Delhi District Court
Ram Pyari Devi Charitable Trust vs . State Of Nct Of Delhi. on 24 November, 2012
Ram Pyari Devi Charitable Trust Vs. State of NCT of Delhi.
IN THE COURT OF SHRI J.P.S. MALIK : ADDITIONAL DISTRICT JUDGE04 :
SOUTH DISTRICT : SAKET COURT COMPLEX, NEW DELHI
CS. NO. 343/12
In the matter of :
Ram Pyari Devi Charitable Trust
Having its office at B50,
Gulmohar Park,
New Delhi110049
Through its Trustees
1. Sh. Dharam Bhushan Jain
S/o Sh. Raj Krishan Jain
R/o H. No. 4239A, Shakahar Building,
Sh. Raj Krishan Jain Street,
1, Ansari Road, Daryagunj, Delhi
2. Sh. Shiv Kumar Jatia
S/o Sh. Shubh Karan Jatia
R/o B50, Gulmohar Park,
New Delhi .....Plaintiff
Versus
State of NCT of Delhi
Through Chief Secretary
Govt. of NCT Delhi, Delhi Secretariat,
I.P. Estate, New Delhi110002 ....Defendant
CS. No. 343/12 Page 1 of 6
Ram Pyari Devi Charitable Trust Vs. State of NCT of Delhi.
Order
1. Trustees of Ram Pyari Devi Charitable Trust, Head Office at B50,
Gulmohar Park, New Delhi49 namely Dharam Bhushan Jain and Shiv
Kumar Jatia have filed an application seeking leave of the court to file a
suit U/s 92 (3) of CPC for amendment of the objects of the charitable
trust.
2. In brief, the facts are, vide Deed of Trust dated 21.07.98 registered with
the office of SubRegistrar, New Delhi on 11.08.98 was executed by Sh.
Satish Kumar Jatia. At present, there are five trustees of the trust and it is
stated that a resolution dated 01.06.12 had been passed by the Board of
Trustees authorising Dharam Bhushan Jain to file the application for
and on behalf of the trust. The trust is running a school under the name
and style of Delhi Public School situated at New Town, Kolkata. As per
the Object Clause, being Clause no. 4 of the Trust Deed, the trust
established on 21.07.98 was for the purpose of carrying on various
objects like
a) for establishing, providing assistance etc to hospitals, medical
colleges, nursing institutions, child home centres, etc.
b) to establish or provide financial assistance to schools, colleges,
libraries, research and other institutions etc.
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Ram Pyari Devi Charitable Trust Vs. State of NCT of Delhi.
c) to establish, maintain or run scholarship in aid of students.
d) to promote, establish, support etc, for promotion of science, library,
music etc.
e) to provide financial assistance to schools colleges, universities,
research and other institutions etc.
f) to establish or provide assistance to homes for aged, orphanages or
other like establishments
g) to establish and maintain institutions for the physically handicapped,
disabled etc.
h) to grant relief and assistance to the needy victims during natural
calamities.
i) to construct, repair and manage marghats, cemeteries and burial
grounds, etc
j) to grant, aid or provide assistance to other public charitable trust/
societies.
3. The trust is also registered U/s 12A of Income Tax Act, 1961 wef 25.08.99
and as per the conditions for registering the trust U/s 12A of the Income
Tax Act, one of the condition being condition no. (vi) is that there shall
be no change in the Trust Deed/ Memorandum of Association without
the approval of the jurisdictional High Court/ appropriate authority and
in view of the decision of Hon'ble Supreme Court in the case of Andhra
CS. No. 343/12 Page 3 of 6
Ram Pyari Devi Charitable Trust Vs. State of NCT of Delhi.
Chamber of Commerce, the trust was obliged to continue to serve the
main object of the trust in future without any change.
4. The trust applied for notification U/s 10 (23c) (vi) of the Income Tax Act,
1961, permissible to any university or other educational institutions
existing solely for educational purposes, which could be approved by the
appropriate authority.
