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  • Code of Civil Procedure (Amendment) Act, 1976 (104 of 1976) Section 92(1)
  • 1965 Andh Pra 143.(iv) Section 92(1)
  • Amendment Act Section 104
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Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
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  • Code of Civil Procedure (Amendment) Act, 1976 (104 of 1976) Section 92(1)
  • 1965 Andh Pra 143.(iv) Section 92(1)
  • Amendment Act Section 104
Smart Summary

Structured Summary of the Opinion — Balagangadharan Nair, J.

Factual and Procedural Background

This matter arises from O.S. No. 4 of 1981 before the 2nd Additional District Judge, Ernakulam, concerning the administration of St. John's Orthodox Syrian Church, Paravur Kara, Manakkunnam. Two plaintiffs sued to remove the first defendant from management and defendants 1 to 15 from office, and to convene a General Body meeting to elect new trustees, seeking reliefs appropriate under Section 92(1) of the Civil Procedure Code. The plaintiffs claimed that the Executive Committee elected in 1974 (for a one-year term) continued in office without fresh election after 1975; defendants 1 (Kaikaran) and 2 (Vicar and Secretary) were custodians of the Church's properties.

On April 8, 1981 the suit was instituted and the plaintiffs filed I.A. No. 469 of 1981 seeking the Court's leave as required by the amended S. 92(1). The Court passed an order described as “Interim leave and notice” on April 9, 1981. The plaintiffs also filed I.A. No. 626 of 1981 seeking appointment of a receiver to administer church properties and convene a General Body meeting to elect a new Committee, and I.A. No. 1010 of 1981 seeking attachment of properties of the 1st defendant before judgment. I.A. No. 469 was heard and granted on December 7, 1981; on that same day the Court allowed I.A. Nos. 627 (appointment of receiver) and 1010 (attachment) — these two orders are the subject of the appeals: C.M.A. No. 301 of 1981 (by defendants 1–3 and 7–14) and C.M.A. No. 22 of 1982 (by defendant 1).

Legal Issues Presented

  1. Whether the plaintiffs' proceedings were incompetent and the trial court lacked jurisdiction because leave under S. 92(1) was not obtained prior to instituting the suit (including whether an "interim leave" granted on April 9, 1981 could cure non-compliance).
  2. Whether the trial court was correct in appointing a receiver to administer the Church's properties and in directing the receiver to convene a meeting of parishioners for election of a new Committee.
  3. Whether the trial court was justified in directing attachment of the first defendant's properties before judgment given prima facie material of liability to account and alleged negligence.

Arguments of the Parties

Appellants' Arguments (Defendants)

  • The proceedings were incompetent and the court lacked jurisdiction because the plaintiffs had not obtained leave under S. 92(1) prior to instituting the suit; contemporaneous leave was lacking.
  • The order of April 9, 1981 described as "interim leave" was ineffective because S. 92(1) contemplates only a grant or refusal of leave, not provisional or interim leave; consequently, interim relief in the suit before final leave was impermissible.
  • On merits, the appellants also challenged the orders appointing a receiver and allowing attachment, arguing against those substantive reliefs (the opinion records that the appellants attacked the orders on the merits, but does not spell out detailed merit arguments in the text).

The opinion does not set out a detailed, itemized account of the plaintiffs' legal arguments beyond the fact that they sought leave, appointment of a receiver and attachment as recorded in their applications.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Mayer Simon v. Advocate-General, 1975 Ker LT 78 : AIR 1975 Ker 57 (Full Bench) Explained the scope of S. 92(1) when consent of the Advocate-General was required; held the Advocate-General must be satisfied of a prima facie case of breach of trust or necessity for court directions and consider applicants' interest, solvency, motives and public interest; emphasised that the Advocate-General's function is objective but not judicial/quasi-judicial. The Court held that the principles which guided the Advocate-General under the prior provision should guide the Court in granting leave under the amended S. 92(1); used Mayer Simon as authority for the substantive criteria to be applied when granting leave.
Madappa v. Mahanthadevaru, AIR 1966 SC 878 Described the main purpose of S. 92(1): to protect public trusts from harassment by ensuring Advocate-General (formerly) satisfied there was a prima facie case of breach of trust or necessity for direction of the Court before consent to sue was given. The Court cited this passage to explain the protective object of S. 92(1) and to justify applying similar caution when the Court now grants leave under the amended provision.
S.S. Bhagat v. N.S. Ahluwalia, AIR 1978 Delhi 14 Supports that a court granting leave under provisions like S. 92(1) can do so without issuing notice to all proposed defendants (i.e., leave may be granted without hearing respondents). The Court relied on this authority to state that leave may be granted without issuing notice to the respondents-defendants in appropriate cases.
Shavax v. Masood Hosain, AIR 1965 Andh Pra 143 Also treated as authority supporting the proposition that leave may be granted without issuing notice to the trust's trustees or other respondents. Used as supporting precedent for the proposition that the Court can grant leave without hearing or giving notice to all parties when satisfied on the limited matters required by S. 92(1).
CRP No. 1286 of 1979 (Viswanatha Iyer J.), 1979 Ker LT (Notes) 116 Affirmed that leave under S. 92(1) must precede institution of suit and that the Court cannot pass interim orders in "the suit" before granting leave. The Court agreed with and applied this reasoning to hold that interim leave (as purportedly granted on April 9, 1981) was not in accordance with S. 92(1)'s requirement that leave precede institution of the suit.

