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Court of Appeal — Opinion delivered by Wallis, C.J. (Summary)

Factual and Procedural Background

This appeal arises from a decree of the Subordinate Judge of Kumbakonam dismissing the plaintiff's suit for a declaration that his suspension from the office of temple trustee by the Kumbakonam temple committee was illegal and for damages.

The factual sequence as stated in the opinion is:

  • The plaintiff had been given notice of some or all charges against him.
  • The second defendant (a member of the temple committee) prepared a report (Exhibit B-1) and forwarded copies to other committee members proposing that the plaintiff and some other trustees be suspended until further orders. The report stated the matter had been circulated and requested members to write their opinion.
  • Defendants Nos. 1, 4 and 6 are proved to have assented to the proposed course. The fifth defendant died after suit, and defendants Nos. 7, 8 and 9 were not in office at the date of suspension.
  • The third defendant replied (Exhibit C) protesting that it was not legal to take such a step by circulation and asked that a meeting be called; this request was ignored.
  • The second defendant then wrote to the plaintiff (Exhibit A-1) stating that the plaintiff had been suspended and asking him to hand over to another trustee; the letter recorded the majority opinion and disclosed that the matter had been dealt with in circulation.
  • The temple committee is a statutory body to which certain powers (formerly vested in the Board of Revenue under Regulation VII of 1817) have been transferred by the Religious Endowments Act, and these powers include suspension or dismissal of trustees for sufficient cause.

Legal Issues Presented

  1. Whether the procedure adopted by the temple committee (dealing with the question of suspension by circulation and by obtaining individual assents rather than by a meeting) could validly support the suspension of the plaintiff.
  2. Whether, if there were in fact sufficient grounds for suspension, that fact would be a valid answer to the plaintiff's suit (i.e., whether the existence of sufficient grounds could cure procedural defects).
  3. Whether the individual defendants (or some of them) are liable in damages to the plaintiff for the wrongful suspension, and if so in what measure.

Arguments of the Parties

Plaintiff's Position

  • The plaintiff sought a declaration that his suspension by the Kumbakonam temple committee was illegal and claimed damages for the wrongful suspension.

Defendants' Positions

  • The second defendant took the procedural step of circulating his report and obtaining individual assents, and then effected the suspension by letter (Exhibit A-1).
  • The third defendant objected to the circulation procedure (Exhibit C), asserting that it was not legal to take such a step by circulation and requesting that a meeting be called — a request which was ignored.
  • It was argued (referenced indirectly through cited authorities and previous decisions) that in some cases courts have considered whether the existence of sufficient grounds might affect the remedy available to a wrongfully suspended officer.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Rex v. Taylor; Rex v. Sutton; Thandavaraya Pillai v. Subbayyar; Ponnambala Pillai v. Muthu Chettiar Authorities indicating that bodies in the position of a corporation must generally transact business at meetings, and that authority in matters such as suspension or dismissal of officers must be strictly pursued. The court relied on these authorities to hold that the committee had no power to suspend the plaintiff by the circulation method adopted, and that the action was ultra vires.
Hallows v. Fernie; In re Great Northern Salt and Chemical Works, Ex parte Kennedy Observations (by Page Wood, V.C. in Hallows v. Fernie) approving limits on dealing with corporate business by circulation; approval by Sterling, J. in the latter case. Used to support the proposition that matters such as suspension should be decided at a meeting, not by circulation or separate individual opinions.
Seshadri Ayyangar v. Nataraja Ayyar Contains observations (referred to) about remedies for wrongful suspension; also an instance where an illegally suspended trustee recovered Rs. 1,000. The court noted some observations in that case were obiter and that the case itself shows a trustee illegally suspended recovered substantial damages; the opinion therefore did not treat the case as authority that sufficiency of grounds would be a complete answer to a suit.
Seshadri Aiyangar v. Ranga Bhattar Contains similar observations by Mr. Justice Sundara Ayyar regarding remedies for suspended officers. The court observed that the case and the authorities it relied on (e.g., The King v. Mayor, etc., of London) do not establish that showing sufficient grounds is a good answer to a suit for wrongful suspension.
The King v. Mayor, etc., of London Discussed in relation to remedies available to a removed officer (assize, action for money had and received) rather than an action against the corporation for wrongful suspension. The court observed that this case is not authority that sufficient grounds is a complete defense to a suit for wrongful suspension.
Willis v. Sir G. Gipps Privy Council recommended setting aside an order of amotion made without due notice, although sufficient grounds for the order were reported to exist. Relied on to support the proposition that the existence of sufficient grounds would not be a good answer to a suit where the procedure was defective.
Vijaya Ragava v. Secretary of State for India Authority for the proposition that a person in the enjoyment of a public office who is wrongfully removed is ordinarily entitled to damages from the authority removing him. The court treated this as supporting an award of damages to a wrongfully suspended trustee.
Syed Amin Sahib v. Ibram Sahib Assumption in earlier decisions that damages might be recoverable by a temple trustee for wrongful dismissal. Cited as part of the historical support for liability and damages in cases of wrongful dismissal of temple trustees.
O'good v. Nelson Expresses the view that it may be preferable for the removed officer to proceed by action for money had and received against his successor rather than suing the corporation. Referenced in the court's survey of English authorities dealing with remedies for removed officers; used to note differences in approach.
Harman v. Tappenden Held that an action did not lie against individual corporators for acts done by them in their corporate capacity, at least not without proof of malice. Used to illustrate English reluctance (in some cases) to hold individual corporators liable for corporate acts without malice; contrasted with other authorities.
Cleasby and Plgott, BB. (as cited in the opinion) Held that individual members who exceeded their authority by ordering a trespass were liable in damages. Placed alongside other authorities to show that individual liability has been recognised in some circumstances where members exceed their authority.
Mill v. Hawker Discussed the difficulty of deciding whether individual corporators are liable in tort for acts done in excess of corporate authority; left undecided at that stage. The court noted the English position is unsettled and that Mill v. Hawker declined to decide the question definitively.
Ferguson v. Kinnoull House of Lords decision that where law imposes a duty and a person or body fails to perform it they are answerable in damages to those injured; indicates only corporators who are parties to the failure can be held answerable. Used to support the proposition that individual corporators may be liable in damages for excess of jurisdiction and to show that Indian decisions are not opposed to an extended view of individual liability in such cases.
Calder v. Halket Judicial Committee held that judicial acts of inferior courts are actionable, in absence of statutory provision, if done wholly without jurisdiction. Invoked to show that acts done wholly without jurisdiction may be actionable and thus support liability where excess of jurisdiction is established.

