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[Cites 2, Cited by 0]

Bangalore District Court

M/S. Garden City Education Trust vs Nil on 7 January, 2019

     IN THE COURT OF THE XXIX ADDL. CITY CIVIL
       & SESSIONS JUDGE AT BANGALORE CITY. (CCH-30)

               Dated this the 7th day of January 2019

              PRESENT: SMT. NAGAJYOTHI K.A., LL.M.,
             XXIX ADDL CITY CIVIL JUDGE, BANGALORE.
                         O.S.No. 6688/2017

Plaintiffs           :          1. M/s. Garden City Education Trust,
                                   No.9, BCIE, Old Madras Road,
                                   Dooravaninagar,
                                   Bengaluru - 560 016.
                                  Presently having it's office at:
                                  No.340, 5th Main,
                                  Indiranagar Double Road,
                                 1st Stage, Indiranagar,
                                  Bengaluru - 560 038.
                                  Represented by it's Chairman &
                                  Trustee, Dr. Joseph V.G.

                                2. Dr. Joseph V.G.
                                   Aged about 58 years,
                                   S/o. Late George Vayalil,
                                   Chairman & Trustee,
                                   M/s. Garden City Education Trust,
                                   Presently R/a. No.340, 4th Floor,
                                   5th Main,
                                   Indiranagar Double Road,
                                   1st Stage, Indiranagar,
                                   Bengaluru - 560 038.

                                3. Smt. Gracey K.J.
                                   Aged about 56 years,
                                   D/o. Shri. John M.M.
                                   Trustee,
                                   M/s. Garden City Education Trust,
                                   R/a. No.508, 16th Cross, 7th Main,
                                   Indiranagar 2nd Stage,
                                   Bengaluru - 560 038.

                                4. Mr. Christo V. Joseph,
                                   Aged about 27 years,
                                   S/o. dr. V.G. Joseph,
                                   Trustee,
                                   M/s. Garden City Education Trust,
                                   R/a. No.508, 16th Cross, 7th Main,
                                    2                    O.S.No.6688/2017



                                       Indiranagar 2nd Stage,
                                       Bengaluru - 560 038.

                                  (By Sri. P. Raveendran, Advocate)

                                  Vs.
Defendant(s)           :                      - NIL -

Date of institution of the suit    03/10/2017

Nature of the suit (suit on
pronote. Suit for declaration      Seeking permission to alienate the
and possession suit for            the suit property on behalf of Trust.
injunction, etc.)

Date of the commencement           27/03/2018
of recording of the evidence.


Date on which the judgment         07/01/2019
was pronounced.
                                   Year/s      Month/s      Day/s
Total duration                       01         03           04



                           JUDGMENT

The plaintiff Trust have filed this suit seeking permission to alienate the suit schedule 'A' & 'B' properties owned by the plaintiff No.1 Trust by receiving optimum market price and the funds so received be utilized exclusively for the construction of buildings, other infrastructure developments and associated purpose of establishing the new University campus under the name "Garden City University Act, 2013" on it's land at Yelachenahalli Village, Nandagudi Hobli, Hosakote Taluk, for the benefit of the 1st plaintiff Trust, and for such other reliefs. 3 O.S.No.6688/2017

2. It is averred in the plaint that, the plaintiff No's.2 & 3 and one Miss Manoja V.A. earlier intended to start Educational Institutions to cater to the needs of the poorer sections of the Society and formed Trust exclusively for charitable purposes. The Deed of Trust was executed on 27.02.1992. The above 3 persons were referred as Settlers and nominated as Trustees. It was registered at Sub-Registrar, Gandhinagar, Bengaluru. However, during the course of functioning of the Trust, one of the Settlers/Trustees Ms. Manoja V.A, due to her ill-health and personal reasons resigned from the trusteeship and all activities associated with the functioning of plaintiff No.1 Trust, Board of trustees of plaintiff No.1, vide resolution dated 28.01.2013, resolved to accept the resignation, and thereafter inducted Christo V. Joseph as a new Trustee, who is now plaintiff No.4, under the Board of Resolution dated 28.01.2013. The only object of Trust is to establish educational institutions, and to organize lectures, seminars, conference etc., being part of the activities in connection with education. Subsequently, they executed 3 Deeds of supplementary Trust, respectively, dated 06.12.2000, 14.08.2001 & 23.09.2002. In the year 1992, the Trust established the educational institution in the name and style of Garden City College at Bengaluru, imparting education of different disciplines at graduation and post-graduation levels under the affiliation of Bengaluru University. They received the 4 O.S.No.6688/2017 assent of the Hon'ble Governor of Karnataka on 26.03.2013. So, the Garden City University Act, 2013, which was published under the Karnataka Gazette Notification dated 12.04.2013. Initially it was functioning in the rented premises. However, to provide better education for the institution, it needs it's own office and it requires large requirement of funds. It has to create Permanent Statutory Endowment Fund of Rs.15.00 Crores. In a time bound manner, the New University Campus has to be developed at it's land in Yelachenahalli Village, Hoskote Taluk, Government of Karnataka, Department of Higher Education after due inspection of the proposed New University Campus and the due compliance of requirement specified under the "Garden City University Act, 2013". So, to establish the university campus with college buildings, the resolution dated 24.03.2017 resolved to alienate all the Trust properties referred in schedule 'A' & 'B' properties after obtaining due permission from this court. Hence, this suit.

3. The GPA Holder of the plaintiffs has examined as PW.1 and got marked the documents Exs.P.1 to P.12. After paper publication, no one present to contest the suit.

4. Heard the plaintiffs' arguments.

5. The points that arise for my consideration are:

(1) Whether plaintiff complied the conditions complied under Section 92(1)(f) of CPC?
5 O.S.No.6688/2017
(2) Whether the plaintiff Trust is entitled for the permission?
(3) What order or decree?

6. My findings on the above said points are as under:-

Point No.1: In the Affirmative.
Point No.2: In the Affirmative.
Point No.3: As per final order for the following:
REASONS

7. Point No's.1 & 2:- It is a suit filed by the Plaintiff Trust. Plaintiff No's.2 to 4 are it's Trustees. Prior to the registration of the suit, it has sought permission by filing Misc.No.484/2017, wherein the order dated 23.09.2017, the Hon'ble Prl. City Civil & Sessions Judge, Bengaluru, has consented to institute the accompanying original suit. Accordingly, the suit is registered before this court and after that paper publication also made, But, no one appeared to contest the suit. Thereafter, on behalf of the Trust, one Nainan P. Oommen is the Vice President - Finance of plaintiff Trust deposed as P.W.1 as GPA Holder. Ex.P.1 is the GPA executed by Trust. On perusal of the same shows, all the 4 Garden City Education Trust signed the GPA. In respect of schedule 'A' & 'B' properties, the sale deeds are marked as Exs.P.10 & P.11. In corroboration of the contents of the plaint as a Trust Deed and Gazette Notification were marked as Exs.P2 to P.6 & P.8. Since Exs.P.8 & P.12 are Gazette Notification and public document, there is no need to doubt on the contents which clearly establishes the necessity of plaintiff Trust own building, 6 O.S.No.6688/2017 plaintiff needs funds for the project of the Trust. It has elaborately explained the spot inspection and the staff of Trust referred herein. The plaintiff herein refers the citation W.P.(C) No.10680/2010, decided on 18.05.2010, in the case of Snehasagar Charitable Trust, which reads thus:

"The learned Single Judge held that since the trust was in need of funds to construct building for carrying out it's purpose, trustees were justified in seeking permission of court to sell one item of property. It was further held that the Court should grant permission not sell trust property if the sale is for the benefit of the trust, even if he trust deed does not authorize trustees to sell trust property. Allowing the Writ Petition, the Court; Held: One should remember that the very object of the trust itself is to run old age home. Therefore, constructions are absolutely necessary. It is not necessary that the rust deed should provide power to the trustees to sell the property. That is where the role of the court comes in. The court has to evaluate the entire facts and circumstances of the case and has to form an opinion that the attempt is not to deplete the assets of the trust, but the same is for the benefit of the trust. The petitioners have given details of the necessity to sell the property, and it is not as if they are not going to use the sale consideration effectively and for the benefit of the trust. There is no reason to doubt the motive of the trustees. There is no reason why the proposal should not be approved. (Paragraph 7)"

The above ratio is aptly applies to the case in hand. So, appreciating the same shows, the genuine cause for alienation of the schedule property. There is no need to doubt on these contents. The plaintiff Trust formed for the purpose of providing education to the poor section of the society. Plaintiff has already obtained approval for the University. But, it has to fulfill it's one of the condition of possession own building. It has the land at Yelachenahalli, but it needs well equipped building. For which plaintiff is facing scarcity of fund. So, it intend to alienate 'A' & 'B' 7 O.S.No.6688/2017 schedule properties to meet the necessity of fund and it may fulfill the condition of owning it's own, well equipped building. So, applying the principle shows, plaintiff is entitled for the relief claimed herein. Accordingly, I hold Point No's.1 & 2 in the 'Affirmative'.

8. Point No.3:- In view of the reasons stated supra, I proceed to pass the following:

ORDER Suit is decreed.
No order as to costs.
The plaintiff Trust is hereby permitted to alienate the schedule 'A' & 'B' properties for optimum market price (but not below the Government rate) only for the benefit of raising fund to the building at Garden City University at Yelachenahalli Village, Nandagudi Hobli, Hoskote Taluk, and further directed to report the completion of alienation with documents.
Draw the decree accordingly.
(Dictated to the Judgment Writer, after transcription, corrected by me and then pronounced and signed by me in the open court, on this the 7th day of January 2019) (NAGAJYOTHI K.A.) XXIX Addl. City Civil Judge, Bangalore.

ANNEXURE List of witnesses examined for the plaintiffs' side:-

PW.1 Nainan P. Oommen 8 O.S.No.6688/2017 List of documents exhibited for the plaintiffs' side:-

Ex.P.1 Original GPA executed by plaintiff Trust in favour of P.W.1.
Ex.P.2 CC of Trust Deed of plaintiff Trust.
Ex.P.3          Trust resolution.
Ex.P.4          Supplementary Trust Deed dated 12.02.2000.
Ex.P.5          Supplementary Trust Deed dated 14.08.2001.
Ex.P.6          Supplementary Trust Deed dated 23.09.2002.
Ex.P.7          CC of judgment and decree in O.S.No.5272/2005.
Ex.P.8          Karnataka Gazette Notification           of   Garden   City
                University Act, 2013.
Ex.P.9          Trust Notification dated 24.03.2017.
Ex.P.10         CC of sale deed dated 29.01.2006.
Ex.P.11         CC of sale deed dated 31.07.2011.
Ex.P.12         Circular No.ED.252.URC.2016, dated 12.12.2016 of
                the Government of Karnataka.

List of witnesses examined for the defendant's side:-
- NIL -
List of documents exhibited for the defendant's side:-
- NIL -
XXIX Addl. City Civil Judge, Bangalore.
9 O.S.No.6688/2017
Judgment pronounced in the open court vide separate judgment.
ORDER Suit is decreed.
No order as to costs.
The plaintiff Trust is hereby permitted to alienate the schedule 'A' & 'B' properties for optimum market price (but not below the Government rate) only for the benefit of raising fund to the building at Garden City University at Yelachenahalli Village, Nandagudi Hobli, Hoskote Taluk, and further directed to report the completion of alienation with documents.
Draw the decree accordingly.
XXIX Addl. City Civil Judge, Bangalore.
10 O.S.No.6688/2017 11 O.S.No.6688/2017