The Lilavati Kirtilal Mehta Medical Trust (LKMMT) filed a Rs. 17.2 crore recovery suit against former trustee Niket Mehta, but the Bombay High Court dismissed it, finding that the case was barred under the Maharashtra Public Trusts Act (MPT Act) due to the Charity Commissioner’s required consent.
In a December 3 judgment, Justice Milind N. Jadhav granted Mehta’s request in accordance with judgment VII Rule 11(d) of the Civil Procedure Code, which authorizes the dismissal of lawsuits that are not legally viable. Sections 50 and 51 of the MPT Act, which mandate prior consent for cases involving trustees and public trust property, were found to be violated by the trust, according to the court.
Moneycontrol has a copy of the order in its possession.
Trustee Charu Mehta and others filed the lawsuit in December 2024, seeking damages for Mehta’s claimed unlawful use of two trust-owned properties between 2007 and 2015: an office at Lilavati Hospital and a 12th-floor apartment. Mehta was accused by the plaintiffs of being a “trespasser” who abused his authority for personal benefit and of never having been duly appointed. Citing an audit study that identified embezzlement of Rs. 1,700–1,800 crore and ongoing criminal investigations, they further accused Mehta and prior trustees of widespread financial irregularities.
Niket Mehta was defended by senior counsel Pankaj Sawant, who said that Mehta was consistently recognized as a “permanent trustee” from 2001 until 2023 in the trust’s own filings and attached papers. He was addressed in such capacity in letters, official correspondence, and even contempt petitions. The Charity Commissioner’s approval was thus required as the lawsuit clearly came within Section 50 of the MPT Act.
Citing a 2023 judgment by the Assistant Charity
Commissioner rejecting his change report, senior barrister Atul Damle counsel for the Trust maintained that Mehta was a rank trespasser and an unlawfully constituted trustee. He cited Supreme Court rulings requiring Mehta to leave the property and pay damages in support of his claim that lawsuits against trespassers do not need the Charity Commissioner’s consent.
Judge Jadhav pointed out that the trust’s effort to designate Mehta as a trespasser was undermined by the fact that its own records listed him as a trustee for more than 15 years. According to the ruling, “a party cannot treat someone as a trustee for more than 15 years and then re-label him as a trespasser solely to dodge statutory obligations.” The court determined that Mehta’s role as trustee gave rise to the cause of action, necessitating the Charity Commissioner’s approval. The lawsuit was dismissed and banned without it.
In Mumbai’s affluent Bandra neighborhood, LKMMT operates one of the most renowned Lilavati Hospitals. One of the most renowned Lilavati Hospitals in Mumbai’s affluent Bandra neighborhood is operated by the family LKMMT. Allegations and counter-allegations have rendered the family quarrel between the present and former members of LKMMT nasty. A forensic audit and legal complaints have resulted from LKMMT’s claims of financial irregularities and fraud under former trustees. Allegations and counter-allegations have rendered the relationship between the present and former members of LKMMT nasty. A forensic audit and legal complaints have resulted from LKMMT’s claims of financial irregularities and fraud under former trustees.
