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A. Thiruvengadatha Aiyangar And Anr. v. R. Ponnapa Aiyangar And Ors.
Structured Summary of the Opinion (Second Appeal Concerning Temple Trustees)
Factual and Procedural Background
One of five trustees of a temple filed a suit against the members of the temple committee and the other four trustees seeking a declaration that two trustees had not been lawfully appointed by the temple committee. The Temporary Subordinate Judge of Tuticorin (the original Court) dismissed the suit. On appeal, the District Judge of Tinnevelly set aside the decree of the lower Court, granted a declaration that the appointments were not legally valid, ordered cancellation of the appointments and issued an injunction restraining the newly appointed trustees from interfering with the management of the temple.
The present proceeding is a second appeal in which the appellant (the temple committee or those supporting the appointments) argues that the appointments were valid and that the District Judge misapprehended the committee's powers and unfairly placed the burden of justification on the committee. The respondents (those challenging the appointments) argued (1) that the appointments increased the constituted number of trustees and thereby altered the scheme of the trust beyond the committee's power; and (2) that even if the committee had power to appoint, the committee bore the onus of justifying the appointments and the District Judge's finding that the appointments were not justified should not be disturbed in a second appeal.
Legal Issues Presented
- Whether the appointments of the two trustees by the temple committee were valid.
- Whether the appointments amounted to an alteration of the trust scheme by increasing the constituted number of trustees (i.e., whether the committee exceeded its powers by appointing additional trustees).
- Whether the burden of proof lay on the temple committee to justify the appointments and whether the District Judge erred in casting that burden.
- Whether, assuming the committee had power to appoint, the appointments were a reasonable and bona fide exercise of that power (i.e., whether the power was exercised "reasonably and in good faith").
- Whether a distinction exists between appointing additional trustees for administrative purposes and appointing them for punitive purposes, and if so whether a higher duty to justify arises when the appointment is allegedly punitive.
Arguments of the Parties
Appellant's Arguments
- The appointment of the two trustees was valid.
- The District Judge misapprehended the powers of the temple committee.
- The District Judge wrongly placed the burden on the temple committee to justify the appointments.
Respondents' Arguments
- The appointments were in addition to the constituted number and thus amounted to an impermissible alteration of the trust scheme, beyond the power of the temple committee.
- Even if the committee had power to make appointments, the committee must justify those appointments, and because the District Judge found the appointments unjustified, this Court should not interfere in the second appeal.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Venkatachella Pillai v. The Taluq Board, Ssidapet (1910) I.L.R. 34 M. 375 | Relied upon by respondents for the proposition that appointments under the Regulation are limited to filling vacancies. | The Court distinguished this case: its actual holding was that the Board of Revenue could not appoint trustees so as to prejudice an existing trustee in possession; the duty was to dismiss a trustee for good cause and then fill the vacancy. The Court held that Venkatachella Pillai does not support the broad proposition urged by respondents. |
| Chinna Ranga Aiyangar v. Subbaraya Mudali (1867) 3 M.H.C.R. 334 (also cited as 331) | Authority for an assumed power of dismissal of trustees and that the Regulation did not restrict duties of general superintendence and management. | The Court relied on this case to support the proposition that powers incidental to general superintendence (such as dismissal) existed; it preferred to find the power to add trustees in Section 2 of the Regulation and treated this line of authority as supporting inherent managerial powers. |
| Seshadri Aiyangar v. Nataraja Aiyar (1897) I.L.R. 21 M. 179 | Quoted with approval for the authority derived from earlier decisions (context: dismissal and incidental powers). | Used as supporting precedent for the view that powers incidental to superintendence are to be implied; cited to show continuity of the line of authority. |
| Nilayathakshi Ammal v. The Taluq Board of Mayaveram (1910) 20 M.L.J. 885 | Relied on (by respondents) for proposition that there was no power in the Board to appoint trustees except on occasion of a vacancy. | The Court observed that this case expressed doubt whether the power existed outside Section 13 but did not decide that broader question; its decision concerned a different point (that a Taluq Board which took over management under Section 51 of the Local Boards Act could not divest itself by appointing an independent trustee). |
| Sheik Davud Saiba v. Hussain Saiba (1893) I.L.R. 17 M. 212 | Held that the committee (as successor to the Board of Revenue) could add to the number of trustees where advisable in the interests of the trust; used for the proposition that discretion must be exercised reasonably and in good faith. | The Court treated this as direct authority for the committee's competence to add trustees and as supporting the proposition that such discretionary powers are subject to control if not exercised reasonably and in good faith (analogy to Section 49 of the Trusts Act). |
| Ramiengar v. Gnanasambhandha Pandara Sannadhi (1867) 5 M.H.C.R. 53 | Followed earlier decision that the Board had implied powers connected to superintendence, including dismissal. | Referenced in a chain of authority confirming implied managerial powers of the Board/committee. |
| Virasami v. Subba (1882) I.L.R. 6 M. 54 | Assumed that in cases within Section 3 of Act XX of 1863 the power of dismissal existed as incidental to management. | Used to support the view that powers incidental to superintendence (including dismissal or related managerial actions) had been assumed in prior decisions. |
| Ganapathi Aiyar v. Sri Vedavyasa Alasinga Bhattar (1906) I.L.R. 29 M. 534 | Addressed a case where additional trustees were appointed in a manner that altered an already settled scheme of management. | The Court found this case distinguishable: Ganapathi Aiyar dealt with an alteration of an existing, settled scheme, whereas in the present matter there was no evidence of any settled scheme of management. |
Court's Reasoning and Analysis
The Court proceeded through a sequence of legal and factual findings, applying relevant statutory and regulatory provisions as described in the opinion:
-
On the respondents' contention that the appointments altered the scheme by increasing the constituted number, the Court noted that:
- There was nothing in the plaint raising that objection; it had not been urged during the protracted proceedings in the lower Courts; and the District Judge did not base his judgment on that ground.
