Full Judgment Text
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PETITIONER:
SHEIKH ABDUL KAYUM
Vs.
RESPONDENT:
MULLA ALIBHAI
DATE OF JUDGMENT:
17/08/1962
BENCH:
GUPTA, K.C. DAS
BENCH:
GUPTA, K.C. DAS
GAJENDRAGADKAR, P.B.
CITATION:
1963 AIR 309 1963 SCR (3) 623
CITATOR INFO :
RF 1976 SC1476 (1)
ACT:
Trust-Properties vested in trustees-Trustees creating new
body-Entrustment of magement and properties to new body-
Legality of-Abdication and delegation by trustees-If and
when permissible.
HEADNOTE:
In 1909 six persons created the Burhanpur Trust for
governing, managing and administering the affairs of a
school in Burhanpur. Under the Trust deed 18 persons were
appointed as the trustees and all movable and immovable
properties connected with the school were vested in them.
Clause 5 of the Trust deed empowered the trustees "to
appoint new trustees from time to time" and to frame rules
and regulations for the benefit and efficient running of the
school. In 1917 the Hakimia Society was formed by the
trustees for the purpose of running the school and 12
persons were named members of the governing council in which
all the properties of the school were vested. Since then
ten members of the governing council have been administering
the properties in respect of which a trust was created in
1909. A suit under s.92 Code of Civil Procedure was filed
for removal of the ten members of the governing council,
inter alia, on the ground the Hakimia Society and the ten
members of the governing council had not been validly
appointed trustees of the trust properties.
Held, that the ten members of the governing council of the
Hakimia Society were not validity appointed trustees of the
Trust properties and were liable to be removed from the
management thereof, The trustees of the Burhanpur Trust had
no power to create another body of men as trustees in their
own place. Trustees who have once entered upon the trust
cannot renounce their duties and liabilities except with the
permission of the Court or with the consent of the
beneficiaries or by the authority of the trust deed itself.
Nor can trustees delegate their offices or any of their
functions except in some specified cases. In the present
case there was delegation of all the powers and functions of
the trustees amounting to abdication in favour of a new body
of men. The trustees sought to divest themselves of the
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properties vested in them by the trust deed and to vest them
in the
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new body. Such abdication could not be permitted. There
was nothing in. the trust deed which allowed such an
abdication and substitution of trustees., The provision in
cl. 5 for appointment of new trustees only permitted the old
trustees to add to their number. Nor did the power to frame
rules and regulations authorise the trustees to give up the
management of the school themselves or to divest them.
selves of the properties entrusted to them by the trust deed
and vest them in other persons.
JUDGMENT:
CIVIL APPELLATE JURISDICTION: Civil Appeals Nos. 466 and 407
of 1960.
Appeals by special leave ’from the judgment and decree dated
October 30, 1956, of the former Nagpur High Court (Now
Madhya Pradesh’ in F. A. Nos. 79 and 95 of 1949.
C. K. Daphtary, Solicitor general of India, J. B.
Dadachanji, O. C. Mathur and Ravinder Narain, for the
appellants (in C. A. No. 406/60) and Respondent Nos, 12 and
14 to 17 (in C.A. No. 407/60).
C. K. Daphtary, Solicitor General of India, J.B.
Dadachanji, Rameshwar Nath, S. N. Andley and P.L. Vohra, for
the appellants (in C. A. No. 407/60) and respondent Nos. 1
to 3 (in C. A. No. 406/60).
B. Sen and I. N. Shroff, for respondent Nos. 5 and 6 (in
C. A. No. 406/60) and Respondent Nos. 1 and 2 (in C. A. No.
407 of 60).
