Munnurukapukapu Vidyarthi Vasathi Gruham Trust Board vs Union Bank Of India

Heard Sri Arun Kumar Doddla, learned counsel for the petitioner, Smt. V.Dyumani, learned counsel for the 1st respondent and Sri B.Shankar, learned counsel appearing for 2nd respondent. Perused the record.

This writ petition is filed to declare the action of respondent Bank in issuing proceedings to defreeze certain accounts of the petitioner Trust w.e.f.13.01.2023, as illegal and consequently to direct the respondent Bank to allow the petitioner Trust to operate the said accounts.

FACTS OF THE CASE:

The petitioner herein i.e. Munnurukapu (Kapu) Vidyarthi Vasathi Gruham Trust Board is a registered Trust registered on 16.10.1965. Trust Deed was executed. It is a charitable institution. Its objects are to acquire immovable properties, to construct its own building flats and mulgies, to realize the income from the Trust property to look after the educational and social needs and well being of all persons who are economically backward, irrespective of caste and creed or religion residing in India. Perform works of charity such as payment of scholarships, tuition fees, costs of books to students and to allow them to reside in the Trust building on payment of no rent or a nominal rent per month, which is intended to be utilized for the repairs of the Trust Building, electricity, water tax etc. Allow all the public to celebrate marriages, hold functions etc., in the back portion of the Trust building on payment of no rent or rent or on payment of a donation which is intended for meeting the expenses such as water, electricity etc., on those occasions, to provide moneys for the funerals of poor people who cannot afford to meet the funeral expenses and to provide moneys for the marriage of poor people.

The following persons are the founder Trustees:-

Mr. Neelakantam Satyanarayana

Mr. Annam Ramalingam

Mr. Enugula Sathaiah,

Mr. Dadey Kistaiah and

Mr.Mora Rajaiah.

Vide G.O.Rt.No.1573,Revenue (Endts.II) Dept., dated 05.11.2012, the then Government of Andhra Pradesh has granted exemption to the petitioner from the provisions of Section 15 of the Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987 (for short, ‘the Act’). Clause 3 of the said Trust Deed deals with the Trustees. It says that 5 persons mentioned above were holding the Trust moneys as well as Trust property from the commencement of Trust as Promotors. For the present they alone are the Trustees of the Trust. In the event of death or incapacity or resignation or any other cause of absence of a Trustee for a period exceeding three years, the remaining Trustees shall nominate a Trustee on their own choice in the place of vacancy.

As per Clause-4 of the Trust Deed, the aforesaid 5 Trustees were authorized to constitute a committee consisting of not more than thirteen members to attend and discharge the day-to-day affairs of the Hostel to be opened in the Trust Building. Mr. Neelakantam Satyanarayana alone shall sign all contracts, suits and documents. He alone shall open and maintain an account of the Trust funds in some reliable Bank and sign, endorse, negotiate or otherwise deal with all cheques, bills, promissory notes, securities etc. In the absence of Mr.Neelakantam Satyanarayana, Mr.Enugula Sathaiah, Trustee, shall attend to the functions to be discharged by the absentee Trustee.

Perusal of the Minutes Book of the petitioner Trust produced by learned counsel for the petitioner would reveal that Trustees Meeting dated 08.11.2012 was held and minutes were recorded. As per the said Minutes, the following were the Trustees of the petitioner Trust:-

Mr. Amidyala Sree Ramulu,

Mr. Myadam Janardhan Rao,

Mr.Punjari Badrinarayana

late Mr. Duvva Vidyanand

Professor M.R.Venkat Rao, .

In the said Minutes itself, it is specifically mentioned that Mr. Amidyala Sreeramulu resigned from the Trustship because of his ill-health and on personal reasons and Mr.Duvva Vidyanand expired. Therefore, there were only three Trustees viz: Mr. Myadam Janardhan Rao, Mr.Punjari Badrinarayana and Professor M.R.Venkat Rao. Their names were continued upto 30.12.2013.

In the meeting of the petitioner Trust held on 30.12.2013, the Trustees have appointed the following Members as Trustees of the petitioner Trust.

Mr. Akula V.Pandu Ranga Rao,

Mr.Gampa Chandra Mohan,

Mr.Pannala Vishnuvardhan,

Thus, in all there were three Trustees as on 30.12.2013. In the meeting held on 26.02.2014, it was recorded that Mr.Jalli Siddaiah along with Mr. P.Badri Narayana and Mr. Akula V.Pandu Ranga Rao, Trustees were absent. There is no mention as to inclusion of the said Mr.Jalli Siddaiah as the Trustee of the petitioner Trust. There is no explanation from the petitioner on the said aspect. In the meeting dated 04.11.2014 the name Dr. Konda Sriniva Rao is mentioned as Special Invitee. In fact as per the Trust Deed, there is no provision for appointment of Special Invitee. There is no explanation form the petitioner on the said aspect. In the Minutes dated 29.11.2014, it is mentioned that Mr.Pille Srinivasa Rao attended as ex-officio Trustee of the petitioner. In fact there is no provision for appointment of ex-officio Trustee in the Trust Deed. The said Pille Srinivasa Rao, was continued as ex-officio Trustee dated 20.04.2015. Thereafter, his name was not found in the Minutes. There is no explanation for the same.

In the meeting held on 18.05.2019, the Trustees have made certain amendments and the same were approved. The said amendments are as follows:-

It has been amended regarding the clause -3 of the Trust Deed about appointment and term of office.

There should not be any permanent Trustees to the Trust Board.

Trustee term of office is only for three years.

Only in exceptional cases. Second term should be given.

Persons with commitment and seniority with age group of 45 to 75 years should be selected as Trustees as per the existing procedure.

Whenever new vacancies for Trust Board arise, the above procedure should be followed.

The aforesaid amendment should come into force with immediate effect.

Though the Trustees of the petitioner-Trust made the said amendments, the same were not brought on record by way of executing amended Trust Deed and registration of the same. In the very same meeting, dated 18.07.2019, it is mentioned that Professor M.R. Venkat Rao, presided over the meeting. Names of Mr. Myadam Kishan Rao, Mr.Damera Gyaneshwar Rao, Mr. Sadam Padma Rao, Sri Neelakantam Vijay Kumar, were also mentioned as Trustees apart from the names of Professor M.R.Venkat Rao, Mr. Gampa Chandra Mohan, Mr. Pannala Vishnuvardhan, Akula V.Panduranga Rao and Mr. Jalli Siddaiah. There is no explanation with regard to date of their inclusion. The Trustees viz: Mr.Gampa Chandramohan, Mr. Pannala Vishnuvardhan, Mr.Jalli Siddaiah have not signed the said Minutes.

In the Minutes dated 08.08.2019, the name of the Thunga Sudershan also mentioned as Trustee. There is no resolution to the said effect. In the Minutes, dated 07.11.2019, Mr. Myadam Kishan Rao’s name was mentioned as Chairman. Mr. Myadam Kishan Rao died on 12.01.2021. In his place, Professor M.R.Venkata Rao, was elected as Chairman of the petitioner Trust. Mr.Sunkari Bala Kishan Rao was appointed as Trustee of the petitioner on 15.08.2021 and Sri Thota Raghunath Rao, (2nd respondent) was appointed as Trustee. Thus, the following Trustees are there in the petitioner Trust as on 15.08.2021:-

