Judgment

S.C. AGRAWAL, J.-These appeals relating to grant of a long term lease in respect of immovable property vested in the Official Trustee as executor and trustee raise questions relating to the exercise of the supervisory jurisdiction by the High Court under Section 25 of the Official Trustees Act, 1913, herein referred to as the Act.

2. Under a will executed by one C. Kandaswamy Naidu on May 21, 1948, the testator made various bequests in favour of his children as well as other persons and bequeathed the rest of his properties to the Trustees of Pachaiyappas Charities subject to the conditions, payment and restrictions mentioned therein. The Official Trustee of Madras has been appointed as the executor and the trustee of the will and he has been empowered to sell and dispose of the properties, immovable as well as moveable. O.P. No. 278 of 1948 is the original proceeding instituted in the Madras High Court on the basis of the said will by the Official Trustee. Among the properties vested in the Official Trustee under the will is a vacant plot of land measuring about 5.65 grounds (13566.85 sq. ft.) situated at No. 21, Harrington Road, Madras. On the western side of the said plot of land, there is a building. The ground floor of the said building has been let out to Pachaiyappas Trust for the Office of the Trust. The first floor of the building is in occupation of another tenant.

3. On January 29, 1986, R.V.A. & Co., (Respondent 2), a partnership firm consisting of three unemployed medical graduates, filed an application (C.M.P. No. 495 of 1986) in O.P. No. 278 of 1948, wherein it was prayed that the Official Trustee be directed to enter into a lease agreement with the applicant firm for an initial period of 50 years with an option to the said applicant firm to renew the lease for a further period of 50 years on such terms and conditions which the court may deem fit to impose. In the affidavit of M.K. Rajasekar, one of the partners, filed in support of that application, it was stated that the partnership had been formed with the object of constructing and running a Nursing Home at Madras with a view to provide employment to the partners who were unemployed medical graduates. In the said affidavit, it was also stated that the applicants wish to take the plot of land on long lease with a view to construct a medium size hospital with about 30 rooms and they wanted the lease of the property initially for a minimum period of 50 years with an option to renew for a like period on the expiry of 50 years. In the said affidavit, it was also stated that after the expiry of the lease period the applicants would undertake to deliver the vacant possession of the premises with all the improvements made in the site leased out to them. As regards rent it was stated that Rs 4,500 per annum was a fair rent payable for the vacant land for the first year and that for every succeeding year the rent could be increased by 5 on the rent payable in respect of every preceding year.

4. The said application was opposed by the appellant. In the counter-affidavit filed on its behalf it was stated that the grant of lease for 50 years with an option to renew for a further period of 50 years was not in the interest of the Trust and not beneficial to it and it would be detrimental to the interests of the Trust to lease the property for a long period as it would amount to tying down the property in the hands of the applicants. It was also stated that the solvency of the applicants was not clear and that it would not be prudent to lease the trust property for a long period however laudable the objects of the partnership may be and it would be highly risky to lease out the property as sought for.

5. The Official Trustee also filed a report wherein he admitted the availability of the vacant space for lease and stated that he had no objection to the court directing a reasonably long term of lease for the vacant site but according to him the rent offered by Responde