1962. August 17. The Judgment of the Court was delivered
by
DAS GUPTA, J.-This unfortunate litigation over a school
which was started sixty years ago is one of the unhappy
consequences of a feud that raised its ugly head in the
Daudi Bohra Community many years ago. The school was
started at Burhanpur by certain members of the Daudi Bohra
Community of Burhanpur in the year 1902. It was named
Madrasai Faize Hakimia and its object was to
625
impart religious and secular education to boys of the Daudi
Bohra Community. Funds were collected for the purpose of
the school from the members of that community for the
maintenance of the school. In the year 1908 English classes
were added to the school and in 1911 it was raised to the
status of a High School under the name "Madrasai Hakimia and
Coronation High School". Some time before this on May 24,
1909 one Daudi Bohra of Surat of the name of Abdul Hussain-
Abdullali Faizullabhai Muchhala made a was of certain
properties in Bombay for the benefit and advantage of this
school at Burhanpur. For the management of this, trust he
appointed as trustees 12 gentlemen whom he mentioned as
persons who had already been appointed trustees of the
school. Only a few months after this another trust came
into existence for the benefit of the same school, by a deed
executed by six persons, all Daudi Bohras and all
belonging to Burhanpur describing themselves as managers
of the school. They created by the deed "Waqf and trust of
their properties" which were mentioned in detail in the body
of the deed. Eighty persons, including themselves were
named as the trustees. It is further stated by the
executants of the deed that all movable and immovable
properties connected with the school shall vest in these
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trustees. It is provided in the deed that the trustees hall
be entitled to govern, manage and administer the affairs of
the school and shall have the power of framing rules and
regulations from time to time for the benefit and efficient
running of the school ; and also have the power to appoint
new trustees from time to time in accordance with such rules
and regulations. These trustees managed the school and also
the properties belonging, to the school including the
properties of which waqf was made in its favour by the trust
deed of September 15, 1909 without any trouble till March
1917. In the course of such management
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some of the original trust properties were converted into
new properties by the trustees with the help of additional
donations received from members of the Daudi Bohra
Community. Trouble started in 1917 when some members of the
Community started declaring that Mullaji Taher Saifuddin
Saheb who, according to the main body of the Community was
the Dai-ul-Mutalaq was not a Dai-ul-Mutalaq. About the same
time four out of the 18 who were appointed by the trust deed
of September 15, 1909 joined three other members of the
Daudi Bohra Community of Burhanpur to form a society by the
name of "Madrasai Hakimia & Coronation Society", the main
purpose of which was to run the Hakimia & Coronation High
and Primary Schools at Burhanpur. Among other objects were
mentioned the development of branches of the school at
different places ; opening library or libraries at suitable
centres ; conducting newspaper or newspapers ; editing and
compiling and publishing books. In the Memorandum of
Association it was provided that 12 persons named therein
would form the governing body to whom the management of the
affairs of the society shall be entrusted. It was further
provided that properties of each and every description
acquired for or given to Madrasai Hakimia & Coronation High
School shall be vested in this governing body. The 10
persons who have been impleaded as defendants 2 to 11 ,ire
members of the governing, body of the Society. From the
time they assumed the management of the Madrasai Hakimia &
Coronation High School as members of the Society they have
been administering the properties of which waqf was made in
favour of the school by the six gentlemen who executed the
trust deed of September 15, 1909.
The suit out of which these appeals have arisen was started
under s.92 of the Code of Civil Procedure
627
by 4 Daudi Bohra muslims who claimed to be interested in the
trust properties set out in the Schedule to the plaint as
members of the Daudi Bohra Community. Their main contention
in the plaint is that the first defendant, the Hakimia
Society and the 10 defendants, defendants Nos. 2 to 11 were
not validly appointed trustees in respect of these trust
properties. They prayed in this suit for a declaration that
these defendants are not vaildly appointed trustees ; for
their removal from the management of these properties and
for an order on them to render accounts on their
administration of these properties. There was also a prayer
for the appointment of proper and fit persons for the
management of these properties in accordance with the
provisions of the trust deed of September 15, 1909, and for
the framing of a scheme for the administration of the trust-
to which we shall latter refer as the Burhanpur Trust-if it
was necessary. The ground on which the plaint claimed that
these defendants were not validly appointed trustees was
that they had not been appointed as such in accordance with
the terms and conditions of the trust deed of September 15,
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1909. According to the plaint, whatever entrustment took
place by the constitution of the Hakimia Society was invalid
in law as the persons who got this registered as the Hakimia
Society had no right in law to vest these properties in the
Society or the members of the governing body of that
Society.