Professor M.R.Venkat Rao,

Mr.Gampa Chandramohan,

Mr.Akula V.Pandu Ranga Rao,

Mr.Pannala Vishnuvardhan,

Mr.Jalli Siddaiah,

Mr.Sunkara Bala Kishan Rao,

Mr.Thota Raghunath Rao,

It is not in dispute that on 15.08.2022 Mr. M.R.Venkat Rao, has submitted his resignation. The said fact was mentioned in the Minutes dated 15.08.2022. Though in the meeting dated 07.09.2022, the names of six Trustees were recorded, except Sri Akula V.Pandu Ranga Rao, Mr. M.R.Venkat Rao, other Trustees have not signed. Sri Akula V.Pandu Ranga Rao, name was mentioned that Chairman. Thereafter, in the Minutes dated 05.01.2023, it is mentioned that Professor M.R.Venkat Rao name as Chairman. They have also included the names of Dhaduvai Raghavender, Mr. Manda Surya Prakash, as Trustees. Sri Jalli Siddaiah, Mr.Thota Raghunath Rao, Mr. Sunkari Bala Kishan Rao, Mr.Pannala Vishnuvardhan have not signed the said Minutes. There is no explanation from the petitioner as to election of Mr.M.R.Venkat Rao as Chairman even after submission of his resignation on 15.08.2022. In the Minutes dated 09.01.2023, the name of Mr.Pille Srinivasa Rao was again mentioned. Subsequently also Mr. Jalli Siddaiah, Mr. Pannala Vishnuvardhan have not attended the meeting and they have not signed the Minutes.

Learned counsel for the petitioner has produced two more Minutes Books wherein only Minutes dated 21.10.2022 were recorded and it was called as emergency meeting. In the said meeting, it is mentioned that as per the advise of elders it has been decided that old system will continue. Professor M.R.Venkat Rao re-occupied the Chairmanship of the petitioner Trust. It contains signatures of only four persons. 2nd respondent and others disputed their signatures in the said Minutes Book. According to 2nd respondent, his signature was forged in the minutes.

In the 5th Minutes Book produced by learned counsel for the petitioner, Minutes dated 15.11.2022 were mentioned. In the said meeting, Mr.Jalli Siddaiah, Mr. Sunkari Bala Kishan Rao, and Mr.Thota Raghunath Rao (2nd respondent) were absent. In the Minutes dated 09.12.2022, Sunkari Bala Kishan Rao has not signed. According to 2nd respondent, the said Minutes Book was created by forging his signature.

The aforesaid factual aspects would reveal that there are disputes between Professor M.R.Venkat Rao, and 2nd respondent with regard to chairmanship of the petitioner-Trust. There is no dispute that Professor M.R.Venkat Rao, has submitted resignation on 15.08.2022 and the same is also specifically mentioned in the Minutes dated 15.08.2022. Thereafter, 2nd respondent was elected as Chairman of the petitioner- Trust. Even in the documents produced by 1st respondent Bank, a copy of the said resignation dated 15.08.2022 was filed. The said fact is not disputed by the learned counsel appearing for M.R.Venkat Rao. On 12.09.2022, the petitioner had submitted a letter dated 12.09.2022 to the 1st respondent Bank informing about the change of Chairmanship, inclusion of the signatures by duly enclosing a copy of the extract of Munutes of meeting, dated 16.08.2022. Mr.Thota Raghunath Rao, signed as Chairman, Mr.Gampa Chandra Mohan, Mr.Pannala Vishnuvardhan, Mr.Jalli Siddaiah, Mr.Sunkari Bala Kishan Rao, were signed as Trustees of the petitioner Trust.

According to 1st respondent Bank, 2nd respondent has been operating the Bank account of the petitioner from 12.09.2022 onwards. A similar letter dated 10.01.2023 was submitted to 1st respondent Bank by 2nd respondent and the aforesaid four Trustees.

The aforesaid factual aspects would reveal that after submission of resignation by Professor M.R.Venkat Rao on 15.08.2022, 2nd respondent was elected as Chairman of the petitioner Trust and all the Trustees as on date have submitted a letter dated 12.09.2022 to the 1st respondent Bank intimating about election of 2nd respondent as Chairman of the petitioner Trust and requested 1st respondent bank to permit him to operate the bank account by changing signatures. Accordingly, 1st respondent has accepted the said letter and permitted 2nd respondent to operate the account of the petitioner Trust. Thereafter, Professor M.R.Venkat Rao started the dispute stating that Sri Akula V.Panduranga Rao, elected as Chairman of the petitioner Trust. Thereafter, he himself started claiming that he is the Chairman of the petitioner Trust. The said facts would reveal that there are disputes between the Professor M.R.Venkat Rao and Akula V.Panduranga Rao and Mr.Thota Raghunath Rao, 2nd respondent herein with regard to chairmanship of the petitioner Trust. The same are internal disputes. The petitioner Trust which was formed on 16.10.1961 with noble objects and its affairs cannot be disturbed due to the above internal disputes.

