Citation : 2022 Latest Caselaw 5173 Kant
Judgement Date : 22 March, 2022
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 22 N D DAY OF MARCH, 2022
BEFORE
THE HON'BLE MR. JUSTICE SREENIVAS HARISH KUMAR
MF A N O.1384 OF 2022 C/W MF A NO.1386 OF 2022
(CPC)
IN MF A N O.1384 OF 2022
BETWEEN :
Rishi Samskriti Vidya Kend ra Trust
Having its Reg istered Office at No.176
31 s t Cross, 11 t h Main, 4 t h Block East
Jayanag ar
Beng aluru-560 011
Rep. by its Trustee Secretary
Sri Sathyanarayana .K ...Appellant
(By Sri Ashok Haranahalli, Senior Counsel for
Sri Anoop Haran ahalli, Advocate)
AN D:
1. Mr. Siddhant Rishi Prabhakar
S/o Mr. Prabhakar Rag havendra
Aged about 21 years
R/at #41, Rohan Madhub an
Off Paud Road , Bavdhan Khurd
Pune-411021.
2. Mrs. Arund hati Rishi Prab hakar
W/o Mr. Prab hakar Raghavend ra
Aged about 45 years
R/at #41, Rohan Madhub an
Off Paud Road , Bavdhan Khurd
Pune-411021.
:: 2 ::
3. Mr. Abhay Anant Shastri
S/o Sri Anant Govind a Shastry
Aged 64 years
R/at #502, Sidharth Towers, B-b uilding
Ex-Servicemen Colony
Kothrud, Pune
Maharashtra-411038.
4. Mr. S.J. Vijaya Keerthy
S/o Sri Shravand ahalli Jayakeerti
Aged 62 years
R/at #5, Block-7, Shivashakthi Road
Shakthi Nag ar
Mysuru-570019
5. Mr. Shivajirao Baburaoji Shinde
S/o Bab urao Raoji Shind e
Aged about 73 years
R/at House No.74, F-1, N-4, CIDCO
Aurang ab ad
Maharashtra-431001.
6. Ms. Sahana Tambat
W/o Ramesh Mahad ev Tambat
Aged about 37 years
R/at #No.18/2, G-3, 4th Cross
1 s t Main PMK Road
Basavanagud i
Beng aluru-560004. ...Respondents
(By Sri. Sivaramakrishnan M.S, Advocate)
This MFA is filed U/O.43 Rule 1(r) of CPC, ag ainst
the ord er d ated 14.02.2022 p assed on I.A No.1 in O.S
No.398/2022 on the file of the LXI Additional City Civil
and Sessions Judge, Beng aluru City, (CCH-62)
dismissing I.A No.1 filed U/O.39 Rules 1 and 2 of CPC.
:: 3 ::
IN MF A N O.1386 OF 2022
BETWEEN :
Rishi Samskriti Vidya Kend ra Trust
Having its Reg istered Office at No.176
31 s t Cross, 11 t h Main, 4 t h Block East
Jayanag ar, Bengaluru-560 011
Rep. by its Trustee Secretary
Sri Sathyanarayana .K ...Appellant
(By Sri Ashok Haranahalli, Senior Counsel for
Sri Anoop Haran ahalli, Advocate)
AN D:
1. Mr. Siddhant Rishi Prabhakar
S/o Mr. Prabhakar Rag havendra
Aged about 21 years
R/at #41, Rohan Madhub an
Off Paud Road , Bavdhan Khurd
Pune-411021.
2. Mrs. Arund hati Rishi Prab hakar
W/o Mr. Prab hakar Raghavend ra
Aged about 45 years
R/at #41, Rohan Madhub an
Off Paud Road , Bavdhan Khurd
Pune-411021.
3. Mr. Abhay Anant Shastri
S/o Sri Anant Govind a Shastry
Aged 64 years
R/at #502, Sidharth Towers, B-b uilding
Ex-Servicemen Colony
Kothrud, Pune
Maharashtra-411038.
