Case Note & Summary
The dispute centered on the expulsion of two trustees from a trust registered under the Maharashtra Trust Act, 1950. The applicants, comprising ten individuals and one trust, were original defendants in a suit filed by respondents No.1 and 2 challenging their removal as trustees. The trust, applicant No.3, had issued show cause notices and conducted disciplinary proceedings, ultimately passing a resolution on 24 June 2014 expelling respondents No.1 and 2. Respondents No.1 and 2 filed Special Civil Suit No. 826 of 2014 seeking declarations that the expulsion resolutions were illegal and claiming damages of Rs.50 crores. The applicants applied under Order VII Rule 11(d) of the Code of Civil Procedure, 1908, for rejection of the plaint, arguing that the suit was barred by Sections 22, 50, 51 and 70 of the Maharashtra Trust Act, 1950, and by Order II Rule 2 of the CPC. The trial court rejected that application on 14 June 2014. The applicants filed the present civil revision under Section 115 CPC challenging that rejection. The High Court, by order dated 15 December 2014, directed that the civil revision be heard and disposed of finally at the admission stage, and clarified that the order would not impede the trial court proceedings. The matter was heard on 22 February 2019 and judgment was reserved, pronounced on 10 July 2019. The substantive legal issues, court's analysis, and final decision are not included in the provided text.
Issue of Consideration
CIVIL REVISION APPLICATION NO. 1087 OF 2014
Case Details
2019 LawText (BOM) (07) 92
Civil Revision Application No. 1087 of 2014
P.K. Dhakephalkar, Swaroop Karade, Gauri Shah, Swapnil Patil, Surel S. Shah, A.V. Anturkar, Sugandh B. Deshmukh, Prathamesh Bhargude, Ajinkya Udane, P.B. Shah, Kayval P. Shah, Mahesh V. Rawool
Dr.Vishwanath Dadarao Karad, Tulshiram Dadarao Karad, Suresh Govind Ghaisas, Chandrakant S. Pandav, H. M. Ganeshrao, Rahul Vishwanath Karad, Sunil Kashiram Karad, Dr.Suchitra Umesh Nagare, Virendra Suresh Ghaisas, Dr.Mangesh Tulshiram Karad, Maharashtra Academy of Engineering Educational Research, Pune
Shri Avinash Bhaskar Avhad, Shri Bhaskar Eknath Avhad, Mrs.Kamal Bhaskar Avhad, Dr.Asmita Deepak Dhatrak, Prof. Prakash Bhaskar Joshi
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Nature of Litigation
Civil revision against rejection of application for rejection of plaint in a trust dispute.
Remedy Sought
The applicants (original defendants) sought rejection of the plaint under Order VII Rule 11(d) of CPC on grounds that the suit is barred by the Maharashtra Trust Act, 1950 and Order II Rule 2 CPC. The trial court rejected that application, and the applicants filed this civil revision seeking to set aside that order.
Filing Reason
The applicants believed that the suit filed by respondents No.1 and 2 challenging their expulsion as trustees was barred by law.
Previous Decisions
The trial court (3rd Jt. Civil Judge, S.D. Pune) by order dated 14th June, 2014 rejected the application Exhibit 21 under Order VII Rule 11(d) CPC. The High Court, by order dated 15th December, 2014, directed that this Civil Revision Application be heard and disposed of finally at admission stage.
Submissions/Arguments
The applicants argued that the suit was barred by Sections 22, 50, 51 and 70 of the Maharashtra Trust Act, 1950 and also by Order II Rule 2 of the Code of Civil Procedure, 1908.
The respondents resisted the application.
Judgment Excerpts
The Applicants filed an application under Order VII, Rule 11(d) of the Code of Civil Procedure, 1908 and prayed for rejection of the plaint on the ground that the suit was hit by Sections 22 and 70 of the said Act and also by Sections 50 and 51 of the said Act.
This Court, by an order dated 15th December, 2014, after recording brief submissions of the parties, directed that this Civil Revision Application may be heard and disposed of finally at the state of admission.
Procedural History
On 30 October 2013, applicant No.3 trust issued a show cause notice to respondents No.1 and 2. Respondents filed proceedings before Charity Commissioner and a civil suit. In November 2013, trial court granted injunction in favour of respondents; appeal by applicants before District Court was allowed. On 2 December 2013, trust passed resolution removing respondents No.1 and 2. Respondents filed Writ Petition No.520/2014; on 22 January 2014, applicants withdrew the resolution and respondents withdrew their proceedings. On 28 January 2014, respondents filed Regular Civil Suit No.194/2014. On 12 February 2014, applicants issued fresh show cause notice. Respondents filed petition before Division Bench challenging constitution of trust; interim relief refused on 20 February 2014. On 21 March 2014, notice of personal hearing given to respondents for 28 March 2014; respondents sought adjournment and withdrew writ petition on 25 March 2015. Respondents did not appear on 28 March 2014; another chance given for 18 April 2014. Respondents again sought adjournment on 17 April 2014 and did not appear on 18 April 2014. On 2 May 2014, trial court framed preliminary jurisdiction issue. On 3 May 2014, respondents applied under Section 9(A)(2) CPC for interim relief, which was rejected. On 7 May 2014, applicants issued another notice for hearing on 18 May 2014; respondents did not attend. On 19 May 2014, notice issued for board meeting on 26 May 2014. On 21 May 2014, respondents filed application in Misc. Civil Appeal and obtained ex parte status quo order. On 23 May 2014, applicants filed writ petition challenging that order; on 28 May 2014, High Court modified order and directed status quo till 4 June 2014. On 31 May 2014, District Judge rejected application below Exhibit-5. On 6 June 2014, respondents filed writ petition and continued interim order ex parte. On 11 June 2014, by consent, meeting fixed on 24 June 2014 with undertakings. On 24 June 2014, board of trustees passed resolution expelling respondents No.1 and 2. On 26 June 2014, respondents filed Special Civil Suit No.826/2014 challenging expulsion and claiming damages. On 3 July 2014, applicants applied under Order VII Rule 11(d) for rejection of plaint. On 8 July 2014, trial court stayed implementation of resolutions pending hearing on Exhibit 5. On 14 June 2014, trial court rejected plaint rejection application; applicants filed this civil revision. On 15 December 2014, High Court directed final hearing at admission stage.
Acts & Sections
- Code of Civil Procedure, 1908: Section 115, Order VII Rule 11(d), Section 9(A)(2), Order II Rule 2
- Maharashtra Trust Act, 1950: Section 22, Section 50, Section 51, Section 70
