M/S. Dhanraj Trust vs The Branch Manager
2025 Latest Caselaw 5742 Ker

Kerala High Court

M/S. Dhanraj Trust vs The Branch Manager on 19 August, 2025

Author: N.Nagaresh

Bench: N.Nagaresh

                                              2025:KER:61388

         IN THE HIGH COURT OF KERALA AT ERNAKULAM

                         PRESENT

           THE HONOURABLE MR.JUSTICE N.NAGARESH

 TUESDAY, THE 19TH DAY OF AUGUST 2025 / 28TH SRAVANA, 1947

                 WP(C) NO. 37660 OF 2024

PETITIONERS:

    1    M/S.DHANRAJ TRUST,
         P.O. CHOVVA, KANNUR,
         REP BY ITS MANAGING TRUSTEE,
         P.K.MAHIMA, AGED 55 YEARS,
         D/O LATE P.K.HARIDAS, MAHIMA BHAVAN,
         THAZHE CHOVVA, P.O.,
         KANNUR, PIN - 670018

    2    P.K. SAJANLAL,
         AGED 57 YEARS,
         AGED 57 YEARS, S/O LATE HARIDAS P.K.,
         SAJAN HOUSE, NEAR CHOVVA TEMPLE,
         MELE CHOVVA, P.O., KANNUR, PIN - 670006

    3    P.K.MAHIMA,
         AGED 55 YEARS,
         D/O LATE HARIDAS P.K., MAHIMA BHAVAN,
         THAZHE CHOVVA, P.O., KANNUR, PIN - 670018

    4    MANGALA P.K.,
         AGED 53 YEARS,
         D/O LATE HARIDAS P.K., SHEELA HOSPITAL,
         117 EAST POWER HOUSE ROAD, COIMBATORE,
         TAMIL NADU, PIN - 641012

    5    P.K. JAYANTHILAL,
         AGED 51 YEARS,
         S/O LATE HARIDAS P.K.,
         DHANARAJ,
         NEAR BPL TOWER, P.O., MELE CHOVVA,
         KANNUR, PIN - 670006
                                              2025:KER:61388
W.P.(C) No.37660/2024
                             :2:

    6      C.K. MALATHI,
           AGED 79 YEARS,
           W/O. LATE P.K. HARIDAS, HARIDAS HOUSE,
           NEAR CHOVVA SHIVA TEMPLE , P.O.,
           CHOVVA, KANNUR, PIN - 670006

           BY ADVS.
           SRI.ABDUL RAOOF PALLIPATH
           SHRI.E.MOHAMMED SHAFI
           SRI.PRAJIT RATNAKARAN
           SMT.KRISHNAPRIYA R.

RESPONDENTS:



    1      THE BRANCH MANAGER,
           STATE BANK OF INDIA MELECHOVVA BRANCH,
           JYOTHIS NIVAS COMPLEX,
           MELECHOVVA, KANNUR, PIN - 670006

    2      REGIONAL MANAGER,
           STATE BANK OF INDIA
           BANK RAOD, KANNUR, PIN - 670001

    3      P.K.JEEVAN LAL,
           S/O. LATE P.K. HARIDAS,
           HARIDAS HOUSE, NEAR CHOVVA SHIVA TEMPLE,
           P.O. CHOVVA, KANNUR, PIN - 670006

           BY ADVS.
           SRI.M.R.ANISON
           SRI.SIDHARTH P. SASI
           SRI.T.S.BHARATH KRISHNA


     THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD
ON 03.07.2025, THE COURT ON 19.08.2025 DELIVERED THE
FOLLOWING:
                                                                 2025:KER:61388
W.P.(C) No.37660/2024
                                      :3:




                           N. NAGARESH, J.

          `````````````````````````````````````````````````````````````
                      W.P.(C) No.37660 of 2024

          `````````````````````````````````````````````````````````````
              Dated this the 19th day of August, 2025