Court's Reasoning and Analysis

The Court began by accepting as undisputed that the Church was a public religious and charitable trust within the meaning of S. 92 and that leave under S. 92(1) must be obtained before instituting a suit of this nature (except where the Advocate-General is the plaintiff). It then examined the legal effect of the 1976 amendment to S. 92(1) which substituted "leave of the Court" for "written consent of the Advocate-General".

The Court reasoned that because the amendment merely replaced the Advocate-General's consent by leave of the Court, the established principles governing the Advocate-General's exercise of power should guide the Court's exercise of its new power. The opinion cited the Law Commission's 54th Report and Mulla's Code of Civil Procedure to support the view that the Court, like the Advocate-General previously, must apply its mind to whether:

  • the applicants have an interest in the trust;
  • the trust falls within S. 92(1); and
  • there are prima facie grounds to think there has been a breach of trust or necessity for the Court's direction.

The Court formulated specific procedural principles for grant of leave under S. 92(1), summarized in the opinion as:

  1. The Court will be guided by judicial decisions regulating the Advocate-General's prior power.
  2. Plaintiffs should produce the plaint (and any other records the Court requires) when seeking leave so the Court can properly assess the application.
  3. The Court can grant leave without issuing notice to respondents or hearing them in appropriate cases (supported by cited authorities).
  4. S. 92(1) does not contemplate "interim leave"; it only contemplates the grant or refusal of leave.
  5. Leave must precede the institution of the suit; absent prior leave there is no valid suit and the Court cannot pass interim orders in that suit before granting leave.

Applying these principles, the Court held that the trial court was not correct in granting "interim leave" on I.A. 469 of 1981. However, the Court found that this defect did not vitiate the subsequent orders (appointment of receiver and attachment) because the order of "final leave" was passed on the same day as those orders (as disclosed by the order on I.A. 626 of 1981), curing the procedural defect.

On the merits, the Court reviewed the evidence concerning the first defendant's conduct as Kaikaran: he did not maintain accounts from the beginning (an admission on the record), had not executed a decree obtained by the Church, and gave unsatisfactory explanations. The Court characterized this as serious negligence and noted that the state of the Church's accounts for over seven years was unknown. The Court observed that no satisfactory explanation was offered by the first or second defendants for failing to convene meetings to elect office-bearers over the years.

Given the prima facie material of the first defendant's liability to account and his conduct, the Court found the appointment of a receiver (with the duty to convene a meeting to elect a new Committee and with the appointment limited until that election) and the attachment of the first defendant's properties before judgment to be justified. The Court found no reason to overturn the trial court's substantive orders.

Holding and Implications

Holding: The appeals are dismissed and the impugned orders are confirmed; dismissal is without costs.

Direct consequences for the parties:

  • The appointment of a receiver by the trial court stands; the receiver is charged with convening a meeting of parishioners to elect a new Executive Committee, and the appointment is limited until such election.
  • The order directing attachment of the first defendant's properties before judgment is sustained based on prima facie material of liability to account and negligence.

Broader implications:

The Court applied and reiterated existing principles regarding S. 92(1) (including that leave must precede institution of suit and that "interim leave" is not contemplated). The opinion did not announce a novel legal principle; it relied on earlier authorities and concluded that the later grant of final leave on the same day cured the earlier procedural defect.

Disposition as stated in the opinion: "Appeal dismissed." (orders confirmed; appeals dismissed without costs)

    P.V Mathew And Others v. K.V Thomas And Others

    Balagangadharan Nair, J.:— C.M.A No. 301 of 1981 is by defendants 1 to 3 and 7 to 14 from an order appointing a receiver and C.M.A No. 22 of 1982 is by defendant 1 from another order allowing attachment of his properties before judgment. In view of the common questions involved we propose to deal with the two appeals in a single judgment.

