#Trust Law

The Madhya Pradesh High Court has ruled that when a public trust is left without any functioning trustee, the Registrar of Public Trusts may directly file a reference before the court under Section 26 - bypassing redundant administrative reviews. This empowers the Registrar to act swiftly to protect trust assets and uphold public interest, setting a vital precedent for trust governance in cases of managerial vacuum.

Bombay High Court rules that revocation of a trust property sanction under Section 36(2) of the Maharashtra Public Trusts Act demands clear proof of fraud, not mere irregularities or disagreements. The judgment reinforces the high threshold for interference in trust property transactions, protecting trustees from arbitrary revocation.

The Bombay High Court has ruled that membership validity for voting in public trust elections hinges on documented payment of life fees and unchallenged enrollment. Outgoing managing committees lose all authority upon term expiry and cannot admit new members or conduct elections, ensuring democratic continuity and preventing post-term manipulation of trust governance.

Bombay High Court clarifies that while charity commissioners may refuse sale sanction for procedural lapses under Section 36 of the Bombay Public Trusts Act, purchasers are entitled to a refund limited to proven payments made, excluding speculative or unproven claims. The ruling balances trust property protection with equitable relief for bona fide purchasers.

Bombay HC clarifies that a former Karta’s sale of ancestral property after partition is valid only to the extent of his share, not the entire coparcenary property. The ruling reinforces coparcenary rights and limits the Karta’s authority post-partition, impacting property disputes under Hindu succession law.

Supreme Court strikes down Bihar's 2015 Act seizing a century-old private trust, ruling that complete acquisition without evidence of mismanagement or public interest violates Article 14. The judgment reinforces that state intervention in private trusts must pass the 'manifest arbitrariness' test, protecting hereditary trustees' rights under the Indian Trusts Act.

Bombay High Court holds that permanent trustees under the Maharashtra Public Trusts Act, 1950 cannot be removed without notice, hearing, or valid cause, reinforcing natural justice and trust deed compliance.

Bombay High Court holds that a General Body may remove all trustees and appoint new ones in one resolution, provided procedures under Trust Deed and Rules are followed.

Bombay High Court holds that Charity Commissioner cannot bypass trust deed provisions for trustee elections under Section 47; statutory powers must align with governing documents.

Bombay High Court holds that Section 41A of the Maharashtra Public Trusts Act does not empower Charity Commissioners to order public apologies unrelated to trust property or income.