5. The trust passed a resolution in the board of trustees on 01.06.12 and
decided that there should be a change in the Object Clause of the Deed
of Trust, and by way of change, the object of the trust were to be
restricted only for the purpose of establishing, developing and providing
assistance for education, scholarships, promotion of science, library,
music etc deleting the purposes other than those related to the
educational activities.
6. Instead of approaching the jurisdictional High Court for effecting a
change in the Trust Deed/ Memorandum of Association as per
conditions no. VI prescribed at the time of registration of the Trust with
the Income Tax Department U/s 12A of the Income Tax Act, 1961, the
applicants have approached this court U/s 92 (3) of the Code of Civil
Procedure which reads as under:
CS. No. 343/12 Page 4 of 6
Ram Pyari Devi Charitable Trust Vs. State of NCT of Delhi.
92. Public Charities:
(1)..................................................................................
.........................................................................................
(2) .................................................................................... (3) The Court may alter the original purposes of an express or constructive trust created for public purposes of a charitable or religious nature and allow the property or income of such trust or any portion thereof to be applied cy pres in one or more of the following circumstances, namely:
(a) where the original purposes of the trust, in whole or in part,
(i) have been, as far as may be, fulfilled; or
(ii) cannot be carried out at all, or cannot be carried out according to the directions given in the instrument creating the trust or, where there is no such instrument, according to the spirit of the trust; or
(b) ...................................................................................
(c) .................................................................................... As per section 92 (1) CPC, the suit for the purpose can be filed by the Advocate General or two or more persons having an interest in the trust CS. No. 343/12 Page 5 of 6 Ram Pyari Devi Charitable Trust Vs. State of NCT of Delhi.
and having obtained the leave of the court to institute a suit in Principal Civil Court of original jurisdiction.
7. Arguments were heard on behalf of the applicants as regards the permission to be granted to them to institute a suit for the purpose U/s 92 (3) of CPC. The suit for the purpose is to be instituted and court may alter the original purposes of a trust in certain situations. Situation no. (1) Where the original purpose of the trust have been fulfilled or (2) Where the original purpose of the trust cannot be carried out. In the present case, neither of the two condition is fulfilled, justifying any change in the original purpose of the trust and the application has been filed only because the trustees are facing difficulties in getting the trust notified U/s 10 (23c) (vi) of the Income Tax Act, 1961, permissible t o any university or other educational institutions. As per the condition (vi) of Registration of the Trust U/s 12A of the Income Tax Act dated 25.08.99, approval should have been sought from jurisdictional High Court/ appropriate authority and it should have continued to serve the main object of the trust till that time in view of the decision of Hon'ble Supreme Court in case of Andhra Chamber of Commerce. Trustees of the trust cannot be permitted to circumvent the same by taking recourse to the provisions of section 92(3) CPC. Applicants are not given any leave to institute a suit U/s 92(3) CPC for effecting a change / amendment in CS. No. 343/12 Page 6 of 6 Ram Pyari Devi Charitable Trust Vs. State of NCT of Delhi.
the object of the charitable trust. The application filed for the purpose is accordingly dismissed and applicants are refused leave to institute a suit U/s 92(3) CPC.
Announced in the open Court (J.P.S. MALIK)
on 24.11.2012 ADJ04 : SOUTH DISTRICT
All pages signed NEW DELHI
CS. No. 343/12 Page 7 of 6
Ram Pyari Devi Charitable Trust Vs. State of NCT of Delhi.
CS. No. 343/12
24.11.2012
Present: None.
Vide separate order of the date, the applicants are refused leave to institute a suit U/s 92(3) CPC and the application is dismissed.
File be consigned to record room.
(J.P.S. MALIK) ADJ04 : SOUTH DISTRICT NEW DELHI : 24.11.2012 CS. No. 343/12 Page 8 of 6