    2. O.S No. 4 of 1981 before the 2nd Additional District Judge, Ernakulam, out of which the appeals arise concerns the affairs of the St. John's Orthodox Syrian Church. Paravur Kara. Manakkunnam. The two plaintiffs and defendants 1 and 3 to 15 are Parishioners of the Church and the 2nd defendant is its Vicar. For the administration of the Church an Executive Committee of which defendant 1 to 15 are the members was elected by the General Body of the Parishioners in 1974 for a term of one year. The 1st defendant is the Kaikaran of the Church then elected. As Vicar the second defendant is the Secretary of the Committee. Defendants 1 and 2 as Kaikaran and Vicar are the custodians of the properties of the Church. Although the term of the Committee expired in 1975 there has been no election and the same Committee has been in office since then. The Church is admittedly a public trust of a religious and charitable nature within S. 92, Civil Procedure Code. The two plaintiffs brought the suit on April 8, 1981, to remove the first defendant from management of the Church and defendants 1 to 15 from office and to convene a meeting of the General Body for electing new trustees. They also claimed other reliefs appropriate to S. 92(1). On the same day as the institution of the suit the plaintiffs filed I.A No. 469 of 1981, seeking the Court's leave to institute the suit as required by the amended S. 92(1). On this application the Court passed an order “Interim leave and notice” on April 9, 1981. The plaintiff filed two other applications. I.A 626 of 1981 for appointing a receiver to administer the properties of the Church and to convene a meeting of the General Body for electing a new Committee and I.A 1010 of 1981 for attaching the properties of the 1st defendant. The former application was resisted by defendants 1 to 3 and 7 to 14 and the latter by defendant 1. At the hearing of these two applications, apart from challenging them on the merits the defendants objected that no interim relief could be allowed before leave to institute the suit was granted and that as there was only an order of interim leave for which there was no warrant the applications were unsustainable. On this the Court noted that I.A No. 469 of 1981 was heard and granted on December 7, 1981. The same day by two separate orders which are the subject of these appeals the Court allowed I.A Nos. 627 and 1010.

    3. Besides attacking the orders on the merits counsel for the appellants raised a threshold argument that the proceedings were incompetent and lacking in jurisdiction for non-compliance with the mandatory requirements of S. 92(1). The argument was built on the basis of even contemporaneous with the institution of the suit; leave as required by S. 92(1) had not been obtained by the plaintiffs and that the interim leave granted on April 9, 1981 could not cure this infraction and save the proceedings. Counsel urged that S. 92(1) contemplates no provisional or interim leave and that the order of April 9, 1981 by which the Court purported to grant interim leave was totally ineffective. Before considering the merits of the appeals, we shall deal with this basic objection raised by the appellants.

    4. That the Church is a public trust of a religious and charitable nature and that the reliefs claimed are those specified in S. 92(1) are undisputed. Indeed the plaint itself proceeds on that basis. It is also undisputed that leave of the Court has to be obtained by the plaintiffs for instituting a suit of this nature save where the Advocate-General happens to be the plaintiff. Before the enactment of the Code of Civil Procedure (Amendment) Act, 1976 (104 of 1976) Section 92(1) provided, so far as material, that “two or more persons having an interest in the trust and having obtained the consent in writing of the Advocate-General “may institute suit as contemplated therein. The Amendment Act deleted the words “the consent in writing of the Advocate-General” and substituted in their place the words “leave of the Court”. The Amendment was made on the basis of the 54th Report of the Law Commission which observed: “Obtaining the leave of the Advocate-general takes time, and the consideration which he takes into account can be taken into account by the Court as well. Since jurisdiction under the section is vested in the principal Civil Court of original jurisdiction, it can be expected that the discretion to grant leave under the amended section will be exercised in a responsible manner.” We may also point out that by the Amendment Act Section 104 has been amended by providing for appeals from orders under S. 91 or 92 refusing leave to institute suits of the nature mentioned in either of these sections.

    5. As the amendment only substituted the leave of the Court for the consent of the Advocate-General in S. 92(1) as the condition precedent to the institution of the suit, the principles laid down by judicial precedents on which the Advocate-General was to exercise his power should guide the Court in exercising the power of granting leave. This view finds support in the passage from the Report of the Law Commission quoted above, as also in the statement in Mulla's Code of Civil Procedure Volume-1, 14th Edition page 533, that. “These principles would, it is submitted, apply to the Court while it is called upon to grant leave”. The principles on which the Advocate-General was to act in this regard have been the subject of several decisions but we propose to refer only to Mayer Simon v. Advocate-General 1975 Ker LT 78 : (AIR 1975 Ker 57) (FB) a Full Bench decision of the Court and Madappa v. Mahanthadevaru, AIR 1966 SC 878.

    6. In AIR 1966 SC 878 the Supreme Court observed (Para 10):

    “The main purpose of S. 92(1) is to give protection to public trusts of a charitable or religious nature from being subjected to harassment by suits being filed against them. That is why it provides that suits under the section can only be filed either by the Advocate-General or two or more persons having an interest in the trust with the consent in writing of the Advocate-General. The object is that before the Advocate-General files a suit or gives his consent for filing a suit, he would satisfy himself that there is a prima facie case either of breach of trust or of the necessity for obtaining directions of the Court.”