4. Mr. S.J. Vijaya Keerthy
S/o Sri Shravand ahalli Jayakeerti
Aged 62 years
:: 4 ::
R/at #5, Block-7, Shivashakthi Road
Shakthi Nag ar
Mysuru-570019
5. Mr. Shivajirao Baburaoji Shinde
S/o Bab urao Raoji Shind e
Aged about 73 years
R/at House No.74, F-1, N-4, CIDCO
Aurang ab ad
Maharashtra-431001.
6. Ms. Sahana Tambat
W/o Ramesh Mahad ev Tambat
Aged about 37 years
R/at #No.18/2, G-3, 4th Cross
1st Main PMK Road
Basavanagud i
Beng aluru-560004. ...Respondents
(By Sri Sivaramakrishnan M.S, Ad vocate)
This MFA is filed U/O.43 Rule 1(r) of CPC, ag ainst
the ord er d ated 14.02.2022 p assed on I.A No.2 in O.S
No.398/2022 on the file of the LXI Additional City Civil
and Sessions Judge, Beng aluru City, (CCH-62)
dismissing I.A No.2 filed U/O.39 Rules 1 and 2 of CPC.
These MFAs coming on for admission this d ay,
the Court delivered the following:
JUDGMENT
These two appeals are disposed of by a
common order as the two applications filed in the :: 5 ::
trial court for temporary injunction were disposed
of by a common order dated 14.02.2022.
2. These appeals are filed by the plaintiff in
O.S.No.398/2022. The plaintiff is a trust called
"Rishi Samskrithi Vidya Kendra Trust" and it is
represented by Secretary Sri. Sathyanarayana K.
The case of the plaintiff is that on 06.02.1982,
Rishi Prabhakar created the Trust by executing a
registered instrument. On 16.10.1982, a
supplementary Trust deed came into existence for
claiming exemption under section 80G of Income
Tax Act. When the Trust was created, initially
there were six trustees, but the author of the
Trust did not become a trustee. From 1982 to
2011, many changes in the constitution of the
Trust took place due to deaths and resignation of
the trustees. Then on 28.9.2011, second
supplementary Trust deed came into existence and :: 6 ::
the scope of the activities of the Trust was
enlarged without altering the main objective.
3. The author of the Trust Sri. R. Prabhakar
passed away on 16.02.2014 and at that time,
there were only four trustees, viz.,
Sathyanarayana K., Sri. H.S. Ramesh Chandra,
Sri. V.B.N. Shinde and Sri. K. Thippeswamy. On
31.12.2018, V.B.N.Shinde died and this caused
difficulty to manage the activities of the Trust.
For this reason as per sub-clauses (iv) and (ix) of
clause 7 of the original Trust deed dated
06.02.1982, a suit was instituted in the Court of
Principal City Civil and Sessions Judge, Bengaluru
for appointment of new Trustees. An application
under section 92 of the Code of Civil Procedure
was also filed seeking leave of the court. The said
application was registered as Misc.No.213/2020
and leave was granted.
:: 7 ::
4. Above being the state of affairs, the
defendants began interfering with the functioning
of the plaintiff Trust claming themselves to be the
trustees and informed the managers of the various
banks where the Trust had held accounts that the
first defendant was the authorized signatory. The
plaintiff having gained knowledge of this
information, immediately issued a notice to the
branch manager of all the banks, asking them not
to permit unauthorized persons to operate the
bank accounts. To the surprise of the plaintiff, the
bank managers brought to his notice that the first
defendant had approached them and produced
copy of the third supplementary deed of Trust
dated 23.11.2021. On going through the said
supplementary Trust Deed, the plaintiff came to
know that the defendants had suo motu appointed
themselves as the trustees of the plaintiff Trust
replacing the existing trustees. The plaintiff also
came to know that the first defendant had :: 8 ::
meddled with the email address and the passwords
of the Trust for transaction with the banks and
Income Tax Department. In these circumstances
the plaintiff brought a suit for declaring the third
supplementary deed dated 23.11.2021 null and
void, for permanent injunction to restrain the
defendants from management, constitution and
functioning of the plaintiff Trust and for another
decree of permanent injunction to restrain the
defendants from acting as trustees and dealing
with banks and other statutory authorities.