Court's Reasoning and Analysis

The court's analysis proceeds in several connected steps, closely tied to the facts and authorities cited in the opinion.

  1. Nature and powers of the committee: The temple committee is a statutory body which, by virtue of the Religious Endowments Act and earlier regulation, has power to suspend or dismiss trustees for sufficient cause. However, in exercising powers transferred from the Board of Revenue the committee is, to a large extent, in the position of a corporation and must be judged by the same tests as corporate bodies.
  2. Proper procedure for corporate bodies: It is well settled (on the authorities cited) that the ordinary mode for corporate bodies to transact business is at a meeting. While some business may be transacted by circulation, matters involving suspension or dismissal of freehold officers under their superintendence are of such a nature that the authority conferred must be strictly pursued — and the ordinary meeting process is required.
  3. Application to the facts: In the present case the second defendant did not convene a meeting but circulated a proposal and sought individual written opinions; the third defendant objected and asked for a meeting; his request was ignored. The second defendant then issued a suspension letter which recorded that the matter had been dealt with in circulation. The court found that there was not even proper circulation (consent of all members) but merely individual assents to the second defendant's proposal.
  4. Conclusion on ultra vires: On the foregoing basis the court held the committee's action in suspending the plaintiff was ultra vires (beyond the committee's valid authority) because the required corporate procedure (a meeting, or unanimous consent to circulation where that was permitted) was not followed.
  5. Whether sufficient grounds would be a defence: The court considered whether the existence of sufficient grounds for suspension would suffice to defeat the plaintiff's suit. The opinion examined earlier observations (some obiter) and authorities and concluded that showing sufficient grounds would not be a good answer to the present suit where the procedure was defective — citing, inter alia, Willis v. Sir G. Gipps where an order made without due notice was set aside despite sufficient grounds being reported.
  6. Damages and liability of individual defendants: The court surveyed authorities on the right to damages for wrongful removal. It accepted that a person wrongfully removed from a public office is ordinarily entitled to damages (Vijaya Ragava). It noted precedents in the local (Madras) cases and considered English authorities which show a more uncertain or restrictive approach to suing individual corporators. The court also relied on Ferguson v. Kinnoull and Calder v. Halket to show that excess of jurisdiction may render acts actionable and that individual corporators who participate in the failure may be held responsible. Section 14 of the Religious Endowments Act was noted as contemplating individual suits against committee members in certain cases.
  7. Assessment of damages on the facts: The court observed that the plaintiff had not shown substantial pecuniary loss from the suspension (though it caused annoyance and public attention). On the whole the court assessed damages at Rs. 50.

