# Babu/al .Amlltalal Metlio v. T lu Collector of Customs, Cakutta

- **Citation:** [1957] 1 S.C.R. 1122
- **Court:** Supreme Court of India
- **Decided:** 1957
- **Case number:** Civil Appeal No. 185 of 1952
- **Bench:** S. R. Das C.J
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/babu-al-amlltalal-metlio-v-t-lu-collector-of-customs-cakutta-1323
- **Pages:** 19

## Headnote

fAFER
IMAM,
GAJENDRACADKAR
and A. K. SARKAR JJ.)
Hindu
[Aw-Charitable
Endowment-Compromise
decreeCorutruction-Trust or charge-Intention of the donor-Test.
A Hindu father executed a registered deed of trust giviug
away his properties to public charities
and appointed
himself and
two others as trustees.
The .son
in assertion by his right
to a
moiety share therein started to alienate them.
There was
litigation
between the trustees and the son which ultimately ended in a
compromise decree for .partition bet\\·een the father and the
!'011,
the two other trustees
having retired pending litigation.
A ftei
'
the death of both the father and the son a suit was brought under
~~
S.C.R.
SUPREME COURT REPORTS
1123
s. 92 of the Code of Civil Procedure for the framing of a scheme
for the administration of the trust. The trial court held that the
trust deed had been substituted by the compromise decree which
itself created a trust and decreed the suit on that basis. On appeal
by two of the defendants who were transferees in possession of
some of the properties in suit, the High Court affirmed the decision
of the trial court holding that the compromise decree created a
trust for public charities in respect of the properties aJlotted to
the
third plaintiff, meaning the father.
The said defendants
appealed to this Court.
The principal question for decision was
one of construction of the compromise decree, whether it created
a trust or a charge. The relevant terms of the compromise decree
were as foJlows:-
"that as regards the aforesaid schedule property, the third
plaintiff should be the 'sole trustee' tiJI his lifetime for the purpose
of conducting the charities described in the trust deed, dated 17th
March, 1919, and he should utilise the income derived therefrom
for the charities according to the necessity and should enjoy the
said property tiJI his lifetime without rights
to gift,
sale
etc.,
therein ;
that after his
death, the
said entire property should pass
on to his grandson Ramalingeswara Rao subject to the (performance of) the aforesaid kainkaryams (charities);
that if the third plaintiff should die before the expiry of
the
minority of the aforesaid Ramalingeswara Rao arrangement
should be made fo have a guardian appointed through Court for
the property made to pa.ss to the said RamalingeswaraRao, the
said guatdian should take possession of
th~ property and conduct
the aforesaid charities and deliver possession of the same to the
said Ramalingeswara Rao as soon as the minor attains majority ;
that,
thereafter
the
said
Ramalingeswara
Rao
should
conduct the abovementioned charities and enjoy the
properties :"
Held, that the courts below were in error in construing the
compromise decree m the way they did and the appeal must
succeed.
There can be no doubt from the terms of the compromise
decree read as a whole that what was intended to be created was
a charge and not a trust in respect of the properties allotted to the
father which retained their private character.
The principles of Hindu Law applicable to questions relating
to charitable trust are weJI settled.
Whether or not a dedication
to charity is complete must depend on the intention of the donor
which has to be gathered from the terms of the document in any
particular case read as a whole. If the dedication is complete, a
trust is created, if not, a charge follows.
The mere use of the
word 'trust' or 'trustee' cannot by itself be conclusive as to the
intention of the donor and the
real test is whether private title
1957
Mmakuru Dasaratharami Reddi
Y.
Duddukuru
Subba RM
I957
Menakuru Dasara·
tharami &ddi
v.
Duddukuru
Subba Rao
1124
SUPREME COURT-REPORTS
[1957]
over the property is sought to be extinguished by a complete
transfer of it to the charity.
Maharani Hemanta Kuman' Debi v. Gauri Shankar Tewari,
(1940) L.R. 68 I.A. 53, fadu Nath Singh v. Thakur Sita Ramii,
(1917) L.R. 44 I.A. 187, Pande Har Narayan v. Suria Kumvari,
(1921) L.R. 48 I.A.
143, Sonotun Bysock v. Sreemuti fuggul

## Text

_Characters 0–39,791 of 43,193. This is a partial read: ask again with offset=39791 for what follows._

1957
Babu/al .Amlltalal
Metlio
v.
T lu Collector of
Customs, Cakutta
1957
Ma7 IO.
1122
SUPREME COURT REPORTS
[1957J
smuggled goods. It is only those goods which answer
the threefold description that come under the operation
of the section. The object of the Act is to prevent
smuggling. The differentia on the basis of which the
goods have been classified and the presumption raised
by the section obviously have - a rational relation
t<>
the object sought to be achieved by the Act. The
presumption only attaches to goods of the description
mentioned in the section and it directly furthers the
object of the Act, namely, the prevention of smuggling,
and that being the position the impugned section is
clearly within the principle enunciated above, not hit
by Art. 14. The impugned section cannot be struck
down on
the
infirmity either of
discrimination
or
illegal
classification.