5. Along with the plaint, the plaintiff filed two
applications for temporary injunction. The first
application was for restraining the defendants from
interfering with the management and day to day
activities of the Trust till disposal of the suit and
the second application was for restraining the
defendants from acting as trustees and dealing :: 9 ::
with the bank accounts and other properties and
assets of the Trust.
6. The defendants have admitted creation of
the Trust by Rishi Prabhakar on 06.02.1982 and
coming into being of two supplementary Trust
deeds on 16.10.1982 and 28.09.2011. Their main
contention is that in the second supplementary
Trust deed dated 28.09.2011, an amendment was
brought to sub-clause (ix) clause 7 of the original
Trust deed. The amendment was by way of
substitution and it empowered the Founder of the
Trust, i.e., Sri. Rishi Prabhakar or his successor to
nominate the trustees. Thus with effect from
28.09.2011, the term and tenure of the trustees
was subjected to the decision of the Founder or his
successor. The defendants contended that Sri. K.
Sathyanarayana, who has filed a suit on behalf of
the Trust is incompetent to bring the suit as he is
no longer a trustee. After the death of the Founder :: 10 ::
on 16.02.2014, defendants 1 and 2 who are the
son and wife of the Founder respectively, became
the successors in terms of Clause 7(ix) of the trust
deed and they having found the activities of Sri.
K.Sathyanarayana being detrimental to the
activities of the Trust, removed him from
trusteeship on 19.11.2021 and it was
communicated to him on 22.12.2021. Defendants
have stated further that after the death of Sri.
Rishi Prabhakar, the defendants 1 and 2 obtained
Heirship Certificate from the Court of Civil Judge,
Jr.Dn., Aurangabad. Their main contention is that
when Sri. Rishi Prabhakar was alive, he had seen
his successor in the first defendant as the latter
had been trained in the practices of Rishi
Samskriti Vidya Kendra since his childhood. Rishi
Prabhakar had full faith in the first defendant as
the latter had embodied all his powers and
sadhanas. In fact on 19.10.2018, a ceremony
called 'Pattabhishekam' was organized for :: 11 ::
acknowledging the first defendant as the successor
of Sri. Rishi Prabhakar. The said function was
attended by Sri. K.Satyanarayana also. Therefore
first defendant being the successor of the author
of the trust was authorized to nominate the
trustees in terms of the supplementary deed dated
23.11.2021. The other defendants are the
trustees of the newly constituted trust and thereby
the suit is frivolous and not maintainable.
7. The court below dismissed the two
applications by passing the orders impugned in
these appeals. The main reasons given by the
court below are that the suit filed by the trust
under Section 92 of the CPC is defective, in the
sense that a suit is not filed by two or more
persons having interest in the trust and that Sri.
K.Sathyanarayana who had represented the trust
in the suit was discharged from the trusteeship as
per the letter of communication dated 22.11.2021.
:: 12 ::
His removal is in accordance with Clause 7(ix) of
the original trust deed and section 71(c) of the
Indian Trust Act. Therefore plaintiff has not made
out a prima facie case; balance of convenience is
not in favour of the plaintiff and that no injury
would be caused to the plaintiff in case temporary
injunction as prayed for in the applications is not
granted.
8. I have heard Sri. Ashok Haranahalli,
learned senior counsel for the appellant/plaintiff
and Sri. Sivaramakrishnan M.S., learned counsel
for the respondents/defendants.
