 and 2 herein submitted that

respondent No.1 was registered as a charitable Trust and

that it had obtained registration under Section 12A of the

Income Tax Act, 1961. He also pointed out that in the

Income Tax returns filed by the respondent No.1, it had

declared itself as a charitable Trust. He further contended

that the aims and objects of the Trust inter alia provided

that the Trust could carry out the following activities:

"xxx

(d) To start, run and set up institutions and schools to teach music, both vocal and instrumental, dance and literature for the benefit of the people at large and particularly, the people of Scheduled Castes/Scheduled Tribes and physically handicapped and other backward classes.

xxx

(g) To help promotion of physically handicapped and financially backward students by way of freeships, scholarships etc.,

xxx

(m) To start funds for the purpose of granting freeships and scholarships and fellowships to the

students who evince keen interest in the field of music;

xxx

(p) To conduct deposits and discourses, seminars, meeting classes, to propagate and disseminate knowledge, information and understanding in any area of study and research, with which the Trust is concerned and to promote any of the objectives of the Trust;"

Therefore, he contended that the respondent No.1 was

indeed a public charitable Trust and the Trial Court was

justified in entertaining the petition under Section 92(1) of

the CPC. He also submitted that the petitioner No.2 was a

lover and practitioner of music and therefore, she was

interested in the affairs of the Trust.

9. I have considered the submissions made by

the learned counsel for the petitioners and the learned

counsel for respondent Nos.1 and 2. I have perused the

material placed on record. I have also perused the Trust

deed by which the respondent No.1 was constituted.

10. Section 92 of the CPC is a special provision

which provides for securing interest of the general public

who are interested in a public charitable or religious Trust

or an Institution. In order to maintain a suit under Section

92 of the CPC., persons applying should show the

existence of a public charitable or a religious Trust or a

purpose. There should be a clear breach of the terms of

the Trust. Such a petition could be filed by two persons

interested in the affairs of the Trust. Therefore, for the

Court to exercise jurisdiction, there must be a factual

finding from the material placed on record whether the

Trust was a public charitable or a religious Trust and also

whether the persons approaching the Court have any

interest in the Trust. Once the threshold is fulfilled, the

only question would be whether there is a breach of the

Trust and if yes, the Court would determine the modalities

of a scheme for the better and effective administration of

the Trust under its supervision.

11. In the case on hand, a perusal of the

impugned Order does not show that the Trial Court had

applied its mind to the question whether the Trust was

charitable or religious and whether the petitioners were

really interested in the affairs of the Trust. However, the

Court has proceeded on the assumption that the Trust is a

public charitable Trust and that the petitioners are

interested in the affairs of the Trust. Even in the judgment

relied upon by the Trial Court in R.M. Narayana

Chettiar's case (referred supra), the issue was not

whether the persons were interested in the affairs of the

Trust or whether the Trust was charitable or religious in

nature but the issue was whether before granting leave to

institute a suit under Section 92 of the CPC., the Court is

required to provide an opportunity of being heard to the

proposed defendants.

12. In that view of the matter, the impugned Order

suffers from the vice of non-application of mind and

therefore, deserves to be set aside. Having regard to the

fact that the petition is filed in the year 2013, it is

appropriate to direct the Trial Court to expedite the

consideration of the petition in accordance with law.

Hence, the following :

ORDER

(i). The Writ Petition is allowed.

(ii). The Order dated 06.02.2016 passed by the

Principal City Civil and Sessions Judge,

Bengaluru, in Miscellaneous No.548/2013 is set

aside.

(iii). The parties are directed to appear before the

Trial Court on 06.08.2022 and the Trial Court

is requested to dispose off the aforesaid

petition filed under Section 92 of the CPC., at

the earliest and not later than 30.09.2022.

(iv). All contentions of the parties are left open.

Sd/-

JUDGE

sma

 
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