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Major setback in trust management dispute: withdrawals restricted to essential expenses, every payment must now face financial scrutiny
Pooja Srivastava | Anytime News Network
The management dispute within the Hind Charitable Trust has taken a significant turn after the Lucknow Bench of the Allahabad High Court imposed restrictions on the unilateral operation of bank accounts belonging to the trust and the hospital and medical college run by it.
In an important interim arrangement, the court made it clear that Dr. Amod Kumar Sachan and respondent Richa Mishra cannot operate the accounts either individually or jointly until the appeals are decided afresh. The accounts will instead be operated jointly by Dr. Sachan and founder trustee Vikram Singh.
Justice Jaspreet Singh passed the order while allowing a petition filed by Dr. Sachan under Article 227 of the Constitution. The court made it clear that the arrangement is intended to protect the functioning of the trust’s institutions while ensuring financial accountability during the ongoing dispute.
No unrestricted withdrawals
The court has placed strict conditions on the use of money from the accounts. Withdrawals can be made only for essential and legitimate liabilities, including salaries of employees, staff and doctors, regular payments to banks or financial institutions, electricity and water bills, taxes and other statutory dues.
More importantly, every withdrawal or payment will have to be properly accounted for. Details of the amount withdrawn or paid, along with its nature and purpose, will have to be placed before the appellate court.
The order effectively puts a financial check on the disputed management of the trust and prevents the accounts from being used without joint oversight while the legal battle continues.
Chairmanship dispute reaches High Court
The case stems from a dispute between Dr. Sachan and other trustees over the position of chairman of the Hind Charitable Trust. Dr. Sachan had approached the Civil Judge (Senior Division), Lucknow, seeking a declaration and permanent injunction.
On April 2, 2026, the Civil Judge had issued an interim injunction restraining the respondents from interfering with Dr. Sachan’s functioning as chairman. However, appeals against the order were allowed by the Additional District Judge/Special Judge (NIA), Lucknow, on July 8, resulting in the interim injunction being set aside.
The High Court has now quashed that order and sent both appeals back for fresh consideration. The appellate court has been directed to hear both sides on September 9 and decide the matter on priority within three weeks.
The High Court has also clarified that the question of granting an interim injunction will ultimately be determined after examining the merits of the claims made by both sides.
For now, the court’s order has clearly curtailed any possibility of unilateral financial control. The dispute over the trust’s management and chairmanship remains unresolved, leaving Dr. Sachan and the other trustees facing another round of judicial scrutiny.
