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49. So far as a Trust having more than one Trustee, there is combination of individuals. The said combination of individuals is on their own volition. If an individual agrees to be one of the Trustees, either by nomination or by election etc., then the combination is on his own volition. Apart from that, there will be at least a minimum of one common purpose in every Trust, which is the obligation imposed on the Trust. Thus, the Trust, being a combination of individuals, is an 'association of individuals' in terms of Section 141 of the Negotiable Instruments Act. Thus, there can be no difficulty in holding that a Trust, having two or more trustees, is undoubtedly a company for the purposes of Sections 138 and 141 of The Negotiable Instruments Act.

50. But difficulty will arise in respect of a Trust where there is a single Trustee. If there is a single trustee, obviously there is no combination of individuals and therefore, it will not fall within the ambit of 'association of individuals' so as to constitute a 'company' in terms of Section 141 of the Negotiable Instruments Act. If it is eventually held that a Trust, having a single Trustee, is not a 'company', then the said Trustee cannot be prosecuted, whereas the Trust alone can be prosecuted for the offence committed by the Trust under Section 138 of the Negotiable Instruments Act. But, on the contrary, if there are two or more Trustees, for the offence committed by the Trust, as we have concluded above, the Trustees can also be prosecuted provided they were in-charge of the day-to-day affairs and conduct of the Trust. If this interpretation is adopted, then it will lead only to absurdity. It is the basic principle of interpretation that an enactment cannot be interpreted so as to result in absurdity. To avoid such absurdity, we have to make purposive interpretation of the provisions of the Act so as to take forward the object of the Act.

66. Applying the above law laid down by the Constitution Bench of the Hon'ble Supreme Court, as I have already concluded, considering the intention of the Legislature while bringing in Chapter XVII of the Negotiable Instruments Act and the fact that a Trust having two or more trustees will squarely fall within the ambit of 'association of individuals' which in turn will fall within the meaning of the term 'company', I am of the view that a Trust having a single trustee should also be brought within the definition of the term 'company' and thus the expression 'Trust' should be read into the Explanation 'a' to Section 141 of the Negotiable Instruments Act. If this interpretation is not given, certainly Sections 138 and 141 of the Act will not have force and life, so far as they relate to a Trust having a single Trustee. Further, if one holds that a Trust having two or more trustees is a 'company' falling within the sweep of Sections 138 and 141 of the Act, at the same time a Trust having a single trustee will not fall within the ambit of Sections 141 and 138 of the Act, the result, as I have already concluded is only an absurdity. In order to avoid the said absurdity and in order to give force and life to the provisions of Sections 138 and 141 of the Act, I hold that the expression 'company' as explained in Section 141 of the Act takes into its ambit a Trust having a single trustee also. In view of this interpretation, I firmly hold, that a Trust, having either a single trustee or two or more trustees, is a 'company' in terms of Section 141 of the Negotiable Instruments Act.

67. My conclusions are summed up as follows:-

(i) A Trust, either private or public / charitable or otherwise, is a juristic person who is liable for punishment for the offence punishable under Section 138 of the Negotiable Instruments Act.
(ii) A Trust, either private or public / charitable or otherwise, having either a single trustee or two or more trustees, is a company in terms of Section 141 of the Negotiable Instruments Act.
(iii) For the offence under Section 138 of The Negotiable Instruments Act, committed by the Trust, every trustee, who was in-charge of the day-to-day affairs of the Trust shall also be liable for punishment besides the Trust.