As further ground for removal of these defendants from the
management of these properties the plaint set out a number
of acts said to have been committed by them which it was
alleged amounted to a breach of trust. One such act was the
defendants’ action in throwing open the Madrasai Hakimia &
Coronation High School to students other than the Daudi
Bohra Community.
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The trustees of the trust created by Mr. Muchhala were
impleaded as defendants 12 to r7. No relief was however
asked for against defendants 12 to 17.
The main defences of defendants 1 to 11 were that they had
been validly appointed trustees of the properties mentioned
in the plaint under the trust deed. of September 1909 in
accordance with the rules framed under the trust deed. They
claimed that the properties of the institution vested in
them and continued to remain vested after the registration
of the Society. The allegation of breach of trust was
denied. In that connection it was pleaded that the
admission of non-Bohra students did not amount to a breach
of trust. A large number of issues were framed; but it
would be unnecessary to consider most of these for the
decision of’ these appeals. The principal question in
controversy was whether defendants 1 to 11 were validly
appointed trustees of the properties claimed as trust
properties in the plaint. The second question was as
regards the allegation of breach of trust. The first
question was embodied in Issue No. 9 thus : "Are defendants
2 to 11 duly appointed trustees under the trust deed dated
15-9-1909 ?" The Trial Court answered this question in the
affirmative. Relying on the provisions of Para. 6 of the
trust deed (of September 1909) for the framing of rules and
regulations for management of the school and properties
connected with the school, the Court held that the persons
who were already trustees under the trust-deed "had the
power by a resolution" passed by the majority of the
trustees at their meeting to (i) appoint new trustees,. (ii)
to appoint a charge of the trust properties, (iii) to get
the body registered and, (iv) to frame rules and regulations
such as were embodied in the Memorandum of, Association of
the Hakimia Society. It pointed out
629
that a majority of the trustees present at a meeting had
passed a resolution regarding registration of the society
and regarding the rules and regulations embodied in the
Memorandum of Association. This .registration in the
opinion of the Court and the’ formation of the Committee of
its management for the registered society was "one’ of the
acts done by the trustees in the course of the managements
’and was in fact an act to secure more efficient management
of the trust property and the trustees had the power to do
it. The Court further held that while it was true that the
property which existed at the time the resolution to
register the society was passed was then vested in the
trustees then existing, there was nothing to prevent those
trustees "’who under the Ex. P-3 had the power to frame
rules and regulations for the management of the school and
the properties connected with it, from providing for the
vesting of the property in the members of the governing body
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by a rule framed by them at a meeting of the trustees held
according to the terms of Ex. P-3." According to the Court
"the trustees had the power to vest the existing property in
a governing body consisting of only some of them by a
resolution passed at a meeting of trustees." Accordingly the
Court held that defendants 2. to II who were members of the
governing body of the Hakimia Society must be held to be
validly appointed trustees according to the terms of the
trust deed of September 15, 1909, Ex. P-3 in respect of all
the properties endowed for the benefit of the school with
the exception of Muchhala trust property.
The question of breach of trust by defendants 2 to 11. was
embodied in Issue No. 6 in these words "(a) Did the
governing body of the School use the trust properties
(mentioned in the plaintiffs’ list M) or any income
therefrom for fighting out litigation in 1925 (C. S. No. 32
of 1925)?
630
(b) Did they misappropriate the trust property or income
therefrom?
(c) Was the litigation for the benefit of the school"’?
Another part of the allegation of breach of trust finds
place in Issue No. 11 (c) thus : "Is the admission of the
students who do not belong to the Daudi Bohra Community
inconsistent with the object of the trust"? The Trial Court
answered questions 6 (a) and (e) in the negative i.e., it
found that the governing body did use trust properties or
income therefrom for fighting out litigation in C. S. No. 32
of 1925 and that the litigation was not for the benefit of
the school. Yet the Court answered Issue No. 6 (c) in the
negative, finding that such expenditure did not amount to
misappropriation. The basis of this last finding is that
though some part of the trust fund was misapplied in
meetings part of the expenses of litigation which was not
for the benefit of the school the defendants 2 to 11
believed, though wrongly, that by this litigation they would
be safeguarding the rights of boys who were receiving
education in the school and so the litigation was in the
interests of the institution.
