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Smart Summary

Factual and Procedural Background

This is an appeal concerning the trusteeship and alleged neglect of duty in relation to the temples of Malleeswara and Kesavaperumal (situated in Black Town). The appeal raises three principal questions: (1) whether the first respondent is the rightful trustee of the temples; (2) whether a portion of the suit alleging neglect of duty is unsustainable for want of leave under section 18 of the Religious Endowments Act, XX of 1863; and (3) whether the respondent has committed neglect of duty warranting court action.

The factual background set out in the opinion traces the succession of trusteeship from Mudukrishna Mudali (senior) who managed the original temple before 1777 and, after Government acquired the original site and paid compensation, used those compensation funds and additional subscriptions to erect the present temple. Succession continued through several family members: Chinnaya Mudali (died 1816), Mudukrishna Mudali (junior) (managed until 1840), then Lakshmana Mudali (died 1847) who by will appointed his sister Ammani Ammal and her husband Ramasami Mudali as trustees and authorized them to appoint successors. Ammani Ammal (after Ramasami's death) appointed Vythilinga Mudali by will; Vythilinga later appointed the respondent (a great-grandson of Mudukrishna Mudali (senior)) as his successor.

Legal Issues Presented

  1. Whether the first respondent is the rightful trustee of the temples of Malleeswara and Kesavaperumal.
  2. Whether, if the respondent is rightful trustee, the suit insofar as it alleges neglect of duty is unsustainable because no leave was obtained under section 18 of the Religious Endowments Act, XX of 1863.
  3. Whether the respondent has been guilty of neglect of duty calling for notice or other relief from the Court.

Arguments of the Parties

Appellants' Arguments

  • The appellants (plaintiffs Nos. 1–4 and 6–10) contended that, if there had been a vacancy on Vythilinga's death, the right of management reverted to the heirs of Mudukrishna Mudali (senior) because he (they argued) was the founder of the present temple.
  • The appellants also relied on the absence of leave under section 18 of the Religious Endowments Act, XX of 1863, to contend that so much of the suit as alleged neglect of duty against the respondent was unsustainable.

Respondent's Arguments

  • The respondent argued he is the rightful trustee by virtue of his appointment under Vythilinga's will.
  • In the alternative, the respondent urged that even if he obtained the office via a transfer, it was permissible because the transfer restored the office to a person who, apart from the transferor's prescriptive title, would have been entitled to the trusteeship under the founder's rules; this argument invoked principles discussed in Rajah Vurmah Valia v. Ravi Vurmah Mutha.
  • The respondent relied on the contention that Ammani Ammal and Vythilinga had prescribed for a trusteeship that included the power to appoint successors, and that such an incident of trusteeship could be acquired by prescription; Padapa bin Bhujangapa v. Swamirao Shriniwas was cited as supporting authority for the analogy drawn.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
In the matter of the Endowed Schools Act, 1869 (Privy Council) The observation (by the Earl of Selborne, L.C.) that subscriptions or contributions applied to a rebuilt or continued charitable foundation should be treated as accretions to existing trust funds rather than converting the contributor into a founder. Used by the Court to support the conclusion that Mudukrishna Mudali (senior) was not the founder of the present temple merely because he applied trust compensation and raised subscriptions for reconstruction; subscriptions were treated as accretions to the trust.
Rajah Vurmah Valia v. Ravi Vurmah Mutha Indicates that, in certain circumstances, a transfer of a trusteeship may be treated as an exception to the general doctrine that trusteeships are not assignable—where a prescriptive title-holder transfers the office back to one who, except for the prescriptive title, would be entitled under the founder's rules. The Court acknowledged this decision as supporting the possibility of such an exception, but stated a preference to decide the respondent's entitlement on the alternative ground that those who acquired the office by prescription had possessed the power of appointment as an incident of their office.
Padapa bin Bhujangapa v. Swamirao Shriniwas The judicial committee held that a person who acquired a watan by adverse possession took the property subject to tenure restrictions, illustrating that possession confers the attached incidents of the tenure (though with any restrictions attached). Cited as somewhat in point and by analogy to support the Court's view that where a trusteeship's devolution is by appointment, the power to appoint a successor is an incident of the trusteeship and may be acquired by prescription; this supported the conclusion that the respondent succeeded rightfully by appointment under Vythilinga's will.
Panchcowrie Mull v. Chumroolall Referenced as an instance of the different local practice regarding whether the Advocate-General must be a party to relator-type proceedings concerning charities. Relied upon by the Court (along with other similar cases) to hold that Act XX of 1863 (section 18) was not intended to apply to suits brought under the ordinary original jurisdiction of the Court inherited from the Supreme Court; thus absence of leave under section 18 was immaterial in this suit.
Thackersey Dewraj v. Haribhum Nursey Referenced as another case illustrative of the long-prevailing different practice concerning the Advocate-General's participation in relator-type charity proceedings. Again cited to support the Court's view that the procedure under Act XX of 1863 did not govern suits under the Court's ordinary original jurisdiction.
Srinivasa Chariar v. Raghava Chariar Referenced along with the other cases as evidence of established local practice regarding relator proceedings and the Advocate-General. Used by the Court as part of the basis for concluding that the absence of leave under section 18 was not fatal to the appellants' ability to maintain the portion of the suit alleging neglect of duty.