Confining as it does to certain
classes of goods seized by the customs authorities on
the reasonable belief that they are smuggled goods,
there is only a presumption which can be rebutted.
In these circumstances, there can
be no doubt
whatever that s. 178-A does not offend Art. 14 of the
Constitmion and
this
petition
1s,
therefore,
to be
dismissed with costs.
Petition dismissed.
MENAKURU DASARATHARAMI REDD!
ti.
DUDDUKURU SUBBA RAO
(S. R.
DAS C.J.,
fAFER
IMAM,
GAJENDRACADKAR
and A. K. SARKAR JJ.)
Hindu
[Aw-Charitable
Endowment-Compromise
decreeCorutruction-Trust or charge-Intention of the donor-Test.
A Hindu father executed a registered deed of trust giviug
away his properties to public charities
and appointed
himself and
two others as trustees.
The .son
in assertion by his right
to a
moiety share therein started to alienate them.
There was
litigation
between the trustees and the son which ultimately ended in a
compromise decree for .partition bet\\·een the father and the
!'011,
the two other trustees
having retired pending litigation.
A ftei
'
the death of both the father and the son a suit was brought under
~~
S.C.R.
SUPREME COURT REPORTS
1123
s. 92 of the Code of Civil Procedure for the framing of a scheme
for the administration of the trust. The trial court held that the
trust deed had been substituted by the compromise decree which
itself created a trust and decreed the suit on that basis. On appeal
by two of the defendants who were transferees in possession of
some of the properties in suit, the High Court affirmed the decision
of the trial court holding that the compromise decree created a
trust for public charities in respect of the properties aJlotted to
the
third plaintiff, meaning the father.
The said defendants
appealed to this Court.
The principal question for decision was
one of construction of the compromise decree, whether it created
a trust or a charge. The relevant terms of the compromise decree
were as foJlows:-
"that as regards the aforesaid schedule property, the third
plaintiff should be the 'sole trustee' tiJI his lifetime for the purpose
of conducting the charities described in the trust deed, dated 17th
March, 1919, and he should utilise the income derived therefrom
for the charities according to the necessity and should enjoy the
said property tiJI his lifetime without rights
to gift,
sale
etc.,
therein ;
that after his
death, the
said entire property should pass
on to his grandson Ramalingeswara Rao subject to the (performance of) the aforesaid kainkaryams (charities);
that if the third plaintiff should die before the expiry of
the
minority of the aforesaid Ramalingeswara Rao arrangement
should be made fo have a guardian appointed through Court for
the property made to pa.ss to the said RamalingeswaraRao, the
said guatdian should take possession of
th~ property and conduct
the aforesaid charities and deliver possession of the same to the
said Ramalingeswara Rao as soon as the minor attains majority ;
that,
thereafter
the
said
Ramalingeswara
Rao
should
conduct the abovementioned charities and enjoy the
properties :"
Held, that the courts below were in error in construing the
compromise decree m the way they did and the appeal must
succeed.
There can be no doubt from the terms of the compromise
decree read as a whole that what was intended to be created was
a charge and not a trust in respect of the properties allotted to the
father which retained their private character.
The principles of Hindu Law applicable to questions relating
to charitable trust are weJI settled.
Whether or not a dedication
to charity is complete must depend on the intention of the donor
which has to be gathered from the terms of the document in any
particular case read as a whole. If the dedication is complete, a
trust is created, if not, a charge follows.
The mere use of the
word 'trust' or 'trustee' cannot by itself be conclusive as to the
intention of the donor and the
real test is whether private title
1957
Mmakuru Dasaratharami Reddi
Y.
Duddukuru
Subba RM
I957
Menakuru Dasara·
tharami &ddi
v.
Duddukuru
Subba Rao
1124
SUPREME COURT-REPORTS
[1957]
over the property is sought to be extinguished by a complete
transfer of it to the charity.
Maharani Hemanta Kuman' Debi v. Gauri Shankar Tewari,
(1940) L.R. 68 I.A. 53, fadu Nath Singh v. Thakur Sita Ramii,
(1917) L.R. 44 I.A. 187, Pande Har Narayan v. Suria Kumvari,
(1921) L.R. 48 I.A.
143, Sonotun Bysock v. Sreemuti fuggulsoondree Dossee, 8 Moo. L.A. 66 and Copa/ Lal Sett v. Purna Chanrlra
Bosak. (1921) L.R. 49 I.A. 100, applied .
CIVIL APPELLATE JURISDICTION : Civil
Appeal No.
185 of 1952.
Appeal from the judgment and order dated December 15, 1948, of the Madras High Court in Appeal No.
155 of 1946 arising out of the decree dated October 27,
1945, in Original Suit No. 132 of 1944.
Alladi Kuppuswami and M. S. K. Sastri, for the
appellants.
T. V. R. Tatachari and T. M. Sen, for respondent
No. 4.
1957. May 10. The Judgment of the Court was
delivered by
GajenJ,agadkar J.