9. It was the argument of Sri. Ashok
Haranahalli that the trial court has missed the
point that in the second supplementary trust deed
dated 28.9.2011, it is clearly mentioned in Clause
7(ix) that the Founder of the Trust viz., Sri. Rishi
Prabhakar or his successor could change any of
the trustees. When Sri. Rishi Prabhakar was alive, :: 13 ::
he did not appoint his successor. Because of
various reasons, the strength of the trustees
reduced and that Sri. K.Sathyanarayana was not
competent to appoint the trustees because he was
a co-opted trustee. In this view, the trust
represented by Sri. K.Satyanarayana had to
approach the Court of Principal City Civil and
Sessions Judge, Bengaluru under section 92 of
CPC for appointment of trustees and the court has
claim themselves to be the legal successors of Sri.
Rishi Prabhakar and they themselves brought into
existence another trust deed dated 23.11.2021. It
is now being projected that first defendant is the
successor of Sri. Rishi Prabhakar. There is no
evidence to show that Sri. Rishi Prabhakar
appointed the first defendant as his successor.
The first defendant claims to be his successor
because he is the son of Sri. Rishi Prabhakar.
Merely for this reason, he cannot claim to have :: 14 ::
succeeded to the place of Sri. Rishi Prabhakar to
make appointment of trustees. Issuance of legal
successor certificate by a court does not confer
any right on defendants 1 and 2 to interfere with
the Trust matters. Therefore the plaintiff has
made out a prima facie case. Since the activities
of the trust are being disturbed, balance of
convenience lies in favour of the plaintiff to invoke
the jurisdiction of the court for injuncting the
defendants. The interest of the plaintiff would be
affected if injunction is not granted.
10. Sri. Sivaramakrishnan's argument was
that Sri. K.Sathyanarayana who has filed a suit on
behalf of the Trust cannot dispute the authority of
defendants 1 and 2 to appoint the trustees in view
of Clause 7(ix) of the second supplementary Trust
deed dated 28.09.2011. Sri. K. Sathynarayana
was one of the signatories to the said
supplementary Trust deed. Being aware of the :: 15 ::
successor's right to appoint trustees, he can't say
that defendant no.1 is not a successor. When Sri.
Rishi Prabhakar was alive, he appointed the first
defendant as his successor. This is within the
knowledge of Sri. K.Sathyanarayana. Defendants
No.1 and 2 have produced documents to show that
they are the legal successors and for this reason
defendant no.1 has become successor of Sri. Rishi
Prabhakar in the matter of appointment of
trustees. Document R.4 produced by the
defendant shows that Sri. Rishi Prabhakar
intended his son to succeed him. Document R.5 is
the invitation sent by Sri. K. Sathyanarayana
through email in connection with spiritual initiation
of the first defendant and therefore the first
defendant was acknowledged as the successor of
Sri. Rishi Prabhakar. In this view, if the first
defendant and the second defendant reconstituted
the Trust on 23.11.2021, by removing Sri.
Sathyanarayana from the trusteeship, it cannot be :: 16 ::
said that it is contrary to Clause 7(ix) of the
second supplementary trust deed. Sri. K.
Sathynarayana is no more a trustee and he cannot
operate bank accounts. Therefore defendants
rightly wrote letters to the bank to recognize them
as authorized signatories. Thus seen, the
defendant no.1 and 2 are entitled to manage the
Trust and therefore the trial court has rightly come
to conclusion to reject the applications filed by the
plaintiff.
11. From the rival contentions, the
undisputed facts that can be noticed are that Sri.
K.Sathyanarayana was co-opted as a trustee, and
that he too was a signatory to the second
supplementary trust deed which came into
existence on 28.09.2011. The dispute is with
regard to third supplementary trust deed dated
23.11.2021. The plaintiff has clearly stated the
reason for a suit under section 92 of CPC being :: 17 ::
filed for appointment of trustees. The trial court
has held that the suit is defective because it is
filed by only one person. The fact remains that
the Principle City Civil Judge granted leave under
section 92 CPC for filing a suit. Once the leave is
granted, the court below could not have
commented that there is a defect in the suit and
could not have considered the defect in the suit as
one of the reasons for denying the temporary
injunction as prayed for in the applications.
