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2005 Supreme(Bom) 1304

IN THE HIGH COURT OF BOMBAY
A. R. Khan Construwell and Co.
Versus
Youth Education and Welfare Society
Decided Date: 23/09/05

Headnote:Bombay Public Trusts Act, 1950 - Section 36 Tenders invited for development of land of Charitable Trust Trustees of Trust applied to the Charity Commissioner to sanction the l ease to be executed upon the development of the Trust land Order of Charity Commissioner granting sanction was challenged by the donars and beneficiaries of the Trust on the ground that there was no necessity to give the Trust land on lease for any development Commissioner had examined all the aspects and came to the conclusion that offer of respondent was the best one and having given all opportunities nobody had given any better offer Fund that will be received by the Trust could be utilized for its educational activities Order passed by Commissioner granting sanction is therefore justified. The Trustees of respondent sought to develop their property and tender document was prepared for inviting tenders for developing their plot of land. Tender of respondent No. 6 came to be accepted being the highest and better suited. The Trustee applied to the Charity Commissioner to sanction the lease to be executed upon the development of the property of the Trust under Section 36 of the Bombay Public Trusts Act, 1950. The trust property was granted under a Sanad of the Government. The Sanad is for utilising the Trust property for construction of a structure on 1/4th of the Trust property for a hostel for Muslim boys. However, the Trust has wider objects which require to be accomplished. The construction on the Trust property had become dilapidated. In the meanwhile, the demand for the hostel accommodation increased manifold. The Trust property was not being used for any purpose or for carrying out any other objects of the Trust other than as a hostel. The Trustees wanted to develop the Trust property so as to procure funds for obtaining other immovable properties to realise the other objects of the Trust. Under these circumstances, the Trust invited tenders and considered them. The tender document would itself show the endeavour of the Trustees to obtain the best possible offer of development that the property is capable of. The tender of respondent No. 6 was accepted. The objections of the appellants are essentially that they are the well-wishers and donors and beneficiaries of the Trust and desire to protect and safeguard the Trust and the T rust property. They contended initially t hat the Trust property was in good condition and does not require repairs and renovations and hence, there was no necessity to give the land on lease for any development. Prima facie there is no difficulty in saying that the offer of respondent No. 6 was an offer which fulfilled all the expectations as laid down in the tender document and, therefore, there was nothing wrong in the decision of the Joint Charity Commissioner in according sanction to the proposal of the 1st respondent Trust for developing its property through respondent No. 6. The additional fund, which will be received by the Trust, could be utilized for its other educational activities. Considering that this plot is the only source of income of the Trust, this was the best bargain which the Charity Commissioner has rightly sanctioned. 1979 Mh LJ 104; 1991 Mh LJ 891; AIR 2004 SC 1962; 1989 Supp (2) 356; (1986) 3 SCC 391; (2001) 5 SCC 305; 1993 Mh LJ 1107; 2002 (5) Mh LJ 660 : 2002 (3) All MR 749; 2002 (5) Bom CR 497 Referred.

Judgment

H. L. GOKHALE, J.

( 1 ) THESE three LPAs are concerned with an immovable property of the first Respondent bearing Survey No. 643-b corresponding to CTS No. 614-b or final Plot no. 127 and PTR No. F/1892 at Nasik admeasuring 40 gunthas which is a Charitable trust registered under the Bombay Public trusts Act, 1950 (for brevity the Act is referred to hereinafter or the BPT Act ). The first respondent Trust has obtained the said property upon transfer from a previous trust anjuman Khairul Islam to whom it was transferred by one Muslim Education Society, nashik which was granted the said property under a State Government Sanad dated 9th february, 1934. As per the terms of the Sanad a structure consisting of 12 rooms has been constructed. The property was required to be used as a hostel for muslim boys.

( 2 ) THE said Muslim Education society, Nashik was dissolved under a resolution passed on 29th July, 1973 under which its properties came to be transferred to one Anjuman C. Khairul Islam, Bombay with the consent of the then Charity Commissioner and this Trust later on transferred it to respondent No. 1 in July, 1989 as per the previous permission and consent of the then charity Commissioner dated 24th November, 1988.

( 3 ) THE objects of the first respondent Trust are educational. They include maintaining schools, colleges, hostels, libraries, educational institutions for technical, pharmaceutical, medical, polytechnical and agricultural courses, to award scholarship to deserving students, to supply books stationary etc. to students, to maintain dispensaries, hospital, medical centres and grant relief to public, to arrange for sports and to amalgamate with any other institutions with similar objects.

( 4 ) THE aforesaid Trust property is stated to be worth Rs. 40 lakhs. It has an old dilapidated construction of 12 rooms used as a hostel for muslim boys stated to be worth rs. 1. 20 lakhs. The Trust property therefore, in its entirety is valued at Rs. 41. 20 lakhs.

( 5 ) THE property houses about 35 students. Respondent No. l Trust intends to cater to the increasing demand of the students by making a provision for 200 students.

( 6 ) THE Trustees of Respondent No. 1 therefore sought to develop their property. They got a tender document prepared for inviting tenders for developing their plot of land. The tender document was prepared by one Advocate m/s. Deshpande and the Architect of the Trust. A public notice was issued in two newspapers circulated in Nashik, one in English and the other in Marathi. The offerers were to purchase the tender forms at a cost of Rs. 10,000. 00 each. In all 14 offerers collected the tender forms and out of them eight submitted the tender forms. Four were found not eligible in terms of the conditions of the tender. The Trustees examined the tenders of 4 offerers who were found eligible. The Trustees thereafter increased the rate of the tender for the benefit of the Trust. Certain offerers offered higher bids. Ultimately the tender of Respondent No. 6 came to be accepted being the highest and better suited.

( 7 ) THE Trustees applied to the learned Charity Commissioner to sanction the lease to be executed upon the development of the property of the Trust under Section 36 of the BPT Act, 1950.

( 8 ) THE Appellants and Respondents 2 to 5 in L. P. A. No. 449 of 2004 opposed the sanction (Respondent Nos. 4 and 5 in L. P. A. No. 449 of 2004 are the Appellants in L. P. A. No. 454 of 2004 ). The learned Charity commissioner by his judgment and order dated 26th June, 2003 granted sanction for the development of the property of the first respondent Trust under Section 36 ( 1 ) (b) under the BPT Act, 1950 in favour of Respondent no. 6 for an increased premium amount of rs. 7. 25 crores and upon certain terms and conditions as stated in thejudgment.

( 9 ) THE Appellants in these LPAs challenged thejudgment and order of the learned charity Commissioner by filing Writ Petition nos. 6458 of 2003, 6459 of 2003 an

































































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