Power Of Attorney Holder Who Is Also Manager Of A Trust Is Its Trustee, Can Lead Evidence On Its Behalf: Rajasthan High Court

The Rajasthan High Court has recently observed that a power of attorney holder of a trust who is also its manager holds the capacity of a trustee and so can depose as well as lead evidence on behalf of the trust.

A single judge bench of Justice Rekha Borana made the observation while hearing a plea moved by the petitioner trust–Shri Ramniwas Dham Trust, through its Power of Attorney Holder Parasmal Pipada, against an order of a Rent Tribunal, Bhilwara where the application filed by the defendant was only partially allowed. It was prayed by the defendant through its application that the evidence submitted by the power of attorney holder of the petitioner trust should not be read and admitted.

The Rent Tribunal observed that Pipada the power of attorney holder, could not have deposed on behalf of the trust and furthermore, the documents submitted by him could also not have been exhibited by affidavit since it could not be presumed that the power of attorney holder had personal knowledge of the contents of those documents.

The Tribunal held that the documents could have been exhibited only by the Trust's trustees and not by the power of attorney holder, and therefore, the documents placed on record by an affidavit by Pipada was directed to be de-marked. However, the tribunal allowed Pipada to lead evidence as an independent witness; against this order a plea was moved in the high court. 

The High Court held that it was an admitted fact that the power of attorney holder was also the manager of the trust. The Court referred to the definition of “trustee” and “working trustee” under the Rajasthan Public trust Act, 1959 and observed that the definitions were explicit about the fact that the manager of a trust holds the capacity of a trustee. And in turn the power of attorney holder who was also the manager of the trust, was also holding the capacity of a trustee, it said. 

“A bare perusal of the above definitions makes it clear that Manager of a Trust holds the capacity of a Trustee. Therefore, the power of attorney holder of the petitioner-Trust who was Manager of the Trust, definitely falls under the definition of a “Trustee”. He could therefore, very well have led evidence on behalf of the petitioner-Trust and ought to have been permitted as such. In view of the above observations, when this Court has reached to a conclusion that Parasmal Pipada could have deposed on behalf of petitioner-Trust, as a necessary corollary, the documents as sought to be exhibited vide his affidavit definitely could have been exhibited,” the high court said. 

Setting aside the Tribunal's order the high court said that the Rent Tribunal "shall be under an obligation" to proceed with further proceedings in the matter. 

Title: Shri Ramniwas Dham Trust v Nirmla Choudhary & Ors.

Citation: 2024 LiveLaw (Raj) 217

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