Section 92 of the CPC is maintainable and applies to public trusts and constructive trusts. In Operation Asha vs. Shelly Batra, a non-profit society that works for disadvantaged communities, the Apex Court found that the Doctrine of Constructive Trust applies even if societies are registered under the Societies Registration Act, 1860 as long as some fiduciary criteria are met.
The aim and objective of Operation Asha is of public and charitable nature. All the incomes, earnings, properties and MoAs are to be solely dedicated to promote the society’s aims. Furthermore, the strict “non-profit” rule of the society determines the society to have a credible fiduciary relationship in this scenario.
A bench of Justices J B Pardiwala and R Mahadevan reaffirmed the English principle of constructive trusts for application in Indian courts too. The codification of the constructive trust principles was to limit judicial discretion but it does not mean that the doctrine has been removed from Indian law. The 2019 judgment in Janardan Dagdu Khomane and Another v. Eknath Bhiku Yadav & Ors. had elaborated upon this concept.
The repeal of Section 94 of the Trusts Act, 1882 by Benami Transactions Prohibition Act, 1988 does not prevent the Court from declaring a trust outside the scope of this Act. In Sugra Bibi v. Hazi Kummu Mia (1968), the Court stressed on the dominant purpose of the plaint which must be in furtherance of public interest. Section 92 suits need to be motivated from representative capacity to vindicate public rights and not merely individual interests.
The serious allegations of mismanagement and financial misconduct affecting the public interest may be pursued under Section 92 because it is a special provision. However, personal grievances need to be addressed separately. Even if certain private rights are agitated, it does not take away the importance of the other allegations.