- There was no record of any settled scheme for the temple; evidence and admissions indicated that historically there had been five trustees and that at the time of the plaintiff's own appointment there had been four.
- Accordingly, the objection that the appointments altered a scheme failed on two grounds: (a) it had not been pleaded or argued earlier, and (b) there was no evidence of an existing scheme to be altered.
-
On whether the appointments could be justified as filling vacancies, the Court found:
- The appointments could fairly be viewed as filling up two vacancies that had improperly been allowed to exist for a considerable time.
- If so viewed, they were justified under Regulation VII of 1817 as applied by the Religious Endowments Act, XX of 1863: at the relevant date the temple fell within Section 3 of Act XX of 1863, and Section 7 of that Act constituted a temple committee to exercise powers vested in the Board of Revenue under the Regulation.
- Under Sections 12 & 13 of Regulation VII (1817), the Board of Revenue had power to appoint suitable persons as trustees and to fill vacancies from time to time; the temple committee, as successor to the Board, inherited those powers.
-
On whether the committee had an independent power to appoint additional trustees even if these were not strictly vacancies, the Court concluded:
- Even if the appointments were not strictly of vacancies, the temple committee had power to appoint additional trustees if it deemed it advisable in the interests of the endowment, provided such appointments were not a variation of a scheme (which was not shown to exist).
- The Court relied on prior authority (notably Sheik Davud Saiba) and on its reading of the Regulation (particularly Section 2 as the preferred location of the power) to hold that adding trustees in such circumstances is within the committee's powers as an incident of general superintendence and management.
- The Court considered and rejected the respondents' reliance on certain authorities (for example Venkatachella and Nilayathakshi) as supporting a rigid limitation of appointment power to vacancies only; it explained why each cited authority was distinguishable or did not decisively decide the broader question raised here.
-
On the question whether there is a distinction between appointments made for "administrative" reasons and those made for "punitive" reasons (and whether a higher burden to justify arises where punitive intent is alleged), the Court held:
- There is no principled distinction in the sense contended for. The Court was not persuaded that appointing fresh trustees because the committee considers existing trustees are not dealing with the work successfully or properly is necessarily a punitive act.
- The learned District Judge accepted such a distinction and remanded the matter to try whether the appointments were a reasonable and bona fide exercise; based on certain admissions he treated the appointments as punitive and set them aside. The appellate Court found that approach unsound.
-
On the standard and burden of review, the Court explained:
- Where no person is deprived of a freehold interest, there is no duty on the temple committee to affirmatively show that the appointment was for "just and sufficient cause."
- The correct control is by analogy to Section 49 of the Trusts Act, II of 1882: when a discretionary power conferred on a trustee is not exercised reasonably and in good faith, the principal Civil Court of original jurisdiction may control that exercise.
- Sheik Davud Saiba was cited as expressly holding that this is the appropriate standard in circumstances resembling the present case.
- The District Judge had imposed a higher duty and misdirected himself on the burden of proof; accordingly his finding on the issue could not be supported.
- Procedural disposition: after criticizing the District Judge's approach, the Court decided to exercise its powers under Order XLI, Rule 24 of the Civil Procedure Code to resettle the issues and finally determine the suit rather than remanding the matter again. The Court formulated the issue to be finally determined by itself: whether the temple committee had exercised its power of appointment in this case "reasonably and in good faith."
Holding and Implications
The court held that the temple committee had the power to appoint additional trustees (so long as such appointments did not amount to a variation of an existing scheme) and that the District Judge erred in imposing a higher burden of justification on the committee. The matter will be finally determined by this Court on the question whether the appointments were made reasonably and in good faith.
