Bombay High Court Hears Suit by Trustees of Public Charitable Trust for Declaration of Ownership of Suit Properties Under Maharashtra Public Trusts Act, 1950. Defendant's Probate-Based Claim to Trust Properties and Alleged Trespass Prompted Suit for Declaration and Permanent Injunction.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The dispute arose between the trustees of the Banaji Limji Agiary Trust, a public charitable trust registered under the Maharashtra Public Trusts Act, 1950, and an occupant/claimant over ownership of immovable properties in Fort, Mumbai. The trust claimed ownership of several properties acquired through deeds dating back to 1879, while the defendant claimed title through the probated will of a deceased occupant, Banoo Nariman Shroff. The Banaji family established a Parsi Fire Temple, the Banaji Limji Agiary, in 1709. In 1843, the family raised Rs.23,000 for restoration; after completion, Rs.11,034 remained, and a trust was formed. On 13 February 1855, trustees were appointed, and a Trust Deed dated 9 June 1879 formally vested lands at CS Nos. 449, 450, 403 and 405, Fort Division, in the trust. Additional properties were acquired by conveyances in 1905, 1916, 1926, and 1885-1886. The trust paid property and municipal taxes. One Banoo Nariman Shroff occupied premises on the 2nd floor of Banaji Mansion and died on 4 September 1998. The defendant filed Testamentary Petition No. 950 of 1998 and obtained probate of Shroff's will dated 1 December 1983 on 16 March 1999. Later, on 22 December 2011, the defendant applied to amend the schedule of assets in the probate, claiming that certain assets were omitted; the amendment was allowed on 28 August 2012, including the trust's suit properties. The trust had earlier filed S.C. Suit No. 7732 of 1988 to remove the defendant from the 2nd floor premises; that suit was dismissed on 18 September 2012, and First Appeal No. 10 of 2013 was pending. The defendant filed S.C. Suit No. 2546 of 2014 on 20 August 2011 claiming ownership of the suit properties. The defendant's husband was a salaried priest and tenant of 3rd floor premises, paying rent to the trust until November 2011. The core questions were whether the trustees were owners of the suit properties, whether the deceased Banoo Nariman Shroff had any right, title or interest that could be bequeathed, whether the defendant acquired any rights through probate, and whether declaratory and injunctive reliefs were warranted. The plaintiffs asserted that the suit properties were trust properties vested in the trustees and could not be alienated or claimed through a probated will of a third party. The defendant claimed ownership through the probate of Shroff's will and the amended schedule of assets. The excerpt provided does not contain the court's detailed analysis or findings; it sets out the factual background and reliefs sought. The court had directed both suits to be tried together and reserved judgment on 15 March 2022. The final decision and operative directions are not included in the provided text.

Headnote

A) Trust Law - Ownership of Trust Property - Trustees' Declaration - Maharashtra Public Trusts Act, 1950 - The plaintiffs, as trustees of a registered public charitable trust, claimed that the suit properties were vested in the Trust by various deeds and that the defendant had no right, title or interest. The court was required to determine whether trust property could be adversely claimed through probate. (Paras 3.1-3.18)

B) Succession - Probate and Amendment of Schedule - Effect of Probate on Third-Party Property - No specific Act cited - Defendant obtained probate of Banoo Nariman Shroff's will and later amended the schedule of assets to include suit properties; the plaintiffs alleged the deceased had no title to bequeath, thus probate did not confer ownership. (Paras 3.13-3.14)

C) Civil Procedure - Declaratory and Injunctive Reliefs - Suit for Declaration and Permanent Injunction - No specific Act cited - Plaintiffs sought declarations of ownership and injunctions restraining the defendant from entering, transferring, or holding herself out as owner of suit properties. The court was to consider interim and final reliefs. (Paras 3.19)

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Issue of Consideration

Whether the plaintiffs as trustees of Banaji Limji Agiary Trust are owners of suit properties; whether deceased Banoo Nariman Shroff had any right, title or interest in suit properties; whether defendant has any right, title or interest; whether defendant should be restrained by permanent injunction.

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Case Details

2022 LawText (BOM) (03) 75

Suit No. 236 of 2014 along with S.C. Suit No. 2546 of 2014

2022-03-22

S.J. Kathawalla, J.

Karl F. Tamboly, J. N. Mistry, Vijaya Bhat, Avan Ardeshir, Sapna Khobragade, Gayatri Nayak, Raj Gupta

Adi Burjor Banaji, Jamshed Dady Banaji, Burjor Edulji Banaji (Trustees of Banaji Limji Agiary Trust)

Bakhtawar Maneksha Jijina

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Nature of Litigation

Civil suit for declaration of ownership of trust properties and permanent injunction against defendant claiming title through probate.

Remedy Sought

Plaintiffs sought declaration that they as trustees of Banaji Limji Agiary Trust are owners of suit properties and that defendant has no right, title or interest; permanent injunction restraining entry, transfer, and holding out as owner; and order for disclosure of attempts to deal with properties.

Filing Reason

Defendant allegedly trespassed into premises and claimed ownership of suit properties by amending probate schedule to include trust properties, prompting trustees to file suit.

Previous Decisions

S.C. Suit No. 7732 of 1988 filed by Trust for removal of defendant from 2nd floor premises was dismissed by Bombay City Civil Court on 18 September 2012; First Appeal No. 10 of 2013 pending before High Court. Probate of will of Banoo Nariman Shroff granted to defendant on 16 March 1999 and schedule of assets amended on 28 August 2012.

Issues

Whether the Plaintiffs as Trustees of Banaji Limji Agiary Trust are owners of suit properties Whether deceased Banoo Nariman Shroff had any right, title or interest in suit properties Whether Defendant has any right, title or interest in suit properties Whether Defendant should be restrained by permanent injunction

Submissions/Arguments

Plaintiffs contended that the suit properties were trust properties vested in the trustees and that the deceased had no right to bequeath them Defendant claimed ownership through the probated will and amended schedule of assets

Judgment Excerpts

The Trust is a public charitable trust registered under registration no. C–418/B with the office of the Charity Commissioner, under the provisions of the Maharashtra Public Trusts Act, 1950. The amendment as sought by the Defendant was allowed as the same was uncontested, and the schedule of assets annexed to the Probate granted by this Court in respect of the Will of Banoo Nariman Shroff was amended on 28 th August 2012 to include inter alia the Suit Properties. The Trust filed Suit No. 7732 of 1988 before the Bombay City Civil Court for removal of the Defendant from the premises on the 2 nd floor of Banaji Mansion.

Procedural History

The High Court Suit No. 236 of 2014 was filed by the trustees. Notice of Motion No. 428 of 2014 was taken out for interim reliefs. By order dated 15 April 2014, the Bombay City Civil Court Suit No. 2546 of 2014 was transferred to the High Court and both suits were tried together. Earlier, Banoo Nariman Shroff died on 4 September 1998; Testamentary Petition No. 950 of 1998 was filed by defendant; probate granted on 16 March 1999. Defendant filed City Civil Court Suit No. 2546 of 2014 on 20 August 2011 claiming ownership. Defendant applied on 22 December 2011 to amend probate schedule, allowed on 28 August 2012. Trust's earlier Suit No. 7732 of 1988 was dismissed on 18 September 2012; First Appeal No. 10 of 2013 pending. Matter reserved on 15 March 2022 and judgment pronounced on 22 March 2022.

Acts & Sections

  • Maharashtra Public Trusts Act, 1950:
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