GAJENDRAGADKAR J.-This is an appeal by defendants 47 and 48 and the principal question which is
raised for our decision in the appeal is whether the
properties in suit
are
the
subject matter of public
charitable trust or are merely burdened or charged
with the obligation in favour of the specified charities.
The suit from which this appeal arises was filed with
the sanction of the Collector under s. 92 of the Code of
Civil Procedure and
the plaintiffs
alleged
that the
properties in suit were the subject-matter of a public
charitable trust and that a scheme may be framed for
the
administration of
the
said
trust.
The present
appellants
who are
in
possession
of a substantial
portion of the properties in suit
as
alienees have
resisted this claim. They conceded that the properties
in their hands were subject to the charge in favour of
the charities but they denied that the said
properties
were the subject-matter of a charitable trust.
Several
other pleas were made by the parties but the principal
question in dispute between them was in regard to the
character of the properties in suit.
Both the
learned
I
\
.
S.C.R.
SUPREME COURT REPORTS
1125
trial judge and the High Court of Madras have upheld
the plaintiff's plea.
lt has been declared that the
properties in question are trust properties and a direction has been issued that a scheme of management
should be framed in respect of the trust with a view to
carry out the charitable intentions of the settlor. It is
this decree which is challenged before us by Mr. Alladi
Kuppuswami on behalf of defendants 47 and 48 and
his argument is that the view taken by the Courts
below about the character of the properties is based
upon a misconstruction of the decree in question.
In the plaint, it was alleged that one Purushottam
had been earning and purchasing large properties and
endowing and dedicating ·them for public
charitable
purpose since 1896.
In about 1919 Purushottam who
had then become old wanted to place the charities
which he had been till then personally administering
on a permanent and enduring basis. That is why he
executed and registered a deed of trust on March 17,
1919. By this document, a trust in respect of his
properties
was
created
and
three
trustees
were
appointed
to
administer
the
trust.
Purushottam
himself was one of these trustees and two Advocates,
Mr. Reballa Subbarayudu and Mr. C. Viswana1iha Rao,
were his co-trustees. It would appear , that -Purushottam's son Ramakrishnayya did not approve of this
arrangement and he began to obstruct the administration of the trust.
As a result of this
obstructive ·
attitude adopted by Ramakrishnayya,
two suits had
to be filed by the trustees against Ramakrishnayya
and his associates who interfered with the management
of the trust. These two suits were O.S. No. 599 of 1919
and O.S. No. 68 of 1920 on the files of the District''
Munsiff's Court, Kavali, and the District Court, Nellore,
respectively.
They were subsequently transferred to
the Sub-Court, Nellore, and numbered as O.S. No. 39
of 1921 and O.S. No. 67 of 1921 in the said Court.
Pending the hearing of these suits, the two · advocatestrustees withdrew from the suits leaving the conduct
of the suits solely in charge of Purushottam. Ultimately
the two suits ended in a compromise. According to
the plaint in the present suit out of the which this
1957
Menakuru
Dasara..
_tharami Rtddi
v.
Duddu!curu
Suhha Rao
Gajendragadkar J,
1957
Menakuru Dasaratharami FUdJi
v
Duddukuru
Subba Rao
Gajendragadkar 7.
1126
SuPREME COURT REPORTS
[1957]
appeal has arisen, this compromise decree was fraudulent and collusive the object of the parties being to
efface the character of the trust properties completely
and to create individual rights in Purushottam, his son
Ramakrishnayya
and
the
other
defendents
who
claimed to
be
alienees
from
Ramakrishnayya. The
plaint even alleged that, in persuading the Court to
pass the said compromise decree, the parties effectively
played fraud on the Court and the trust. Since the
compromise was thus null and void, it cannot affect
the original
trust
created by
Purushottam in 1919.
That is why the plaint alleged that the properties
mentioned in sch. A which were covered by the original
deed ot trust of 1919 were trust properties and asked
in substance for the framing of a scheme for the
administration of the said trust.
At the date of this suit both Purushottam and his
son
Ramakrishnayya
were
dead.
Ramakrishnayya's
son Ramalingeswara Rao was therefore impleaded
as
defendant No. I. A large number of defendants fod
to be impleaded to the suit because the properties had
been alienated both
by
Ramakrishnayya and Ramalingeswara Rao _to several
purchasers.
Defendants
47
and 48 were two of such purchasers. On June 7, 1942,
an agreement of sale by defendant No. 1 in favour of
defendants 47 and 48 was executed and a decree for
specific performance was ultimately passed in
their
favour. It was then that defendants 47 and 48 were
impleaded to this suit
on
January 3, 1944.
These
defendants substantially adopted the defence raised by
the other contesting defendants who were already on
the record. The principal contention raised on their
behalf was that the compromise decree was not fraudulent or collusive, that it ·represented a fair and bona fide
familv settlement between
Purushottam and his
son
R~makrishnayya and as such the decree was binding
ag~inst Purushottam and tbe trust alleged to have
been created by him in 1919.
