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4. It must be noted here that the State Government enacted the Madhya Pradesh Public Trusts Act, 1951 (for short, ‘the Public Trusts Act’). On 26th May 1959, the Ministry of Home Affairs of the Government of India addressed a letter to the Maharaja, which refers to the settlement of Khasgi Property. By the said letter, the Central Government nominated one Shri S.V. Kanungo as its nominee. The letter records that Shri Kanungo was already a trustee nominated by the Central Government on two other family Trusts of the Holkar family. Before that, on 6th January 1959, by addressing a letter, the General Administration Department of the State Government informed the Private Secretary to the Maharaja that the State Government was proposing to nominate the Commissioner, Indore Division and the Superintending Engineer (B & R), Public Works Department, Indore Circle as the trustees. The State Government requested the Secretary to the Maharaja to communicate the concurrence of the Maharaja to the said nominations. By another letter dated 1st April 1959, the General Administration Department of Madhya Pradesh communicated to the Secretary to the Maharaja requesting him that representatives of the Ruler on the Trust be nominated. The letter records that the State Government has prepared a draft of the Trust Deed which will be finalised without any delay. The letter dated 14th November 1959 of the State Government addressed to the Secretary of Maharaja which is by way of reminder to the Maharaja to nominate his two representatives. The said letter also records that the draft of the Khasgi Trust Deed will be finalised and sent for approval of the Maharaja. The letter dated 14th April 1961 addressed by the State Government to the Secretary to Maharaja records that the draft of the Deed of Khasgi Trust is under examination and will be sent soon.

5. Ultimately, in terms of the draft provided by the State Government, the Deed of Trust of the Khasgi Trust (for short, “the Trust Deed”) was executed on 27th June 1962 by and between Her Highness Maharani Usha Devi of Indore, the daughter and successor of Maharaja Yashwantrao Holkar, described therein as the Settlor, Shri K.A. Chitale, Senior Advocate and Shri S.C. Malhotra as the nominees of the Settlor and Shri S.V. Kanungo, the nominee of the President of India. The Trust Deed was also signed by the Commissioner, Indore Division and Superintending Engineer (B & R), Public Works Department, Indore who were nominated as trustees by the State Government. In the recitals, it is mentioned that the Trust was being created of the annuity of Rs.2,91,952/- in perpetuity for maintenance, upkeep and preservation of charities and religious endowments provided in the budget of the Holkar State for the year 1947-48 inclusive of the charities founded by Maharani Devi Ahilaya Bai Holkar. The said endowments were described in part ‘A’ of the Schedule. Further, it is provided that the Trust will be for the management and maintenance of the properties described as the Trust Properties, more particularly described in Part ‘B’ of the Schedule to the Deed of Trust. Part ‘B’ of the Schedule contains a list of a large number of properties in various States.

23. Procedure after receipt of the report by the Registrar. – (1) If the report of the auditor made under section 17 shows, in the opinion of the Registrar, material defects in the administration of the public trust, the Registrar may require the working trustee to submit an explanation thereon within such period as he thinks fit.

(2) If on the consideration of the report of the auditor, the accounts and explanation, if any, furnished by the working trustee, the Registrar is, after holding an inquiry in the prescribed manner and giving opportunity to the person concerned, satisfied  that the trustees or any other person has been guilty of gross negligence, a breach of trust, misapplication or misconduct which has resulted in the loss to the public trust he shall determine –

“26. Application to for directions.-(1) If the Registrar on the application of any person interested in the public trust or otherwise is satisfied that, –

(a)the original object of the public trust has failed:

(b)the trust property is not being properly managed or administered; or

(c)the direction of the court is necessary for the administration of the public trust;

he may, after giving the working trustee an opportunity to be heard direct such trustee to apply to court for directions within the time specified by the Registrar.