- Bookmark
- Share
- CaseIQ
Rai Ram Nath Bhargav... v. Sri Swami Goverdhan ...
Structured Summary of the Court Opinion — Application to Modify Scheme for Rangji Temple Trust
Factual and Procedural Background
Two persons with an interest in the Rangji temple at Brindaban (Muttra district) filed an application seeking modification of a scheme that this Court had settled and embodied in a decree in First-Appeal No. 355 of 1922 (a suit under Section 92, Civil P.C.). The application invoked paragraph 21 of the scheme, which reserved to the Court the power to modify the scheme at the instance of any two trustees or any two persons interested in the trust.
The scheme, as settled by the Court, appointed a committee to administer the trust with the gaddinashin of Sri Rangji's temple as ex‑officio President and included provisions for succession to trustee offices, quorum rules (three members forming a quorum and an adjourned meeting not requiring a quorum), and a power to appoint a manager. Swami Rangji (the gaddinashin) had been appointed subject to conditions in a supplementary deed (dated 3 November 1873) that permitted removal under certain contingencies.
The applicants sought (a) deletion of the gaddinashin's ex‑officio presidency so that the President would be elected by trustees, (b) change of quorum rules so that three trustees would be required even for adjourned meetings, (c) removal of the present gaddinashin as trustee and President and appointment of a manager, and (d) investigation and recovery of alleged misappropriated property (including fourteen Government promissory notes). The opposite party raised a preliminary objection that the application was not maintainable and that the Court had become functus officio after passing the decree under Section 92, Civil P.C.
Legal Issues Presented
- Whether, after the termination of a suit under Section 92, Civil P.C., and the passing of a decree embodying a scheme, the Court can retain or exercise a power to modify that scheme (i.e., whether a reservation in the scheme for future modification by the Court is ultra vires).
- Whether an application by two persons interested in the trust invoking a provision in a settled scheme (para. 21) is a maintainable procedure for seeking modification of the scheme, or whether reliefs of that nature can only be obtained by instituting a fresh suit under Section 92 with the requisite permission (Advocate‑General / Legal Remembrancer as referenced).
- Whether, apart from a specific reservation in the scheme, the Court can amend the scheme in exercise of its inherent jurisdiction under Section 151, Civil P.C., and if so, the scope of that power.
- On the merits, whether the facts asserted (mismanagement and alleged misappropriation by the gaddinashin) justified the particular amendments sought to the scheme (removal of ex‑officio presidency, trustee status, quorum alteration, appointment of manager, and orders for recovery of missing promissory notes) via the present application.
Arguments of the Parties
Applicants' Arguments
- The applicants relied principally on para. 21 of the scheme, which expressly reserved to the Court the power to modify the scheme on application by any two trustees or any two persons interested in the trust.
- They sought modification of the scheme to (a) make the President an elected position and delete the gaddinashin's ex‑officio presidency, (b) require three trustees to be present even at adjourned meetings, (c) remove the present gaddinashin from trustee and presidential offices and have a manager appointed, and (d) investigate and recover alleged misappropriated property (including fourteen Government promissory notes).
- They alleged mismanagement and misappropriation by the gaddinashin and asked the Court to use the reserved power (para. 21) or otherwise to grant relief to secure proper administration of the trust.
Opposite Party's Arguments
- The opposite party contended that once the suit under Section 92, Civil P.C., had been decided and a decree with the scheme passed, the Court was functus officio and could not amend the scheme; therefore the present application was not maintainable.
- It was argued that if removal of a trustee or directions for administration were necessary, the proper remedy was a fresh suit under Section 92 instituted with the permission of the Advocate‑General (the opinion also later references the Legal Remembrancer in relation to such permission).
- The opposite party asserted that amendment of the scheme would amount to amending the decree, which is not permissible except under Section 152, Civil P.C., which was said not to apply; consequently, any clause reserving power to the Court to amend its decree was ultra vires.
