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  • Section 3 of the Indian Trusts Act (No. II of 1882)
  • Indian Trusts Act (II of 1882)
  • provisions of Sub-section (1)
  • Indian Trusts Act
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Citation Codes
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citation codes
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  • Section 3 of the Indian Trusts Act (No. II of 1882)
  • Indian Trusts Act (II of 1882)
  • provisions of Sub-section (1)
  • Indian Trusts Act
Smart Summary

Factual and Procedural Background

The plaintiff alleged that in 1934 one Seth Chhatrapal constructed a temple near Naka Chandrabadni Road, Lashkar, installed the idol of Shri Radhakrishanji, and endowed certain residential apartments and shops to provide income for the temple's maintenance and the performance of Seva/Pooja. Seth Chhatrapal, who had no issue, executed a will on 26-1-1944 and a subsequent instrument on 3-8-1945 appointing five trustees, including the plaintiff's next friend Lallomal, defendant No.1 Pooranchand and co-defendant Bharosilal. The plaintiff claimed the temple and the property were Debuttar (a religious endowment) and that defendant No.1 had begun to use temple income for personal purposes several months before the suit; the plaintiff therefore sought a declaration that the property belongs to the idol (Debuttar) and is not the defendant's private property.

Defendant No.1 Pooranchand alone contested the suit (the co-defendant remained ex parte), asserting that the property belonged to him as private property. The trial Court (Third Additional District Judge, Gwalior) recorded evidence and decreed the suit in favour of the plaintiff. The defendant appealed. On appeal the defendant's counsel urged two preliminary points which the appellate Court considered dispositive and therefore the Court did not address the merits.

Legal Issues Presented

  1. Whether the trial Court failed to determine the nature of the trust (i.e., whether the temple and its endowment are a public trust or a private trust), a determination which the appellate Court considered central to maintainability.
  2. Whether a suit for declaration only, without a prayer for possession, is maintainable (raised by the defendant as a challenge to the suit's form of relief).
  3. Whether Section 32 of the M.P. Public Trust Act, 1951 (which bars courts from hearing or deciding suits enforcing rights on behalf of an unregistered public trust) operates to bar the present suit if the Debuttar is found to be a public trust and has not been registered.

Arguments of the Parties

Defendant-Appellant's Arguments

  • The defendant's principal substantive defence at trial was that the property belonged to him as private property and was not Debuttar property.
  • On appeal the defendant contended the trial Court did not determine whether the endowment was a public or private trust; according to the defendant this omission was crucial and obviated consideration of merits.
  • The defendant also argued that a suit seeking only a declaration, without a relief for possession, is not maintainable.

Plaintiff-Respondent's Arguments

  • The plaintiff's counsel argued that the question whether the trust is public or private does not arise because the suit is by the idol (a juristic person) through a next friend for a declaration that the property belongs to the idol and not to the defendant.
  • In support of the claim that an idol can sue as a juristic person the plaintiff relied on authorities cited as AIR 1067 SC 1044 and AIR 1973 Mys 280.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Deoki Nandan v. Murlidhar, AIR 1957 SC 133 An endowment in favour of an idol or temple can be validly created without performance of particular ceremonies; absence of ceremonial proof is not conclusive against endowment. The Court relied on this principle to hold that the dedication alleged in 1945, if proved by writing and other evidence, could constitute a valid religious endowment (trust), supporting the conclusion that a Debuttar trust came into existence in this case.
Bhagwan Din v. Gir Har Saroop, 44 Cal WN 294 (AIR 1940 PC 7) Recognized that a temple originally private may become public over time, but also illustrated factors (family treatment, exclusion of public use, receipts kept in private names, etc.) indicating a private foundation that precludes inferring a public trust. The Court cited this decision to explain the complex, fact-specific inquiry required to decide whether a temple is public or private and to demonstrate that indicia of publicness are not conclusive; used to justify remanding the question for determination by the trial Court based on evidence and user.
AIR 1067 SC 1044 (authority cited by plaintiff) The opinion relied on this authority for the proposition that an idol or deity is a juristic person and can sue through a next friend (as one of several authorities supporting that proposition). The Court acknowledged the settled law that an idol can be a juristic person and sue through a next friend but held that this proposition did not resolve the distinct question whether the endowment is a public or private trust and whether Section 32 bars the suit.
AIR 1973 Mys 280 (authority cited by plaintiff) Relied on by the plaintiff along with other authorities in support of the juristic-person principle for idols. Used by the plaintiff to support the argument that the idol can sue; the appellate Court accepted the juristic-person principle as settled but proceeded to address the separate issue of the character of the trust and the applicability of Section 32.