                            JUDGMENT

~~~~~~~~~

The 1st petitioner is a family Trust.

Petitioners 2 to 6 and the 3rd respondent are members of the

Trust. The Trust was constituted by late P.K. Haridas. The

Trust deed stipulates that the seniormost Trustee shall serve

as the Managing Trustee. The petitioners are before this

Court seeking to declare that petitioners 3 and 5 are entitled to

operate SB account No.67260865073 with the 1st respondent-

Bank for and on behalf of the 1st petitioner-Trust.

2025:KER:61388

2. The petitioners state that after the death of

Haridas, the 6th petitioner, who is the wife of Haridas, became

the Managing Trustee. On 16.11.2015, she resigned from the

post and the 3rd respondent, the seniormost Trustee became

the next Managing Trustee. As the 3 rd respondent was acting

against the interest of the Trust, he was removed from the

post of Managing Trustee. The 2nd petitioner, who is the next

seniormost member, should have been the next Managing

Trustee.

3. The 2nd petitioner expressed his inability to

continue as Trustee and submitted his resignation.

Thereafter, the 3rd respondent became the Managing Trustee

as per the majority decision. The Trust authorised petitioners

3 and 5 to manage the accounts with the 1st respondent-Bank

jointly as per Ext.P2 Minutes. Thereafter, a request was

submitted to the 1st respondent-Bank to allow the 3rd

respondent to operate the Bank account. The 1st respondent 2025:KER:61388

refused the request.

4. A complaint CC No.240/2020 was filed in the

Consumer Disputes Redressal Commission, Kannur against

the respondents. The CDRC allowed the complaint as per

Ext.P3. However, the State Commission, in Appeal

No.75/2023, stayed the operation of Ext.P3. Subsequently,

the appeal was allowed in favour of the respondents as per

Ext.P7.

5. The petitioners state that statutory dues are

payable by the Trust to Government authorities and the JFCM,

Kannur has issued Ext.P4 summons, for non-payment of

property tax. Ext.P5 revenue recovery demand has also been

served on the petitioners. 50% of the income of the Trust is to

be divided among the Trustees through the Bank accounts.

Since the Bank account is not operated, some of the Trustees

are finding it difficult to pull on their life.

2025:KER:61388

6. The petitioners state that more than ₹1.25

Crore is lying in the account without being able to use for any

fruitful purpose. The petitioners are disabled from even

settling statutory dues. Respondents 1 and 2 are therefore

compellable to permit petitioners 3 and 5 to operate the Bank

account on behalf of the Trust in the light of the provisions

contained in the Bye-laws and Minutes of the Trust.

7. The 1st respondent resisted the writ petition.

The 1st respondent stated that to their knowledge, there were

three civil suits, OS No.24/2016, OS No.61/2020 and OS

No.234/2020, filed by the Trustees claiming their respective

rights, including the right to operate the Bank account. The

Trustees have also approached the Consumer Disputes

Redressal Commission.

8. OS No.24/2016 filed by the 6th petitioner in

the Munsiff's Court was decreed on 29.03.2019. AS

No.61/2019 filed by the 3rd petitioner against the said judgment 2025:KER:61388

was allowed by the Sub Court, Kannur as per judgment dated

12.02.2020. RSA No.597/2020 filed against the judgment of

the Sub Court, Kannur has been dismissed as not pressed as

per Ext.P10 judgment.

9. The 3rd respondent had filed OS No.61/2020

in the Munsiff's Court, Kannur, which was dismissed on

17.10.2024 as per Ext.P13 judgment. Petitioners 1 to 5 have

filed OS No.234/2020 seeking for a declaration that the 3 rd

petitioner has the right and authority to operate all Bank

accounts. Petitioners 1 and 2 are parties to the said OS. In

the circumstances, unless the civil disputes between the

Trustees are settled, the Bank cannot permit any of the parties

to operate the Bank account.

10. The 3rd respondent also resisted the writ

petition. The 3rd respondent submitted that the legality of

appointment of the Managing Trustee of Trust is still under

