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When a Society Becomes a “Trust”: Supreme Court’s Landmark Ruling on Mismanagement in Charitable NGOs

6Sep

By The Legal ChamberNo Comments

Supreme Court

When a Society Becomes a “Trust”: Supreme Court’s Landmark Ruling on Mismanagement in Charitable NGOs

The Supreme Court ruled that a society registered under the Societies Registration Act, 1860, can be construed as a constructive trust under Section 92 CPC if it is created for public charitable purposes and its properties are held in a fiduciary capacity. This allows aggrieved parties to sue for breach of trust and seek remedies like a scheme for administration. Facts Of The Case: In 2005, Operation ASHA, a society registered under the Societies Registration Act, 1860, was established to provide healthcare services, particularly tuberculosis treatment, to underprivileged sections of society. A dispute arose in 2020 when its co-founder and CEO, Sandeep Ahuja (Respondent No. 3), terminated the services of another co-founder, Dr. Shelly Batra (Respondent No. 1), alleging misrepresentation ...

Supreme Court Verdict on Delhi Ridge : DDA Must Pay for Environmental Damage in Delhi Ridge Case

The Supreme Court held the Delhi Development Authority (DDA) in contempt for wilfully disobeying its 1996 order prohibiting tree felling in the Delhi Ridge and for concealing this action from the court. The Court emphasized that such conduct obstructs the administration of justice and undermines the Rule of Law, necessitating remedial measures to purge the contempt. Facts Of The Case: This contempt petition before the Supreme Court of India stems from the Delhi Development Authority's (DDA) alleged wilful disobedience of the Court's 1996 order in M.C. Mehta v. Union of India, which mandated the preservation of the ecologically sensitive Delhi Ridge. The DDA sought approval for constructing approach roads to the Central Armed Police Forces Institute of Medical Sciences (CAPFIMS), entailin...

“Supreme Court Transfers Investigation to CBI in Shocking Custodial Torture & Death Case” : Police Brutality Exposed

The Supreme Court transferred the investigation of a custodial death case to the CBI, citing bias in the local police probe under "nemo judex in causa sua" (no one should judge their own cause). It emphasized witness protection for the sole eyewitness, Gangaram Pardhi, and directed expedited arrests and trial, reinforcing accountability in custodial violence cases under constitutional safeguards. The judgment underscored fair investigation as a facet of Article 21. Facts Of The Case: The case stemmed from the custodial death of Deva Pardhi, a young man arrested by Madhya Pradesh police on 13th July 2024 during his wedding rituals in connection with a theft case (FIR No. 232/2024). Witnesses, including his uncle Gangaram Pardhi, alleged brutal torture—beatings, hanging upside down, and ch...