Representative suit - Binds all personsinterested in trust - Persons interested in trust have locus standi to raise objection - Their names need not be in title of suit as parties - Property belonging to public trust - Sale by private negotiations - Should not be permitted - Direction given in instant case to sell property by public auction.

Citation 

AIR 1990 SUPREME COURT 444

SUPREME COURT

(From : Madras)*

S. NATARAJAN , J. and KULDIP SINGH , J.

Civil Appeal No. 3577 of 1989, D/- 26 - 10 - 1989

R. Venugopala Naidu and others Appellants v. Venkatarayulu Naidu Charities and others

Respondents.

(A)Civil P.C. (5 of 1908), S.92, S.11, O.1 R.8 - Representative suit - Nature of - Binds all persons

interested in trust - Sale of trust properties with permission of Court - Persons interested in

trust have locus standi to raise objection - Their names need not be in title of suit as parties.

A suit under S.92 of the Code is a suit of a special nature for the protection of public rights in the

Public Trusts and charities. The suit is fundamentally on behalf of the entire body of persons who are

interested in the trust. It is for the vindication of public rights. The beneficiaries of the trust, which

may consist of public at large, may choose two or more persons amongst themselves for the purpose

of filing a suit under S.92 of the Code and the suit-title in that event would show only their names

as plaintiffs. It cannot therefore be said that the persons whose names are on the suit title are the

only parties to the suit. The named plaintiffs being the representatives of the public at large which is

interested in the trust all such interested persons would be considered in the eyes of law to be parties

to the suit. A suit under S.92 of the Code is thus a representative suit and as such binds not only the

parties named in the suit-title but all those who are interested in the trust. It is for that reason that

explanation VI to S.11 of the Code constructively bars by res judicata the entire body on interested

persons from reagitating the matters directly and substantially in issue in an earlier suit under S.92

of the Code.

 (Para 9) 

A suit whether under S.92 Civil P.C. or under O.1, R.8 of Civil P.C. is by the representatives of large

number of persons who have a common interest. The very nature of a representative suit makes all

those who have common interest in the suit as parties.

 (Para 10) 

On filing of a representative suit a scheme-decree was passed in the instant case. The trustee obtained

permission from Court to sell trust properties. Some persons who were not parties to the representative

suit filed objection and sought to set aside the permission to sell. Since they were persons interested

in trust, held, they had locus standi to file application raising objection.

 (Para 12) 

(B)Civil P.C. (5 of 1908), S.92 - Representative suit - Hindu religious trust - Muslim person

whether can claim to be interested - Question not decided since other persons claiming to be

interested and beneficiaries of trust were Hindu - However, it was observed that the trust has

been constituted to perform not only charities of a religious nature but also charities of a secular

nature such as providing for drinking water and food for the general public without reference

to caste or religion. Hindu Religious trust - Objects both of secular and religious nature - Non-

Hindu whether can claim to be interested.

(C)Civil P.C. (5 of 1908), S.92 - Representative suit - Religious and charitable endowments -

Property belonging to - Sale by private negotiations - Should not be permitted by Court unless

justified by special reasons - Direction given in instant case to sell property by public auction

after giving wide publicity. Religious Trust - Sale of property.

AIR 1986 SC 1158 Followed.

 (Paras 13 , 14) 

Cases Referred Chronological Paras

AIR 1986 SC 1158 : (1985) 3 SCC 391 (Followed) 13

AIR 1964 SC 107 : (1964) 2 SCR 647 8

AIR 1961 SC 1206 : (1961) 3 SCR 930 7

Mr. S. Padmanabhan Sr. Advocate, M/s. Mr.

© Copyright with AIR Infotech & All India Reporter. All rights reserved