Court's Reasoning and Analysis

The Court proceeded by addressing each of the three questions in turn and applied legal principles to the facts as follows:

  1. On whether Mudukrishna Mudali (senior) was the founder of the present temple:
    • The Court observed that the original temple site had been taken by Government and compensation paid. Mudukrishna received the compensation as trustee and applied it to erect the present temple.
    • Applying the principle drawn from the Privy Council's observations in the Endowed Schools Act matter, the Court held that the subscriptions raised by Mudukrishna to supplement trust funds were properly treated as accretions to the trust, not as conferring founder status on Mudukrishna or on the subscribers.
    • Because the foundational step in the appellants' argument (that Mudukrishna was the founder) failed, the Court did not further pursue that line of argument.
  2. On whether the respondent's appointment is valid:
    • The respondent advanced two related arguments: (a) that a transfer of office might be treated as an exception to the general non-assignability of trusteeships (a position with some support in Rajah Vurmah Valia v. Ravi Vurmah Mutha); and (b) that he succeeded legitimately because those who previously acquired the trusteeship by prescription (notably Ammani Ammal and Vythilinga) possessed a trusteeship that included the power to appoint successors.
    • The Court acknowledged the Rajah Vurmah Valia authority but preferred to rest its decision on the second ground: Ammani Ammal had prescribed for a trusteeship acquired under a will that itself contained a provision to appoint successors; she appointed Vythilinga and Vythilinga, in turn, appointed the respondent.
    • The Court reasoned that where devolution is by appointment, the power to appoint a successor is an incident of the trusteeship analogous to incidents of ownership or tenure; possession for the statutory period of an estate that includes such an incident confers the estate with that incident. The Padapa bin Bhujangapa decision was cited by analogy to illustrate that possession conveys the incidents attached to the tenure.
    • On this basis the Court held that the respondent succeeded rightfully to the trusteeship by virtue of the appointment under Vythilinga's will.
  3. On the effect of the absence of leave under section 18 of the Religious Endowments Act, XX of 1863:
    • The Court observed that it possesses jurisdiction analogous to the English Court of Chancery over charities, and that persons interested in charities have long been allowed to institute relator-type proceedings in the Court's original jurisdiction inherited from the Supreme Court.
    • Although by analogy the Advocate-General should be a party in such cases, the Court noted that a different local practice had long prevailed (citing Panchcowrie Mull v. Chumroolall, Thackersey Dewraj v. Haribhum Nursey, and Srinivasa Chariar v. Raghava Chariar).
    • Following the views in those authorities and earlier reasoning, the Court held that Act XX of 1863 was not intended to apply to a suit such as the present one brought under the ordinary original jurisdiction of the Court. Consequently, the absence of leave under section 18 was immaterial and did not preclude maintenance of the part of the suit alleging neglect of duty.
  4. On whether the respondent was guilty of neglect of duty:
    • The Court agreed with the learned Judge below that the appellants failed to prove serious neglect. Evidence showed that shortly after the respondent's succession in 1892, unfounded objections to his right to act were raised by persons hostile to him, and that principal subordinates were induced to act against him and to incite tenants to withhold rents.
    • The Court found that the delay and scantiness in rent collection noted by appellant witnesses were attributable to this improper opposition by subordinates (some of whom were appellants in the case), rather than to culpable neglect by the respondent.
    • There was no credible evidence that any loss resulted to the temple because the respondent failed to take prompt action to collect rents.
  5. On relief and decree modifications:
    • The Court dismissed the appeal with costs but ordered two minor modifications to the provisions of the decree: (i) a specific annual, public inspection regime for temple books and accounts during August, including maintenance of a register of immoveable and valuable moveable property to be kept conspicuously in the temple; and (ii) a direction that the dharmakarta should invest surplus temple funds in any of the modes enumerated in section 20 of the Indian Trusts Act when such surplus exceeds Rs. 3,000.
    • Either party was given liberty to apply for further orders as to how the dharmakarta should carry out the decree's directions. The memorandum of objections was not pressed and was dismissed with costs.

