Section 92 CPC Suit is Maintainable Against Society Functioning as Constructive Trust: Supreme Court

The Supreme Court has ruled that a representative suit under Section 92 of the Civil Procedure Code is maintainable against a society registered under the Societies Registration Act, 1860, if it functions as a constructive trust.

The Court emphasized that mere registration does not change the trust-like character of properties acquired through public funding for charitable purposes.

The Court upheld the High Court’s decision in a dispute involving mismanagement allegations by co-founder Dr. Shelly Batra against the society.

The Court noted that the society’s charitable structure, funding, and public objectives made it a constructive trust, making Section 92 CPC applicable.

[Operation Asha v Shelly Batra & Ors.]