Direct Consequences for the Parties
- The District Judge's approach and certain findings (specifically his requirement that the committee justify the appointment as if a punitive act) were disapproved as unsupportable.
- The Court will exercise appellate powers under O. XLI, Rule 24 CPC to resettle the issues and decide the suit itself rather than remanding for further trial on the same lines.
- The single substantive issue to be determined by this Court is whether the temple committee exercised its appointment power "reasonably and in good faith."
- The case was adjourned for further hearing for three weeks to allow the Court to finally determine that issue.
On Broader Legal Implications
The opinion articulates and applies principles about the scope of managerial powers inherited by a temple committee from the Board of Revenue under Regulation VII of 1817 and Act XX of 1863, and adopts the standard of judicial control analogous to Section 49 of the Trusts Act (i.e., control when discretion is not exercised reasonably and in good faith). The Court distinguished authorities cited for a narrower rule and reaffirmed that additional appointments, in the absence of a settled scheme and where no freehold is affected, may be within the committee's discretionary powers.
1. This second appeal arises out of a suit by one of five trustees of a temple against the members of the temple committee and the other four trustees, the relief asked for being a declaration that two of the trustees have not been appointed lawfully by the temple committee. The Temporary Subordinate Judge of Tuticorin in whose Court the suit was filed dismissed the suit. The District Judge of Tinnevelly on appeal set aside the decree of the lower Court and granted a declaration that the appointment of the trustees by the temple committee was not legally valid, ordered the cancellation of the appointments and issued an injunction restraining the newly appointed trustees from interfering with the management of the temple.
2. It is argued before us that the appointment was valid and that the District Judge has misapprehended the powers of a temple committee and wrongly thrown the burden on them of justifying the appointment. For the respondents it was contended, first that the appointment of the two trustees was in addition to the constituted number and thereby amounted to an alteration of the scheme which, it was argued, was entirely beyond the power of the temple committee; and secondly, that even if the committee had power to make the appointment it lay on them to justify it and that the District Judge having found that it was not justified, this Court could not interfere in second appeal.
3. We can dispose of the first point very shortly. There is nothing in the plaint to indicate that objection was taken oh the ground that the appointment was a variation of the scheme nor was the view ever urged during the course of the protracted proceedings in both the Courts; nor does the District Judge base his judgment on that ground. Further it appears that there is no record of any scheme ever having been settled and it is clear on the evidence, the admissions of the plaintiff and the findings of the Original Court that at one time there were actually five trustees, the number now constituted by the present appointments and that at the time of the plaintiff's own appointment there were actually four. This objection therefore fails on two grounds and the appointment could very fairly be justified as one filling up two vacancies which had improperly been allowed to exist for a considerable time. If these appointments are to be viewed as the filling up of vacancies they are clearly justified under the provisions of Regulation VII of 1817 as applied by the Religious Endowments Act, XX of 1863. The temple in question was, at the date of the passing of Act XX of 1863 one covered by the language of Section 3 of that Act, and, by Section 7 of the Act, a temple committee was constituted to exercise the powers of the Board of Revenue and the local agents vested in them by the Regulation. Turning to Regulation VII of 1817, it is clear that, under Sections 12 & 13, the Board of Revenue had power to appoint suitable persons as trustees and to fill up vacancies from time to time. We are of opinion, however, that even if these were not vacancies, the temple committee had power to appoint these trustees if they thought it advisable to do so in the interests of the endowment, the appointments, as we have already pointed out, not being a variation of an existing scheme. Reliance is placed by the Respondents on Venkatachella Pillai v. The Taluq Board Ssidapet (1910) I.L.R. 34 M. 375 and it is argued that that case is an authority for the proposition that the only powers of appointments recognised by the Regulation are appointments to fill vacancies. That is, however, not the ratio decidendi of the case. What was done in that case was that a trustee namely, the Taluq Board, had been appointed without the existing trustee being dismissed, and the Court held (vide page 335) that the Board of Revenue could not ignore the rights of existing trustees and appoint trustees to the prejudice of one who is in possession of the office under the instrument creating the trust. The duty of the Board was, first, to dis-miss the trustee which could be done for good cause shown and, then, there being a vacancy, to exercise the powers under Sections 12 & 13 of filling up the vacancy. That case, therefore, stands on an entirely different footing to the present. But it is to be noted that the power to dismiss a trustee was assumed to exist by virtue of Section 2 although no specific power to that effect is to be found in the words of the Regulation. This was on the authority of Chinna Ranga Aiyangar v. Subbaraya Mudali (1867) 3 M.H.C.R. 334 a case quoted with approval in Seshadri Aiyangar v. Nataraja Aiyar (1897) I.L.R. 21 M. 179 (vide page 199). Further, the Court points out that on the occasion of a vacancy various powers are given to the Board by Section 13 in that they need not fill up the vacancy but may make such other provision for the trust management or superintendence as may to them seem right and fit. Reliance was also placed on Nilayathakshi Ammal v. The Taluq Board of Mayaveram (1910) 20 M.L.J. 885 for the proposition that there was no power in the Board to appoint trustees except on the occasion of a vacancy. It is true that the Court in that case does doubt whether this power can be found in the Regulation other than in Section 13; but the Judges express no decided opinion on the point which was not necessary for the decision of the case. What was decided there was that where the Taluq Board had taken over the management by virtue of Section 51 of the Local Boards Act it could not divest itself of its duty of managemant by appointing an independent trustee.