- The opposite party relied strongly on Veeraraghavachariar v. The Advocate‑General of Madras (1927 51 Mad 31), where a Full Bench of Madras High Court had held that a reservation to apply for alteration or modification of a scheme was ultra vires insofar as it offended against Section 92.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Veeraraghavachariar v. The Advocate‑General of Madras (1927 51 Mad 31) | Held by a Madras Full Bench that a reservation in a decree allowing persons to apply to Court for alteration or modification of a scheme framed under Section 92, Civil P.C., is ultra vires (such liberty to apply for alteration/offending Section 92). | The Court considered and discussed this decision at length but disagreed with its ratio, regarding it as laying excessive stress on application procedure; the Court found authority and principle contrary to that view and did not follow the Madras Full Bench decision. |
| Chandraprasad Ramprasad v. Jinabharthi Narayan (1931 55 Bom 414) | Expressly dissented from the Madras Full Bench view; treated as authority contra the Madras decision. | The Court relied on this decision as part of the body of authority supporting the proposition that a reservation in a scheme to permit future modification by the Court is not necessarily ultra vires. |
| Manadananda Jha v. Tarakanand Jha (1924 Cal 330) | Authority contrary to the Madras Full Bench's conclusion. | Used by the Court as one of several authorities supporting the proposition that the reservation of power to modify a scheme is not ultra vires. |
| Sadupadhya Oja v. Ravaneswar Prosad Singh (1918 43 I C 772) | Authority cited as contrary to the Madras decision. | Cited by the Court among decisions indicating the reservation of modification power is not inherently ultra vires. |
| Mohomed Waheb Hussain v. Abbas Husain (1923 Pat 420) | Authority cited against the Madras Full Bench view. | Relied on by the Court to show existing judicial support for the proposition that a power to modify a scheme can be validly reserved. |
| U Po Maung v. U Tun Pe (1929 6 Rang 594) | Not directly in point for the present question (the power to modify the scheme was not reserved in that case). | The Court noted it was not applicable to the present issue because the reservation of power to modify the scheme did not arise in that case. |
| Shera Khan v. Shure Shah (1935 A L J 311) | Not in point on the specific question of whether a reservation in a scheme under Section 92 to permit future modification is ultra vires (the case concerned exercise by a committee under a scheme, not reservation of Court's modification power). | The Court treated it as distinguishable and not directly bearing on the ultra vires question. |
| Darshan Das v. Collector of Meerut (1918 16 ALJ 742) | Held that the Civil Procedure Code gives no power to the District Judge to take protective action over endowment property unless a regular suit under Section 92 is filed; did not decide the present point about reservation of power to amend a scheme. | The Court observed that this case did not touch the precise point and was not authority against the validity of reserving modification power in a scheme prepared under Section 92. |
Court's Reasoning and Analysis
The Court addressed the preliminary objection that it had become functus officio after passing the decree under Section 92 and therefore could not modify the scheme or validly reserve power to do so. It analyzed authority (including the Madras Full Bench decision) and counter‑authority, and set out the following reasoning:
- The critical question is not whether an interested person may apply for alteration, but whether the Court can reserve to itself the power to amend a scheme it has settled. The Court found nothing in Section 92 that renders such a reservation ultra vires. The Court's broad power to settle a scheme for administration of a trust includes the capacity to make the scheme alterable by the Court if future circumstances render alteration necessary.
- The fact that a suit under Section 92 terminates with the decree does not mean the Court cannot provide for an elastic scheme. If the scheme, within limits laid down by the decree, is later amended by the Court, the Court is giving effect to its own decree rather than impermissibly amending it.
- The Court reviewed contrary authorities but found substantial support for the view that a clause reserving power to modify the scheme is not necessarily ultra vires. Several decisions were cited in support of that position and certain cited cases were held to be distinguishable or not in point.
- Where the present application sought modification apart from any power reserved by para. 21, the Court held that Section 151 (inherent jurisdiction) is the only provision in the Code under which the Court could justify amendment of the scheme. The Court accepted that the inherent power under Section 151 should be exercised only to prevent abuse of process or where the ends of justice plainly demand it, and that Section 151 is of comparatively narrow scope when called upon for such modification.