On receipt of the letter dated 10.01.2023 from 2nd respondent and also letter dated 09.01.2023 from Professor M.R.Venkat Rao as chairman of the petitioner-Trust, it became compulsion to 1st respondent to issue letter dated 13.01.2023 defreezing the account of the petitioner Trust. The details of the accounts were specifically mentioned.

Now both the Professor M.R.Venkat Rao and 2nd respondent allege that the petitioner Trust is not in a position to pay salaries to its employees, it is not in a position to run the hostel and also the affairs of the petitioner Trust. There is no dispute that it is a prestigious Trust. It was constituted for a noble cause. After lapse of 56 years, disputes arose between the Trustees of the petitioner Trust. 2nd respondent is disputing his signature in the Minutes. According to him, Professor M.R.Venkat Rao, in collusion with Sri Akula V.Panduranga Rao, has created Minutes Book and forged the signature. This Court in a petition filed under Article 226 of Constitution of India cannot consider the said aspects. The aforesaid facts would reveal that there are serious and complicated questions of facts i.e. forgery of signatures, preparation of Minutes, quorum admission of new members, acceptance of resignation of Professor M.R.Venkat Rao and his re-election as Chairman of petitioner – Trust etc. The same cannot be decided in a writ petition filed under Article 226 of the Constitution of India.

As discussed supra, the Trustees of the petitioner Trust have not conducted the meetings properly and they have not recorded the minutes properly. Amendments were not registered. There is no explanation from the petitioner Trust with regard to production of two more books said to be minutes books wherein minutes of only one meeting were recorded.

According to 1st respondent Bank, Mr. M.R.Venkat Rao has been continuing as Chairman of the petitioner Trust and he has been operating the account of the petitioner Trust. In the letter dated 12.09.2022, respondent Nos.2 and 4, Trustees of the petitioner Trust have signed. If Professor M.R.Venkat Rao and Mr. Akula V.Panduranga Rao are having any grievance, they have to approach competent civil Court by invoking provisions of Trust Act, 1882.

As discussed supra, due to the internal disputes among Prefessor M.R.Venkat Rao, Mr.Akula V.Pandu Ranga Rao and Mr. Thota Raghunath Rao (2nd respondent herein), the affairs of the petitioner Trust cannot be hampered and Boarders of the hostel cannot be suffered. Keeping the welfare of the Boarders and to protect the noble cause of establishing the Trust, this Court is inclined to issue following directions:-

1st respondent shall permit Mr.Thota Raghunath Rao/2nd respondent herein to operate the bank accounts, the details of the said accounts as specifically mentioned in the letter dated 13.01.2023 of the petitioner Trust.

Mr. Thota Raghunath Rao/2nd respondent herein shall continue as Chairman of the petitioner Trust for all purposes.

Other Trustees shall cooperate with 2nd respondent in running the affairs of the petitioner Trust effectively.

Liberty is granted to Professor M.R.Venkat Rao and Mr.Akula V.Pandu Ranga Rao, to approach competent civil court in terms of Section 34 of the Trust Act, to resolve the internal disputes, if so advised. This order is subject to result of any orders to be passed by the competent civil Court in a petition to be filed under Section 34 of the Trust Act, by professor M.R.Venkat Rao, Mr. Akula V.Pandu Ranga Rao.

In view of the nature of the disputes, considering reputation of the Trustees, their age, elders and well wishers of the petitioner Trust including counsel appeared for Prof.M.r.Venkat rao and 2nd respondent shall mediate and resolve the disputes between the parties. They shall induce the parties to a settlement by initiating all necessary steps.

All the Trustees shall also initiate all necessary steps to resolve the issues among themselves amicably keeping interest of the petitioner Trust and welfare of the Boarders of the petitioner Trust in mind.

Trustees shall conduct meetings properly, prepare minutes accordingly by specifically mentioning the resolutions passed. They shall make necessary amendments to the Trust Deed if necessary and get it registered.

With the aforesaid directions, this writ petition is disposed of. As a sequel, miscellaneous petitions, if any, pending in the Writ Petition, shall stand closed.