Supreme Court allows Caretaker Trust to Operate its Bank Accounts for Salaries

The Supreme Court observed that a contract is void if prohibited by a statute under a penalty, even without express declaration that the contract is void

Supreme Court has allowed caretaker Mehrawal Khewaji Trust to operate its bank accounts for the payment of salaries to its employees in the dispute over property worth Rs 25,000 crore of the Faridkot’s late Maharaja.

The High Court on June 01, 2020 upheld a Chandigarh Court’s order of awarding majority share to his daughters Amrit Kaur and Deepinder Kaur in the Rs 25,000-crore property of the Maharaja. Amrit Kaur challenged his purported Will in 1992.

Mehrawal Khewaji Trust is the custodian of all properties of the Maharaja for the past over 30 years. The High Court observed that, Trustee has conspired to create a Will to take over the property. All the bank accounts of Trust were seized after this verdict. The decision was challenged in Supreme Court.

The Trust has approached the Supreme Court claiming that though there was no express order of Injunction, the banks concerned had frozen the accounts, as a result of which the activities undertaken by it were getting prejudiced.