- On the merits, the Court found that the scheme as a whole was well‑designed and likely to work satisfactorily in normal circumstances. Allegations of misconduct by the present gaddinashin—even if well founded—did not demonstrate that the general rules in the scheme had been shown by experience to be unsatisfactory. The scheme itself provided internal mechanisms for the removal and replacement of trustees (i.e., trustees fill vacancies and may remove absent trustees).
- The Court concluded it could not entertain an application for removal of the President or a trustee where the scheme prescribes internal procedures for such removal; the applicants' route to effect removal would be either to invoke the scheme's internal mechanisms or to institute a fresh suit under Section 92 (with the required permission of the Advocate‑General / Legal Remembrancer, as referenced).
- The proposed change to quorum rules (requiring three trustees even for an adjourned meeting) was rejected as undesirable and likely to cause delay; the Court viewed the existing provision (three out of seven, with relaxed requirement for adjourned meetings) and the two‑year non‑attendance removal provision as adequate deterrents to absenteeism.
- Regarding the alleged failure to appoint a manager per the scheme, the Court declined to inquire into the factual dispute on this miscellaneous application and held that the proper remedy for enforcement of the trustees' obligation to appoint a manager is by appropriate proceedings (i.e., the applicants must take steps to enforce that obligation), not by the Court directing more than the scheme already provided.
- Finally, the Court held that it could not, on a miscellaneous application of this character, take action to investigate or recover missing Government promissory notes or misappropriated funds; it could not pass such orders in the exercise of its inherent jurisdiction on the present application.
Holding and Implications
Core Ruling: The Court dismissed the application. APPLICATION DISMISSED (with costs of Rs. 500 assessed against the applicants).
The Court made the following legal holdings and practical implications (as stated in the opinion):
- The reservation in a scheme framed under Section 92, Civil P.C. (para. 21) that allows the Court to modify the scheme in future is not ultra vires; the Court can validly reserve such power when settling the scheme.
- Except where the scheme itself reserves power, the only statutory basis within the Civil Procedure Code for the Court to modify a previously settled scheme is its inherent jurisdiction under Section 151, Civil P.C., which must be exercised narrowly (to prevent abuse of process or where the ends of justice plainly demand it).
- The present application, as a miscellaneous application seeking removal of the gaddinashin and other reliefs, was not the appropriate vehicle to obtain the substantive reliefs sought (removal, recovery of missing promissory notes, directions for management). The correct remedies are (a) to invoke the internal mechanisms of the scheme (trustees' powers) or (b) to institute a fresh suit under Section 92 with the requisite statutory permission (permission of the Advocate‑General or Legal Remembrancer as referenced in the opinion).
- On the merits, the Court found no sufficient reason to amend the scheme: the scheme is “admirable” and likely to work satisfactorily; allegations of misconduct by the gaddinashin did not, by themselves, justify amendment of the general rules laid down in the scheme.
- The Court refused to order investigative or recovery measures (such as tracing the fourteen Government promissory notes) on this miscellaneous application and declined to make managerial or administrative orders beyond those already provided in the scheme.
No broader binding precedent beyond the holdings recorded was set by this single decision; its practical effects were confined to (i) upholding the validity of reserving judicial power to modify a Section 92 scheme, (ii) confirming the limited availability of Section 151 for modification apart from such a reservation, and (iii) dismissing the present application while outlining appropriate remedies available to interested persons.
Costs: Applicants were ordered to pay costs assessed at Rs. 500 in all.
1. This is an application by two persons interested in the temple of Rangji situate in Brindaban district Muttra, praying for modification of the scheme settled by this Court in First-Appeal No. 355 of 1922 which had arisen out of a suit under Section 92, Civil P.C.
2. The application is mainly based on a provision contained in para. 21 of the scheme which reserves powers to the Court to modify it at the instance of any two trustees or any two persons interested in the trust. The application also implies a prayer for certain reliefs, apart from the exercise of the power reserved by the provision already referred to. A preliminary objection is taken by the opposite party that the application is not maintainable. It is contended that the Court becomes functus officio after the termination of the suit under Section 92, Civil P.C., and cannot modify the scheme settled by it and made part of the decree-in the suit and that the provision in the scheme reserving power to the Court to modify it is ultra vires. The scheme as originally prepared by this Court provided in para. 4:
The trust shall be administered by a committee consisting of the gaddinashin of the Sri. Rangji's temple, Brindaban, for the time being, as President, and six other members, selected from among the followers of the Vaishnava faith and preference shall be given in making such selection as far as it may be practicable, to persons belonging to the Tingal Sampradaya.