The Trial Court refused to make a declaration that
defendants 1 to 11 were not validly appointed or for their
removal. It however gave a decree for the removal of
defendants 12 to 72 to 17, the trustees of the Muchhala
Trust. Defendants 12 to 17 were further ordered to deposit
into the Court the amount collected by them from the
Muchhala trust property and were forbidden to recover any
income from that property after the date of the decree.
The defendants 2 to 11 were ordered to deposit the sum of
Rs. 15,596-5-8 which they were found to have misapplied. It
was ordered that if this amount was not paid by them they
shall be removed and a:
631
scheme would be framed and a now trustee would be appointed
to take charge of and manage the Madrasai Hakimia &
Coronation High School and the properties endowed for its
benefit. A Commissioner was directed to be appointed to
ascertain the amount paid by the managers of the Muchhala
trust property to the trustees defendents 12 to 17 and to
determine the amount in the hands of these defendants. The
same Commissioner was also directed to determine the amount
spent by defendants 2 to 11 on religious education in
accordance with the directions of the trust deed. The
amount was found due to be paid to defendants 2 to 11 to be
then deposited, by them in a recognised bank for the benefit
to the school.
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Against this decree of the Trial Court the plaintiffs
preferred an appeal to the High Court of Judicature at
Nagpur. Another appeal was preferred by defendants 12 to 17
against the Trial-Court’s judgment in so far as it directed
their removal and gave other reliefs against them.
Defendants 1,2,4,5, 9 and 10 filed cross-objections in which
they challenged the correctness of the Trial Court’s finding
that there had been misapplication of the trust fund to the
extent of Rs. 15,596-5-8 and Rs.900/-. The High Court
dismissed both the appeals as also the cross-objections and
affirmed the decision of the Trial Court in full.
Against the High Court’s decision two appeals have been
filed before this Court-- one by the plaintiffs and the
other by defendants 12, and 14 to 17 by special leave
granted by this Court.
The appeal by defendants 12, and 14 to 17 can be easily
disposed of. Their contention is that the Trial Court as
also the High Court erred in granting a decree against them
when the plaintiffs in the suit had not asked for any such
relief. In our
632
opinion, this contention must be accepted as correct. While
it is true that these five appellants, Sheikh Abdul Kayum,
Seth Abdulabhai, Mulla Abdulla Bhai, Mulla Mohammed, Bhai
and Seth Hasanali along with Sheikh Fida Ali were impleaded
as defendants no relief was sought against them nor was any
averments made for that purpose. The prayers in para. 26
asked for a declaration that "defendants"’ are not validly
appointed trustees, that ."’defendants" maybe removed from
the management of the properties and that the ’defendants"
may be ordered to render an account of their administration
of the trust properties. In para. 20 also the word
"defendants" was used without any qualification when it was
said that it was absolutely necessary in the interest of the
said trust that the "defendants" are not properly appointed
trustees of the said trust and that the "defendants" are
trustees de sontort.
But when the plaint is read as a whole, especially the
statements in para. 19 it becomes quite clear that the
plaintiffs in the present suit are seeking relief only
against defendant, 1, Hakimia Society and the defendants
Nos. 2 and 11, the members of the Society. The averments on
which the case that defendants are not validly appointed
trustees and are trustees de sontort are made. in respect
only of these 11 defendants. The allegations of breach of
trust are also made only against these defendants.
Paragraph 10 puts the matter in clear perspective in these
words : "The plaintiffs say that defendant No. 1 and
defendants- 2 to 11 who are the present members of defendant
No.1 Society are liable’ to be removed on the following
grounds." This statement is followed by.an enumeration of
six grounds all of which clearly and unmistakably refer only
to these 11 defendants. Common sense and ordinary rules of
grammar therefore compel us to read the words "defendants"
633
in Paras 20 and 26 to mean only defendants Nos. 1 to 11.
We have no doubt therefore that the courts below misdirected
themselves in thinking that the plaintiffs had asked for any
relief as against defendants 12 to 17.