4. That case is, therefore, no authority for the broad proposition contended for and in our opinion it is untenable. We have no hesitation in holding that a power to appoint an additional trustee when such appointment is not a variation of the scheme is necessarily vested in the temple committee as successors to the Board of Revenue. It was specifically so held in Sheik Davud Saiba v. Hussain Saiba (1893) I.L.R. 17 M. 212. The judges there use language which seems to indicate that they base the right on Section 13 though it is not clear from the somewhat short judgment that this is so. They certainly lay down, however, that it is competent to the committee where there is no hereditary trustee, to add to the number of the existing trustees, if, in their opinion, it is advisable to do so in the interests of the trust. We prefer to find this power in Section 2 of the Regulation. Chinna Ranga Aiyangar v. Subbaraya Mudaliar (1867) 3 M.H.C.R. 331 which decides that the Board of Revenue has power to remove a trustee lays down that the Regulation does not contain any restriction on the performance of the duties of general superintendence and management and that decision was followed in Ramiengar v. Gnanasambhandha Pandara Sannadhi (1867) 5 M.H.C.R. 53 and in a later case Virasami v. Subba (1882) I.L.R. 6 M. 54 it was assumed that, in cases falling within Section 3 of Act XX of 1863, such a power as this, the power of dismissal, existed. Just as the authority to suspend or remove for just cause was held to be properly incidental to the other duties and responsibilities of the Board of Revenue and to have been impliedly given by the Court in Chinna Ranga Aiyangar v. Subbaroya Mudali (1867) 3 M.H.C.R. 331 so the power to add additional trustees for the purposes above mentioned must likewise be held to be properly incidental to the duties and responsibilities of the temple committee and to be inherent from their power of general super intendence.
5. The last argument addressed to us was that there was a distinction between the exercise of this power for administrative purposes and for punitive purposes. We are unable to accede to the argument that there is anything punitive in appointing fresh trustees where a temple committee are not satisfied that the existing trustees are dealing with the work successfully or properly. This contention is one that found favour with the learned District Judge and is the basis of his judgment. He remanded the case to the lower Court for the trial of an issue whether the appointments were a reasonable and bona fide exercise of the committee's power and in consequence of certain admission made by the temple committee's vakil held that the appointment was punitive, He then required the temple committee to justify the appointment and even tually set it aside on the ground " that no such punishment should have been inflicted, adding, however, that if it was made on purely administrative grounds it could not be supported since it did not result and, so far as has been shown would not necessarily result in the submission of accounts." We are unable to find any authority for this distinction between a punitive appointment of additional trustees and an administrative one. The learned District Judge seems to rely on Ganapathi Aiyar v. Sri Vedavyasa Alasinga Bhattar (1906) I.L.R. 29 M. 534. That, however, was a case where additional trustees were appointed in such a manner as to alter the scheme of management already settled by the Board. As pointed out above, there is no evidence of a scheme of management ever having been settled or what its nature was. We hold that where no person is deprived of his freehold there is no duty cast on the temple committee to show affirmatively that the appointment was for just and sufficient cause. In our view the only limit to be imposed on the temple committee in the exercise of their discretion is by an analogy to Section 49 of the Trusts Act, II of 1882. " Where a discretionary power conferred on a trustee is not exercised reasonably and in good faith, such power may be controlled by a principal Civil Court of Original Jurisdiction." This has been expressly held in Sheik Davud Saiba v. Hussein Saiba (1893) I.L.R. 17 M. 212 in circumstances resembling the present case. The learned District Judge has cast a higher duty on the temple committee than he should have done and his finding in the issue based on his view of the burden of proof and on his limitation of the materials for justification cannot be supported. We do not think it advisable to send this case back after having carefully considered the case ourselves. We propose, therefore, to exercise the powers conferred on this Court by O. XLI, Rule 24 of the Civil Procedure Code of resettling the issues and finally determining the suit ourselves. The issue will be whether the temple committee has not exercised its power of appointment in this case " reasonably and in good faith." The case is adjourned for further hearing for three weeks.
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