IN THE HIGH COURT OF BOMBAY
Motilal Girdharilal Sharma
VERSUS
Dattatray Bandu Jagtap
Decided on: NOVEMBER 29, 2005
Bombay Public Trusts Act, 1950 - Section 36(2) Permission under Section 36(2) Fraud played, sanction revoked Subsequent revocation permissible only before execution of sale deed No scope for revocation of sanction once trust was divested and created in property favouring persons who are not trustees. Once he concludes that his order of sanction under Section 36(1) was obtained by fraud or misrepresentation or concealment of material facts, the law does not require him to waste time in taking proceedings for revoking his order of sanction. Such fraud, mis-representation or concealment of materials facts while obtaining sanction obviously amount to misconduct on the part of the trust or trustees and it is open to the Charity Commissioner to immediately file proceedings for the restoration of such property by approaching the Court of competent jurisdiction. In the alternative it is also open for the Charity Commissioner to grant permission to persons having interest in the public trust if they intend to file any suit of the nature contemplated by Section 50 of the said Act and apply to the Charity Commissioner for grant of permission under Section 51 of the BPT Act. In this connection the observation of the Division Bench of this Court in the case of Dr. Bhacca 1934 BLJR 714, to the effect that the remedies provided under Sections 50, 51 and 52-A are not dependent upon the revocation of sanction accorded by the Charity Commissioner under Section 36(1) of the said Act as these are independent remedies, is pertinent.
( 2 ) A brief relevant facts of the case were as under :- (a) On 10-5-1956 one Mr. Wamanrao Laxmanrao Dahanukar gifted four plots of land bearing CTS Nos. 563, 564, 568 and 569 situated in Dahanukar colony at village-Kothrud, Dist.-Pune to "bharat Dalit sevasangh" which was the public trust registered under the provisions of the said Act. The gift was made by registered gift deed which was conditional in nature and the said deed contained a clause of reversion if the condition of the gift was not complied with. (b) In the year 1981, respondent no. 6-Trust decided to sell the lands gifted to them and applied to the Charity Commissioner for permission to sell the lands to one Mr. Gupta. In 1983 Mr. Wamanrao Laxmanrao dahanukar expired and his heirs raised an objection to the proposed sale of lands to Mr. Gupta and claimed reversion of the lands for breach of a condition in the gift deed. This proposed sale in favour of Mr. Gupta could not be completed for such and other diverse reasons. By early 1985, respondent No. 6-Trust was in debts. On 3-3-1985 in the meeting of the trustees of respondent No. 6 it was resolved to sell the land in question and the proposed sale was to be effected after advertisement. The Chairman of the trust Mr. Keshav Rajbhog was authorised to do all necessary acts to effect the sale. (c) On 10-4-1985 the Chairman of respondent No. 6-Trust Mr. Keshav Rajbhog entered into an agreement for sale with the petitioner-society and agreed to sell the said land at the rate of Rs. 30/- per square foot. This transaction was to be completed after obtaining the sanction of the Charity Commissioner under Section 36 (1)A of the said Act. An amount of Rs. 40,000/- was also taken by cheque on behalf of respondent No. 6-Trust and the fact of the taking such an amount by cheque was also mentioned in the agreement for sale. (d) After entering into such an agreement for sale, on 20-4-1985 an advertisement was given by the respondent no. 6-Trust in "bombay Sakal" inviting offers for purchase of the said land In response to this advertisement, respondent No. 6-Trust received three quotations of which the quotation of the petitioners at the rate of Rs. 30/ - per square feet was the highest. (e) These offers were considered by respondent No. 6-Trust in the meeting of the trustees held on 28-4-1985 and the trustees unanimously resolved that the quotation of the petitioners should be accepted. The minutes of this meeting also recorded that petitioner nos. 1, 2 and 3 had agreed to obtain the no objection certificate from Mr. Dahanukar. (f) According to the petitioners due to efforts made by them, they could secure an affidavit dated 15-5-1985 affirmed by a constituted attorney of 4 members of the dahanukar family withdrawing their objections for sale of the lands as communicated to the Charity Commissioner by their earlier letter dated 4-1-1993. On the same day i. e. on 15-5-1985, the said constituted attorney representing 4 members of the Dahanukar family addressed a separate letter to the Charity Commissioner re-stating that the said members of Dahanukar family were withdrawing their objections to the sale raised in the letter dated 4-1-1983 and further stating that they had no objection t
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