Stay Order Showdown: Court Rules on Trust Scheme Dispute.


A recent court order has shed light on the procedures surrounding trust scheme disputes in Gujarat, India. The case involved a disagreement between parties who jointly applied for a scheme for a trust. While the Joint Charity Commissioner partially approved the application, a subsequent stay application filed by one party sparked a challenge.

The petitioner objected to the Joint Charity Commissioner's decision to hear the stay application. Their argument rested on the claim that the Commissioner lacked authority after issuing the scheme order, becoming "functus officio" (having fulfilled their duty).

 

 

The court disagreed. Their reasoning focused on the fact that the Commissioner hadn't issued a final order on the stay application. Instead, they simply issued a notice to the petitioner and scheduled a hearing, upholding principles of fair procedure. The court emphasized the petitioner's opportunity to raise objections during the hearing, deeming the petition premature.

The court's order allows the petitioner to present their arguments before the Joint Charity Commissioner, who will then decide on the stay application based on legal principles.