'Charitable trusts don't need court permit to file cases against 3rd party'

Bengaluru, NT Bureau: The High Court of Karnataka has said that charitable trusts do not require the leave of the court to initiate proceedings against third parties.

The HC dismissed a petition filed by private parties against a charitable trust which had sought injunction against them from interfering with its properties.

The HC said that under Section 92 of the Civil Procedure Code permission of the court is required when action is being taken by a charitable trust in its internal matters.

“The said Section 92 of CPC has been introduced for the purposes of proper administration of a trust and as such, deals with the internal management of the trust and the management of the trust properties,” the HC said.

However, it does not prevent the trust from taking action against outsiders.

“The suit filed by the trust against a third party as done in this case, in my considered opinion, would not come within the purview of Section 92 of the CPC. The said suit having been filed in the normal operation of the trust for the trust to preserve and protect its properties and or claim such other properties and not relating to the management of the trust would be outside the purview of Section 92 of CPC,” the HC said.

Further, the HC said that if it is made to understand that the trust has to take permission of courts for every action, they cannot function normally.

“If such an interpretation is taken up, then a public charitable trust would never be able to file any suit for bare injunction, recovery of money, specific performance, declaration or the like, thus, impending effective functioning and operation of the trust,” Justice Suraj Govindaraj said in his judgement.

The issue pertained to Janatha Trust, a public charitable trust in Raichur.

The trust sought a permanent injunction against Dr Narasimhalu Nandini Memorial Education Trust and its managing trustee Dr Mahalinga B from interfering with its possession of 37 guntas of land in Rampur village.

Dr Mahalinga and his trust had claimed before the lower court that as per Section 92 of the CPC, the Janatha Trust had to obtain the court’s permission before filing a suit for injunction. The lower court had rejected this contention following which they approached the HC.