Supreme Court on Constructive Trusts under Section 92 CPC.
SC RULES OPERATION ASHA A CONSTRUCTIVE TRUST UNDER SECTION 92 CPC
CASE SUMMARY – The Supreme Court in Operation ASHA vs Shelly Batra & Ors. examined whether a society registered under the Societies Registration Act, 1860 qualifies as a “constructive trust” under Section 92 of the CPC. The case arose following the ouster of Dr. Shelly Batra, a co-founder, who alleged fund misappropriation and misconduct by other board members. The Court upheld lower courts’ findings that Operation ASHA, given its charitable healthcare services and donor-driven funding model, is a public charitable institution. It ruled that the suit under Section 92 was maintainable, emphasizing the importance of judicial oversight in cases of breach of public trust.
| ASPECTS | DETAILS |
|---|---|
| Case Title | Operation ASHA vs. Shelly Batra & Ors., Civil Appeal No. 10048 of 2025 |
| Introduction | The case discusses the maintainability of a suit under Section 92 CPC against a registered society accused of mismanagement and breach of charitable purpose. |
| Factual Background | Dr. Shelly Batra co-founded Operation ASHA and was later removed from the board. She and her mother filed a suit citing breach of trust and misuse of funds. |
| Legal Issues | Whether a society registered under the Societies Registration Act can be treated as a constructive trust under Section 92 CPC. |
| Applicable Law |
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| Analysis | The Supreme Court found that the society served a public charitable purpose and functioned as a constructive trust, thus falling under Section 92 CPC. |
| Conclusion | Suit under Section 92 CPC was held maintainable. The organization was deemed a constructive trust, enabling legal oversight. |
| Current Scenario | Court-appointed administrators oversee Operation ASHA; forensic audits confirmed financial irregularities; preventive governance steps are ongoing. |
“Trusts serving public welfare cannot escape judicial oversight under the guise of technicalities.”
SOURCE – SUPREME COURT OF INDIA
READ ALSO – Section 92 of the CPC
