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C.T.N. Narayanan Chettiar v. V.S.V. Lakshmanan Chettiar
Structured Summary of the Opinion
Factual and Procedural Background
This is an appeal by some of the defendants against a decree in favour of the plaintiffs in a suit brought by certain trustees (as Hukdars) of a temple to recover possession of temple properties. The trustees had previously made over the management of the temple to the defendants under an agreement marked Exhibit I dated 21 June 1901. Four principal questions were argued on the appeal.
At trial the plaintiffs initially pleaded that two defendants (the 9th and 10th) had lost office through neglect and were joined only because they asserted a right; that contention was abandoned at trial and a decree was passed in favour of the 9th and 10th defendants with their consent as well as in favour of the other defendants named in the plaintiffs' suit.
During trial an additional issue (the seventh issue) was permitted to be added on 11 April 1912 concerning the legality or otherwise of the agreement Exhibit I and whether special circumstances made it valid or not. The exact text of that issue (as framed in the record) is reproduced in the opinion and concerns whether the agreement was "illegal and void in law" having regard to its nature, circumstances and objects, and whether any special circumstances existed to make it valid.
Legal Issues Presented
- Whether the suit was bad for non-joinder because the plaintiffs pleaded that the 9th and 10th defendants had lost office and were joined merely as asserting a right.
- Whether the suit was barred by limitation, specifically under Article 91 of the Indian Limitation Act, because the plaintiffs did not sue within three years to set aside the transfer (Exhibit I).
- Whether the court improperly rejected evidence tendered by the defendants late in the proceedings — in particular evidence of the temple's usage or practice bearing on the validity of Exhibit I — after the seventh issue was added.
- Whether the form of the decree should allow the appellants (defendants) to recover expenses properly incurred in de facto management and to retain possession of the temple properties until reimbursed (including any equitable right to remain in possession until recouped).
Arguments of the Parties
Appellants' (Defendants') Arguments
- Relying on a pleading point, appellants argued the suit was bad for non-joinder because the plaintiffs had stated that the 9th and 10th defendants had lost office and were joined merely because they asserted a right; a precedent (Kohilasari Dasi v. Mohunt Rudranand Goswatni (1906) 5 C.L.J. 527) was cited in support.
- Appellants contended the suit was barred by limitation under Article 91 of the Indian Limitation Act because the plaintiffs had not sued within three years to set aside the transfer (Exhibit I).
- They argued that evidence as to the practice or usage of the temple should have been admissible to support Exhibit I and that the court erred in refusing to allow such evidence at the late stage when raised after close of evidence.
- Appellants asserted an entitlement to reimbursement for expenses properly incurred and to retain possession of the temple properties until reimbursed — relying on earlier appeals/decisions (A.S. No. 148 of 1910 and related materials) to show such an equitable right.
Plaintiffs' (Respondents') Position as Reflected in the Opinion
- Plaintiffs abandoned the non-joinder contention during trial, and the title of the 9th and 10th defendants as trustees was admitted at trial.
- Plaintiffs (as trustees/Hukdars) maintained that the transfer (Exhibit I) had been declared void by the High Court (referred to as Exhibit G in the opinion), and therefore there was no instrument that required being set aside under Article 91.
- Plaintiffs resisted late tender of usage evidence: the Subordinate Judge held (and the appellate court agreed) that alleged temple usage was not raised by the seventh issue and could not properly be introduced at that late stage.
- Plaintiffs opposed any order permitting defendants to keep possession of trust property merely because they had expended money while acting as de facto managers; the court accepted that trust property should be taken out of possession of persons not entitled to be trustees while provision is made for any claims for expenses.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Kohilasari Dasi v. Mohunt Rudranand Goswatni (1906) 5 C.L.J. 527 | Cited by appellants to support a non-joinder objection where a plaintiff persisted in denying joint trusteeship of a defendant. | The court held this case inapplicable because, unlike that case where the plaintiff persisted in denying joint trusteeship, here the plaintiffs abandoned the contention during trial and the defendants' title as trustees was admitted. |
| Malkarjun v. Narhari (1899) I.L.R. 25 B. 337 | Distinguished sales which are a nullity from sales which are voidable; used in discussion of limitation and whether a sale requires being set aside. | The court relied on the Judicial Committee's distinction in this decision to show that the Limitation Act applies differently to void and voidable instruments; the court used this reasoning to reject the appellants' contention that Article 91 barred the suit. |
| Sidhu Sahu v. Gopi Charan Das (1912) 17 C.L.J. 233 | Referenced as a more recent decision of the Judicial Committee relevant to the limitation questions. | The court cited this decision as part of the jurisprudential backdrop supporting its interpretation on limitation and applicability of particular articles of the Limitation Act. |
| Gnanasambanda Pandara Sannadhi v. Velu Pandaram (1899) I.L.R. 23 Mad. 271 | Cited by the appellants to support application of Article 91 (three-year period) to sales or transfers of management. | The court explained that this case was relied on by appellants but concluded it did not govern the present facts; instead the court treated Article 124 as the applicable article and held the suit was not barred. |
| A.S. No. 148 of 1910 (decision referred to by appellants) and A.S. No. 147 of 1902 | Invoked by appellants to support the proposition that a de facto trustee may retain possession until reimbursed for expenses incurred. | The court examined these appeals and concluded they did not support the appellants' proposition; on the contrary, earlier decisions had rejected the claim to retain possession until reimbursement. |
Court's Reasoning and Analysis
The court divided its analysis following the four principal points argued on appeal and applied the authorities and procedural history from the record as follows.