On the pleadings of the parties, the learned trial
judge framed ten issues. He found that the suit was
competent, that the compromise decree was not shown
. '
to be collusive or fraudulent and it was binding on the
-'
( "
S.C.R.
SUPREME COURT REPORTS
1127
trust.
Even
so,
the
said
compromise
decree
itself
created a trust in favour of public charities and in
respect of the properties which had been allotted by
the compromise decree to the share of Purushottam. It
would be noticed that according to the plaint the trust
for the administration of which a scheme was claimed
by the plaintiffs was the trust created by Purushottam
in 1919. Since the learned trial judge held that this
trust
deed had been effectively
substituted . by the
arrangement evidenced
in the compromise decree, he
proceeded to consider the effect of this compromise
decree and since
he
thought that this compromise
decree itself
created a trust in substitution of
the
original
trust
of
1919
he
proceeded
to
pass
a
decree in favour of the plaintiffs in respect of
the
substituted trust. This decree was passed on October
27, 1945. The matter was taken to the High Court of
Madras by defendants 47 and 48.
On December 15,
1948, the appeal
preferred by defendants 47 and 48
w:i.s dismissed and the decree passed by the trial Court
w:is confirmed. The learned Judges of the High Court
of Madras dealt substanfr11ly with the question of the
construction of the compromise decree and, since
they
came to the conclusion that the said decree constitutrd
a publi.c charitable trust in respect 'of the
propertie~
assigned to the share of Purushottam,
they
saw
no
reason to interfere with the decree under appeal. Two
other points were raised before the High Court. They
were, whether the obligation arising out of the trust is
annexed to
the property that fell
to the sh:ire of
Purushottam under the compromise decree and whether
the said decree was collusive and not binding on the
trust. The High Court took the view that, since the
compromise decree itself created a trust and it was
possible to give relief to the plaintiffs on that view, it
"vas not necessary to consider the said two
points.
Defendants 47 and 48 then preferred the present appeal
to
this Court.
By
our interlocutory
judgment on
March 30, 1955, we sent the case back to the High
Court of Andhra with the direction that they should
record their findings on the two additional points which
were urged before them but on which they thought it
1957
Menak""' Dasaralharami &ddi
v.
Duddukuro
Subba Rao
Gaj1ndragadkar ].
1957
Mtnakuru Dasara~
tharami Reddi
v.
Duddukuru
Subba Rao
Gajendragadkat
1128
SUPREME COURT REPORTS
[1957}
unnecessary to make findings.
In pursuance of this
interlocutory judgment, the High Court of Andhra to
whom the proceedings were transferred owing to the
creation of the new State of Andhra have now recorded
their findings on the two issues in question. They have
held that the obligation in question is annexed to the
property that felt to the share of Purushottam under
the compromise decree and they have found that the
said compromise decree was not collusive and was
binding
on
the trust.
That is how
the
principal
question which we have to consider in the
present
appeal is the construction of the compromise decree in
question.
The principles of Hindu Law applicable to the
consideration of questions of dedication of property to
charity are well settled. Dedication to charity
need
not necessarily be by instrument or grant. It can be
established by cogent
and
satisfactory
evidence
of
conduct of the parties and user of the property which
show the extinction of the private secular character of
the property and is complete dedication to charity.
On the other hand, in many cases Courts have to deal
with grants or gifts showing dedication of property to
charity. Now it is clear that dedication of a property
to
religious or charitable
purposes
may
be either
complete or partial. If the dedication is complete, a
trust in favour of public religious charity is created. If
the dedication is partial, a trust in favour of the charity
is not created but a charge in favour of the charity
is attached to, and follows, the property which retains
its original privote and secular character. Whether or
not dedication is complete would naturally be a question of fact to be determined in each case in the light
of the meterial terms used in the document. In such
cases it is always a matter of ascertaining the true
intention
of
the
parties;
it
is
obvious
that such
intention must he
gather
on a fair ancl rca,.on:ible
construction of the document considered as a whole.
The use of the vvord "trustn or "trustee" is no douht of
some help in determining such intention ; but the mere
use of such words cannot be treated as decisive of the
matter. Is the private title over the property intended
·'
\'
S.C.R.
SUPREME COURT REPORTS
1129
to be completely extinguished ? Is
the title in regard
to the property intended to -be completely transferred
to the charity? The answer to these questions can be
found not by concentrating on the significance of the
use of the word "trustee" or "trust" alone but by
gathering the true intent of the document consider,ed
as a whole. In some cases where documents purport
to dedicate property in favour
of
public charity,
provision
is
made
for
the
maintenance
of
the
worshipper who may be a member of the family of the
original owner of the property himself and in such
cases the question often arises whether the provision
for the maintenance of the manager or the worshipper
from the income of the property indicates an intention
that the property should retain its original character
and should merely be burdened with an obligation in
favour of the charity. If the income of the property
is substantially intended to be used for the purpose of
the charity and only an insignificant and minor portion
of it is allowed to be used for the maintenance of the
worshipper or the manager, it may be possible to take
the view that dedication is complete. If, on the other
hand, for the maintenance of public charity a minor
portion· of the income is expected or required to be
used and a substantial surplus is left in the hands of
the manager or worshipper for his own private purposes,
it would be difficult to accept the theory of complete
dedication. It is naturally difficult to lay
down
a
general rule for the solution of the problem. Each case
mmt be considered on its facts and the intention of
the parties must be determined on reading the document as a whole.