Court's Reasoning and Analysis

The appellate Court confined its consideration to the preliminary points raised by the defendant and concluded these points could dispose of the appeal without addressing merits. The Court proceeded through the following analytical steps, based strictly on the material in the opinion:

  1. Recognition of the juristic-person principle: The Court accepted (as established by authorities) that an idol or deity can be a juristic person and may sue through a next friend; however, it identified the present issue as different — the character of the trust (public or private) and the possible bar under Section 32 of the M.P. Public Trust Act, 1951.
  2. Statutory bar examined: The Court quoted Section 32 of the M.P. Public Trust Act, 1951, which provides that no suit to enforce a right on behalf of an unregistered public trust shall be heard or decided by any Court, and that sub-section (1) applies to claims, set-offs or other proceedings to enforce rights on behalf of such public trust.
  3. Characterization of the endowment as a trust: Applying the definition of "trust" from Section 3 of the Indian Trusts Act, 1882 (adopted for use under the Public Trust Act), and relying on Deoki Nandan, the Court observed that dedication of property for religious purposes (such as installing an idol and dedicating land for its maintenance) is a religious endowment and therefore a trust. The Court noted the plaintiff's own notice (Ex. P-13) admitted the existence of trustees and that property had been dedicated to the temple, which supported a finding that a Debuttar trust existed.
  4. Need to determine public vs private character: Given that a Debuttar trust may be either public or private, the Court concluded the trial Court should have determined whether the trust was public or private. That determination must be based on the terms of documents and legitimate inferences from evidence, with special regard to facts such as actual user and public repute. The Court cited authorities (including Bhagwan Din) and commentary to emphasize that the inquiry is fact-specific and sometimes difficult.
  5. Consequences if trust is public and unregistered: The Court held that if, after proper determination, the trust is found to be a public trust and unregistered, Section 32 operates as a bar to the trial Court hearing or deciding the suit. In that event the trial Court must stay proceedings and direct the plaintiff to obtain registration, and only thereafter proceed in accordance with law following decision by the Registrar.
  6. Disposition of other preliminary point deferred: The Court declined to decide the separate contention regarding maintainability of a declaration-only suit without possession, leaving that point open for the parties to press before the trial Court when appropriate.
  7. Remand for further proceedings: Because the trial Court did not address the key question of whether the trust was public or private and instead focused on the juristic-person issue, the appellate Court found error and remanded the case with instructions to restore the suit to its original number and dispose of it according to the directions given (determine character of trust; if public and unregistered, require registration before proceeding).

Holding and Implications

Holding: The appeal was partly allowed: the trial Court's judgment and decree were set aside and the case was remanded to the trial Court with directions to determine whether the Debuttar is a public or private trust, and if found to be a public trust and unregistered, to stay proceedings and direct registration under the M.P. Public Trust Act before proceeding.

Immediate implications for the parties:

  • The decree previously granted by the trial Court in favour of the plaintiff is set aside.
  • The trial Court must now determine on the evidence whether the endowment is a public or private trust. If it finds a public trust that is not registered, it must stay hearing and direct the plaintiff to obtain registration under the Act and then proceed in accordance with law.
  • The separate contention about maintainability of a declaration-only suit without possession was left open for further contest at trial; the appellate Court did not decide that point.
  • The parties were directed to bear their own costs in the appeal.

Broader precedent: The opinion applies and interprets existing authorities and statutory provisions but does not purport to lay down a new legal principle; it remands for fact-specific determination of whether the trust is public or private and for compliance with the statutory registration requirement where applicable.

    Pooranchand v. The Idol Shri Radhakrishnaji, And Another

    2. The plaintiff's case, as set out in the plaint, is that one Seth Chhatrapal constructed a temple near Naka Chandrabadni Road, Lashkar, and installed in it the idol of Shri Radhakrishanji in the year 1934. It is further alleged that for the maintenance and upkeep of the temple some residential apartments and shops were also constructed near it so that the expenses for the 'Seva Pooja' of the idol may be defrayed from their income. It was stated that the temple is Debuttar and the property in question is Debuttar property. The plaintiff further alleges, that Seth Chhatrapal had no issue and, therefore, he executed a will on 26-1-1944, whereby he bequeathed his property to Pooranchand, defendant No. 1, grandson of his brother Gappulal. By a subsequent will dated 3-8-1945, Seth Chhatrapal appointed five trustees for management of the said temple, among whom were also Lallomal the next friend of the plaintiff, and the defendant No. 1, Pooranchand as well as Bharosilal, co-defendant. The plaintiff's case is that after the death of Seth Chhatrapal, defendant No. 1 Pooranchand had been managing the affairs of the temple on behalf of all the trustees. But, since four to six months before the filing of the suit, it is alleged by the plaintiff, the defendant No. 1 Pooranchand had begun acting adversely to the interest of the idol inasmuch as he had started using the income of the property belonging to the temple for his personal purposes. The plaintiff, therefore, filed the present suit for declaration that the temple is Debuttar property and the defendant is not the owner of the same,