1. Non-joinder / status of 9th and 10th defendants: The court observed that although the plaintiffs' pleadings initially stated that the 9th and 10th defendants had lost office and were joined only because they asserted a right, that contention was abandoned during the trial. The decree had been passed in favour of those defendants with their consent and their title as trustees was admitted at trial. For that reason the precedent relied on by appellants (Kohilasari Dasi v. Mohunt Rudranand Goswatni) was held inapplicable because that precedent involved a plaintiff who persisted in denying joint trusteeship through multiple stages of appeal.
2. Limitation (Article 91) issue: The court noted the High Court had held the transfer void (referred to as Exhibit G), so there was no transfer requiring setting aside. The court emphasized the distinction—drawn from the Judicial Committee in Malkarjun v. Narhari—between instruments that are nullities and those that are voidable and valid until set aside. It reasoned that limitation provisions prescribing periods within which suits must be brought do not themselves create obligations to sue where no right to set aside exists. The court rejected the appellants' reliance on Gnanasambanda Pandara Sannadhi v. Velu Pandaram as controlling, treated Article 124 of the Indian Limitation Act as the applicable article and concluded that under that article the suit was not barred. The court indicated that the cases cited by appellants concerning sales by guardians were not applicable to the present facts.
3. Rejection of evidence / framing of additional issue (seventh issue): The court recited the procedural event that after evidence had closed and during defence arguments it was noticed no issue had been framed about the validity of Exhibit I. Leave was given to the plaintiffs to ask for a further issue on 11-4-1912; the seventh issue was then framed and its text is set out in the opinion. The court interpreted that issue as directed to whether special circumstances referred to in the recitals of Exhibit I could render an otherwise void agreement valid, not as a question about customary usage of the temple. When the defendants later sought to introduce evidence as to temple practice, the Subordinate Judge objected that such evidence should have been given earlier and did not arise on the seventh issue. The appellate court agreed: the seventh issue did not raise usage and the Subordinate Judge was justified in refusing to allow the usage-based defence at such a late stage of the proceedings.
4. Form of decree, reimbursement and right to retain possession: The decree as drawn made appellants liable to account for what might be found due but did not give them a right to recover or retain for expenses incurred. Appellants argued they should be reimbursed and allowed to retain possession until reimbursed. The court examined the decisions appellants cited (including A.S. No. 148 of 1910 and A.S. No. 147 of 1902) and found they did not support the proposition. The court referred to Section 32 of the Indian Trusts Act for the principle that a trustee is entitled to reimbursement of expenses properly incurred and that such expenses give rise to a first charge enforceable by prohibiting disposition without previous payment — but not by allowing the person not lawfully entitled to remain in possession indefinitely or by sale of the property subject to the charge. The court emphasized there was no authority requiring the Court to leave trust property in possession of a person not entitled to the character of trustee merely because money was expended while they acted as trustee. On the facts, the defendants had pleaded an express supplemental agreement entitling them to remain until recouped, which was rejected by the Subordinate Judge; having rejected that express contractual claim, the defendants in appeal sought an equitable right, which the court did not accept in full. The court nonetheless provided a limited modification: it ordered that accounts be taken between specified groups of parties so that those defendants who allege claims against the trust properties may establish them, leaving the question how any established claim should be enforced to the final decree.
Holding and Implications
Core Ruling: The appeal fails in substance and, except for a limited procedural amendment, is dismissed with costs.
Direct consequences and practical implications imposed by the court:
- The appellants are directed to give up possession of the temple properties to the plaintiffs in accordance with the preliminary decree as amended.
