Delhi High Court Restrains Principal Trustee From Discharging His Duties Without Concurrence Of Other Trustees

The Plaintiffs contended that the Trust was set up with the object to create, promote, support and manage educational institutions with an objective of providing qualitative education to the young generation in furtherance of the legacy of Plaintiff No.1's family i.e., the Shri Ram family.

It was argued on behalf of Plaintiff that the Defendant Principal Trustee was running his own parallel organisation by misusing the brand/name of the Trust for his personal gains and the Plaintiffs were constrained to file the Suit since the Trust Deed barred the removal of Principal Trustee.

Plaintiffs further contended that the Defendant Principal Trustee was inducted into the Trust to look after its management in order to propagate the charitable purposes of the Trust. However, the Defendant Principal Trustee has been using the property and name of the Trust as his personal fiefdom and soliciting funds from various schools and companies in the name of the Trust into his family owned companies.

The Hon'ble Court was pleased to grant leave to the Plaintiffs for institution of a suit against a Public Charitable Trust on being satisfied that the ingredients of Section 92 of the Code were satisfied. The Hon'ble Court was pleased to issue notice to the Defendants in the Suit.

The Hon'ble Court took cognizance of the conflict of interest of the Defendant and found it a fit case for grant of injunction restraining the Defendant Principal Trustee from functioning without the concurrence of other Trustees till the next date of hearing.

Mr. Rajshekhar Rao, Senior Advocate briefed by Manmeet Kaur, Principal Associate, Gurtejpal Singh and Suditi Batra, Associates from Karanjawala & Co. appeared in the matter on behalf of Plaintiffs.

CS (OS) 108/2022

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