SUNIL KUMAR BANSAL Vs. K.T.S.EDUCATIONAL & CHARITABLE TRUST

JUDGEMENT

(1.) THIS order shall dispose of the aforesaid OMPs. The brief facts necessary for the disposal of the case are that according to the plaintiffs, plaintiff No.1 along with four other trustees who were the settlers of the trust had created a Trust known as the "K.T.S. Educational & Charitable Trust" (defendant No.1). According to the plaintiffs, the Trust was formed for the purpose of running Educational and Vocational Institutes. It is also alleged that the five original settlers had contributed Rs.11,000/- each towards the corpus of the Trust. As per the terms of the Trust, the trustees were only entitled to reimbursement of the amount incurred as expenses in connection with the work of the Trust but were not entitled to any remuneration. The Trust deed, provided that at any given time there should be a minimum of five trustees and maximum of 15 trustees. The plaintiff alleges that in the meeting of the trust held on 27.1.2002, the second plaintiff was inducted as a trustee in the trust.

(2.) THE trust had raised a loan about one crore from Indus Ind Bank, Chandigarh. Since the trust and the trustees were finding it difficult to cope with the financial requirements, defendant No.3 who is stated to be an N.R.I. was introduced in the Trust. He promised to make financial arrangements for re-payment of the loan of the Indus Ind Bank and according to the plaintiffs, defendant No.3 laid down certain conditions, including the condition that he would be nominating some persons of his choice to be made as additional trustees of the Trust. Thereafter defendants No. 3 and 4 were inducted as trustees vide resolution dated 24.3.2003. Defendant No.5- Shri H.S.Toor was inducted as trustee on 24.4.2002.

(3.) IT is also the case of the plaintiffs that defendant No.5 even thereafter embezzled other amounts in connivance with defendants No. 3 and 4. Out of the second installment of Rs.50,000/- U.S. Dollars, he is alleged to have withdrawn various amounts. The plaintiffs have made serious allegations against defendants No. 3 to 4 and by means of this suit have prayed that the defendants No. 3 to 5 be restrained from acting as trustee of the K.T.S. Educational and Charitable Trust.