- The court ordered an amendment to paragraph 2 of the preliminary decree directing accounts to be taken in respect of the temple between: (a) the plaintiffs and defendants 6, 8, 9 and 10 (one group) and (b) defendants 2 to 5 and 11 to 13 (the other group). This is to enable the latter group to establish any claim they may have against the trust properties on taking of the accounts.
- It is left to the final decree to determine how any claim so established should be enforced; the judgment contemplates appropriate protection of claims for properly incurred expenses but rejects an automatic right to retain possession merely because expenses were incurred.
- Fresh evidence may be taken if the modification of the preliminary decree makes that necessary.
- No broader pronouncement was made converting de facto possession into a right to hold trust property pending reimbursement; the court made clear that public charitable trusts do not confer larger rights on de facto trustees than private trusts, referencing Section 32 of the Indian Trusts Act regarding reimbursement and the nature of the trustee's charge.
The opinion does not purport to establish a novel precedent beyond the application of established principles on limitation, the admissibility of late evidence, and the limited rights of de facto trustees; its effect is primarily to dismiss the appeal while providing a narrow procedural remedy (accounts) to enable adjudication of any legitimate claims for expenses.
1. This is an appeal by some of the defendants against a decree in favour of the plaintiffs in a suit brought by certain trustees as Hukdars of a temple to recover possession of the temple properties from the defendants (appellants) to whom the trustees had made over the management of the temple under an agreement Exhibit I, dated 21st June 1901. Four question? were argued before us. In the first place it was said that the suit is bad for non-joinder, as, though all the Hukdars including the 9th and 10th defendants were impleaded, the plaintiffs in paragraph 16 of the plaint stated that these defendants had lost the office owing to their neglect to discharge its duties, and that they were joined merely because they asserted a right to it. At the trial this contention was abandoned by the plaintiffs, and a decree was passed in favour of the 9th and 10th defendants with their consent as well as of the other defendants. In these circumstances, I do not think the decision in Kohilasari Dasi v. Mohunt Rudranand Goswatni (1906) 5 C.L.J. 527 cited for the appellants has any application. In that case the plaintiff presisted both in the Original and the Lower Appellate Courts in denying the joint trusteeship of his minor brother whom he had made defendant; and it was only after this issue had been finally decided against him, that he applied in the second appeal that a decree might be passed in favour of himself and this defendant jointly. Here the contention was abandoned during the trial and the title of the defendants 9 and 10 as trustees was admitted.
2. The second contention was that the suit was barred by limitation under article 91 of the Indian Limitation Act as the plaintiffs did not sue within three years to set aside the transfer, Exhibit I. The High Court having already held that this transfer was void, Exhibit G, and this being so, it does not require to be set aside. The Limitation Act merely prescribes within what periods suits must be brought and cannot be construed as of itself creating an obligation to sue where none existed. In Malkarjun v. Narhari (1899) I.L.R. 25 B. 337 their Lordships of the Judicial Committee clearly distinguished between sales which were a nullity and sales which were only voidable and valid until set aside. At p. 350 after pointing out that the words " to set aside an adoption " in one of the articles were incorrect as an adoption may be declared invalid but cannot be set aside, their Lordships observed that there is no such difficulty in the case of suits to " set aside a sale " in the same Act " because a sale valid until set aside can be legally and literally set aside; and anybody who desires relief inconsistent with it may and should pray to set it aside." See also Sidhu Sahu v. Gopi Charan Das (1912) 17 C.L.J. 233. This is a more recent decision of their Lordships than Gnanasambanda Pandara Sannadhi v. Velu Pandaram (1899) I.L.R. 23 Mad. 271 which is relied on by the appellants. In that case two persons Nataraja and Chockalingam shared the management of a religious endowment, and successively transferred their respective rights of management by registered instruments to a third party in 1868 and 1869, Chockalingam who was a minor being represented by his mother. In 1892 Velu the son of Nataraja sued to recover the trusteeship joining Chockalingam as defendant as he was apparently unwilling to sue. Their Lordships held that article 124 of the Indian Limitation Act was applicable and that, as the defendants had held adversely to the plaintiff's father, Nataraja, for more than twelve years the plaintiff's suit was barred. They did actually rule as contended by the appellants, that the suit was barred under article 91 of the Indian Limitation Act because Nataraja had failed to set the transfer aside in three years which is what is now contended. Adverting to the case of the defendant Chockalingam who was a minor at the date of the sale of his share, their Lordships, with a view of showing that his claim was also barred, observed that he attained majority in 1880 "and had by article 44 of the Act three years for setting aside the sale by the guardian. " Mr. K. Srinivasa Aiyangar relies on the fact that, although their Lordships might have simply said that Chockalingam had a further period of three years to sue under Section 7 " they expressly stated that he had three years under article 44 which is for suits to set aside a sale by a guardian, although the sale was one which in an earlier part of the judgment they had held to be void; and he invites us to hold on this authority, that sales which are void ab initio become valid under the provisions of the limitation act if not set aside within three years by suit. Such a view, as already pointed out, appears to be inconsistent with another part of the same judgment and to be opposed to the ruling of their Lordships in the latter case in Gnansambanda Pandara Sannadhi v. Velu Pandaram (1899) I.L.R. 25 B. 337 and we are not prepared to accept it as correctly representing what their Lordships intended to lay down. This very decision of their Lordships is express authority that article 124 is the article applicable, and under that article the suit is not barred. The other cases cited were cases of sales by guardians which were not valid and have no application to the present case.