In Maharani
Hemanta Kumari Debi v.
Gauri
Shankar Tewari and Others(1 ), Sir George Rankin, who
delivered the judgment of the Board has observed, "In
the usual case of complete dedication made to an idol,
for example, the property ceases altogether to belong
to the donor, and becomes vested in the idol as a
juristic person. Complete relinquishment by the owner
of his proprietary right is, however, by no means the
only form of dedication known to Hindu law, and is
. (1) (1940) L. R. 68 I. A. 53, 63.
6-81 S. C. India/ 59
1957
Mmakuru Dasaralharami Reddi
v.
Duddukuru
Subba Rao
Gajtndragadkar J.
1957
Menakuru Dasaralharami Reddi
V,
Dwidukuru.
Suhba Rao
eGojtndragadkar J.
1130
SUPREME COURT REPORTS
[1957]
very different from anything that could ordinarily be
inferred from the public user of a highway. From the
standpoint of the Hindu law 'it is
not essential to a
valid dedication that the legal title should pass from
the owner, nor is it. inconsistent with an effectual dedicarjon that the owner should continue to make any
and all uses of the land which do not interfere with
the uses for which it is dedicated' per Mookeriee J.
in Chairman of the Howrah.
Municipality v.
Khetra
Krishna Mitra(')". The
learned
Judge
has
further
added that when the dedication is only partial
the
property in some parts of India might none the less in
common parlance be described as debotter, but whether
it be charged with a sum of money for the worship of
an idol, or be subjected to a right of limited user on
the part of the public, it would descend and be alienable
in the ordinary way. The only difference, as Mr. Mayne
ohserves, is that it passes with it a charge upon it.
In fadu Nath Singh v. Thakur Sita Ramji(') the
Privy Council was dealing with a deed of dedication
which prpvided that after the death of the grantor
certain female members of his family should succeed
him as managers, that half
the
income
should
be
enjoyed by the managers without power of alienation,
that upon the death
of the
named
managers
the
Government should become manager and
the
whole
net income should then be applied to the expenses of
the temple. The Privy Council held that the deed was
a valid endowment of the whole property to the temple
and that the donor had no rights in it against either
the idol or the managers. Dealing with the argument
·hat in the
hands of the female
members of
the
;:ranwr's family liberty was given to the said members
to en1oy half the income, Lord Haldane observed that
"If the income of the property had been brge, a question might have been raised, in the circumstanc<:s, as
throwing some doubt upon the integrity of the settlor's
intention, but, as the entire income is only 800 rupees,
it is obvious that the payment to these ladies is of the
most trifling kind, and certainly not an amount which
one would expect in a case of that kind."
Lord
(1) (19o6) 4 Cal. L. J. 343, 3¥J,
(•) (1917) L. R. 44 I. A, 187, 190.
.,
S.C.R.
SUPREME COURT REPORTS
1131
Haldane then ·emphasized the clear expression of the
initial intention of the donor to apply the whole estate
of the donor to the benefit of the temple and he added
that the rest is only a gift to the idol sub modo by a
direction that of the whole which had already been
given part is to be applied for the upkeep of the idol
itself and the repair of the temple and the other is to
go for the upkeep of the managers. That is how in the
end it was held that the document showed complete
dedication in favour of the idol.
In Pande Har Narayan v. Surja Kunwari( 1 ), the
Privy
Council
has
observed
that in
determining
whether the will of a Hindu gives the testator's estate
to a11 idol subject to the charge in favour of the heirs of
the testator or makes the gift to the idol a charge upon
the estate, there is no fixed rule depending upon the
use of particular terms
in
the will. The question
depends upon the construction of the will as a whole.
In this particular case, thougli the will had provided
that the property of the testator shall be considered to
be property of a certain idol, there were further provisions which showed that the residue after defraying
the expenses of the temple shall be used by the
testator's legal heirs to meet their own expenses and
it appeared that only a small proportion of the total
income could be utilised for the idol whereas a large
balance was available to the heirs. On these facts, it
was held by the Privy Council that the intention
disclosed by the document was that the heirs should
take the property subject to the charge for the performance of the religious purposes named in the will.
Lord Shaw, who delivered the judgment of the Board,
cited with approval the earlier observations of Turuer
L. J. in Sonatun Bysack v.
Sreemuti Juggutsoondree
Dossee( 2 ). Turner L. J. had stated: "although the
will purports to begin with an absolute gift in favour
of the idol, it is plain that the testator contemplated
that there was to be some distribution of the property
according as events might turn out; and that he did
not intend to give this property absolutely to the idol
seems to their Lordships to be clear from the directions
•·
(t) (1921) L. R. 48 I. A. 143.
(2) 8 Moo. I. A. 66.
