Real judgements, distilled

Legal Case Shots

Court judgements broken down into the case type, how the decision played out, and the lesson worth remembering, with the full judgement available as a PDF.

Religious & Charitable Endowments LawSupreme Court of India

Operation Asha v. Shelly Batra

Not available · 2025 INSC 932Decided 5 Aug 2025
Not available
Justice J.B. Pardiwala · Justice R. Mahadevan

Background

Operation ASHA is a not-for-profit society registered in 2005 that runs health services, mainly TB treatment, for underprivileged communities across India. In June 2020, the society's Board terminated co-founder Dr. Shelly Batra from her role as President and later removed her as a Board member, citing alleged misconduct. Dr. Batra and her mother (also a Board member) then sued in the Delhi High Court under Section 92 of the CPC, a special provision that lets "interested persons" seek court permission to sue over the management of public charitable trusts, alleging that two other co-founders/office-bearers had been siphoning off the society's donations and funds for personal gain and running the organisation improperly. Before such a suit can even proceed, the person suing must first get the court's "leave" (permission) to file it; both a Single Judge and a Division Bench of the Delhi High Court granted that permission, and the society appealed to the Supreme Court against being made to face the suit at all.

Decision Breakdown

The Supreme Court dismissed the appeal, holding that the suit could go ahead. It undertook a detailed examination of when a society (as opposed to a religious/charitable trust in the traditional sense) can be treated as holding its assets "in trust" for Section 92 purposes, concluding that a society is not automatically an "express trust" merely by being registered under the Societies Registration Act, 1860, but that a "constructive trust" can arise by operation of law where a fiduciary, such as an office-bearer entrusted with the society's donations and funds, is alleged to have misappropriated or diverted that property for personal benefit. The Court found that the allegations here (of large-scale siphoning of donations into shell entities, misuse of funds, and financial impropriety by the accused office-bearers) were serious enough to prima facie satisfy the conditions needed to invoke Section 92, and that Dr. Batra and her mother, as long-time members with a genuine stake in the society's affairs, qualified as "persons having an interest in the trust" entitled to bring such a suit. However, the Court clarified that purely personal or internal grievances, such as the dispute over Dr. Batra's own removal from the Board: do not themselves belong in a Section 92 suit and must be pursued separately; only the allegations concerning misuse of the society's charitable funds and property fall within its scope. The underlying suit was directed to proceed before the High Court, which must now examine on the merits whether a constructive trust over the diverted funds actually exists.

Lesson Learnt

Registering an NGO or charitable body as a "society" does not shield its office-bearers from being sued for misusing its funds. If donations or charitable property are diverted for personal gain, courts can treat those funds as held in a "constructive trust" and allow current or former members with a genuine stake to sue on the public's behalf. But such a special suit can only be used to address genuine misuse of charitable funds and property, not to settle personal disputes like an office-bearer's own removal, which must be fought through ordinary legal channels instead.

Operation Asha v. Shelly Batra – Legal Case Shots | LegalAware