In a case of alleged “loss of faith” against some trustees of Mumbai’s famous Lilavati Hospital, the payment of Rs 3 crore to a battery of top lawyers from the trust accounts proved costly for them with the Supreme Court permitting initiation of contempt of court proceedings against them.
The Bombay high court initially had issued contempt notice” to four trustees — Vijay K. Mehta, Dr Amrit Lal Shah, Niket V. Mehta and Ms Sushila V Mehta — but the former died on July 19, hence the contempt proceeding would be initiated against the remaining three trustees.
“We are not convinced that the payments made to lawyers do not amount to contempt in the special facts of this case,” apex court bench of Justices Altamas Kabir and A.K. Patnaik ruled.
“This court cannot ignore the fact that the funds of the trust were being utilised to a considerable extent not for the purposes of the Trust but for defending the trustees against the allegations brought against them by Ms Charu Mehta,” the apex court said dismissing their appeal.
The contempt proceeding arose from a complaint by another trustee Ms Charu Mehta before joint charity commissioner (JCC), Mumbai, in 2008 seeking removal of the four trustees from the Lilavati Kirtilal Mehta Medical Trust, running the famous hospital. She accused them of “malfeasance, misfeasance and misappropriation” while managing the affairs of the institute over the years.
The joint charity commissioner, a quasi-judicial body had framed charges against the four trustees in June 2008 and the HC in a subsequent order on September 9 the same year “restrained” them from taking any policy decision and entering into any financial transaction with regard to the trust without the prior approval of the JCC.
Despite the restraint order, the four trustees made payment worth Rs 3 crore to different lawyers from the trust funds to “defend” themselves in the case before joint charity commissioner, HC and SC, Ms Charu Mehta in her contempt petition before the high court alleged.