It was stated before us that the Muchhala trust was outside
the jurisdiction of the Trial Court and’ that even if any
relief had been asked for against defendants 12 to 17 the
Trial Court would not have been competent in law to give
such relief. It is unnecessary for us to consider that
aspect of the matter as it is abundantly clear that the
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plaintiffs did not ask for any relief against defendants 12
to 17 and for that reason alone the courts below acted
illegally in passing any decree as against those defendants.
In the two appeals filed respectively by the plaintiffs and
defendants 12, and 14 to 17 the appellants are represented
by the learned Solicitor-General and it is conceded by him
for the plaintiffs that the plaint did not claim any relief
against defts. 12 to 17.
The appeal No. 406 of 1960 which is by the original
defendants 12 & 14 to 17 must therefore be allowed.
The appeal which has been numbered as 407 of 1960 is by the
four plaintiffs. The first contention raised on their
behalf by the learned Solicitor- Genera) is that the
original trustees of the Burhanpur trust had no power in law
to divest themselves of the property vested in them by the
trust deed or to vest these properties in any society or its
governing body, even though the society or the governing
body might include some or all of the old trustees. In the
present case it was contended in the plaint and urged before
us on behalf of the appellants that the evidence would show
that all the old trustees had not joined in the act of
634
formation of the Hakimia Society and transfering the
property vested in them to the society or its members.
Assuming, however, for the purpose of the present question
that what was done should be deemed in law to be the act. of
the entire old body of the trustees, even so, the learned
Counsel argues, the act had no legal validity and did not
produce in law the consequence of constituting the Hakimia
Society or its members trustees in place of the old
trustees. In our judgment, this contention must succeed.
There cannot, in our opinion, be any doubt about the
correctness of the legal position that trustees cannot
transfer their duties, functions and powers to some other
body of men and create them trustees in their own place
unless this is clearly permitted by the trust deed, or
agreed to by the entire body of beneficiaries. A person who
is appointed a trustee is not bound to accept the trust, but
having once entered upon the trust he cannot renounce the
duties and liabilities except with the permission of the
Court or with the consent of the beneficiaries or by the
authority of the trust deed itself. Nor can a trustee
delegate his office or any of his functions except in some
specified cases, The rules against renunciation of the trust
by a trustee and against delegation of his functions by a
trustee are embodied, in respect of trusts to which the
Indian Trusts Act applies, in sa. 46 and 47 of that Act.
These sections run thus
"46, A trustee who has accepted the trust can-
not afterwards renonce it except (a) with the
permission of a principal Civil Court of
Original Jurisdiction, or(b) if the
beneficiary is competent to contract, with his
consent, or (c) by virtue of a special power
in the instrument of trust.
635
47. A trustee cannot delegate his office or-
any of his duties either to a co-trustee or to
a stranger, unless (a) the instrument of trust
so provides, or(b) the delegation is in the
regular course of business, or (c) the
delegation is necessary, or (d) the
beneficiary, being competent to contract,
consents to the delegation."
It is true that s. I of the Indian Trusts Act makes
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provisions of the Act inapplicable to public or private
religious or charitable endowments; and so, these sections
may not in terms apply to the trust now in question. These
sections however embody nothing more or less than the
principles which have been applied to all trusts in all
countries. The principle of the rule against delegation
with which we are concerned in the present case, is clear; a
fiduciary relationship having been created, it is against
the interests of society in general that such relationship
should be allowed to be terminated unlilaterally. That is
why the law does not permit delegation by a trustee of his
functions, except in cases of necessity or with the consent
of the beneficiary or the authority of the trust deed
itself; apart from delegation "in the regular course of
business", that is, all such functions which a prudent man
of business would ordinarily delegate in connection with his
own affairs.
What we have got in the present case is not delegation of
some functions only, but delegation of all functions and of
all powers and is nothing short of abdication in favour of a
new body of men. Necessarily there is also the attempt by
the old trustees to divest themselves of all properties
vested in them by the settlor and vesting them in another
body of persons. We know of no principle of law and of no
authority which permits such abdication of trust in favour
of another body of persons.