3. As part of the schema Swami Rangji was appointed to the office of the gaddinashin subject to the conditions laid down in a supplementary deed of trust dated 3rd November 1873 which renders him liable to be removed on the happening of certain contingencies therein specified. A number of trustees were nominated in the scheme which made provisions for succession to the office of the trustee in case of vacancy. It was also laid down that three members of the committee would form a quorum but that if a meeting is adjourned for want of a quorum no such quorum would be necessary for the adjourned meeting. In the application now made it is prayed that the scheme be so amended as to throw the office of the President open to election by the members of the committee and that the provision whereunder the gaddinashin is the ex-officio President be deleted. Modification of the scheme is also sought in respect of the quorum. It is desired that the presence of three trustees should be made necessary even for an adjourned meeting. Another prayer is that the present gaddinashin be removed from the office of a trustee and that of the President and that a manager be appointed for which a provision already exists in the scheme. It is alleged in an affidavit filed in support of the application that the gaddanishin has mismanaged the affairs of the trust and has misappropriated considerable property including fourteen Government promissory-notes. It is prayed that steps be taken to trace and to recover the notes and action be taken against those found to have been guilty of misappropriation of the funds belonging to the endowment. There is a general prayer asking for orders in respect of the proper management and control of the temple and property belonging thereto. Para. 21 of the scheme on which the application is principally based runs as follows:
It shall be open to the trust committee or any two members of the trust committee or any two other persons interested in the trust to apply to the Hon'ble High Court for direction with regard to any matter not converted by this scheme or for any modification of this scheme which may from time to time be considered necessary or desirable in the interest of the trust or for the protection of the trust property.
4. It is contended that the suit under Section 92, Civil P.C., having been completely decided and a decree embodying the scheme having been formally passed, it is not open to the Court to pass any orders amending the scheme, the Court having exhausted its jurisdiction by passing a decree in the suit. It is said that if the removal of a .trustee or any direction for the proper administration of the trust is necessary, a fresh suit under Section 92, instituted with the permission of the Advocate-General, is the only remedy open to the persons who are dissatisfied with administration of the trust. It is pointed out that the scheme is part of the decree passed under Section 92, Civil P.C., and that amendment of the scheme is the amendment of the decree which is not permissible except in terms of Section 152, Civil P.C., which does not apply. Lastly it is contended that the Court cannot reserve to itself a power to amend its decree and that the provision reserving a power to this Court to modify the scheme is ultra vires and cannot be given effect to. The case of Veeraraghavachariar v. The Advocate-General of Madras 1927 51 Mad 31 is strongly relied on by the learned advocate for the opposite party. It was held by a Full Bench of the Madras High Court in that case that:
If in a decree for a scheme framed under Section 92, Civil P.C., liberty is given to persons to apply to the Court for directions merely to carry-out the scheme already settled, such reservation of liberty in the decree will be intra vires if the assistance of the Court can be given without offending against Section 92; but where liberty is given to apply to the Court for alteration or modification of the scheme, such reservation is ultra vires as offending against Section 92, Civil P.C.
