SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2011 Supreme(Bom) 16

2011(2) ALL MR 767
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
A. S. OKA, J.
M/s. Raj Darshan Ventures
Vs.
The Joint Charity Commissioner & Ors.
Writ Petition No.4273 of 2010 WITH Writ Petition No.9440 of 2010
Decided on : 6th January, 2011.

Advocates Appeared:
Shri. R. Z. MORAY i/by Shri. AMIT SALE, for the Petitioner.
Shri. G. S. GODBOLE and Shri. SNEHAL SHAH and Ms. PRACHI MANEKAR i/by VIJAY DHINGREJA, for Respondent No.2. Shri. NITIN THAKKAR, Sr. Advocate and Shri.
SATYEN VORA and Shri. SAHIL GANDHI i/by M/s. Markand Gandhi & Co., for Respondent No.3.
Shri. R. M. PATNE, AGP for Respondent No.1.

Headnote:Bombay Public Trusts Act, 1950 - Section 36-Trust property-Sale of-Application for-Property alienated as per condition in Resolution-Public notice issued in widely circulated Newspapers-Highest price offered by respondent 3-Order granting permission to sell passed after considering all relevant aspects-Order of sale warrants no interference-Upheld.-The Trustees received six offers including the offer of the Purchaser. Amongst the said offers, the Purchaser’s offer was the best offer. Perusal of the impugned judgment and order shows that in Paragraph 9, the Joint Charity Commissioner has observed that the structures on the trust property are 70 years old and maintenance cost is much more than the rental income received from the tenants/occupants. The Joint Charity Commissioner has observed that the Trustees adopted a transparent procedure by giving a public notice in leading newspapers like Indian Express (English) and Maharashtra Times (Marathi) which are having large circulation in the City of Mumbai. The offers were opened on 1st May, 2010 at 11.30 a.m. when the representatives of the offerers were present who were given an opportunity to enhance their respective offers. The Joint Charity Commissioner also considered the report of the Valuer to which a reference is already made. Thus, all relevant aspects have been considered by the Joint Charity Commissioner. Considering the fact that the cost of maintaining the property is more than the income derived from the property, the necessity is established notwithstanding the sound financial position of the Trust and income derived from alienation of the other property. The impugned order does not become bad only on the ground that the application made by the Trust was disposed of within few days.

       Bombay Public Trusts Act, 1950 - Section 36-Trust property-Sale of-Permission to sell granted by Joint Charity Commissioner-Order granting permission to sell, sought to be revoked by petitioner-Petitioner objecting sale after 6 months of execution of conveyance-Meeting of tenants for proposed re-development of property attended by petitioners-Delay in filing writ petition not explained-Petition cannot be entertained.-In the affidavit in reply of the purchaser, it is stated that on 8th August, 2010, meeting of the tenants/occupants in the property was held at Sir Eally Kadoori High School Hall, Mazgaon, which was attended by 200 tenants/occupants. It is alleged that the proposed re-development was discussed in the said meeting and all the petitioners were present in the said meeting. Reliance is placed in the affidavit on meeting held on 2nd October, 2010 arranged by Shri Shree Kutchi Lohana Nivas Griha Mitra Mandal which was negotiating with the purchaser on behalf of the tenants/occupants. It is stated that in the said meeting apart from the Directors of the purchaser, the petitioners were also present. It is stated that all terms were agreed to in the said meeting. The fact that the petitioners were present in the said meetings has not been disputed in the rejoinder filed by Mr. Chetan Mohanlal Dawda on behalf of the petitioners. It is not disclosed in the petition that the petitioners attended the meetings for discussing the re-development of the property by the purchaser. There is absolutely no explanation for the delay in filing the petition. Hence, the petition at the instance of the said petitioners cannot be entertained.