    3. The suit was resisted by defendant No. 1 Pooranchand alone, as the other defendant Bharosilal remained ex parte. The main defence of the defendant No. 1 Pooranchand (who will hereinafter be referred to as 'defendant'), was that the property belonged to him and was not Debuttar property.

    4. After recording the evidence produced by the parties, the learned Third Additional District Judge, Gwalior decreed the suit, as stated above. Hence, this appeal by the defendant.

    5. At the very outset, learned counsel for the defendant-appellant has urged two points which, according to him, go to the root of the matter and obviate the necessity of examining the case on merits. His first contention is that the learned Additional District Judge has not determined the nature of the trust, viz., whether the temple in question is a public trust or a private trust, and (2) that the suit for declaration only without relief of possession is not maintainable.

    6. We have heard learned counsel for the parties on the aforesaid two points and since we felt that the appeal can be disposed of on these points, we have not addressed ourselves to the merits of the case.

    7. Mr. B. D. Gupta, learned counsel for the plaintiff-respondent, has strenuously urged that the question whether the subject-matter of the suit is a public trust or a private trust does not at all arise inasmuch as it is a suit, pure and simple, by the idol installed in the temple for declaration that the property belongs to the idol and not to the defendant and the defendant is wrongly treating the property in question as his private property. In support of his contention, he has relied on AIR 1067 SC 1044 and AIR 1973 Mys 280.

    8. In our opinion, the proposition, that an idol or deity is a juristic person and can sue as such admits of no doubt, as it has been established by a series of authorities that an idol as a juristic person, can sue through a next friend. The question here, however, is different. The point canvassed before us is whether the temple in question is a public trust and, if so, is there a bar to hear and decide the suit, as the public trust has not been registered under the M. P. Public Trust Act, 1951 (which will hereinafter be called the 'Act')?

    9. Section 32 of the Act reads as under:--

    32. Bar to hear or decide suits:-- (1) No suit to enforce a right on behalf of a public trust which has not been registered under this Act shall be heard or decided in any Court, (2) The provisions of Sub-section (1) shall apply to a claim or set-off or other proceeding to enforce a right on behalf of such public trust.

    10. It is clear to us that dedication of the property for religious purposes, such as establishment and worship of an I idol, is a religious endowment, and in the present case, it is alleged to have been created by a writing made by the creator of the trust, viz., Seth Chhatrapal. in 1945. If the dedication is held to have been proved, there is no doubt in our minds that it is an endowment and, consequently, a trust.

    11. 'Trust' has been defined in Section 3 of the Indian Trusts Act (No. II of 1882) as follows:

    "3. Interpretation clause. 'Trust' is an obligation annexed to the ownership of property, and arising out of confidence reposed, in and accepted by the owner, or declared and acceptetd by him, for the benefit of another, or of another and the owner."

    The word 'trust' has not been defined in the Act, but by virtue of a direction contained in Section 2 (1) of the Act words and expressions used but not defined in the Act and defined in the Indian Trusts Act (II of 1882) may be adopted for the purposes of the Act. Accordingly, the definition of 'trust' given in the Indian Trusts Act (II of 1882)' may be taken to be the definition for the purposes of the Act.

    12. In Deoki Nandan v. Murlidhar, AIR 1957 SC 133 their Lordships observed:--

    "It is a settled law that an endowment can validly be created in favour of an idol or temple without the performance of any particular ceremonies, provided the settlor has clearly and unambiguously expressed his intention in that behalf. Where it is proved that ceremonies were performed, that would be valuable evidence of endowment, but, absence of such proof would not be conclusive against it."

    13. Now, in the present case, it would not be out of place to refer to the notice (Ex. P-13) produced by the plaintiff himself. This notice was. admittedly, issued by the plaintiff Lallomal to the defendant Pooranchand. It is specifically mentioned therein by Lallomal that he and Pooranchand along with Bharosilal had been appointed trustees of 'Gopalji ka temple' and it was necessary that the account of the trust should be audited and the property belonging to it be verified and checked. It is again the admitted case of the parties that an idol was installed in the temple and certain property including the property in dispute was permanently endowed to it. Consequently, a trust in legal sense or religi-

    ous endowment known as 'Debuttar' came into existence.