Holding and Implications

FINAL HOLDING: The appeal is dismissed with costs.

Direct consequences and practical effects of the decision (as expressed in the opinion):

  • The Court held that the respondent is the rightful trustee of the temples by virtue of the appointment under Vythilinga's will.
  • The objection that the portion of the suit alleging neglect of duty was unsustainable for want of leave under section 18 of the Religious Endowments Act, XX of 1863, was rejected; the absence of leave was held immaterial for a suit brought under this Court's ordinary original jurisdiction.
  • The appellants failed to establish serious neglect of duty by the respondent; there was no evidential basis for finding loss to the temple caused by the respondent's conduct.
  • The decree was modified in two specific respects: (a) annual provision for worshippers' inspection of accounts during August with a register of properties to be kept conspicuously; and (b) direction for investment of surplus funds in modes enumerated in section 20 of the Indian Trusts Act when surplus exceeds Rs. 3,000.
  • Either party may apply for further orders necessary to implement the directions in the decree. The memorandum of objections was dismissed.

The opinion provides its rulings and directions applicable to the parties and the management of the temple in this matter. The text does not state that the Court intended to establish a broader rule of binding precedent beyond the legal reasoning applied to these facts.

    Annasami Pillai v. Ramakrishna Mudaliar

    JUDGMENT

    The main questions to be determined in this appeal are—(1) whether the first respondent (defendant) hereinafter referred to as the respondent is the rightful trustee of the temples of Malleeswara and Kesavaperumal situated in Black Town; (2) if so, whether the suit, in so far as it relates to the charge of neglect of duty alleged against him, is unsustainable because no leave was obtained under section 18 of the Religious Endowments Act, XX of 1863; and (3) whether the respondent has been guilty of neglect of duty calling for notice at the hands of the Court.

    Now, as regards the first question the facts bearing thereon are beyond dispute. Prior to the year 1777 a temple, dedicated to Malleeswara and Kesavaperumal, existed at the site on which the old light-house stands. But that site having been taken up by Government on payment of compensation, the temple was pulled down. Mudukrishna Mudali (senior) who was at that time the manager of the temple, caused the present temple to be constructed with money received by him from Government as compensation and with funds which he collected by way of subscriptions. He held the office of trustee of the present temple till his death in 1795. He was succeeded by his son Chinnaya Mudali who held the office till his death in 1816. His son Mudukrishna Mudali (junior) succeeded him, held the management up to the year 1840 and was succeeded by his younger brother Lakshmana Mudali who died in 1847. He left a will whereby he appointed his own sister Ammani Ammal and her husband Ramasami Mudali as his succeeding trustees, and authorized them to appoint their own successors, and thus diverted the devolution of the office from the family of Mudukrishna Mudali (senior) into the hands of persons who had no right thereto. Ramasami Mudali died shortly afterwards and Ammani Ammal continued to hold the office trustee till 1872. By her will she appointed her sister's son Vythilinga Mudali to the trusteeship. He held the office for twenty years and by his will appointed the respondent, one of Mudukrishna's (senior) great-grandsons, as his successor.