12. Now the controversy revolves around the
defendants 1 and 2 claiming right over the Trust.
Particularly first defendant claims to be the
successor of Sri. Rishi Prabhakar. He and his
mother i.e., the second defendant claim authority
over the Trust on the basis of a legal successor
certificate issued by the court at Aurangabad. The
first defendant and the second defendant being the
son and wife of Sri. Rishi Prabhakar respectively :: 18 ::
may claim to be legal heirs or legal successors, it
is different altogether; but when it comes to
management of the Trust and appointment of
trustees, only the terms of the Trust deed should
be looked into.
13. It cannot be disputed that the second
supplementary trust deed states very clearly that
the appointment of trustees is for life time unless
the Founder Sri. Rishi Prabhakar or his successor
decides to change any of the trustees. The trouble
started only after the death of Sri. Rishi
Prabhakar. If the third supplementary deed dated
23.11.2021 is read, it becomes very clear that the
first and second defendants claim right to
reconstitute a Trust on the basis of legal successor
certificate issued by the court. This third
supplementary trust deed does not contain a
recital that Sri. Rishi Prabhakar appointed the first
defendant as his successor when he was alive. If :: 19 ::
at all the first defendant can claim to be
successor, there must be a document showing that
he was appointed by Sri. Rishi Prabhakar as his
successor. No such document is forth coming.
Even in the third supplementary trust deed it is
not stated that Sri. Rishi Prabhakar appointed the
first defendant. Only on the basis of some
ceremony held on 19.10.2018 as evidenced by
document R.5, first defendant claims that he
became the successor of Sri. Rishi Prabhakar.
Document R.5 shows that first defendant was
given spiritual initiation, it does not indicate that
the other trustees, by virtue of this initiation
acknowledged him to be the successor. Document
R.4 shows that Sri. Rishi Prabhakar expressed an
opinion that his son Sri. Siddhanth had possessed
all the qualities to tread in the spiritual path and
that he did not need anybody's approval to own
RSVK in spirit. This mail was sent by Sri. Rishi
Prabhakar to Manoj Lekhi, probably his disciple.
:: 20 ::
This is not sufficient and whether this mail
communication can be accepted as a valid
document for recognizing the first defendant as
the successor is a matter of trial. No importance
can be given to this document now.
14. According to the defendants Sri. K.
Sathyanarayan might have been discharged of
trusteeship. In view of the discussion made
above, the right of the defendants to remove Sri.
K. Sathynarayana from the Trust is again a matter
of trial.
15. The Trust has already instituted a suit
and leave has been granted by the court. Of
course, as has been observed by the trial court,
the suit is not filed by atleast two persons having
interest in the Trust and in that view there may be
some formal defect. But leave has been granted
which is not questioned. In the said suit itself the
Trust could have impleaded the defendants of the :: 21 ::
present suit and made applications for temporary
injunction. But the separate suit is also
maintainable because according to the plaintiffs,
the defendants are strangers to the Trust and if
they started interfering with the affairs of the
Trust, temporary injunction against them can be
sought. The facts discussed above clearly disclose
that the plaintiff has made out a prima facie case.
Since the defendants appear to be strangers,
convenience lies in granting injunction in favour of
the plaintiff and if strangers start interfering with
the affairs of the Trust, it will result in injury to
the plaintiff. Therefore I am of the opinion that
the plaintiff being the appellant has convinced me
that the trial court has not properly exercised its
discretion in deciding the applications for
temporary injunction. For these reasons, appeals
deserve to be allowed and hence the following:
:: 22 ::
ORDER
Appeals are allowed. Order dated 14.02.2022
on application I.A.1 and 2 filed in
O.S.No.398/2022 on the file of LXI Addl. City Civil
Court, Bengaluru, are set aside. I.As.1 and 2 are
allowed and temporary injunction as prayed for in
the applications are granted. There is no order as
to costs.
Sd/-
JUDGE
sd
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