636
In the deed itself there is no thing which contemplates or
allows such an abdication and the substitution of the old
trustees by a new body of trustees. It is necessary in this
connection to consider the terms of cl.5 of the trust deed,
That clause is in these words:-
"5. All the aforesaid trustees 3hall be
entitled to govern, manage and administer the
affairs of the school above. These trustees
shall have the power of framing rules and
regulations from time to time for the benefit
and the efficient running of the school, and
they shall have the power to appoint new
trustees from time to time in accordance with
the rules and regulations on behalf hereof.
All the movable and immovable properties
connected with the said school shall come to
vest in the trustees and they shall be managed
and administered in accordance with the rules
and regulations framed on that behalf. The
trustees for the time being shall have the
power to alter and cancel the rules and
regulations and to frame new ones instead
thereof at the time when necessary. The
treasurer shall have the power to open the
cash account in some reliable bank and he
shall always arrange for cash dealings to the
benefit of the said school in accordance with
the holy law of Islam. (Shariat)."
The provisions for the appointment of new trustees cannot by
any stretch of imagination be hold to mean the substitution
of the old body of trustees by a new body. That provision
only permits the old trustees to add to their number. Nor
does the power to frame rules and regulations for the
benefit and efficient running of the school authorise the
trustees to give up the management of the school themselves
or to divest themselves of the
637
properties entrusted to them by the trust deed and vest them
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in other persons. We are satisfied therefore that cl.5 of
the trust deed does not in any manner authorise the trustees
appointed by deed to abdicat in favour of anthor body of
persons or to constitute that body as trustees in their own
place.
There is no question here also of the beneficiary, i.e., the
school consenting to such abdication. There is therefore no
escape from the conclusion that the act of the trustees, who
were appointed by the trust deed, in handing over the
management of the school to the Hakimia Society and the
properties of the school to the members of the governing
body of the Hakima Society was illegal and void in law. The
members of the Society or the members of the governing body
did not therefore be. come trustees in respect of the
properties which are covered by the Burbanpur trust.
This position in law is not seriously disputed by Mr. Son,
who appeared before us on behalf of the respondents. He has
however taken before us a noval line for suporting the
decision of the courts below. He has tried to persuade us
that the trust deed of September 1909 creates a trust only
in respect of the properties that belonged to the six
persons who executed the trust deed. These properties have
been set out in cls. 7 to 12 of the deed. This deed
therefore has not created any trust in respect of such of
the properties mentioned in the plaint which do not fall
within the properties mentioned in these clauses of the
trust deed. As regards cl.5 of the trust deed which has
been set out above and which states that "’All the movable
and immovable properties connected with the said school
shall come to vest in the trustees," the learned Counsel
states that the six settlors who executed this trust deed of
September 1909 have not been shown to have bad any title to
these
638
movable and immovable properties connected with the school.
The school, argues the learned Counsel, is merely a
beneficiary of the trust and the properties of the school do
not become trust properties entrusted to these trustees
merely because the settlors have createated a trust in
respect of other properties. There is no question therefore
of any property-other than the properties mentioned in
Paras. 7 to 12 of the deed-having been vested in the
trustees appointed by the deed, or their divesting
themselves of the same. It is only in so far as the
defendants 1 to 11 claim to be the trustees of the
properties mentioned in cls. 7 to 12 of this deed that they
can be considered to be not validly appointed trustees. Mr.
Sen submits that his clients do not claim to be trustees in
respect of these properties, viz., those which are mentioned
in cls. 7 to 12 of the deed. In so far as they manage these
properties an order, may be made against them removing them
from the management of these and they may be asked to render
accounts in respect of these properties, only. In respect
of other properties which according to Mr. Sen are the
properties belongining to the beneficiary school, however,
no order could properly be made, as they are outside the
Burhanpur trust that came into existence by the trust deed
of September 1909.
The argument appears attractive at first sight and even
plausible. Unfortunately, however, for the respondents,
this case which their Counsel now seeks to make was never
their case in the courts below. Far from saying that some
of the properties mentioned in the plaint as trust
properties of the Burhanpur trust are not in fact covered by
the trust deed, these respondents have all along made the
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definite case that they were validly appointed trustees of
those properties in accordance with the trust deed of
September, 1909. Their case in this matter may
639
best be described in the words used in Para. 4 of the
written statement thus
"It is admitted that on or about 19th March,
1917, seven persons signed a memorandum of
Association and registered themselves as
members of the Society under Act XXI of 1860.