consideration of civil courts. Therefore, a declaration 2025:KER:61388

permitting the operation of Bank account is not legally

permissible. The writ petition is not maintainable.

11. I have heard the learned counsel for the

petitioner, the learned Standing Counsel representing the 1st

respondent and the learned counsel appearing for the 3rd

respondent.

12. The petitioners, who are Trustees of a Family

Trust, seek direction from this Court for permission to operate

the Bank accounts of the Trust. The petitioners would urge

that the meeting of the Trust has authorised respondents 3

and 5 to operate the Bank account. It is stated that

₹1,07,29,645.33 is the balance amount in the account of the

Trust as on 02.09.2020. But, due to the stand of the Bank, the

petitioners are not able to pay even statutory dues.

13. But, the fact remains that the disputes

between the Trustees as regards management and operation

of Bank account of the Trust is pending consideration before 2025:KER:61388

competent court of law. In the circumstances, if any of the

Trustee is permitted to operate the Bank account before

settling the disputes between the Trustees, that may give rise

to future liability upon the Bank. It is for that reason that the

Bank has not permitted any of the Trustees to operate the

Bank account. The Bank is justified in their action.

Therefore, the reliefs sought for in the writ

petition cannot be granted. The writ petition is, however,

disposed of directing that if any of the parties to the Suit files

interlocutory application for operation of the Bank account or

for permission for withdrawal and payment of statutory dues,

in Appeal No.4/2025 pending before the Sub Court, Kannur,

the said Court shall consider such interlocutory application and

take appropriate decision in accordance with law.

Sd/-

N. NAGARESH, JUDGE aks/14.08.2025 2025:KER:61388

APPENDIX OF WP(C) 37660/2024

PETITIONER'S EXHIBITS:

Exhibit P1 A TRUE COPY OF THE TRUST DEED DATED 03.11.2012 EXECUTED BY THE PETITIONERS FAMILY Exhibit P2 A TRUE COPY OF THE MINUTES OF THE MEETING OF THE TRUST DATED 24.01.2019 Exhibit P3 A TRUE COPY OF THE ORDER IN CC NO.240/2020 DATED 27.10.2020 OF CONSUMER DISPUTE REDRESSAL FORUM, KANNUR Exhibit P4 A SUMMONS ISSUED TO THE 3RD PETITIONER BY THE JFCM, KANNUR IN STC NO.595/2023 DATED 15.05.2023 Exhibit P5 A REVENUE RECOVERY DEMAND NOTICE ISSUED BY THE CHIRAKKAL GRAMA PANCHAYATH DATED 09.03.2023 Exhibit P6 A TRUE COPY OF THE ORDER IN OP(C) NO.2263/2023 BEFORE THE HON'BLE HIGH COURT OF KERALA DATED 25.10.2023 Exhibit P7 A TRUE COPY OF THE ORDER IN APPEAL 75/2023 DATED 28.11.2023 Exhibit P8 A TRUE COPY OF THE NOTICE DATED 19.01.2024 Exhibit P9 A TRUE COPY OF THE REPLY DATED 7.2.2024 Exhibit P10 A TRUE COPY OF THE JUDGMENT IN RSA NO.

597/2020 DATED 12.9.2024 Exhibit P11 A TRUE COPY OF THE NOTICE DATED 24.9.2024 Exhibit P12 TRUE COPY OF ACKNOWLEDGMENT CARD Exhibit P13 A TRUE COPY OF THE JUDGMENT DATED 17.10.2024 IN OS 61/2020 OF THE MUNSIFF COURT KANNUR

RESPONDENT'S EXHIBITS:

EXHIBIT R1(a) TRUE COPY OF THE JUDGMENT DATED 2025:KER:61388

12.04.2024 IN CMA NO.4/2021 PASSED BY THE HON'BLE SUB COURT, KANNUR. EXHIBIT R1(b) TRUE COPY OF THE JUDGMENT DATED 12.04.2024 IN CMA NO.22/2022 PASSED BY THE HON'BLE SUB COURT, KANNUR. EXHIBIT R1(c) TRUE COPY OF THE REPRESENTATION DATED 06.11.2024 SUBMITTED BY THE 3RD RESPONDENT BEFORE THE BANK.

PETITIONER'S EXHIBITS:

Exhibit P14 A TRUE COPY OF THE CASE STATUS DATED

18.03.2025 RESPONDENTS' EXHIBITS:

Exhibit R3(a) A TRUE COPY OF THE JUDGMENT DATED 18.07.2016 IN O.S.NO.493/2014 ON THE FILES OF MUNSIFF COURT, KANNUR Exhibit R3(b) A TRUE COPY OF THE JUDGMENT DATED 17.10.24 IN OS NO.61/2020 ON THE FILES OF MUNSIFF COURT, KANNUR Exhibit R3(c) A TRUE COPY OF THE MEMORANDUM OF APPEAL IN A.S.NO.4/2025 PENDING BEFORE THE COURT OF SUBORDINATE JUDGE, KANNUR Exhibit R3(d) A TRUE COPY OF THE NOTICE 19.06.2019 TO THIS RESPONDENT, AS THE MANAGING TRUSTEE OF THE TRUST FROM THE OFFICE OF THE ASSISTANT COMMISSIONER OF CENTRAL TAX, KANNUR Exhibit R3(e) A TRUE COPY OF THE NOTICE 03.07.2019 TO THIS RESPONDENT, AS THE MANAGING TRUSTEE OF THE TRUST FROM THE OFFICE OF THE ASSISTANT COMMISSIONER OF CENTRAL TAX, KANNUR.