{"id":7170,"date":"2025-08-12T06:14:00","date_gmt":"2025-08-12T00:44:00","guid":{"rendered":"https:\/\/lawfultalks3.selfst.art\/operation-asha-ruling-sc-defines-the-boundaries-of-constructive-trusts\/"},"modified":"2026-07-21T17:31:36","modified_gmt":"2026-07-21T12:01:36","slug":"operation-asha-ruling-sc-defines-the-boundaries-of-constructive-trusts","status":"publish","type":"post","link":"https:\/\/lawfultalks3.selfst.art\/?p=7170","title":{"rendered":"Operation Asha Ruling : SC Defines The Boundaries Of Constructive Trusts"},"content":{"rendered":"\n<p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">In a landmark ruling in <\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><em>Operation Asha v. Shelly Batra &amp; Others<\/em><\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">, the Supreme Court&mdash;through Justices J.B. Pardiwala and R. Mahadevan&mdash;has delivered a comprehensive guide on the scope of <\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><strong>Section 92 of the Civil Procedure Code (CPC)<\/strong><\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"> and the circumstances under which a registered society may be treated as a <\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><em>constructive trust<\/em><\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">.<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\" style=\"text-align:center\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><strong>Section 92 CPC &ndash; The Basics<\/strong><\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">Section 92 suits are special representative actions filed <\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><em>on behalf of the public<\/em><\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"> to protect charitable or religious trusts. Before such a suit proceeds, the plaintiff must obtain <\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><em>leave of the court<\/em><\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">, a safeguard against frivolous or harassing litigation against public trusts.<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">Importantly, at the leave stage, courts do not decide the merits&mdash;they only ensure procedural eligibility.<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><strong>Key Conditions for Maintainability<\/strong><\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">Drawing from <\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><em>Ashok Kumar Gupta v. Sitalaxmi Sahuwala Medical Trust (2020)<\/em><\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">, the Court reiterated that for a Section 92 suit to be maintainable:<\/span><\/span><\/p>\n \n \n \n <ol>\n \n <li dir=\"ltr\" style=\"list-style-type:decimal\">\n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\">The trust must be for <\/span><span style=\"font-size:12pt\"><strong>public purposes of a charitable or religious nature<\/strong><\/span><span style=\"font-size:12pt\">.<\/span><\/p>\n \n <\/li>\n \n <li dir=\"ltr\" style=\"list-style-type:decimal\">\n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\">There must be either:<\/span><\/p>\n \n \n \n <ul>\n \n <li dir=\"ltr\" style=\"list-style-type:disc\">\n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">a breach of trust, or<\/span><\/span><\/p>\n \n <\/li>\n \n <li dir=\"ltr\" style=\"list-style-type:disc\">\n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">a need for court direction for trust administration.<\/span><\/span><\/p>\n \n <\/li>\n \n <\/ul>\n \n <\/li>\n \n <li dir=\"ltr\" style=\"list-style-type:decimal\">\n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\">The relief sought must be one listed in Section 92(1) CPC.<\/span><\/p>\n \n <\/li>\n \n <\/ol>\n \n \n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">Failing any one condition defeats maintainability; all must be met for success.<\/span><\/span><\/p>\n \n \n \n <p><strong style=\"font-family:&quot;Bookman Old Style&quot;,serif; font-size:12pt; text-align:justify\">Who Counts as the Public?<\/strong><\/p>\n \n \n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">A trust serves a public purpose when Its beneficiaries are the <\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><strong>general public<\/strong><\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"> or an <\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><strong>unascertained class<\/strong><\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"> (e.g., a community or group), not a fixed set of individuals.<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><strong>Trust or Constructive Trust?<\/strong><\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif; font-size:12pt\">The Court explored when an organisation&mdash;particularly a registered society&mdash;can be treated as a trust:<\/span><\/p>\n \n \n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><strong>Inferring a Public Trust Without Formal Recognition<\/strong><\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">A trust may be inferred from:<\/span><\/span><\/p>\n \n \n \n <ul>\n \n <li dir=\"ltr\" style=\"list-style-type:disc\">\n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">Property acquisition and purpose (public benefit vs. personal gain).<\/span><\/span><\/p>\n \n <\/li>\n \n <li dir=\"ltr\" style=\"list-style-type:disc\">\n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">Conditions on use of the property.<\/span><\/span><\/p>\n \n <\/li>\n \n <li dir=\"ltr\" style=\"list-style-type:disc\">\n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">Complete dedication of property for a cause.<\/span><\/span><\/p>\n \n <\/li>\n \n <li dir=\"ltr\" style=\"list-style-type:disc\">\n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">Public user rights over the property.<\/span><\/span><\/p>\n \n <\/li>\n \n <li dir=\"ltr\" style=\"list-style-type:disc\">\n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">Application of profits towards the organisation&rsquo;s objectives.