Supreme Court Clarifies Scope of Section 92 CPC: Societies as Constructive Trusts for Charitable Purposes
The Supreme Court has now articulated the sustainable guidelines on when registered societies can be regarded as “constructive trusts” for charitable purposes under Section 92 of the CPC. The Court concluded that in the context of public good, trust or no trust, societies who hold title to properties for public good, do so in a fiduciary capacity. Accordingly, the Courts can provide relief in the case of alleged fraud, breach (or mismanagement) or simply do not aesthetic objective directions as part of the administration.