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[WITH Special Leave Petition (C) No...../96 (CC 214 73/93)] J U D G M E N T S.C. AGRAWAL, J. :-

Special Leave granted in S.L.P. (C) Nos. 14501-02 of 1992.

These appeals arise out of two suits (O.S. No. 41 of 1968 and O.S. No. 26 of 1970) filed by the Telegu Church Council (for short `TCC'), respondent herein, in respect of properties of congregationalist churches in the districts of Cuddapah and Anantpur in the State of Andhra Pradesh. O.S. No. 41 of 1968 was in respect of properties and institutions situated in Cuddapah district and O.S. No. 26 of 1970 was in respect of properties situated in Anantpur district. Both the suits were decreed in favour of TCC by the Subordinate Judge, Cuddapah by judgment and decree dated May 7, 1979. The apeals (A.S. NO. 623-24 of 1979) filed by the appellants against the said judgment and decree of the Subordinate Judge were dismissed by the Andhra Pradesh High Court by judgment dated June 16, 1992.

The London Missionary Society (for short `LMS') was founded by people belonging to different Protestant Christian Denominations in England in 1795 for spreading the Christian faith in various countries including India. LMS missionaries, in course of their activities, started churches, hospitals, educational institutions in various parts of India. In 1899 the London Missionary Society Corporation (for short `LMSC') was registered as the Trustee under the Companies Act of the United Kingdom for administering the properties of LMS. In 1908 the churches founded by different Missionary Societies, including LMS in South India, unitedly formed a single body known as South India United Church (for short `SIUC'). SIUC became the apex body of various Church Councils. TCC was one of the Church Councils sunder SIUC in respect of churches in the Telugu speaking area of the former Madras Presidency. The case of the appellant is that on June 29, 1945, pursuant to the efforts to bring about a larger union of Churches involving SIUC, the Church of India, Burma and Ceylon and Methodist Church of South India, a scheme of union was proposed and the said proposal of union was discussed both at the level of various Church Councils as well as at the level of SIUC General Assembly and that TCC, at a meeting, accepted the recommendation of its Executive Committee and resolved by two-third majority to accept the scheme of Church Union. The case of the appellants is further that on September 28, 1946, SIUC resolved to enter into Church Union on the basis of the scheme prepared by the Joint Committee and on February 12/13, 1947 the Executive Body of TCC at its meeting held at Gooty resolved to form a Continuation Committee to carry on TCC's work until the formation of Diocesan Council as per the scheme of Union and to wind up the affairs of TCC and that on June 26 to 28, 1947 resolutions were passed in TCC General Body meeting at Cuddapah to joint the Union and to dissolve TCC from that day and that TCC ceased to exist thereafter and Continuation Committee constituted by resolution dated February 12/13, 1947 took over its activities until merger. This fact of merger of TCC into the Church Union, as claimed by the appellants, is, however, disputed by the respondent who claims that the resolution was not passed by two-third majority and that TCC into the Church Union, as claimed by the appellants, is, however, disputed by the respondent who claims that the resolution was not passed by two-third majority and that TCC has continued to exist. On September 27, 1947, the Church of South India was inaugurated by special service held at St. George Cathedral, Madras and on September 26, 1947 Church of South India trust Association (for short `CSITA'), appellant herein, was incorporated under the Indian Companies Act, 1913 as trustee for the purpose of holding and administering the properties, funds, etc. of the Church of South India. On June 29, 1949, TCC was registered as a Society under the Societies Registration Act. On February 10, 1961, LMS transferred the properties in the Cuddapah and Anantpur districts in favour of CSITA. The case of the appellant is that LMS ceased to exist on June 1, 1966 as having merged in the Congregation Council for World Mission.

Subsequent to June 19, 1961, there arose disputes between the respondent and LMS as well as the appellant in relation to properties of the churches in the districts of Cuddapah and Anantpur in Andhra Pradesh. A suit (O.S.No. 2 of 1961), hereinafter referred to as `the first suit', was filed by the respondent against LMS and the Chartered Bank, Madras, in the Court of Subordinate Judge, Cuddapah which suit, on transfer to the Court of Second Additional District Judge, Cuddapah, was numbered as O.S.No. 12 of 1964, wherein a decree was sought that the defendants or either of them be directed to render an account to the plaintiff (TCC) of the funds deposited in various accounts with the defendant Bank in the joint name of TCC and LMS and standing to the credit as up to date and for a decree in favour of TCC against the defendants for recovery of such sums of money as may be found due on taking account and also for delivery of such securities and deposits that should be belonging to TCC and held by the defendant Bank. The said suit was contested by LMS on the ground that by resolution dated June 19, 1947 TCC had dissolved itself and had ceased to exist and, therefore, the plaintiff (respondent herein) had no right to bring an action. The said suit was decreed by the Second Additional District Judge, Cuddapah by his judgment dated December 3, 1966. The Second Additional District Judge held that TCC, as it existed prior to 1947, did not dissolve itself and did not cease to exist and continued to function even thereafter as before and up to date without losing its representative character. The said judgment of the Second Additional District Judge, Cuddapah was affirmed in appeal (A.S. No. 31 of 1967) by the Division Bench of the Andhra Pradesh High Court by judgment dated November 9, 1970.

In the meanwhile, the respondent had filed the two suits giving rise to these appeals. O.S. No. 41 of 1968 was filed by the respondent in the Court of the Subordinate Judge, Cuddapah against the appellant and others for a declaration that the plaintiff (respondent herein) is entitled to hold the suit properties and institutions as a trustee for the benefit of the Congregationalist churches in Cuddapah district and for a direction to the defendants to put the plaintiff in possession of the same. The other suit (O.S. No. 135 of 11968) was filed by the respondent in the Court of the Subordinate Judge, Anantpur against the appellant and LMS for a declaration that the plaintiff (respondent herein) is entitled to hold the suit properties and institutions as a trustee for the benefit of the Congregationalist churches in Anantpur District and for a direction to the defendants to put the plaintiff in possession of the same. O.S. No. 135 of 1968 was subsequently transferred to the Court of Subordinate Judge, Cuddapah and it was renumbered as O.S. 26 of 1970 and it was tried alongwith O.S. 41 of 1968.