N. Sugalchand Jain Vs.
Mittalal Jain & Ors.  INSC 1031 (2 July 2008)
JURISDICTION CIVIL APPEAL NOS. 4210-4211 OF 2008 (Arising out of SLP(C)Nos.
15025-15026/2008) N.SUGALCHAND JAIN .. APPELLANT vs.
The respondent No.1
herein, Shri Mittalal Jain, founded the Sayarbai Educational and Charitable
Trust on 9th October, 1997. By a supplementary deed dated 12.2.2001, he became
the Chairman-cum-Managing Trustee for life of the Trust. Subsequently, on
12.5.2005, the appellant and his two sons were also made Trustees.
Subsequently, in a meeting held on 13.5.2008, the appellant, as alleged by him,
is said to have been made the Managing Trustee of the Trust. Thereafter,
disputes arose with regard to the management of the Trust and the Institution
being run by it which led to the filing of two suits, being OS No. 83/2007
filed by the respondent No.1, in the Court of Principal District Judge,
Vellore. The appellant also filed OS No. 76/2007 and in both the suits applications
were made for grant of interim orders.
prayer for interim order made by the appellant in his suit was allowed and that
of the respondent No.1 was refused. Against the said order, two Civil
Miscellaneous Appeals were filed and both are pending in the High Court.
The High Court by a
common order dated 28.5.2008 stayed the operation of the interim order passed
in the appellant's favour and the respondent No.1 Mittalal Jain, therefore,
became entitled to act as Chairman/Managing Trustee of the Trust and the
Institution and the appellant herein, along with respondent Nos.3 to 5 herein,
were restrained from interfering in any manner with his functioning as such
Chairman/Managing Trustee of the Trust and the Institution. This special leave
petition has been filed against the said judgment and order of the High Court.
During the course of the hearing a suggestion was made by both the parties that
till the suits were disposed of, some suitable arrangement could be made for
management of the Trust, as also the Institution, whereby the interest of the
Trust and the Institution would be secured. The proposal, therefore, mooted for
the appointment of a Receiver to run the affairs of the Trust and the
Institution till the suits were decided. Having regard to the aforesaid
submissions made on behalf of both the parties, we dispose of the appeal by
appointing Honorable Mr. Justice K.P. Sivasubramanian, retired Judge of the
Madras High Court, as the Administrator of the Sayarbai Educations and Charitable
Trust, Kaniyambadi, Vellore, and the Educational Institution, namely,
Ganadipathy Tulsi's Jain Engineering College, Chittoor, Cuddalore Road,
Kaniyambadi, Vellore-632102. The Administrator shall assume charge of the
affairs of the Trust and the Educational Institution on or before 15.7.2008.
Both the appellant and the respondent No.1 shall cooperate with the
Administrator in enabling him to take charge of the Trust as well as of the
Institution and shall make over to him whatever records are available with
The Administrator is
also authorized to operate the Bank Accounts of the Trust and the Institution.
For the time being, in place and stead of the appellant and the respondent
No.1, who are entitled to operate the said Bank Accounts of the Trust and
Institution, the Administrator shall be entitled to operate the said accounts.
The Administrator shall be provided with transport and such Ministerial staff,
as he may require in carrying out his duties and day-to-day functions, and the
expenses there for shall be met from the funds of the Trust. Having regard to
this order being passed by us, the Civil Miscellaneous Appeals pending before
the High Court shall stand disposed of the interim orders as passed in the two
pending suits shall stand modified by this order. The learned Judge, before
whom the two suits are pending, shall make earnest endeavours to dispose of the
same as expeditiously as possible, but preferably within a period of one year
from the date of communication of this order. The honorarium of the
Administrator is fixed at Rs. 75,000/- (Rupees Seventy Five Thousand) p.m.
While deciding the pending suits the learned Judge is not to be influenced in
any way by any of the directions contained in this order.
This order is being
passed without prejudice to the rights and contentions of the parties in the
suit. The Administrator appointed by us will be at liberty to request the
appellant as well as the respondent No.1 to assist him in the administration of
the Trust and the Institution.
The appeals are
disposed of. The impugned order of the High Court is set aside. There will be
no order as to costs.
The Registry is
directed to send a copy of this order to the Honorable Mr. Justice K. P. Sivasubramanian.
The parties are also directed to communicate this order to the learned Judge.