In Brief
Raja Bahadur Sardar Singh, a wealthy bachelor, died in 1987 leaving properties worth millions. He had executed a Will creating the Khetri Trust to manage his estate. The State of Rajasthan initiated escheat (abandonment) proceedings claiming the properties as the State's after determining there were no legal heirs. The Khetri Trust challenged this, claiming the properties under the Will. Additionally, certain agnates (distant relatives) of the deceased opposed the State's action. The High Court quashed the State's escheat orders. The Supreme Court split 1-1, with Justice Banumathi allowing the State's appeal (finding proper invocation of escheat law and that claims had failed), while Justice Banerjee dismissed it (holding complete failure of heirs must be established before proceeding, and the presence of any claimant prevents escheat). The matter was referred to a larger bench.
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