3. The third point is as to the alleged improper rejection of evidence. It appears from the B diary that, after the evidence had been closed and during the arguments for the defence, it was observed that no issue had been framed about the validity of the agreement Exhibit I, and leave was given to the plaintiffs to ask for a further issue on 11--4--1912. This the 7th issue is as follows:
Is the agreement and arrangement mentioned in the plaint as the one under which the defendants got into possession illegal and void in law, having regard to its nature, the circumstances and the objects for which it was made and are the plaintiffs entitled, to all or any of the reliefs asked for; and if it is valid and legal under special circumstances and for special objects, are the circumstances and objects such as to make it valid and good?
4. Reading this with the pleadings and with Exhibit I the agreement in question it would appear that the question intended to be raised was whether such an agreement of this nature, even if ordinarily void, might in special circumstances be valid and, if so, whether such special circumstances existed in the present case. At the further hearing, when the defendants wanted to call evidence as to the practice of the temple the
5. Subordinate Judgeobjected, that this evidence should have been given at the trial of the other issues and that the question of usage did not arise on the seventh and other additional issues. We think the special circumstances mentioned in the issue referred to the recitals in Exhibit I as to the circumstances in which that document came into existence. It says nothing; about a usage under which Exhibit I could be supported and we think the Subordinate Judge was justified in refusing to allow a defence of this kind to be raised at this late stage of the case.
6. The fourth question relates to the form of the decree which makes the appellants liable to account for what may be found due from them but gives them no right to recover anything that may be found due to them for expenses properly incurred out of their own pockets in the course of de facto management. It is contended that they are entitled to be reimbursed and to retain possession of the temple properties until they are so reimbursed. The decision, as yet unreported, in A.S. No. 148 of 1910 on which the appellants rely, does not on examination support the proposition but rather the reverse, as it is mentioned in the judgments and appears from the printed papers that the de facto trustee in that case had in an earlier suit claimed to retain possession of the temple properties until he was reimbursed and that this claim was rejected by the District Judge whose decree was affirmed by this Court in A.S. No. 147 of 1902. There is no reason for allowing trustees of public charitable endowments any larger rights against the trust property than are recognized in the case of private trustees by Section 32 of the Indian Trusts Act. That section says that a trustee is entitled to reimburse himself all expenses properly incurred in connecton with the trust and that he has a first charge enforceable only by prohibiting any disposition of the trust property without previous payment of such expenses--not that is to say in the ordinary way by sale of the property subject to the charge. No authority has been cited before us to show that in the case of either private or public trusts the Court is bound to leave the trust estate in possession of a person not entitled to the character of a trustee merely because he has expended money on it whilst acting as trustee. On the contrary it would appear to be the duty of the Court especially in the case of a public charitable trust to take the trust property out of the possession of persons not entitled to hold it whilst making due provision for any claims they may have in respect of expenditure incurred in connection therewith. Turning now to the facts of the present case, the defendants' case on the pleadings and at the trial was that they were entitled to remain in possession until recouped under an express agreement supplemental to Exhibit I. It is only after the rejection of this contention by the Subordinate Judge that the defendants fell back in appeal on this alleged equitable right. Apart from this we do not think the Appellants are entitled to any modification of that part of the preliminary decree which directs the defendants to give up possession to the plaintiffs, but we are prepared to amend paragraph 2 of the preliminary decree by directing accounts to be taken in respect of temple as between the plaintiffs and defendants 6, 8, 9 and 10 of the one part and defendants 2 to 5 and 11 to 13 of the other part, so as to enable the latter to establish any claim they may have against the trust properties on the taking of the accounts, leaving it to be determined by the final decree how such claim, if established, should be enforced. Otherwise the appeal fails and must, we think, be dismissed with costs. Fresh evidence may be taken if the modification of the preliminary decree should be found to render it necessary.
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