Holding and Implications

Core ruling: The court reversed the decision of the lower court, declared that the plaintiff's suspension was illegal (ultra vires), and awarded damages and costs.

Specific orders given by the court (direct effect on the parties):

  • The decree of the Subordinate Judge of Kumbakonam dismissing the plaintiff's suit was reversed.
  • The plaintiff was given a declaration that his suspension was illegal.
  • A decree for Rs. 50 damages was entered against defendants Nos. 1, 2, 4 and 6 who were considered parties to the suspension.
  • Costs were awarded to the plaintiff here and below, calculated on the Rs. 50 amount.
  • It was noted in the facts that defendant No. 5 had died after suit and defendants Nos. 7, 8 and 9 were not in office at the date of suspension (and hence were not treated as parties to the suspension for purposes of the decree).

Broader implications: The court applied established principles about corporate procedure and ultra vires action; it did not purport to establish a novel general rule beyond those principles cited. The decision's practical consequence is the vindication of strict procedural requirements for suspension of trustees by such committees and recognition of individual liability of participating committee members in the circumstances described; the opinion does not assert that it creates a new precedent beyond its reasoning and the authorities cited.

N.R

    A.T. Venkata Narayana Pillai v. Ponnusawmi Nadar

    The Judgment of the Court was delivered by

    Wallis, C.J:— This is an appeal from a decree of the Subordinate Judge of Kumbakonam dismissing the suit brought by the plaintiff for a declaration that his suspension from the office of temple trustee by the Kumbakonam ??? Committee was illegal and for damages. The decision as to the legality of the suspension depends mainly in this case on the question whether the procedure adopted by the committee can be supported. What happened was that, after the plaintiff had been given notice of some or all of the charges against him, the second defendant, a member of the committee, drew up a report (Exhibit B1) and forwarded copies of it to the other members of the temple committee proposing that the plaintiff and some other trustees should be suspended until further orders. In it he stated that, though the subject had been for a long time before the meeting, it had not been concluded, “It is therefore sent in circulation. I request that instead of writing ‘meeting’ in this you will write your opinion.” Defendants Nos. 1, 4 and 6 are proved to have assented to the course. The fifth defendant died after suit, and defendants Nos. 7, 8 and 9 were not in office at the date of suspension. The third defendant on receipt of Exhibit B-1 sent an answer (Exhibit C) in which he stated “It is not legal to take this step by circulation, much less by taking individual opinions as you are now doing. The procedure adopted is wrong from beginning to end; I request you therefore to call a meeting for the purpose.” Ignoring this request the second defendant wrote to the plaintiff the letter (Exhibit A-1) in which he stated that the plaintiff had been suspended for the reasons set forth in the accompanying proceedings order and asked him to hand over to another of the trustees. The proceedings (Exhibit A-1) recorded the opinion of the majority that the plaintiff should be suspended and disclosed the fact that the matter had been dealt with in circulation. Now the temple committee are a statutory body to which the powers formerly exercised by the Board of Revenue under Regulation VII of 1817 have been transferred as regards certain temples by the Religious Endowments Act and these powers, it may now be taken as settled, include a power of suspending or dismissing the temple trustees for sufficient cause. It has, however, been held that is exercising these powers they are to a large extent in the position of a Corporation and that their actions must be tried by the same tests. Now it is well settled that the ordinary way for bodies in the position of a corporation to transact their business is at a meeting; and, assuming that it is open to them to transact some of their business in circulation, I thick they have no such power as regards matters such as suspension, or dismissal of freehold officers under their superintendence as to which their authority must be strictly pursued: Rex v. Taylor, Rex v. Sutton, Thandavaraya Pillai v. Subbayyar, and Ponnambala Pillai v. Muthu Chettiar. Even if the matter could properly have been dealt with in circulation, that could only have been by consent of all members, and any one of them would have had the right to insist; on the matter being dealt with at a meeting, as the third defendant endeavoured to do in this case. See the observations of Page Wood, V.C, in Hallows v. Fernie, which were approved by Sterling, J., in In re Great Northern Salt and Chemical Works, Ex parte Kennedy. Here there was not even what is ordinarily known as circulation, as the second defendant merely sent copies of his proposals to each of the other members and obtained their individual assents to his proposals. In these circumstances we are clearly of opinion that the action of the committee in suspending the plaintiff was ultra vires.

