Trust asset protection: proposed auction of precious articles stayed, with restraints on major financial and administrative actions.

A proposed public auction of precious articles belonging to a trust was treated as a major financial decision requiring prior court oversight. The court stayed the auction immediately and restrained the committee from creating third-party interests, acquiring immovable property, making other major financial commitments, filling regular vacancies, or converting or melting precious metals without prior permission. It also directed safeguarding of the precious articles and ordered wide publication of the stay on the trust's website and in widely circulated newspapers to prevent further action affecting the trust's assets and administration.

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Issues: Whether the proposed auction of precious articles offered to the trust should be stayed, and whether the committee should be restrained from taking specified steps affecting the trust's assets and administration.

Analysis: The application raised concern that the trust had decided to conduct a public auction of gold, silver, diamonds, precious stones and other articles without prior wide public notice, notwithstanding an earlier direction that the committee would not take major financial decisions without intimating the Court. The order treated the proposed auction as a major financial decision and considered it necessary to prevent creation of third-party interests, acquisition of immovable property, other major financial commitments, recruitment to regular vacancies, and conversion or melting of precious metals. The Court also directed adequate safeguarding of the precious articles and ordered public dissemination of the stay on the trust's website and in widely circulated newspapers.

Outcome: The auction was stayed and suspended forthwith, and the committee was restrained from undertaking the specified acts without prior permission of the Court.

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