Supreme Court Upholds Appellants in Code of Civil Procedure Case — Court Clarifies Leave Requirement for Public Trust Suits.

In Favour of Accused
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Case Note & Summary

The dispute arose from a representative suit filed by the appellants against the respondents, seeking to frame a scheme for a public charitable trust. The appellants sought leave to institute the suit under section 92 of the Code of Civil Procedure, 1908, which was granted without notice to the respondents. The respondents later filed an application to revoke this leave, arguing they were denied an opportunity to be heard. The Subordinate Judge dismissed their application, stating that granting leave was an administrative act. The respondents then appealed to the High Court, which ruled that the leave was void due to lack of notice and set it aside. The Supreme Court was then approached to determine if notice was necessary before granting leave. The court noted that section 92 requires leave as a condition precedent for instituting a suit against a public trust. It emphasized that while giving notice is advisable, it is not mandatory, as it could lead to delays that might harm public interests. The court concluded that a suit filed on leave granted without notice is not invalid, as defendants can still apply for revocation. The Supreme Court allowed the appeals, set aside the High Court's judgment, and directed the Trial Court to consider the application for revocation on its merits without costs (Paras 275-276).

Headnote

A) Civil Procedure - Leave to Institute Suit - Requirement of Notice - Section 92 Code of Civil Procedure, 1908 - The court should normally give notice to proposed defendants before granting leave to institute a suit under section 92, but it is not a statutory requirement. The court held that while notice is advisable, failure to provide it does not render the suit non-maintainable, as defendants can seek revocation of leave (Paras 275B-E).

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Issue of Consideration

Whether it is obligatory for the court to give an opportunity to the respondents to show cause against the grant of leave under section 92 of the Code of Civil Procedure, 1908.

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Final Decision

The Supreme Court allowed the appeals, set aside the High Court's judgment, and directed the Trial Court to dispose of the application for revocation of leave on merits and in accordance with law, with no order as to costs incurred so far.

Law Points

  • Leave to institute suit
  • Public trust
  • Section 92 CPC
  • Notice to defendants
  • Administrative act of court
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Case Details

1990 LawText (SC) (10) 4

Civil Appeal Nos. 4890-91 of 1990

1990-10-11

Kania, M.H., Sharma, L.M.

1991 AIR 221, 1990 SCR Supl. (2) 266, 1991 SCC (1) 48, JT 1991 (5) 408, 1990 SCALE (2) 803

S. Padmanabhan, P.N. Ramalingam, A.T.M. Sampath, K. Parasaran, S. Balakrishnan, Ms. Revati

R.M. Narayana Chettiar and Another

N. Lakshmanan Chettiar and Others

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Nature of Litigation

Representative suit for framing a scheme for a public charitable trust.

Remedy Sought

Leave to institute a suit under section 92 of the Code of Civil Procedure.

Filing Reason

To seek relief for the administration of a public charitable trust.

Previous Decisions

The leave was granted without notice, later revoked by the High Court.

Issues

Whether notice to defendants is mandatory before granting leave under section 92. Whether a suit is maintainable if instituted on leave granted without notice.

Submissions/Arguments

Appellants argued that requiring notice would cause delays and defeat urgent relief. Respondents contended that leave is a material requirement and must be granted only after hearing.

Ratio Decidendi

The court clarified that while notice to defendants before granting leave under section 92 is advisable, it is not a statutory requirement, and failure to provide it does not invalidate the suit.

Judgment Excerpts

A plain reading of section 92 of the Civil Procedure Code indicates that leaves of the court is a pre-condition or a condition precedent for the institution of a suit against a public trust. The desirability of such notice being given to the defendants, however, cannot be regarded as a statutory requirement to be complied with before leave under section 92 can be granted.

Procedural History

The appellants filed a representative suit and sought leave under section 92, which was granted without notice. Respondents applied for revocation of leave, which was dismissed by the Subordinate Judge. The High Court allowed the revision petition, declaring the leave void, leading to the appeals before the Supreme Court.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 92, Section 104
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