The Supreme Court has recently held that, in view of the Madhya Pradesh Government's 2018 notification, public trusts registered outside Madhya Pradesh are entitled to exemption under the M.P. Accommodation Control Act, 1961. Consequently, such trusts are not subject to the restrictions and protections available to tenants under the Act while pursuing eviction proceedings.

“In the light of the subsequent notification dated 02.07.2018 which was in continuation to the earlier notification dated 07.07.1989, the finding of the High Court under the impugned order that the notification dated 07.07.1989 would bar the suits being prosecuted by the trust which are registered outside the State of Madhya Pradesh would not hold water.”, observed a bench of Justice Aravind Kumar and Justice Prasanna B. Varale.

The Court set aside the MP High Court's order, which rejected the Scindia Devesthan Trust eviction suit under Order VII Rule 11 CPC against the Respondent-tenants, for want of its locus to file an eviction suit, since the trust, despite holding several properties in the State of MP, is registered outside MP.

The case arose from an eviction suit and claim for arrears of rent instituted by Scindia Devesthan Trust against its tenant. During the pendency of the proceedings, the defendants sought rejection of the plaint under Order VII Rule 11 CPC, contending that the Trust was not entitled to exemption under Section 3(2) of the M.P. Accommodation Control Act.

According to the defendants, the Trust, though recognized as a public trust, was not registered under the M.P. Public Trust Act, 1951, and therefore could not claim the benefit of a 1989 notification that exempted certain public trusts from the operation of the Accommodation Control Act.

The Trial Court rejected the application for rejection of the plaint in 2012. However, the Madhya Pradesh High Court, in revision proceedings, accepted the tenant's contention and ordered rejection of the plaint in 2017, prompting the trust to move to the Supreme Court relying upon a subsequent notification dated July 12, 2018, which was issued in continuation of the 1989 notification.

The 2018 notification expressly exempted accommodations situated in Madhya Pradesh and owned by public trusts registered in other States of India for educational, religious, or charitable purposes from the provisions of the MP Accommodation Control Act.

Allowing the trust's appeal, the Court said that since the 2018 notification was issued in continuation of the erstwhile 1989 notification, therefore, the benefit of which would accrue to the Appellant while filing an eviction suit. In essence, the trust's eviction suit stands revived.

“On this short ground itself, the impugned order is liable to be set aside and accordingly, it is set aside and the matter stands remitted to the jurisdictional Court for being disposed of on merits and in accordance with the law.”, the Court said.

Cause Title: SCINDIA DEVESTHAN TRUST VERSUS JAMUNA PRASAD SARASWAT (DEAD) THROUGH LRS. & ORS.

Citation : 2026 LiveLaw (SC) 773

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M/S. Karanjawala & Co., AOR Mr. N.k. Mody, Sr. Adv. Mr. Arjun Sharma, Adv. Mr. Pranav Garg, Adv. Ms. Simran Kaur, Adv. Ms. Ishita M. Puranik, Adv. appeared for petitioner-trust