Section 92 of the Code of Civil Procedure 1908 would not be applicable in a suit by a Trust.

The Supreme Court in the matter of Ghat Talab Kaulan Wala vs. Baba Gopal Das Chela Sruti Dass (Through LR) (Civil Appeal No. 724/2020) decided on 31.01.2020 held that Section 92 of CPC contemplates a suit against a Trust either for removing any trustee; appointing new trustee; or vesting any property in a trustee etc and not where Trust has filed suit against a Sevadar.

Facts
The appeal was filed against an order passed by the High Court of Punjab and Haryana whereby the decree of two courts in favour of appellant/plaintiff were set aside for the reason that one Charan Dass was not competent to file suit as it could not demonstrate the nature of charities which the Trust had undertaken and that such suit is not maintainable without complying with the requirements of Section 92 of the Code of Civil Procedure, 1908 (hereinafter referred to as “the CPC”).

The appellant/plaintiff earlier had filed a suit for mandatory injunction directing the defendant to vacate the management of Mandir, building and other property. The appellant/plaintiff had alleged itself to be the owner of the suit property being managed by the Manager and Trustees. The defendant was said to be a Sevadar. In the said suit, the stand of the defendant was that the representatives of the appellant/plaintiff namely Manohar Lal and Charan Dass were never appointed as Managers or Trustees and they fraudulently got their names entered in the revenue record. The stand of the defendant was that he did everything for the welfare of the Mandir and never sought instructions from the appellant/plaintiff and they have no right to seek rendition of accounts from the defendant.

Issue

Whether Charan Dass could represent the Trust known as Ghat Talab Kaulan Wala and whether the suit filed by the Charan Das was maintainable or not?

Ratio

The Apex Court observed that finding of the High Court was clearly erroneous and not sustainable. The Court held that Section 92 of CPC contemplates a suit against a Trust either for removing any trustee; appointing new trustee; or vesting any property in a trustee etc. In the instant matter, the suit itself was by a Trust against a Sevadar therefore, the procedure prescribed under Section 92 of CPC would not be applicable in a suit by a Trust. It further held that Section 92 of the Code confers right on a person in case of any alleged breach of any express or constructive trust created for a public purpose of a charitable or religious nature