<\/span><\/span><\/p>\n \n <\/li>\n \n <\/ul>\n \n \n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">If such features existed before a society was registered under the Societies Registration Act, 1860, it remains a public trust despite later registration (<\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><em>Kesava Panicker v. Damodara Panicker<\/em><\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">).<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><strong>Registration Matters&mdash;But Not Always<\/strong><\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">If registered from inception as a society, its property is not automatically trust property. Section 5 of the Societies Registration Act vests property either in Trustees, or the governing body (as fiduciaries, not beneficial owners).<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><strong>Constructive Trusts &ndash; The Legal Twist<\/strong><\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">A <\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><em>constructive trust<\/em><\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"> arises by <\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><strong>operation of law,<\/strong><\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"> often to prevent unjust enrichment:<\/span><\/span><\/p>\n \n \n \n <ul>\n \n <li dir=\"ltr\" style=\"list-style-type:disc\">\n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">The fiduciary cannot conscientiously retain property meant for beneficiaries.<\/span><\/span><\/p>\n \n <\/li>\n \n <li dir=\"ltr\" style=\"list-style-type:disc\">\n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">A breach occurs if the fiduciary misapplies property or gains personal benefit.<\/span><\/span><\/p>\n \n <\/li>\n \n <li dir=\"ltr\" style=\"list-style-type:disc\">\n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">Even without diversion of funds, court directions may be needed for proper administration.<\/span><\/span><\/p>\n \n <\/li>\n \n <\/ul>\n \n \n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">The Court noted that societies, though not express trusts, may still operate under constructive trusts if these elements are present.<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><strong>Who Can Sue?<\/strong><\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">&ldquo;Persons having an interest&rdquo; in the trust must have a <\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><strong>present and substantial interest<\/strong><\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">, not merely sentimental or remote.<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><strong>Reliefs Under Section 92<\/strong><\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">Reliefs must match those in clauses (a)&ndash;(g) of Section 92(1) CPC. The &ldquo;other relief&rdquo; clause (h) is valid only if it is akin in nature to those listed.<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><strong>Public Purpose at the Core<\/strong><\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">A Section 92 suit must be <\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><strong>fundamentally in the public interest<\/strong><\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">. Courts must assess the <\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><em>true nature<\/em><\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"> of the action, not just the relief claimed. Private rights alone cannot be pursued under this section.<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\" style=\"text-align:justify\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">The ruling underscores that <\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><strong>registered societies can, in certain circumstances, be treated as constructive trusts<\/strong><\/span><\/span><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">&mdash;especially where public property or charitable assets are involved. For litigants, meeting all conditions of Section 92 CPC is non-negotiable, and for societies, fiduciary responsibility remains paramount.<\/span><\/span><\/p>\n \n \n \n <hr \/>\n \n <p><span style=\"font-size:12pt; text-align:justify\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">Case Title: <\/span><\/span><a href=\"https:\/\/api.sci.gov.in\/supremecourt\/2024\/47882\/47882_2024_8_1502_63019_Judgement_05-Aug-2025.pdf\" style=\"text-align: justify; text-decoration-line: none;\"><span style=\"font-size:12pt\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\"><span style=\"color:#1155cc\">Operation Asha v. Shelly Batra &amp; Others., Civil Appeal No.10048 of 202<\/span><\/span><\/span><\/a><span style=\"font-size:12pt; text-align:justify\"><span style=\"font-family:&quot;Bookman Old Style&quot;,serif\">5<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a landmark ruling in Operation Asha v. Shelly Batra &amp; Others, the Supreme Court&mdash;through Justices J.B. Pardiwala and R. Mahadevan&mdash;has delivered a comprehensive guide on the scope of Section 92 of the Civil Procedure Code (CPC) and the circumstances under which a registered society may be treated as a constructive trust. Section 92 CPC [&hellip;]<\/p>\n","protected":false},"author":96,"featured_media":9257,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[9],"tags":[],"class_list":["post-7170","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-supreme-court"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Operation Asha Ruling : SC Defines The Boundaries Of Constructive Trusts - Lawful Talks<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Operation Asha Ruling : SC Defines The Boundaries Of Constructive Trusts\" \/>\n<meta property=\"og:description\" content=\"In a landmark ruling in Operation Asha v. Shelly Batra &amp; Others, the Supreme Court&mdash;through Justices J.B. Pardiwala and R. Mahadevan&mdash;has delivered a comprehensive guide on the scope of Section 92 of the Civil Procedure Code (CPC) and the circumstances under which a registered society may be treated as a constructive trust. 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