    It is then said that we ought to enquire whether there were valid grounds for suspending the plaintiff and, if so, to dismiss his suit. Certain observations of Mr. Justice Shephard in Seshadri Ayyangar v. Nataraja Ayyar were referred to, but these observations appear to have been obiter and no authority was cited. There are similar observations by Mr. Justice Sundara Ayyar in Seshadri Aiyangar v. Ranga Bhattar. The case cited by him—The King v. Mayor, etc., of London—is no authority that this is a good answer to a suit, as in that case the Court merely refused to issue the discretionary writ of mandamus and observed that

    “no case has been cited to show that an assize will not lie for such an office as the present; or that he could not maintain an action for money had and received during his suspension.”

    Further the office with which Mr. Justice Sundara Ayyar was dealing was that of archaka and other considerations may possibly apply to it. On the other hand in Willis v. Sir G. Gipps, the Privy Council recommended that an order of amotion made without due notice should be set aside, although they at the same time reported that there were sufficient grounds for making the order. We are therefore of opinion that it would not be a good answer to the present suit to show that there were sufficient grounds for suspending the plaintiff. In this view it is unnecessary to consider the further objection that the plaintiff was removed without due notice, as we have held that the action was ultra vires on the other ground.

    As regards the liability of the defendants or some of them for damages, there can be no doubt that the decision of a Bench of three judges sitting on the original side in Vijaya Ragava v. Secretary of State for India is authority at any rate for the proposition that a person in the enjoyment of a public office who in wrongfully removed is ordinarily entitled to damages from the authority removing him. In Seshadri Ayyangar v. Nataraja Ayyar a trustee who was illegally suspended recovered Rs. 1,000 against the temple committee, Collins, C.J, being influenced by the fact that the committee was actuated by an indirect motive, the fact that the plaintiff was a vadagalai. In ??? Pillai v. Subbayyar the plaintiff recovered damages before the District Munsif, and to this extent the decree seems to have been reversed by the District Judge, and the plaintiff did not appeal. As early as Syed Amin Sahib v. Ibram Sahib, it seems to have been assumed that damages might be recovered by a temple trustee for wrongful dismissal. On the other hand there does not seem to be any instance of an action of this kind having been successfully maintained in England. In The King v. Mayor, etc., of London already cited, the suggested remedies of the removed officer were an assize or an action for money had and received to his use during the period of suspension, and not an action against the corporation for wrongfully suspending him; aid in O'good v. Nelson it was thought well for the removed officer to proceed by action for money had and received against his successor. In Harman v. Tappenden, where a freeman of the corporation was alleged to have been illegally removed from his office, it was held that an action did not lie against individual corporators for acts erroneously done by them in their corporate capacity, at least not without proof of malice. This case was relied on by Kelly, C.B in Mill v. Hawkar, who held that for a tort committed by a corporation it could only be sued as a body. On the other hand Cleasby and Plgott, BB., held that the individual members who exceeded their authority by ordering a trespass to the plaintiffs' land were liable in damages. In Mill v. Hawker, the same case in the Exchequer Chamber, Blackburn, J., said that the question whether the corporators were liable was one of considerable importance and great difficulty. It would, he said, require time for consideration and probably the decision would not be unanimous. Accordingly he declined to decide it at that stage, and it has not been decided since in any English case. It had however long previously been ruled by the House of Lords in a Scotch appeal, Ferguson v. Kinnoull, that where the law imposes a duty on any person or body of persons and they fail or neglect to perform that duty they are answerable in damages to those whom their failure or neglect injures. The appeal was from Scotland, but the judgments proceeded on grounds common to the laws of England and Scotland, as was expressly stated, and they contain general expressions which are rather in favour of extending liability of individual corporators at any rate to cases of excess of jurisdiction such as the present. It is also to be observed that it has been held by the Judicial Committee on appeal from India in Calder v. Halket, that even judicial acts at any rate of inferior Courts are actionable, in the absence of statutory provision, if done wholly without jurisdiction. Ferguson v. Kinnoull is also important because it lays down that it is only corporators who are parties to the failure or neglect of duty who can be held answerable in damages. It is also clear that section 14 of the Religious Endowments Act contemplates that members of temple committees should be sued individually in cases under that section. On the whole, it does not appear that the Madras cases are oppose to any settled rule of English Law, or that there is sufficient reason for calling them in question.

    As regards damages it is not shown that the plaintiff sustained any substantial damage by reason of the suspension though it was of course annoying to have the suspension tomtommed in the neighbourhood. On the whole we assess the damages at Rs. 50 and reverse the decision of the lower Court and give the plaintiff a declaration that his suspension was illegal and a decree against defendants Nos. 1, 2, 4 and 6 who must be considered as parties to the saspension, for Rs. 50 damages and for costs hero and below calculated on that amount.

    N.R

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    A.T. Venkata Narayana Pillai v. Ponnusawmi Nadar
    (Sep 12, 1917)