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1962 (9) TMI 33

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..... 92 of the Civil Procedure Code for presentation to the proper court, the company court. One Manthiram Pillai established on 15th May, 1918, a middle school for the benefit of the general public of Tironelveli Town. In a short time the school developed into a high school and the founder in order to put its management on a firm basis executed a document vesting the school and its properties in a committee called the Manthiramurthi High School Committee providing, inter alia , for the appointment and succession to the office of the members of the committee. The committee was registered under section 26 of the Indian Companies Act, 1913 (which corresponds to section 25 of the 1956 Act). That provides for the incorporation of associations whi .....

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..... present appeal against the order returning the plaint. While holding that the company court alone had and the civil court had not the jurisdiction the learned subordinate judge was labouring under a misapprehension. Section 92 of the Civil Procedure Code confers jurisdiction upon a court in matters relating to administration of public and religious charities with a view to protect the rights of the public; for this purpose it enables the Advocate-General as well as the persons interested in the trust with the sanction of the Advocate-General, to stop the misuse of its funds, for the framing of a scheme for the due administration of the trust, etc. This provision had nothing to do with any vindication of private rights. Section 398 of the .....

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..... a power to appoint and remove the master and usher of the school and power was reserved to the heirs of certain persons to appoint Governors. An information in the name of the Attorney-General was filed against the master and Governors in the Court of Chancery on the basis that the court has general superintendence over all charitable donations and trusts. A question arose whether action was within the competence of that court. The Lord Chancellor is reported to have said "from the nature of this foundation he thought the application to the jurisdiction of the Court of Chancery was improper and that the remedy of the aggrieved persons was under the terms of the charter, as the affairs of the charity would be left to be regulated in the mann .....

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..... fulfil a charitable purpose would hold the property as a trustee for the accomplishment of that purpose. Under the English law where a charity has been established by a charter the founder has certain rights. Keeton in his Law of Trusts, 7th edition, says at page 184 thus: "Where a charity is established as an eleemosynary corporation by charter there is reserved to the founder (whether the Crown or some other person) or to those whom the founder substitutes for himself a jurisdiction as visitor. It is the office of the visitor to hear and determine all differences of the members of the society amongst themselves and generally to superintend the internal government of the body and to see that all rules and orders of the corporation a .....

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..... spitals and colleges, or not. Accordingly, like other trustees, charitable or otherwise, they are subject to the jurisdiction of the court ...Though called directors and empowered to make and amend bye-laws for the corporation, apart from any provisions in the constitution of the corporation they have no right to remuneration and cannot amend the bye-laws . . . The court has no jurisdiction over the application or administration of the corporate property of ecclesiastical or civil corporations, to which, as is frequently the case, no trust is attached. But if property is held by a corporation as a trustee, if the corporation holds it clothed with public duties, the court has always asserted its right to interfere." The rule referred to in .....

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