In Brief
Trustees of a charitable trust (PLIH) had approved a scheme to lease hospital land to a private company (KHPL) to set up a super specialty hospital. Rival trustees challenged the scheme in the High Court as against the trust's interest, but the High Court upheld it. On appeal, the Supreme Court found that KHPL had terminated the agreement during litigation, rendering the scheme infructuous. The Court declined to examine the legal validity on merits, as the agreement no longer existed. The Court held that trustees must faithfully serve the trust's interest in accordance with the trust's founding principles and applicable law, and disposed of the appeal without costs.
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