5. The ratio decidendi seems to be that reliefs of the nature described in Section 92: can be sought only by instituting a suit in the manner laid down by that section and that it is not open to the Court to allow one of those reliefs (viz., setting a. scheme which is involved in the alteration of a scheme already settled) being sought by an application only. It seems that this view lays to great, and if we may say with respect, unnecessary stress-on the right given to apply for the alteration of a scheme previously settled. The real question is whether the Court can reserve to itself the power to amend the scheme suo motu or otherwise. If the Court can do so the fact that it is moved by an interested person is of no importance. Where the Court has a power, it may, to minimise the chances of frivolous motions being made, make it known that it will not exercise such power unless no less than two persons join in applying for the exercise of it. To our minds this is the only effect of the provision in the scheme which reserves to the Court a power to amend it on an application being made by two persons interested in the trust. As already stated, the real question is whether the Court had jurisdiction to retain a power to alter the scheme. We are unable to find anything in Section 92, Civil P.C., which makes the reservation of a power to modify the scheme in future ultra vires. The power of the Court to settle a scheme for the administration of a trust is sufficiently comprehensive to include a provision which makes the scheme alterable by the Court if it is found necessary in future. We are not impressed by the argument that unless the suit under Section 92 is taken to remain pending for all times, the exercise of the power to amend the scheme necessarily implies amendment of the decree. The suit must undoubtedly be deemed to have terminated with the passing of the decree which according to its definition implies a final adjudication of the rights of the parties to it.
6. The settlement of a scheme is part of the adjudication and if the scheme is made elastic the finality of the adjudication is not affected. If the scheme is amended subsequently by the Court within the limits laid down by the decree the Court should be deemed to be giving effect to its own decree rather than amending it. There is considerable authority against the view taken in the Madras case which was expressly dissented from in Chandraprasad Ramprasad v. Jinabharthi Narayan. 1931 55 Bom 414. Manadananda Jha v. Tarakanand Jha 1924 Cal 330, Sadupadhya Oja v. Ravaneswar Prosad Singh. 1918 43 I C 772 and Mohomed Waheb Hussain v. Abbas Husain 1923 Pat 420 are also authorities to the contrary. U Po Maung v. U Tun Pe 1929 6 Rang 594, is not a case in point. The power to modify the scheme does not appear to have been reserved in that case. Shera Khan v. Shure Shah 1935 A L J 311, is likewise not in point. In that case the scheme settled under Section 92, Civil P.C., appointed a, committee of three persons, who are empowered to visit the shrine and to dismiss a 'mutawalli' and appoint another in his place. This power was exercised by the committee, and the dismissed mutawalli applied to the Court complaining against the action of the committee. The District Judge dismissed his application. On an application for revision from his order it was held by a Division Bench of this Court that the order of the District Judge was correct. There was no question as to whether a power reserved in the scheme prepared under Section 92, Civil P.C., could not be exercised, the reservation being ultra vires. An earlier case decided by this Court, Darshan Das v. Collector of Meerut 1918 16 ALJ 742, does not also touch the point. All that was held in that case was that the Civil Procedure Code gives no power to the District Judge to take any action in order to protect property forming the subject matter of a public endowment unless and until a regular suit is filed in his Court under Section 92, Civil P.C. In that ease, the District Judge had appointed a trustee, and among the other directions given to him one was that he should file an account within a certain time. The order of the District Judge was not complied with, and the judge prohibited the trustee from having any further dealing with the property of the gaddi,' and a proclamation was issued in the villages belonging to the 'gaddi' that no rents should be paid to the trustee. This extraordinary order of the District Judge was reversed in revision by this Court. For these reasons we are led to the conclusion that both on principle and authority it must be held that the provision reserving a power to the Court preparing a scheme under Section 92, Civil P.C., to modify it is not ultra vires.
7. In so far as the present application seeks modification of the scheme, not in the exercise of the Courts power reserved by the scheme itself, but wholly apart from it, we are of opinion that the only section in the Civil Procedure Code which can justify amendment of the scheme is Section 151, Civil P.C. Dr. Katju, the learned Counsel for the applicant, referred us to certain dicta in English cases in which it was held that a Court settling a scheme in relation to an endowment has inherent power to modify it subsequently and in ordinary circumstances. We put it to him whether that was not equivalent to exercise by a Court in this country of its inherent power contemplated by Section 151, Civil P.C. The learned Advocate agreed that the only rule of law to be found in the Civil Procedure Code under which the Court could modify the scheme in the exercise of its inherent power was Section 151, Civil P.C. In our opinion the inherent power of the Court to modify a scheme prepared by itself should be exercised where it is necessary to prevent abuse of the process of the Court or where the ends of justice plainly demand it. In considering the merits of this application we shall bear in mind the comparatively narrow scope of Section 151, Civil P.C., where we are called upon to modify a scheme apart from the power reserved by para. 21 thereof. The result is that we repel the preliminary objection and proceed to dispose of the application on the merits.