    The first contention on behalf of the respondent was that, granting for argument there was a vacancy on Vythilinga's death, as urged for the appellants (plaintiffs Nos. 1 to 4 and Nos. 6 to 10) the right of management reverted to the heirs of Mudukrishna Mudali (senior) as he was the founder. We are, however, unable to agree with the suggestion that Mudhukrishna was the founder. If a temple gets into ruins and a person, as a matter of mere benefaction, erects fresh buildings and dedicates them to the same sort of worship as had been carried on in the old temple, such person may properly be treated as the founder of the new temple, even though, in constructing it, he used materials of the former temple or other property belonging thereto. The circumstances of the present case are, however, very different. When Mudukrishna received the money paid as compensation by Government he received it as trustee, and in applying that money towards the construction of the present temple he did nothing more than what he was called upon to do as trustee. The circumstance that he had taken the trouble to raise subscriptions to supplement the trust funds in his hands and that such subscriptions amounted to much more than the original trust funds would not make either him or the subscribers founders. The reasonable view would be to treat the amount subscribed as accretions to the existing trust funds and as something contributed for the better carrying out of the purposes of the original foundation (compare the observations of the Earl of Selborne, L.C, in the Privy Council case, In the matter of the Endowed Schools Act, 1869). As the very first step in the argument addressed to us with reference to the contention under consideration fails, it is not necessary to discuss the contention further.

    It was next urged on behalf of the respondent that his appointment by Vythilinga should be upheld on the ground that it was a transfer of the office to a person who, being a member of the family of Mudukrishna (senior) and also in the line of heirs, would have been entitled to succeed to the office of trustee had the right of the family not been extinguished by lapse of time. No doubt in the absence of custom entitling a trustee to tranfer his office, he is not at liberty to do so. Having regard, however, to the ground of the decision of the judicial committee in Rajah Vurmah Valia v. Ravi Vurmah Mutha it would seem, as urged by Sir V. Bhashyam Ayyangar, not unreasonable to hold that where a person, who had no right to the office of a trustee according to the rule of devolution established by the founder, acquires a title to the office by prescription, but restores it to one, who, except for the transferor's prescriptive title, could have taken the office according to the rules laid down by the founder, such transfer should he treated as an exception to the general doctrine that a trusteeship is not assignable, subject, of course, to the condition that no corrupt inducement has entered into the transaction and the interests of the trusts are not likely to be prejudicially affected. For such a transfer would put an end to the continuance of a management inconsistent with the founder's intention and once more let in the class of persons by whom the founder contemplated the management should be carried on. We consider it, however, preferable to rest one decision in favour of the respondent with reference to this part of the case on the other ground which was suggested on his behalf. That ground is that the respondent is a rightful trustee having been appointed by one who had acquired a valid title to the trusteeship with power to appoint a successor. Now the appellants do not dispute that Ammani Ammal acquired a valid title to the trusteeship by prescription. But what sort of trusteeship did she acquire? It was not, as contended for the appellants, a hereditary trusteeship without power to appoint a successor. On the contrary she took possession of the office under a will which contained a provision for the appointment of a successor to herself and acting under that provision, she appointed Vythilinga giving him at the same time power to appoint his own successor. Vythilinga accordingly appointed a successor in the person of the respondent. The effect of such acts of Ammani Ammal and Vythilinga on their possession must be held to be that they were claiming not a trusteeship descendible to their heirs, but one with power to appoint a successor. When they exercised their powers of appointment they exercised them as an incident to their office of trustee. And such an estate being well known to and recognized by law, there is no reason for holding that such a trusteeship should not be prescribed for, or that Ammani Anmal and Vythilinga did not prescribe for it. Padapa bin Bhujangapa v. Swamirao Shriniwas cited for the respondent is a decision somewhat in point. There the judicial committee held that a person who acquired a right to a watan by adverse possession, took the property attached thereto: subject to the restriction incident to the tenure that an alienation of such property by the watandar had no effect beyond his life. No doubt power to alienate one's property is not exactly of the same nature as the power to appoint a successor to the office, for the former is a component part or incident of ownership. But where in such an estate as that of a trustee the devolution is by appointment, the power to appoint a successor is as much an incident of the trusteeship as the right to alienate is an incident of ownership. An instance more closely analogous to the present case may be easily suggested. Suppose a person holds for the statutory period possession of property under a mortgage, purporting to confer on the mortgagee a power to sell, granted by a person who had no title to the property but who, under the law, was competent to make a mortgage with such power. It must be held that such possession confers on the possessor the right of a mortgagee with power to sell and not minus such power. We hold, therefore, that the respondent succeeded to the office rightfully by virtue of the appointment under Vythilinga's will.

