Case Note & Summary
The case involves two appeals arising from an order of the Civil Judge (Senior Division) at Bombay appointing an Interim Board of Trustees for the Lilavati Kirtilal Mehta Medical Trust. The appellants, who are founders and permanent trustees of the trust, challenged the appointment on the grounds that it was contrary to the Trust Deed and principles of natural justice. The respondents included a retired judge appointed as Chairman of the Interim Board and another trustee. The High Court examined the Trust Deed and found that the trial court had not followed the procedure for appointment of trustees as stipulated in the deed. The court also noted that the trial court had not given the appellants a proper hearing before appointing the Interim Board. The High Court set aside the impugned order and remanded the matter back to the trial court for fresh consideration in accordance with law. The court emphasized that the trial court must first decide the issue of jurisdiction before granting any interim relief. The appeals were allowed, and the civil applications were disposed of.
Headnote
A) Trust Law - Appointment of Interim Board of Trustees - Compliance with Trust Deed - The appointment of an Interim Board of Trustees by the trial court was set aside as it was not in accordance with the provisions of the Trust Deed and principles of natural justice. The court held that the trial court exceeded its jurisdiction by appointing an Interim Board without following the procedure prescribed in the Trust Deed. (Paras 1-27) B) Civil Procedure - Interim Relief - Section 9A of the Code of Civil Procedure, 1908 - The court considered the maintainability of the suit and the grant of interim relief. It held that the trial court must first decide the issue of jurisdiction before granting any interim relief. (Paras 15-20) C) Specific Relief Act - Injunction - Section 41A of the Specific Relief Act, 1963 - The court discussed the principles for granting injunctions against trustees and held that the trial court's order appointing an Interim Board was not justified. (Paras 21-27)
Issue of Consideration
Whether the appointment of an Interim Board of Trustees by the Civil Judge (Senior Division) was valid and in accordance with the Trust Deed and principles of natural justice.
Final Decision
The appeals are allowed. The impugned order dated 06/09/2016 appointing the Interim Board of Trustees is set aside. The matter is remanded to the trial court for fresh consideration in accordance with law. The civil applications are disposed of.
Law Points
- Trust Law
- Appointment of Trustees
- Interim Board
- Natural Justice
- Trust Deed Interpretation
- Section 41A of the Specific Relief Act
- 1963
- Section 9A of the Code of Civil Procedure
- 1908
