Supreme Court Hears Appeals Against High Court Judgment Dismissing Challenges to Decrees in Favour of Respondent Council in Church Property Dispute. The High Court held that the appellant, as successor-in-interest to the original trustee, was bound by the earlier decision that the respondent council had not merged into the unified church body, and that the respondent was entitled to hold the suit properties as trustee for the benefit of Congregationalist churches.

Dispute over ownership and trusteeship of properties and institutions of Congregationalist churches in Cuddapah and Anantpur districts, Andhra Pradesh, between the Telugu Church Council and the Church of South India Trust Association.

The respondent Telugu Church Council filed two suits seeking declaration that it is entitled to hold suit properties and institutions as trustee for the benefit of Congregationalist churches and for direction to defendants to put plaintiff in possession.

The London Missionary Society transferred properties to the Church of South India Trust Association by deed dated February 10, 1961, which the respondent claimed was a breach of trust because the properties were held for Congregationalist churches represented by the respondent council.

Earlier suits had been decided: O.S. No. 12 of 1964 (originally O.S. No. 2 of 1961) decreed in favour of TCC by Second Additional District Judge Cuddapah on December 3, 1966, holding TCC did not dissolve, affirmed by Andhra Pradesh High Court in A.S. No. 31 of 1967 on November 9, 1970. In O.S. No. 107 of 1971, Madras High Court (Varadarajan J.) held TCC merged with CSI but dismissed suit as barred by res judicata; in O.S.A. No. 20 of 1976, Division Bench of Madras High Court on September 2, 1976 decreed suit in favour of CSITA and Diocesan Council, setting aside res judicata finding. The present suits were decreed by Subordinate Judge Cuddapah on May 7, 1979, and appeals dismissed by Andhra Pradesh High Court on June 16, 1992.

Whether the Telugu Church Council merged into the Church of South India and ceased to exist in June 1947. Whether the judgment of the Andhra Pradesh High Court in A.S. No. 31 of 1967 operates as res judicata against the appellant. Whether the judgment of the Madras High Court in O.S.A. No. 20 of 1976 operates as res judicata on the merger issue. Whether the suits filed by the respondent for declaration and possession were maintainable. Whether the transfer of properties by LMS to CSITA was valid or constituted breach of trust.

Appellant: TCC was a constituent body of SIUC and merged into CSI on June 19, 1947, ceasing to exist; respondent council registered later had no connection; properties vested in LMSC as trustee; respondent not entitled to represent churches; suit barred by limitation. Respondent: churches founded by LMS were Congregationalist; TCC represented them; LMS and TCC jointly managed properties; TCC approved but ultimately declined to join CSI; transfer by LMS to CSITA was breach of trust. Council for World Mission (successor of LMS): earlier AP HC judgment not binding on appellant as not a party.

The Andhra Pradesh High Court held that the appellant, as successor-in-interest of London Missionary Society, was bound by the earlier finding on merger that TCC did not dissolve; the Madras High Court decision could not operate as res judicata because it lacked jurisdiction over properties in Andhra Pradesh; LMS and LMSC were the same body; and the churches were Congregationalist, so the suits for declaration and possession were maintainable.

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. The High Court has held that the appellant is litigating as successor-in-interest of LMS and that the finding on the issue as regards merger recorded by the Additional District Judge, Cuddapah, in his judgment dated December 3, 1966 in O.S. No. 12 of 1964 which was confirmed by the Division Bench of the Andhra Pradesh High Court in the judgment dated November 9, 1970 in A.S. No. 31 of 1967 binds the appellant. As regards the decision of the Division Bench of the Madras High Court dated September 2, 1976 in O.S.A. No. 20 of 1976 filed by the appellant it was held that the said decision would not operate as res judicate since no court in the State of Tamil Nadu can claim to exercise jurisdiction in respect of properties situate within the State of Andhra Pradesh.

O.S. No. 2 of 1961 filed by respondent against LMS and Chartered Bank in Subordinate Judge Cuddapah, later transferred and renumbered O.S. No. 12 of 1964; decreed on December 3, 1966 by Second Additional District Judge Cuddapah; affirmed by Andhra Pradesh High Court in A.S. No. 31 of 1967 on November 9, 1970. O.S. No. 107 of 1971 filed by appellant and Rayalaseema Diocesan Council in Madras High Court; decided on March 24, 1975 by Varadarajan J.; on appeal, Division Bench in O.S.A. No. 20 of 1976 on September 2, 1976 set aside res judicata finding and decreed suit. Respondent filed O.S. No. 41 of 1968 in Subordinate Judge Cuddapah and O.S. No. 135 of 1968 in Subordinate Judge Anantpur (later transferred and renumbered O.S. No. 26 of 1970); tried together and decreed on May 7, 1979 by Subordinate Judge Cuddapah. Appellant's appeals A.S. Nos. 623 and 624 of 1979 dismissed by Andhra Pradesh High Court on June 16, 1992. Special leave petitions filed in Supreme Court, leave granted in SLP (C) Nos. 14501-02 of 1992; appeals heard by Supreme Court.

• Indian Companies Act, 1913:
• Societies Registration Act:
• Companies Act of the United Kingdom: