The Court holds that Section 92 CPC does not apply to private trusts, confirming the appointment of the Sarvarhkar and reinforcing res judicata principles.
In a significant judgment, the Allahabad High Court, on May 27, 2026, delivered a ruling on the nature of the Ram Laxman Janki Ji Trust, affirming its status as a private trust. The decision came as a result of two appeals filed against a common judgment by the Additional District Judge, Sitapur, relating to the management and control of the trust.
The appellants, Mool Chandra and another, contended that the trust was public, thereby allowing for a suit under Section 92 of the Civil Procedure Code (CPC), 1908. However, the Court, presided by Justice Prashant Kumar, dismissed this argument, citing the intent of the trust's founder, Mr. Gulzari Lal, who had established the temple within his residential compound. The Court emphasized that the management and control of the trust remained with the founder and his descendants, further classifying it as a private trust.
The Court also upheld the appointment of Shri Narain as the Sarvarhkar, a position previously held by his predecessor, Shiv Gopal. The appellants' claim that the Sarvarhkarship was not properly established was rejected, with the Court relying on previous judicial pronouncements affirming the appointments.
Additionally, the Court addressed the applicability of res judicata, concluding that the current litigation was an attempt to relitigate issues already decided in prior cases involving related parties. The Court underscored the principle that judicial decisions must be accepted as correct to prevent endless litigation.
The judgment reaffirms the distinction between public and private trusts, highlighting the non-applicability of Section 92 CPC to private trusts and emphasizing the importance of founder intent and management control in trust classification.
Bottom line:-
Trust Law - Determination of whether a trust is public or private depends on the founder's intention, management control, and public rights in the trust's usage. A suit under Section 92 CPC is maintainable only for public trusts.
Statutory provision(s): Civil Procedure Code, 1908 Sections 92, 11; Evidence Act, 1872 Sections 64, 65
Mool Chandra v. Shri Narain, (Allahabad)(Lucknow) : Law Finder Doc id # 2908369
