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2017 Supreme(SC) 269

SUPREME COURT OF INDIA
R.K. AGRAWAL, ABHAY MANOHAR SAPRE, JJ.
Dinshaw Rusi Mehta & Anr. – Appellant(s)
VERSUS
The State of Maharashtra & Ors. – Respondent(s)
CIVIL APPEAL No. 4375 OF 2017 (ARISING OUT OF SLP (C) No.30666/2015)
Decided On : 22-03-2017

Advocates Appeared:
For the Appellants : Amol Chitale, Ms. Pragya Baghel, Ms. Samten Doma, Advs.
For the Respondents: Ms. Sushma Suri, Ms. Purnima Bhat, U.A. Rana, Mrinal Elkar Mazumdar, Avirat Kumar, (For M/s Gagrat & Co.), Ms. Anagha S. Desai, E.C. Agrawala, Mahaling Pandarge, Nishant Katneshwarkar, Advs.

IMPORTANT POINT
When subsequent events render a petition infructuous, there is no need to decide the issues.

Headnote:Administration of justice – BBP/PLIH entering to scheme/agreement with KHPL for developing the land and building and running a super speciality hospital thereon – Scheme/agreement approved by Charity Commissioner and the High Court – Under challenge instantly – In the meantime KHPL withdrawing from agreement and terminating it – Instant appeal and the writ petition therefore rendered infructuous – Section 36, Bombay Public Trusts Act 1950. (Para 19, 20, 21)

       Facts of the case:

       The Managing Committee of PLIH on 22.03.2011 entered into a lease agreement with one company called Krimson Health Ventures Private Limited permitting them to renovate/rebuild one super specialty hospital at their cost on the leased land.

       The Trustees of PLIH then applied to the Charity Commissioner of Bombay under the Act for grant of approval to the aforementioned scheme/ agreement. By order dated 08.07.2011, the Assistant Charity Commissioner granted approval to the Scheme/agreement. By another judgment/order dated 06.08.2011, the Charity Commissioner accorded approval to the PLIH for execution of lease deed in favour of KHPL to enable it to start the work.

       One group of the Trustees of BPP filed a writ petition in the High Court of Bombay challenging the legality and validity of the Scheme and the approval granted by the Charity Commissioner for the use of land/hospital.

       The High Court disposed of the writ petition and, in effect, upheld the scheme and the orders of the Assistant Commissioner/Commissioner.

       Finding of the Court:

       The writ petition and the instant appeal is rendered infructuous by subsequent events.

       Result: Appeal disposed of.

JUDGMENT

Abhay Manohar Sapre, J.

Leave granted.

2. This appeal is filed against the final judgment and order dated 30.04.2015 passed by the High Court of Bombay in Writ Petition (c) No. 938 of 2013 whereby the High Court rejected the petition filed by the appellants herein for quashing and setting aside the judgment/order dated 06.08.2011 passed by the Charity Commissioner-respondent No.2 herein vide which the Charity Commissioner has granted permission to the respondents under Section 36 of the Bombay Public Trusts Act 1950 on the conditions stipulated therein.

3. We herein set out the facts, in brief, to appreciate the issues involved in this appeal.

4. There is one public and charitable Trust called "Parsi Lying-in Hospital" (hereinafter referred to as "PLIH") having its office at A.K.Naik Marg, Fort Mumbai. The Trust is registered under the provisions of the Bombay Public Trusts Act,1950-now substituted by the Maharashtra Public Trusts Act (hereinafter referred to as "The Act").

5. The PLIH owned a land admeasuring 1,294 sq. yards together with garden of 624 sq. yards on C.S. Nos. 741 and 742, Flora Fountain at Mumbai. The Secretary of State for India in Council had allotted this land to PLIH for a period of 99 years by executing Indenture of Lease. The land was allotted for setting up a charitable Hospital in Bombay. In accordance with the terms of the grant, the PLIH constructed charitable Hospital on the land and continued its activities for few years after making it an operational.

6. On 01.02.1924, PLIH resolved to transfer the said Hospital to another Public Trust called "Parsi Punchayet Funds and Properties, Bombay" also known as "Bombay Parsi Punchayet" (hereinafter referred to as "BPP"). The transfer resolved was approved by the Bombay High Court vide order dated 01.02.1924 in Suit No.126 of 1924. The Government of Bombay vide their resolution No.5628 dated 01.04.1924 granted sanction to the transfer and accordingly executed a lease deed in favour of BPP in relation to the aforementioned land.

7. Insofar as the Management of the Hospital was concerned, one Managing Committee of PLIH used to look after its day-to-day management. It may be mentioned that some Trustees of BPP also used to be on the Board of Trustees of PLIH as their Trustees.

8. The Hospital continued its activities for few years and then remained closed for a long time for various reasons. The Trust through their Trustees then decided to re-start the Hospital in collaboration with others, who are expert in running and managing the Hospital.

9. With this objective in forefront, the Managing Committee of PLIH on 22.03.2011 entered into a lease agreement with one company called Krimson Health Ventures Private Limited (for short called "KHPL"). In terms of this agreement, KHPL was permitted to renovate/rebuild one super specialty hospital at their cost on the leased land. The agreement contained several terms and conditions on which the project was to be accomplished. It is, however, not necessary to set out the details of the agreement which has no bearing over the issue involved in the appeal.

10. The Trustees of PLIH then applied to the Charity Commissioner of Bombay under the Act for grant of approval to the aforementioned scheme/ agreement. By order dated 08.07.2011, the Assistant Charity Commissioner granted approval to the Scheme/agreement. By another judgment/order dated 06.08.2011, the Charity Commissioner accorded approval to the PLIH for execution of lease deed in favour of KHPL to enable it to start the work.

11. This grant of approval, as mentioned above, gave rise to litigation. One group of the Trustees of BPP filed a writ petition in the High Court of Bombay, out of which this appeal arises, challenging the legality and validity of the Scheme and the approval granted by the Charity Commissioner for the use of land/hospital. The challenge was founded on grounds inter alia with a prayer to declare the scheme/agreement and the order of Charity Commiss

























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