Defendant says that all these persons were the
trustees and in the management of be trust
properties under trust deed dated 15-9-1909
and were either appointed under that trust or
under the rules framed thereunder, and in whom
the properties of the institution vested and
the same continued to be vested after the
registration of the Society."
This paragraph unambiguously accepts the plaintiffs’ case
that all the properties specified in the Schedule M attached
to the plaint are properties covered by the trust in
question and it pleads that defendants 2 to’ 11 are validly
appointed trustees of the said trust. The Judgment of the
Trial Court and the High Court also clearly show that before
them, these defendants claimed to be trustees-validly
appointed in accordance with the trust deed of September
1909-of all the properties that were mentioned as trust
properties of that deed in the plaint. Nothing appears to
have been pleaded either in the written statement or at the
trial or during the arguments that the settlors of this deed
of September 1909 could not create a trust in respect of
"all the movable and immovable properties connected with the
said school", as those properties’-did not belong to them.
On the contrary. the respondents claimed all along to have
become trustees in respect of. not only of the properties
mentioned in cls. 7 to 12 of the deed but also of all other
properties of the school, on the strength of this very trust
deed, Mr. Sen’s
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contention that some items of the properties mentioned in
the plaint as trust properties covered by the trust deed of
September 15, 1909 were not so covered cannot therefore be
accepted,
We find it established therefore that defendants 1 to 11
were not validly appointed trustees in respect of the trust
properties mentioned in the plaint. Their possession and
management of these properties must therefore be held to be
only in the character of trustee de sontort. They are
liable there-fore to account for their entire period of
management.
From the very fact that they have no legal right to remain
in possession of the trust properties, not having been
validly appointed as trustees, it is equally clear that the
plaintiffs are entitled to a decree that those defendants 1
to 11 be removed from the management of the properties.
The learned Solicitor-General challenged the correctness of
the findings of the courts below that these defendants
(defendants 1 to 11 ) did not by their misapplication of
trust funds to the extent of Rs. 15,596-5-8 and Rs. 9001-
commit misappropriation and also that the admission of
students who did not belong to the Daudi Bohra Community was
not inconsistent with the object of the trust, We think it
unnecessary however to consider these matters inasmuch as
even if these findings of the courts below are correct the
plaintiffs are entitled to the reliefs they have asked for
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in this suit. Besides the amount of Rs. 15,000/-and odd has
been already paid by defendants 2 to 11 under the decree of
the Trial Courts. It is necessary to mention the fact that
an assurance was given to by the learned Solicitor-General
that in any case the interest of the non-Bohra students will
be safeguarded in this school.
Accordingly, we allow the appeal and order that it be
declared that the defendants 1 to 11 are
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not validly appointed trustees in respect of the trust
properties mentioned in the list M annexed to the plaint ;
that the defendants be removed from the management of these
properties and they be ordered to render an account of their
administration of these properties. Necessary directions
for the rendering of accounts will be made by the Trial
Court and in doing so, credit will be given to defendants 2
to 11 of Rs. 15,000/and odd already paid by them. The
plaintiffs-appellants admit that it is not necessary to
frame any scheme for the administration of the trust and we
agree that this is not necessary-at least for the present.
It is necessary however that new trustees be appointed for
the administration of the trust. of the original 18
trustees all except one are dead and sole survivor is
admittedly too old to carry on the administration
successfully. The very fact that for many year’s he has not
discharged any functions as a trustee also makes it
necessary that new trustees should be appointed. We
therefore direct that suitable persons be appointed by the
Trial Court as new trustees after giving an opportunity to
the plaintiffs and other responsible members of the Daudi
Bohra Community to place their recomendations and objections
in this matter.
Both the appeals are accordingly allowed, The Plaintiffs
will get their costs here and also in the Trial Court and
the High Court from defendants 1 to 11. There will be one
set of hearing fee for the two appeals.
Appeals allowed.
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