1957
Menakuru DaJaratharami Reddi
v.
Duddukuru
Subba Rao
Gajendragadkar ].
1957
M1nakuru Dasarath4'ami &ddi
v.
DuJdulauu
Subba Rao
Gafendragailkar ].
1132
SUPREME COURT REPORTS
[1957]
which are contained in the various clauses of the will."
Similarly, Gapal Lal Sett v. Purna Chandra Basak('),
the Privy Council held that the will of the Hindu
testatrix with which they were concerned in this case
conferred the properties specified
on the grandson
charged with the maintenance of the worship but that
no shebaitship was created. The will in question had
provided that out of the income of the specified
property, her grandson should perform the worship of
certain family idols and that he should be in charge
of the worship. The will contained no gift, express
or implied, to the idols, and there was no provision
for the worship after the death of the grandson. It is
in the light of these decisions that we will have to
construe the compromise decree in the present case.
Before considering the terms of the compromise
decree, however, it would be relevant to mention some
more facts,
After Purushottam had executed a deed
of trust in 1919, troubles arose in his own family.
His son apparently began to assert his share in the
property which was the subject-matter of the said
trust and he actually started to alienate his alleged
undivided share in the said property. That indeed
was the genesis of the two suits initially filed by the
three trustees in 1919-1920.
In O.S. No. 39 of 1921
itself, an alternative claim appears to have been made
by Purushottam when he was left in sole charge of
the suit after the withdrawal from the suit bv his
co-trustees. He claimed a declaration that he- was
entitled to recover the possession of the property as
mentioned in sch. A and A-1 of the claim, or, in the
alternative, that he should be declared to be entitled
to the title of the property jointly with his son Ramakrishnayya and the partition in the two shares of the
same may be directed and he may be put in possession
of such property as would fall to his share.
In other
words, the first claim was based on the validity of the
original trust deed created by Purushottam and the
second was based on the assumption that the trust
was not valid, that the property, the subject-matter
of the
said trust was liable to be
divided between
(1) (1921) L. R. 49 I. A. JOO-
.•
S.C.R.
SUPREME COURT REPORTS
1133
Purushottam and his son and a prayer was made that
Purushottam should be allotted his share by a partition
of all the property by metes and bounds. As a result
of the compromise decree passed
in this suit, the
property over which Purushottam had created a trust
in 1919 was divided between himself and his son
Ramakrishnayya and some of the property which was
not included in the trust deed of 1919 but which was
also the subject-matter of the suit itself was allotted
to the share of Purushottam. The property
thus
allotted to the share of Purushottam formed part of
sch. I and it is in respect of this property that a
public charitable trust has been created according to
the findings of the Courts below. For the appellants,
it is urged before us that this view is erroneous. We
will now consider the relevant terms of the compromise
decree. Clause ( 1) of the decree provides that the
property described in sch. I attached to the decree
should go to the share of the third plaintiff, viz.,
Purushottam. It appears that four items included in
sch. I had been sold by defendant 1 to defendants
13 and 14; These alienees, however, agreed to give
up their claim in respect of these properties. Clause
( 1) then reads as follows :
"that as regards the aforesaid schedule property,
the third plaintiff should be the 'sole trustee' till his
lifetime for the purpose of conducting the charities
described in the trust deed, dated 17th March, 1919,
and he should utilise the income derived therefrom,
for the charities according to the necessity and should
enjoy the said property till his lifetime without rights
to gift, sale etc., therein;
that after his
death, the said
entire property
should pass on to his grandson Ramalingeswara Rao
subject
to
the
(performance
of)
the
aforesaid
kaink;iryams (charities) ;
that if the third plaintiff should die before the
expiry of the minority of the aforesaid Ramalingeswara Rao arrangement should be made to have a
guardian appointed through Court for the property
made to pass to the said Ramalingeswara Rao the
. said . guardian should take possession of the property
1957
Mena!cuTu Da1aralharami Reddi
v.
Duddukuru
SrdJba R01.10
Gajmdragadkar J,
1957
Menakuru DtUara·
tlsarami Reddi
v.
Dudduku.ru
Subba Rao
Gajendragadkar J.
1134
SUPREME COURT REPORTS
[1957]
and conduct the aforesaid charities and deliver possession of the same to the said Ramalingeswara Rao as
soon as the minor attains majority;
that,
thereafter
the
said
Ramalingeswara
Rao
should
conduct
the
abovementioned
charities
and
enjoy the properties;"
Then els. (2) and (3) deal with the claims of defendant 1 and defendants 10,
11 and
12.
Clause (4)
directs that the properties allotted to the share of the
third
plaintiff should
be
immediately
delivered
to
him by the defendants; and cl. (5) provides that the
third plaintiff should give up all other claims in respect
of the suit and the parties should bear their own
respective costs.
At this stage it may be relevant to refer to the
particulars of charities for whose benefit admittedly
the decretal provision in
cl.
(1)
has been
made.