    14. In Deoki Nandan's case (AIR 1957 SC 133) (supra) it was further observed that according to the texts, the Gods have no beneficial enjoyment of the properties, and they can be described as their owners only in a figurative sense and the true purpose of a gift of properties to the idol is not to confer any benefit on God, but to acquire spiritual benefit by providing opportunities and facilities for those who desire to worship. Their Lordships further held that the true beneficiaries of religious endowments are not the idols but the worshippers, and that the purpose of the endowment is the maintenance of that worship for the benefit of the worshippers. Our conclusion, therefore, is that the endowment made by Seth Chhatrapal in the present case for the maintenance of worship of the idol was a trust and, consequently, it was necessary for the trial Court to determine whether it was a public or a private trust.

    15. Learned counsel for the respondent has strenuously urged that the defendant had never come forward with a plea that the endowment in question was public trust and, therefore, he is not entitled to raise the objection regarding bar to the maintainability of the suit under Section 32 of the Act at this stage. We may point out that in the additional pleas (para 1) the defendant has submitted that the plaintiff has not specified in the plaint whether the De-buttar and the property belonging to it is a public trust or a private trust, though the defendant has at the same time taken the plea that the property in question is his private property. In our opinion, it was necessary for the trial Court to have called upon the plaintiff to give further and better particulars on this point. Even if the plaintiff did not choose to do so, it was necessary for the trial Court to determine whether the Debuttar in the present case was a public trust or a private trust. We may also point out even at the risk of repetition that at more than one place the plaintiff has alleged in the plaint that the property in question is Debuttar (e. g., para 8). Again in the relief clause it has been prayed that the property be declared as Debuttar and it be held that it is not the private property of the defendant. We have also referred earlier to the notice (Ex. P. 13) wherein the plaintiff Lallo-

    mal has specifically stated that the property in question was dedicated for the upkeep of the temple and, as such, is a trust.

    16. In this state of pleadings, it cannot be said that the point had not cropped up at all before the trial Court. In the operative part of the judgment the trial Court has held that the deity installed in the temple is a juristic person. It appears to us that this was not the point in dispute at all. In case of Debut-tar, a trust may be public or private and, therefore, the point for decision in the case was whether the trust is public or private, and this point has to be decided with reference to terms of documents, if any, and upon inferences which could be legitimately drawn from the evidence adduced in the case, the material evidenc'e being of actual user and public repute.

    17. As observed by B. K. Mukherjea in his Book on 'Hindu Law of Religious and Charitable Trusts', the question whether the trust is public or private at times becomes undoubtedly difficult, and although certain indicia of a public foundation have been enunciated in several decided authorities, yet none of them can be regarded as conclusive. He has observed that this question generally arises in regard to temples. It was held by the Privy Council in Bhagwan Din v. Gir Har Saroop, 44 Cal WN 294: (AIR 1940 PC 7) that it is possible that a temple which was a priate one at its inception might be so dealt with, that in course of years it might become a public temple. In that case, the temple had grown but the family had always treated it as private property, without any interference by the public, dividing the various forms of profit, whether offerings or rents, letting out portions of lands in their own names, closing the temple to the public when necessary for family purposes and erecting samadhies on the land in honour of the dead. Having regard to these circumstances, particularly to the fact that the original grant was in favour of an individual, it was held by the Priviy Council that no public trust could be inferred.

    18. We shall not endeavour to determine at this stage whether the temple in the present case is a public or private trust. But we are firmly of the opinion that the trial Court should have first determined whether the trust was a public or private trust and in case it came to a finding that it was a public trust, then it should have decided the defendant's objection whether Section 32 of the Act operated as a bar to the maintainability of the suit unless the trust was registered. We are further of opinion that it must do so now. In case it comes to the conclusion that it is public trust and Section 32 applies, then it must stay its hands and direct the plaintiff to get the trust registered, and then, proceed with the suit in accordance with law after decision by the Registrar.

    19. In view of our decision on the first point, we do not consider it necessary to dispose of the second point regarding absence of relief of possession and leave it open to the parties to agitate the same before the lower Court, as and when advised.

    20. In the result, we partly allow this appeal, set aside the judgment and decree by the trial Court and remand the case to the trial Court with a direction to restore the suit to its original number and dispose it of on the lines indicated above. In the circumstances, we leave the parties to bear their own costs.

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    Pooranchand v. The Idol Shri Radhakrishnaji, And Another
    (Mar 27, 1978)