    We now pass to the consideration of the question whether the absence of leave under section 18 of the Religious Endowments Act, XX of 1863, precludes the appellants from maintaining so much of the suit as relates to the alleged charges of neglect of duty on the part of the respondent. This Court, as the successor to the late Supreme Court, possesses a jurisdiction similar to, and corresponding to, that exercised by the Court of Chancery in England over charities. Within the original jurisdiction of this Court persons interested in charities have all along been allowed, as relators, to take legal proceedings in reference to the due administration of charities. According to the analogy of the procedure applicable to similar cases in England the Advocate-General should be party to proceedings like the present. But a different practice has long prevailed—see Panchcowrie Mull v. Chumroolall, Thackersey Dewraj v. Haribhum Nursey, and Srinivasa Chariar v. Raghava Chariar.

    Following the view taken by Garth, C.J and Markby, J., in Panchcowrie Mull v. Chumroolall already cited, we hold that Act XX of 1863 was not intended to apply to a suit such as this brought under the ordinary original jurisdiction of this Court inherited from the Supreme Court. The absence of leave, relied on, is therefore immaterial, and the portion of the suit which relates to the charges of neglect of duty is sustainable notwithstanding that no leave was obtained under section 18 of the Religious Endowments Act.

    The third and last question calls for but a few words. We agree with the learned Judge that the appellants have failed to make out any serious neglect of duty on the part of the respondent. In our opinion the evidence very clearly shows that shortly after the respondent's succession in 1892 certain unfounded objections to his right to act as trustee were started by persons unfriendly to him, and that his principal subordinates who had to attend to the work of collecting the rents due to the temple were induced to act hostilely to him, and to thwart his management by inciting tenants to withhold their rents. The delay and the paucity in the collection of rents spoken to by the appellant's witnesses were manifestly due to this improper opposition on the part of the respondent's subordinates, some of whom are appellants in this very case. Nor is there any evidence worth the name to show that any loss has resulted to the temple by the failure of the respondent to take prompt action in the matter of the collection of rents.

    The appeal fails and must be dismissed with costs, subject, however, to two minor modifications in the provisions of the decree:—(i) Substitute for the direction about exhibiting books and accounts for the examination of worshippers the following:— The dharmakarta shall during the month of August every year allow worshippers of the temple to inspect the temple accounts between the hours of 3 and 5 P.M every day, and for that purpose shall cause the books and accounts to be kept in a conspicuous and convenient place in the temple in charge of one of his subordinates, Among the books to be so kept for the examination by worshippers there shall be a register showing the various immoveable properties belonging to the institution, as also all the valuable moveable properties, inclusive of jewels. The dharmakarta should have the register duly revised annually, (ii) Insert the following direction as to investment of surplus funds:—The dharmakarta should invest the surplus funds of the temple in any of the modes enumerated in section 20 of the Indian Trusts Act when such surplus exceeds the sum of Rs. 3,000.

    Either party may, if necessity arises, apply for further orders as to the manner in which the dharmakarta should carry out the directions contained in the decree herein.

    The memorandum of objections was not pressed, and is dismissed with costs.

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    Annasami Pillai v. Ramakrishna Mudaliar
    (Oct 18, 1900)