These
particulars are mentioned m
para. 6 of
the
original deed 'of trust and it
1s
not disputed
that
the burden imposed by cl. ( 1) of the decree ts m
favour
of
the same
charities. These
charities are
nme m number and
they
are
thus enumerated m
the deed of trust :
"(1) In the choultry constructed m the land m
Survey No. 81, all persons who pass to and fro m
Doranala Road, should be given drinks to quench
thirst,
everyday
two
brahmin
travellers
should
be
given food at noon.
(2) For the
purpose of
Mahanaivaidyam
(food
offering) taking place every night to Sree Malleswaraswami
Varn
enshrined
m
the
aforesaid
Damaramadugu village,
12 tooms of paddy and Rs. 6 m
cash
should be
given
to the trustee of the said
Devasthanam.
(3) During the
time
of Brahmotsavam
of
Sri
Malleswaraswami and Sri Kamakshi Thayi Garn, m
Jonnavada which 1s taking place every year, Rs. 10
(rupees ten) should be paid every year m respect
of
the Ravana Seva Ubbavam that is
being conducted
by the Darnaramadugu villagers.
( 4) During the Brahmotsavam time of Sri Jonna-
..
vada Kamakshi Thayi
that
takes place
every
year,
·ill
'
S.C.R.
SUPREME COURT REPORTS
1135
Rs. 40 (rupees forty) should be spent for 'Ekanthaseva'
and the trustees should be
present and see that the
said Ubbayam is properly conducted.
(5) Rs.
12
should be paid
every
year
towards
Deeparadhana expenses during nights to Sri Veeranjaneyaswami
Varu
enshrined
m
Pata
Santhapeta,
Nellore, to the trustee of the said Devasthanam.
(6) From out of the said fund, Rs. 42 per year
should be paid to poor Brahmin boys reading in
classes commencing from fourth form and upward m
the High School, towards the school fees. Now, this
amount shall be paid
to Amperayani Venkatakrishnayya who is reading in the Kurnool School, till he
stops his study; and after he stops his study, the then
trustees are hereby empowered to give the money to
a poor Brahmin boy whom they consider as
the
suitable recipient.
(7) If there should be difference of opinion, on any.
matter relating to the management of the aforesaid
charities, the opm1on of the majority trustees shall
prevail and it will be given effect to.
(8) The trustees shall exercise all powers in the
matter of the management of these charities, viz., to
appoint
the
necessary
staff~ to
remove
them;
to
suspend them;
to
impose
fine;
and
to
make
all
arrangements for the staff to discharge their duties
efficiently.
(9) The trustees are fully empowered to now and
then grant cowles in respect of the schedule-mentioned property to individuals and
to have muchilikas
executed and m the event of any disputes arising at
any time through any person, in respect of the said
property, to institute and
conduct
suitable
proceedings in proper Courts, to get over such disputes; and
also to incur the necessary expenditure from out of
the income from the aforesaid endowments."
It would be clear that cl. ( 1) of the compromise
decree is the foundation of the theory that a public
trust had been created m respect of the properties
allotted to the share of Purushottam. In dealing with
this clause; the High Court of Madras appears to have
attached
considerable
importance to the
fact
that
1957
Menakuru Dasaratharami Reddi
v,
Duddu/curu
Subba Rao
Gagendragadkar J.
1957
Mtnakun1 D01ara·
lharami &Jdi
v.
Duddulc""'
Subba Rao
Gagtndragadkar ].
1136
SUPREME COURT REPORTS
[1957]
Purushottam
had
already,
m
unequivocal
terms,
expressed his intention to create a trust of his own
properties in 1919. There is no doubt that the document of
1919 creates a public charitable trust. In
construing cl. (1) of the compromise decree, the learned
Judges
of the High Court of Madras appear to have
assumed that this clause was really intended to confirm
the earlier creation of the trust though in respect of
different
properties.
With
respect,
in
making
this
assumption, the learned Judges appear to have overlooked the sharp distinction between the words used
in the trust deed of 1919 and in cl. ( 1) of the compromise decree.
The trust
deed
had
appointed
three
trustees and by cl. (12) had specifically provided that
the amounts described in the schedule and the income
that will increase and accrue in future shall be utilised
for the above charities onlv and it shall not be used
for private purposes.
In oiher words, cl.
(12) emphatically prohibits the use of the income from the prop~rty
for any private purpose and in terms dedicates entirely
the whole of the property and its income for public
charitable purposes. Clause (3) of the trust deed had
appointed
three
trustees,
had
provided
for
the
management of the trust' and
the keeping of the
accounts.
Under this
clause, all the trustees
should
join together and hold a meeting once a month in the
choultry and examine the accounts and consider the
other details of management. The deed has further
provided for the appointment of other trustees in case
of vacancy occurring either by death or resignation.
Now let us look at cl. ( 1) in the compromise decree. It
is true that the third plaintiff is described in this clause
as the sole trustee till his lifetime. It is also true that,
as the sole trustee, he is allowed to enjoy the said
property till his lifetime "without rights to gift, sale
etc., in the same." The use of the word "sole trustee"
is no doubt relevant and its full effect must be taken
into account but its significance cannot be exagger'ated.