8. Coming to the merits of the application we find that the main object of the applicants is to have the present gaddinashin removed from the offices of the President and a trustee. It is alleged in the affidavit that he has misappropriated large sum of money. A reference is particularly made to fourteen Government Promissory Notes which, it is said, have disappeared. It is quite clear that we cannot entertain an application for removal of the President or a trustee on the ground of misconduct. The scheme provides that if the office of a trustee falls vacant the other trustees shall fill up the vacancy by appointing a suitable person. There are provisions in the scheme for the removal of a trustee by the trustees themselves. It is impossible for this Court to entertain an application for the removal of the trustee conformably with the provisions of the scheme. The applicants were apparently alive to the difficulty on this score and have, therefore, applied for the modification of the scheme, so that if under the modified scheme the gaddinashin ceased to be the President ex-officio the office is to be filled up by the trustee. Similarly if the scheme is amended as desired by the applicants, the gaddinashin will cease to be a trustee under the modified scheme-It is thus clear that it is only through a. modification of the scheme that they can secure the removal of the gaddinashin, from the offices of the President and a trustee.
9. We have considered the scheme as. a whole arid find that it is an admirable scheme and is likely to work satisfactorily in normal circumstances and that no case has been made out for amending it in any respect. Assuming, as is alleged, that the present gaddinashin has not fulfilled the expectations which were formed of him by those interested in the trust, it is not the fault of the scheme. The merit of a scheme cannot be judged from its unsuccessful working in one or two instances assuming such is the case in the present instance for these reasons we decline to modify the scheme so as to provide that the gaddinashin shall not be the ex-officio President of the board of trustees and that he shall not by virtue of his office as gaddinashin be a trustee. It is open to two or more-persons interested in the trust to institute a suit under Section 92, of course with the permission of the Legal Remembrancer, for the removal of the gaddinashin from one or more of the positions he now occupies for alleged misconduct. But assuming such allegation is well founded -a point on which we express no opinion-it does not justify the assumption that the general rule contained in the scheme has been found by experience to be unsatisfactory.
10. The next question is whether the provision in the scheme relating to the quorum requires any modification. As already stated, the scheme makes a quorum of three out of seven trustees necessary for the transaction of any business. This is a desirable rule and it is not objected to. It is said that in so far as it provides no particular quorum for an adjourned meeting it should be amended so as to require the presence of at least three trustees on an adjourned meeting also. We do not think that such a provision is at all desirable. It is presumed that the trustees are persons interested in the endowment and are prepared to make some sacrifice in time. The scheme provides that in case a trustee ceased to attend meetings of the board of trustees for a period of two years he renders himself liable to be removed by the other trustees. We think that this provision is sufficiently deterrent against habitual absence of trustees from meetings. Any provision requiring the presence of at least three members out of seven at all adjourned meetings is likely to work very unsatisfactorily on certain occasions and will in any case be conducive to delays.
11. The only other matter that requires consideration is the grievance of the applicants that no manager has been appointed as required by the scheme. This is emphatically denied by the opposite party. It is not necessary for us to inquire into the question of fact whether a manager has not been appointed as is alleged by the applicants. According to the scheme the board of trustees should appoint a manager for the discharge of certain duties. If the board has failed to discharge its obligation under the scheme, the proper remedy for the applicants is to take appropriate proceedings for the enforcement of such obligation. We cannot direct any more than what has been done by the scheme prepared by this Court viz., that the board of trustees should appoint a manager.
12. Lastly so far as our orders are sought in respect of the missing Government Promissory Notes and the misappropriation of funds, we are of opinion that no action can be taken by this Court on a miscellaneous application like the one before us. We cannot obviously pass any orders in that behalf in the exercise of our inherent jurisdiction, assuming we possess power in that connexion nor can we give any directions in respect of the proper management of the affairs of the temple. The result is that this application fails and is dismissed with costs which we assess in all at Rs. 500.
Alert