Madras High Court
M/S.Miot Hospitals Educational ... vs Nil on 18 October, 2022
CRP.No.2759 of 2022
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 18.10.2022
CORAM:
THE HONOURABLE MR.JUSTICE S.SOUNTHAR
CRP.No.2759 of 2022
M/s.MIOT Hospitals Educational Trust
Being represented by its Trustee
Dr.Barry Joseph Micheal. D.Rosario
Having Office at No.4/112,
Mount-Poonamallee Road,
Manapakkam, Chennai-600 089. ... Petitioner
Vs.
Nil ... Respondent
Prayer: Civil Revision Petition is filed under Article 227 of the
Constitution of India, the judgment and decree order dated 11.08.2022
passed by the learned trial Court in Trust O.P.No.13 of 2022 before the
District Sessions Court No.II, Kancheepuram, be set aside.
1/10
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CRP.No.2759 of 2022
For Petitioner : Mr.A.K.Sriram
for Mr.S.P.Siva Pradosh
ORDER
This Civil Revision Petition is filed, challenging the order
passed by the Court below dismissing the petition filed by the revision
petitioner under Sections 34 & 37 Indian Trust Act, seeking permission
of the Court to sell the un-utilized property of the Trust described in the
schedule to the petition.
2. Not being satisfied with the reasoning and information
furnished by the petitioner in its petition seeking permission to sell the
unutilized excess land, the Court below has dismissed the original
petition. Aggrieved by the same, the petitioner Trust is before this Court.
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CRP.No.2759 of 2022
3. The learned counsel for the petitioner submitted that the
objectives of the Trust was mentioned in the Trust deed produced by the
petitioner as Ex.P1 and hence, the reasoning given by the Court below
that the petitioner failed to state the objectives of the Trust is erroneous.
4. The learned counsel for the petitioner further submitted
that the reasoning given by the Court below that the petitioner failed to
put forth the necessity to sell the Trust property and the purpose for
which, the properties were sought to be sold and the details of the
applications of the sale proceeds etc., are also erroneous.
5. In the light of the fact that the objectives of the Trust was
already spelt out in the Trust deed and the sale proceeds obtained from
sale of the Trust property would be applied in respect of any one of the
numerous objectives enumerated in the Trust deed.
6. Further, the learned counsel for the petitioner submitted
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CRP.No.2759 of 2022
that even in cases were Indian Trust Act is not strictly applicable to the
Private Trust, nevertheless the principles of Section 34 of the Indian
Trust Act, are made applicable to the Private Religious and Charitable
Trust and for the said proposition he relied on the judgment of AIR 1975
Cal 67 (In the matter of Dhanalal Karnawat and another).
7. Further, the learned counsel for the petitioner submitted
that as per the Trust deed produced as Ex.P1, the trustees of the
petitioner's Trust have got power to alienate the Trust properties. But
however, it is always open to them file a petition under Section 34 of the
Indian Trust Act, seeking necessary advise, direction in the matters
concerning the management and administration of the Trust property. In
this regard, the learned counsel for the petitioner further relied on the
judgment of the Mysore High Court in the case of In re D.V.Gundappa
and others Vs. In re D.V.Gundapppa reported in AIR 1951 Mys 6.
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CRP.No.2759 of 2022
8. Further, the learned counsel for the petitioner taking me to
the Full Bench decision of Sind High Court reported in AIR 1945 Sind
81, submitted that Section 34 of the Trust Act, is for the benefit and
protection of the Trustee. When the Court gives a direction under the
said Section, the Trustees are under the obligation to obey the same.
9. Finally, the learned counsel for the petitioner submitted
that in any event if this Court comes to the conclusion that the materials
placed by the petitioner before the Court below for seeking permission
of the Court to alienate the Trust property are in sufficient the petitioner
may be given an opportunity to lead further evidence and for that
purpose the matter may be remanded back to the file of the Court below.
10. I have considered the submissions made by the learned
counsel for the petitioner and perused the typed set of papers. In the
petition filed by the petitioner seeking permission of this Court to permit
the petitioner Trust to sell its unutilized excess land, the petitioner had
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CRP.No.2759 of 2022
stated that the land which was sought to be sold had been kept
unutlitized from the date of purchase and the same needs to be utilized
towards the objectives of the Trust. To meet the above said purpose, the
Trust passed a resolution. The petitioner further averred in the petition
that the Trust passed a resolution for selling the unutilized surplus land
and based on the resolution, the petition had been filed seeking
permission of this Court to sell the property.
11. When a Trust files an application under Section 34 of the
Indian Trust Act, it has to be specifically averred how the sale of the
property will benefit the Trust and the averments should also contain
details with regard to the objectives of the Trust towards which sale
proceeds will be applied. In the case on hand, the petitioner has not
specifically averred how the sale of the Trust property would benefit the
Trust. It is also not mentioned what is the market value of the property
sought to be sold and whether the consideration mentioned in the
agreement represents the correct market value and the same is beneficial
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CRP.No.2759 of 2022
to the Trust.
12. The reading of the trust deed would suggest that the
petitioner's Trust has got numerous objectives. It is not mentioned in the
petition filed by the petitioner's Trust that with regard to advancement of
which object the sale proceeds are likely to be applied. In the absence of
the material details regarding the value of the property and the
application of the sale proceeds towards object of the Trust and
beneficial nature of the sale to the Trust etc., the Court below is not
expected to give advise / directions as per Section 34 of the Indian Trust
Act.
13. In view of the request made by the learned counsel for
the petitioner that the matter may be sent back to the Court below to
offer an opportunity to the petitioner to substantiate the need for selling
the Trust property to the benefit of the Trust and to achieve the object of
the Trust, it would be appropriate to remand the matter back to the file of
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CRP.No.2759 of 2022
the Court below to decide the original petition afresh in the light of the
better affidavit and additional evidence to be let in by the petitioner.
14. In view of the above, I am inclined to set aside the
impugned order and remand the matter back to the file of the Court
below with the following directions. Accordingly, the impugned order is
set aside and the matter is remained back to the file of the Court below.
The petitioner is at liberty to file a better affidavit mentioning the need
for sale of the Trust property, the benefit for the Trust by sale of
property, the details with regard to the fact, how the sale proceeds will be
applied to achieve the objectives of the Trust etc. The petitioner is also at
liberty to lead additional evidence. Thereafter, on consideration of the
materials available on record, the Court below is directed to pass order
within a period of four weeks from the date of receipt of a copy of this
order.
15. With the above directions, this Civil Revision Petition is
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CRP.No.2759 of 2022
disposed of. No costs.
18.10.2022
Index : Yes / No
Internet : Yes / No
dna
To
The District Sessions Court No.II, Kancheepuram.
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CRP.No.2759 of 2022
S.SOUNTHAR , J.
dna
CRP.No.2759 of 2022
18.10.2022
https://www.mhc.tn.gov.in/judis
