These appeals, filed by devotees of the Nagapalayam Mariamman-Ponnachiamman Temple, challenged the Madras High Court’s dismissal of a writ petition concerning the alienation of temple property. A temporary trustee of the temple had executed a gift deed on August 30, 2017, transferring 1 acre and 10 cents of temple inam land to the Government of Tamil Nadu for the construction of a Taluk Office. The Supreme Court allowed the appeals, set aside the High Court’s order, and declared the gift deed null and void. The Court held that the State, acting as a statutory custodian under the Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959, cannot accept gifts of temple property or convert its role as a protector into a beneficiary. Although the Court declined to demolish the Taluk Office building constructed with public funds, it ordered the State to pay a revised monthly lease rent with arrears and penalized the State with costs for defending an unlawful transaction.
- Character of Temple Property and Statutory Bar:
- The subject land was an inam land granted for the support and maintenance of the deity under Inam Title Deed No. 388.
- Under Section 41(1) of the Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959 (1959 Act), a gift of an inam property is expressly declared null and void, and unlike other transactions, the statute consciously withholds any possibility of subsequent validation or sanction for a gift.
- Registration of the gift deed was also barred under Section 22-A of the Registration Act, 1908.
- Fiduciary Duty of Trustees and Role of the State:
- Trustees (whether permanent or temporary) are bound by Sections 27 and 28 of the 1959 Act to manage temple assets with ordinary prudence and fidelity; a gratuitous gift confers no benefit on the institution and violates their fiduciary duty.
- The State is a statutory custodian and regulator of religious properties, not an owner; accepting a gift of temple land under the guise of administrative convenience or public purpose offends the 1959 Act.
- Condemnation of State Conduct:
- The Supreme Court strongly criticized the State Government for aggressively defending the invalid gift deed across judicial forums for years and only conceding its illegality after being specifically directed by the Supreme Court.
- Equitable Relief and Lease Arrangements:
- Because a public Taluk Office building had already been constructed on the land using public funds, the Court refused to annul the lease entirely.
- However, applying the formula established by the Fair Rent Committee and government orders based on local market values (Rs. 167/- per sq. ft.), the Supreme Court enhanced and rounded off the monthly lease rent to 31,000/- per month, payable with arrears from March 8, 2019, to be revised every three years under Section 34-A.
- Final Directions and Costs:
- The Supreme Court set aside the High Court’s order, declared the gift deed void, ordered the State to pay arrears of rent within three months, and imposed costs of Rs. 1,00,000/- on the State payable to the Temple.



