Supreme Court Dismisses Appeal in HR & CE Act Case — Bagyammal Trust Held to be a Specific Endowment. Deed of Settlement dated 4 June 1926 created a public charitable trust for temple purposes, falling under Section 6(19) of the Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959.

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Case Note & Summary

The appeal arose from a judgment of the Madras High Court which reversed the trial court's decree in favor of the appellant. The appellant, W. N. Allal Sundaram, had instituted a suit seeking to set aside an order of the Commissioner, Hindu Religious and Charitable Endowments Administration Department, and for a declaration that the Bagyammal Trust is not a specific endowment under the Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959. The appellant claimed that the trust was a private family trust created by Bagyammal, who had received the property under a Deed of Settlement dated 4 June 1926 from the trustees of the Sree Agastheeswara Swamiya Devasthanam Temple. The property was originally given for the construction of a choultry for the convenience of devotees attending temple festivals. The appellant contended that the trust was private and not subject to the Act. The Deputy Commissioner and the Commissioner held that the trust was a public trust. The trial court decreed the suit, but the High Court reversed, holding that the deed created a specific endowment. The Supreme Court, after examining the deed, found that the recitals clearly showed the property was given for public religious charity, namely, a choultry for Hindu pilgrims and for temple purposes. The deed prohibited letting out for rent and required the choultry to be used for public purposes. The Court held that the trust was a specific endowment under Section 6(19) and dismissed the appeal, affirming the High Court's judgment.

Headnote

A) Hindu Religious Endowments - Specific Endowment - Section 6(19) Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959 - Deed of Settlement dated 4 June 1926 created a choultry for the use of Hindu pilgrims and for temple purposes - The recitals in the deed indicate that the property was given for public religious charity, not for private family benefit - Held that the trust is a specific endowment and not a private family trust (Paras 10-11).

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Issue of Consideration

Whether the Bagyammal Trust created under the Deed of Settlement dated 4 June 1926 is a 'specific endowment' within the meaning of Section 6(19) of the Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959, and thus subject to the provisions of the Act.

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Final Decision

The Supreme Court dismissed the appeal, affirming the High Court's judgment that the Bagyammal Trust is a specific endowment under Section 6(19) of the Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959.

Law Points

  • Specific endowment
  • public trust
  • private trust
  • deed of settlement
  • religious charity
  • temple
  • choultry
  • Section 6(19) Tamil Nadu HR & CE Act
  • Section 63 Tamil Nadu HR & CE Act
  • Section 70 Tamil Nadu HR & CE Act
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Case Details

2019 LawText (SC) (11) 64

Civil Appeal No. 8349 OF 2017

2019-11-22

Dr Dhananjaya Y Chandrachud

W. N. Allal Sundaram

The Commissioner H.R. & C.E. Admn. Department & Ors.

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Nature of Litigation

Civil appeal against High Court judgment reversing trial court decree in a suit under Section 70(1) of the Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959.

Remedy Sought

Appellant sought setting aside of Commissioner's order dated 21 March 1990 and declaration that Bagyammal Trust is not a specific endowment under the Act.

Filing Reason

Appellant claimed the trust was a private family trust, not a public trust, and thus not subject to the Act.

Previous Decisions

Deputy Commissioner dismissed OA 12 of 1984 on 3 October 1986; Commissioner dismissed appeal on 21 March 1990; Trial Court decreed suit on 27 October 1995; High Court reversed on 27 October 2006; Letters Patent Appeal dismissed as not maintainable.

Issues

Whether the Bagyammal Trust is a 'specific endowment' under Section 6(19) of the Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959.

Submissions/Arguments

Appellant argued that the trust was a private family trust created by Bagyammal and not a public trust. Respondents argued that the Deed of Settlement created a public charitable trust for temple purposes, constituting a specific endowment.

Ratio Decidendi

The Deed of Settlement dated 4 June 1926 created a public charitable trust for the benefit of Hindu pilgrims and temple purposes, as evidenced by recitals requiring the choultry to be used for public use and prohibiting letting out for rent. Such a trust falls within the definition of 'specific endowment' under Section 6(19) of the Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959, and is not a private family trust.

Judgment Excerpts

The recitals in Exhibit-A1 indicate that the property was given for the construction of a choultry for the use of Hindu pilgrims and for temple purposes, and the deed prohibits letting out for rent and requires the choultry to be used for public purposes. The trust created under the Deed of Settlement dated 4 June 1926 is a specific endowment within the meaning of Section 6(19) of the Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959.

Procedural History

The appellant instituted OS No. 5916 of 1990 before the City Civil Court, Madras, which was decreed on 27 October 1995. The first respondent appealed to the Madras High Court, which reversed the trial court's judgment on 27 October 2006. A Letters Patent Appeal was dismissed as not maintainable under Section 100(A) CPC. The appellant then filed a Special Leave Petition under Article 136, which was granted on 4 May 2017, leading to the present appeal.

Acts & Sections

  • Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959: Section 6(19), Section 63, Section 69, Section 70
  • Code of Civil Procedure, 1908: Section 100(A)
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