It is really difficult to understand how a sole trustee
could
enjoy
the
property. The
enjoyment of
the
property
inevitably suggests the right to enjoy
the
property in one's right and this notion is not easily
•
r
'
S.C.R.
SUPREME COURT REPORTS
1137
reconcilable with the theory of complete dedication of
the property in favour of charity. Even so, we will
assume that the use of the word "sole trustee" is a
factor in favour of the plaintiffs. In the same clause,
there is, however, another indication which is inconsistent with this theory
of
complete
dedication.
The
income of the property has to be utilised for charities
according to the necessity. The contrast between this
provision and the provision in cl. (12) of the earlir.{
deed of trust is obvious. Whereas, under the earlier
deed the whole of the income had to be utilised only
for the purpose of charity, under cl. (1) of the decree a
part of the income is to be utilised according to the
need of the charity. Then, after the death of Purushottam, the clause provides that the property should
pass on to his grandson Ramalingeswara Rao subject
to the purpose of the aforesaid charities. The notion
that the property has to pass from Purushottam to
Ramalingeswara Rao is consistent with Purushottam's
title to the property and is inconsistent with the title
of the idol in the said property. This clause about
the <levolution of the title in favour of the grand~on
clearly
and
unequivocally
suggests
that
all
that
Purushottam wanted to achieve by this clause was to
leave his private title unimpaired except with the
burden or charge in favour of charity. This clause
can be contrasted with cl. (4) of the tru,st deed which
provi<les for the subsequent
appointment of trustees.
T'he111
the provision
about the appointment of
the
guardian of Ramalingeswara Rao during his minority
is also inconsistent with the theory of complete dedication. It is difficult to appreciate how a guardian of
a minor trustee can be appointed in this way in respect
of properties which do not belong to the minor but are
trust properties. It is, however, urged that Purushottam
as the sole trustee is positively prohibited from making
the gift of the property or selling the property by the
first part of cl. (1) and that prima facie indicates that
Purushottam was
not
an
absolute
owner of
the
property; but in judging the effect of this prohibition,
we cannot lose sight of the fact that a similar prohibition is not included in the decree when the decree deals
1957
M111akuru Dasaratharami ReJdi
v,
Duddukuru
.Subba RlllJ
Gajendragadkar J.
1957
Mmnlr:uru
DaJara~
tharami Reddi
v,
Dw/dukuro
Subba Rao
Gajmdragadkar J.
1138
SUPREME COURT REPORTS
[ 19571
with the
rights
of the grandson of Purushottam.
Reading the clause as a whole, it seems to us fairly
clear that Purushottam wanted the property to devolve
on. his grandson and treated the property as his private
property in that behalf. Since that was the intention
of Purushottam no restraint has been imposed on the
absolute title of Ramalingeswara Rao and he has been
apparently given full liberty to deal with the property
QS he likes except that he was under an obligation to
the charity in question. The last portion of the clause
authorises Ramalingeswara Rao to conduct the abovementioned charities and to enjoy the
property. This
clause again is wholly inconsistent with the theory of
complete dedication and merely suggests that in the
hands of Ramalingeswara Rao as well as in the hands
of his successors or transferees the property would stand
burdened with the obligation to perform the charities
in question.
We have carefully considered the terms
of cl. (1) of this decree and we are satisfied that it is
difficult to hold on these
terms
that
the
property
allotted to the share of Purushottam under the decree
was intended to be completely dedicated in favour of
charities. In our opinion, the learned Judges of the
High Court of Madras were in error in construing this
clause as evidencing the creation of a public charitable
trust. We are satisfied that the properties continue to
be the properties of Puru~hottam until his death and
on his death they devolved upon his grandson Ramalingeswara
Rao
subject
always
to
the
burden
of
performing the charities mentioned in the earlier deed
of trust.
For the Advocate-Gen.era! of Andhra who has been
allowed to represent charities in the present case after
the death of the original plaintiffs, Mr. Tatachari has
urged that even though the compromise decree may
not indicate the creation of a public trust that would
not necessarily defeat the plaintiffs' claim. He contends
that the trust of 1919 which had been validly created
by Purushottam cannot be effectively effaced by the
subsequent
compromise
decree
between
Purushottam
and his son and the alienees from his son. Mr. Tatachari has referred us to the material allegations in the
..
. '
S.C.R.
SUPREME COURT REPORTS
1139
plaint where it has been suggested that in agreeing to
the compromise decree Purushottam was in substance
guilty of breach of trust. We do not propose to consider
the merits of this interesting argument because, in our
opinion, it is too late for the plaintiffs to raise such a
point.
We have already mentioned that one of the
issues specifically raised between the
parties
in
the
present litigation was in regard to the nature and effect
of the compromise decree.
In fact we have already
indicated that, when we found that the learned Judges
of the High Court of Madras had not considered this
issue, by our interlocutory
judgment we
invited
the
High Court to consider this issue along with another.
The position now is that both the Court below have
found that the compromise decree was not collusive or
fraudulent and it binds the trust.