Sale Of The Assets Of A Public Charitable Trust Without Obtaining Court’s Direction

Trisha Agarwala, Associate, Fox & Mandal LLP, Kolkata

In the realm of legal discourse, a contentious issue persists regarding the authority of a trust to execute the sale of its assets absent explicit prior consent or directives from a judicial body. The question arises: does a trust inherently possess the autonomy to initiate asset sales independently, or is it legally bound to seek the imprimatur of a court before proceeding with such transactions? This matter has sparked considerable debate within legal circles, prompting numerous trusts to err on the side of caution by seeking judicial approval prior to asset disposition. However, it is pertinent to note that this requisite does not universally bind all trusts, whether they operate within the domain of public charitable endeavors or remain confined within the parameters of private interests. This article examines the underlying rationales justifying exemption from obligatory court involvement.