THE CHURCH OF SOUTH INDIA TRUST ASSOCIATION versus THE TELUGU CHURCH COUNCIL

Citation: [1996] 1 S.C.R. 322 · Decided: 10-01-1996 · Supreme Court of India · Bench: S.C. AGRAWAL · Disposal: Dismissed

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Judgment (excerpt)

A 
B 
THE CHURCH OF SOUTH INDIA TRUST ASSOCIATION 
v. 
THE TELUGU CHURCH COUNCIL 
JANUARY 10, 1996 
[S.C. AGRAWAL AND B.P. JEEVAN REDDY, JJ.] 
Code of Civil Procedure, I908--Sections II, I3, 2I, 24--Res 
Judicata--Principle of-Competence of court-Whether extends to territorial 
jurisdiction-Held : The competence of the court as contemplated by section 
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C 
I I of the Code does not extend to territorial jurisdiction. 
D 
The appellant (CSITA) was an association incorporated under the 
Indian Companies Act, 1913 for the purpose of holding and administering 
in trust, the properties, funds etc. of the Church of South India including 
properties situated in the districts of Cuddapah and Anantpur in the 
State of Andhra Pradesh, The properties in Andhra Pradesh were 
transferred to CSITA by the London Missionary Society (LMS) in 1961. 
LMS was an organisation set up by different protestant Christian 
denominations of propagate their faith in India amongst other countries. 
E 
The LMS united with churches founded by different missionary societies 
in India to form a South India Uu;ted Church which comprised of various 
church councils. 
The respondent (TCC) was one such council primarily concerned 
with churches in the Telugu speaking areas of the former Madras 
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F 
Presidency. TCC was registered as a society in 1949. 
G 
As a consequence of an ongoing dispute TCC filed a suit (0.S. No. 
2 of 1961/0.S. No. 12 of 1964) against LMS and the Chartered Bank, 
Madras in Cuddapah inter alia seeking for : a) rendition of accounts 
relating to the funds deposited in various joint accounts of LMS and TCC 
in the defendant Bank; b) recovery of such sums of money as may be found 
due; and c) delivery of securities and deposits belonging to TCC. 
It was contended by LMS therein that TCC had ceased to exist in 
1947 by virtue of a resolution passed by it in General meeting, effecting 
H 
a merger with a proposed larger union of churches. This contention was 
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CHURCH OF SOlITH INDIA TRUST ASSN. v. TELUGU CHURCH COUNCIL 323 
resisted by TCC on the ground that it still existed as the resolution was 
not passed by the requisite majority. 
The trial Court decreed the suit in favour of TCC and held that it 
continued to exist and function after 1947 without losing its representative 
character. This decree was affirmed in appeal by a Division Bench of the 
Andhra Pradesh High Court on November 9, 1970. 
A second declaratory suit O.S. No. 107 of 1991 was filed by CSITA 
against the Rayalseema Diocesan Council and the Chartered Bank on the 
original side of the Madras High Court for a declaration that it was 
entitled to moneys and securities held in the joint accounts of TCC and 
LMS as on 1947. The suit was dismissed on the ground that the 
judgement of the High Court passed in 1970 operated as res judicata. The 
Court also recorded that : a) TCC had voluntarily ceased to exist and 
had merged with the Church of South India; b) TCC, the defendant 
association which was registered in 1949 was a new entity and did not 
represent the old council . 
In appeal the High Court set aside the finding that the suit was 
barred by res judicata and decreed the suit in favour of the plaintiffs on 
the ground that the CSITA and the Rayalseema Dioscesan Council were 
not parties in the first suit and that LMS could not represent the Church 
of South India in the proceedings. The finding regarding the merger of 
TCC was confirmed. 
Earlier TCC had filed two declaratory suits (0.S. No. 41of1968 and 
26 of 1970) in Cuddapah and Anantpur respectively inter alia for : a)a 
declaration that it was entitled to hold the suit properties as a trustee for 
the benefit of the Congregationalist churches in the districts; b) a 
direction to the defendants to put them in possession of the same. It was 
contended by TCC that the churches founded by LMS were Congrega-
tional churches founded in the Telugu speaking areas of the Madras 
Presidency and that LMS and TCC had set up a joint committee holding 
in trust for managing these properties and institutions and the transfer 
of properties in favour of CSITA in 1961 amounted to a disclaimer and 
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a breach of trust, as TCC had ultimately declined to merge with the 
Church of South India. In rebuttal CSITA contended that TCC had 
merged with the Church of South India in 1947 and thereafter it had 
ceased to exist, that the plaintiff council was subsequently registered and 
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A 

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