OPERATION ASHA versus SHELLY BATRA & ORS.

OPERATION ASHA versus SHELLY BATRA & ORS.

The Supreme Court dismissed the appeal and upheld the High Court’s grant of leave under Section 92 CPC: the appellant society is of a public charitable nature; Section 5 SR Act does not preclude a constructive trust being found where funds entrusted for public purposes are allegedly siphoned or misapplied; the governing body holds society property in a fiduciary capacity and allegations of diversion/siphoning by office-bearers prima facie justify invoking the doctrine of constructive trust and leave under Section 92 for reliefs such as accounts, removal and settling a scheme; purely private reliefs cannot be granted under a Section 92 suit and those aspects must be pursued, if...

Parties
Appellant: Operation ASHA; Respondent: Shelly Batra; Respondent: Usha Gupta
Jurisdiction
India
Judgment Date
04 August 2025
Procedural Posture
Civil Appeal / Judgment on Appeal From High Court (leave Under Section 92 CPC Challenged)
Outcome
Appeal dismissed
Legal Topics
Section 92 CPC, Constructive Trust, Vested Property Under Section 5 Societies Registration Act, 1860, Leave to Institute Representative Suit, Public Charitable Institutions
Civil Procedure Trusts Charities and Public Trusts Societies Registration Law Section 92 CPC Constructive Trust Vested Property Under Section 5 Societies Registration Act, 1860 Leave to Institute Representative Suit +1 more

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Parties

Operation ASHA

Appellant

Shelly Batra

Respondent

Usha Gupta

Respondent

Procedural Posture

Civil Appeal / Judgment on Appeal From High Court (leave Under Section 92 CPC Challenged)

Legal Issues

  1. 1 Whether a society registered under the Societies Registration Act, 1860 can satisfy the requirements of Section 92 CPC to be treated as an express or constructive trust for purposes of instituting a suit under Section 92
  2. 2 Whether allegations of siphoning/diversion of funds by office-bearers of a society can prima facie give rise to a constructive trust and justify leave under Section 92
  3. 3 Whether plaintiffs (two or more persons) are persons having an interest in the trust and are suing in representative capacity

Ratio Decidendi

The Supreme Court dismissed the appeal and upheld the High Court’s grant of leave under Section 92 CPC: the appellant society is of a public charitable nature; Section 5 SR Act does not preclude a constructive trust being found where funds entrusted for public purposes are allegedly siphoned or misapplied; the governing body holds society property in a fiduciary capacity and allegations of diversion/siphoning by office-bearers prima facie justify invoking the doctrine of constructive trust and leave under Section 92 for reliefs such as accounts, removal and settling a scheme; purely private reliefs cannot be granted under a Section 92 suit and those aspects must be pursued, if...

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • Leave granted by High Court to respondents to institute CS (OS) No. 153 of 2020 shall stand and the underlying suit shall be commenced and proceeded with