    7. Although the main point that arose in Mayer Simon's case 1975 Ker LT 78 : (AIR 1975 Ker 57) (FB) was whether the refusal of consent by the Advocate General under S. 92 was liable to challenge under Article 226, the Full Bench examined the scope of Section 92(1) at length. The learned Chief Justice who wrote the main judgment emphasised that the Advocate-General must be satisfied that there is a prima facie case either of breach of trust, or of the necessity for obtaining the direction of the court that the applicants for leave are solvent, that they are really and substantially interested in the trust and are not actuated by impure motives and that their interests are in the interests of the public and not in the vindication of their individual or personal rights. It was laid down that although the Advocate-General was to act objectively he was not exercising any judicial or quasi-judicial powers.

    8. Mulla's Civil Procedure Code summaries the position thus at page 534 Volume 1 (14th edition).

    “Further it has also been held that the function of the Advocate-General not being a judicial one notice by him to the trust of its trustees was not obligatory and that the absence of such notice did not invalidate the consent given by him. All that was required of him at that stage was to satisfy himself that it was worthwhile to institute the suit. The mere fact that the amended section now requires leave of the Court in place of consent by the Advocate-General does not seem to change the nature of the order of leave made by the Court. In making such an order the Court, like the Advocate-General earlier, would no doubt have to apply its mind but that is only to satisfy itself whether the persons asking leave have interest in the trust, whether the trust is a public trust specified in the section and whether there are prima facie grounds for thinking that there has been a breach of the trust. At that stage the Court would not have before it all the parties to the proposed suit nor the evidence from which it would be called upon to adjudicate any issue. All that it would have to see is whether it is in the interest of the trust to file suit for which leave is sought.”

    9. With this background we might thus formulate the procedure for the grant of leave by the Court;

    (i) While exercising its power under S. 92(1) the Court will be guided by the principles laid down by judicial decisions to regulate the power of the Advocate-General under the Sub-section.

    (ii) Along with the petition for leave the plaintiffs-petitioners should produce in Court the plaint for the Court's perusal to enable it to pass a proper order under S. 92(1). This does not preclude the Court from requiring the production of any other record necessary for a proper decision.

    (iii) The Court can, if it is so satisfied, grant the leave without issuing notice to the respondents-defendants or hearing them S.S Bhagat v. N.S Ahluwalia, AIR 1978 Delhi 14 and Shavax v. Masood Hosain, AIR 1965 Andh Pra 143.

    (iv) Section 92(1) does not provide for the grant of interim leave to the plaintiffs. What it contemplates is only the grant of leave and as a corollary the refusal of leave.

    (v) On the terms of S. 92(1) the leave is to precede the institution of the suit as the relevant words are “two or more persons………having obtained the leave of the Court may institute a suit.” This means that prior to the grant of leave there could not be any valid suit with the further consequence that the Court cannot pass interim orders in “the suit” before granting the leave. We find ourselves in agreement with the decision in CRP No. 1286 of 1979 by Viswanatha Iyer J., 1979 Ker LT (Notes) 116.

    10. Applying the above principles to the instant case the court below was not right in granting interim leave on I.A 469 of 1981. However that flaw does not in the circumstances vitiate either of the orders as they were made only subsequent to the order of “final leave although passed on same day, as disclosed by the order on I.A 626 of 1981.

    11. On the merits also we find no reason to upset the orders. Although the first defendant was the Kaikaran of the Church from 1974 he has not on the evidence and on his admission, maintained any accounts from the beginning thus betraying utter irresponsibility in his duties as a trustee. His explanation is far from satisfactory and was rightly rejected by the court below. The consequence of the default is that the state of accounts of the Church for over 7 years is not even known. He had also failed to execute a decree obtained by the Church; whether he was justified in this inaction remains to be investigated but until he justifies himself it has to be viewed as serious negligence. The court has charged the receiver with the duty of convening a metting of the parishioners to elect a new Committee; indeed it has limited the appointment till the election of the new Committee. No satisfactory explanation has been put forward either by the 1st or 2nd defendant for not convening a meeting all these years to elect the office bearers. The Court below was right in granting the application and appointing a receiver. We find absolutely no reason to overturn the order.

    12. Considering the conduct of the 1st defendant and the charges against him and his liability to account, for which prima facie material exists, the Court below cannot be said to have gone wrong in directing attachment of the properties before judgment.

    13. The orders are confirmed and the appeals are dismissed but without costs.

    Appeal dismissed.

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    Comments

    P.V Mathew And Others v. K.V Thomas And Others
    (Jun 9, 1982)