       Bombay Public Trusts Act, 1950 - Section 36-Trust property-Sale of-Permission to sell property to respondent 3 granted-Order granting permission challenged by petitioner willing to purchase property by offering highest price-Petitioner not offered any specific offer-Not deposited earnest money as required-No locus standi on part of petitioner to challenge order-Order rejecting petitioner’s application warrants no interference-Upheld.-The petitioner did not comply with the requirement of deposit of EMD. It is obvious that the condition of deposit of the said amount was incorporated to ensure that the bidder must show his bona fides. The said condition was imposed to ensure that only the bidders who are in sound financial condition should submit their offers. In the case of Sailesh Developers, 2007 (4) All MR 100 (FB). The Full Bench of the Court held that a party who directly comes before the Charity Commissioner and submits his offer after complying with the other requirements specified by the Charity Commissioner has a locus standi to challenge the final order passed in proceedings under Section 36 of the said Act. The petitioner never complied with requirement of deposit of a sum of Rupees Five Crores. In the 1st application made by the petitioner there is no specific offer made by the petitioner. In the letter dated 17th May, 2010 addressed to the Trust, there is an offer. But, the petitioner did not deposit the requisite amount. Moreover, the said letter appears to be submitted to the office of the Joint Charity Commissioner after the application under Section 36 was decided by passing the impugned order. The letter was not filed before the Joint Charity Commissioner in the proceedings, but was tendered in the office in the evening and was inwarded on the next day. Moreover, a sum of Rs. 5 Crores was not deposited with the offer. Considering all these aspects, the petitioner does not satisfy the criteria laid down by the Full Bench of the Court inasmuch as the petitioner did not submit any specific offer before the Joint Charity Commissioner before the final order was passed and failed to make compliance regarding condition relating to EMD. Thus, the petitioner has no locus standi to challenge the impugned order by invoking Writ jurisdiction of this Court.

JUDGMENT

These two Writ Petitions were taken up for hearing together as the challenge therein is to the same order. As the daily board of this Court was very heavy from September, 2010 onwards, by consent of the learned counsel appearing for the parties, the Petitions were heard on some occasions after the Court hours.

2. The challenge in these Petitions is to the judgment and order dated 17th May, 2010 passed by the learned Joint Charity Commissioner, Mumbai. By the said judgment and order, an application made by a Public Charitable Trust (the 2nd Respondent in Writ Petition No.4273 of 2010) under Section 36(1)(a) of the Bombay Public Trust Act, 1950 (hereinafter referred to as "the said Act") has been allowed. By the impugned judgment and order, a permission has been granted to the 2nd Respondent-Trust to sell a property vesting in the said Trust to M/s. Gold Plaza Developers Private Limited (the 3rd Respondent in Writ Petition No.4273 of 2010). The Trust property has been permitted to be sold on the terms and conditions incorporated in the impugned judgment and order.

3. The application under Section 36(1)(a) of the said Act was filed by the 2nd Respondent on 3rd May, 2010. In the said application, it was stated that the scheme for management of the said Trust was settled by this Court by an order dated 23rd April. 1937. Reliance was placed on Clause 29 of the Trust Deed. In the application, it is stated that Cutchi Lohana Samast Mahajan in its meeting held on 26th March, 2000 sanctioned the proposal for re-development of the Trust property being Cadestral Survey No.126 of Mazgaon Division, admeasuring 4581.95 sq. meters consisting of structures and dwelling houses standing thereon and being occupied by about 225 tenants. In the said application, it was stated that the structures thereon have been occupied by 225 tenants and the income of the said property for the financial year ending with 31st March, 2009 was Rs.3,18.461/- and the yearly expenses incurred on the said property were Rs.3,73,929/ -. Various details have been set out in the said application which. according to this Trust, show that there was necessity of alienating of the said property. Reliance is placed on the resolution passed in the meeting of the Board of Trustees held on 16th April, 2010 by which the Trustees resolved to sell the said property by calling offers. According to the case of the Trust, a public notice was published in daily newspapers "Indian Express" and "Maharashtra Times" on 21st April. 2010 calling for the offers. The Gold Plaza Developers Private Limited (hereinafter referred to as "the Purchaser") submitted an offer by which the Purchaser offered to pay the sum of Rs.3.51.00.000/- (Rupees Three Crores Fifty One Lacs Only) to the Trust and also offered to allot in the newly constructed property 10 rooms having carpet area of 300 sq. ft. each. one office premises admeasuring 500 sq.ft. of carpet area and a well-equipped centrally Air Conditioned Auditorium having sitting capacity of about 600 persons. Apart from the offer from the said Purchaser. there were 5 other offers received. The public notice required deposit of a slim of Rs.5.00.00.000/(Rupees Five Crores Only) by way of Earnest Money Deposit (for short 'EMD') along with the offer. In the application made by the Trust, a prayer was made for grant of permission for sale of the said property to the Purchaser on the terms and conditions set out therein. By the impugned order, a permission was granted to sell the said property to the Purchaser. The Trustees of the said Trust executed a Deed of Conveyance dated 24th May. 2010 by which the said property was conveyed to the Purchaser. The said Deed of Conveyance was lodged for registration on the same day.

4. The Writ Petition No.4273 of 2010 has been filed by M/s. Raj Darshan Ventures. The case made out in the said Petition is that the said Petitioner could not come across the advertisements published in the daily newspapers "Indian Expres









































































Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top