State of Madhya Pradesh & Others Versus Khasgi (Devi Ahilya Bai Holkar Charities) Trust, Indore & Others

Madhya Pradesh High Court (Division Bench (DB)- Two Judge)

WA, 92 of 2014, Judgment Date: Oct 05, 2020

Law laid down –

1. The dispute, as to whether a particular property was or was not recognized as private property of the Ruler, is itself a dispute arising out of the terms of the Covenant, and therefore, not adjudicable in light of Article 363 of the Constitution of India.

2. The Khasgi (Devi Ahilya Bai Holkar Charities) Trust, Indore does not have title of the Trust properties, as keeping in view the covenant signed by the erstwhile Ruler of Holkar State and order passed by the Government of India, the title was transferred to Madhya Bharat and now lies with the State of Madhya Pradesh. The Trust does not have any power of whatsoever kind to alienate the Trust properties in any manner. The original trust deed in respect of Khasgi Trust and the settlement of claim by Government of India in Khasgi properties makes it very clear that the Khasgi properties and the income from Khasgi shall be treated as lapsed for all time to the Madhya Bharat Government, and therefore, any subsequent trust deed amending the original trust deed providing for sale of Khasgi properties is null and void.

3. The letter dated 13.06.1969, which is allegedly the permission granted by the State Government / decision of the State Government, is nothing but a D.O. letter of the then Chief Secretary and as per the Business Allocation Rules, any decision of the Government for sale of property has to be issued in the name of Governor of the State of Madhya Pradesh.

4. It is settled proposition of law that fraud vitiates everything. Fraud vitiates every solemn proceedings and no right can be claimed by a fraudster on the ground of technicalities.

State of Madhya Pradesh & Others Versus Khasgi (Devi Ahilya Bai Holkar Charities) Trust, Indore & Others