IN THE HIGH COURT OF BOMBAY
Avinash G. Gharote, J.
Vilas Anand Kale and Others – Petitioners
Versus
Joint Charity Commissioner, Nagpur – Respondent
W. P. No. 1164 of 2021
Decided On : 09-09-2021
Public Trust - Sale of Trust Property - Maharashtra Public Trust Act, 1950, Section 36(1)(a) - Summary of Acts and Sections: The court discussed the need for permission to sell trust properties under section 36(1)(a) of the Maharashtra Public Trust Act, 1950. It highlighted the factors to be considered, such as the genuineness of the need, the interest and benefit of the trust, and the protection and advancement of the trust's aims and objects. The court also emphasized the limited scope of authority of the Charity Commissioner and the need for objective consideration of the trust's decision to sell the property. Key legal provisions included section 36(1)(a) of the Maharashtra Public Trust Act, along with relevant case law.
Fact of the Case:
The petition challenged the rejection of the application seeking permission to sell trust properties under section 36(1)(a) of the Maharashtra Public Trust Act, 1950. The trust cited difficulties in managing the properties, lack of income generation, and the need to fulfill the trust's objects as reasons for the sale.
Finding of the Court:
The court found that the need expressed by the trust was genuine, considering the impracticality of managing the properties, the distance from the trustees' residence, and the failure to generate income. The court also addressed the apprehension regarding the use of sale proceeds by requiring the investment in Government Bonds and Securities, subject to the consent of the Joint Charity Commissioner.
Issues: The issues involved the genuineness of the trust's need to sell the properties, the interest and benefit of the trust, and the protection and advancement of the trust's aims and objects.
Ratio Decidendi: The court emphasized the limited scope of authority of the Charity Commissioner, the need for objective consideration of the trust's decision to sell the property, and the factors to be considered in granting permission under section 36(1)(a) of the Maharashtra Public Trust Act, 1950.
Final Decision: The impugned order was quashed and set aside, and the application under section 36(1)(a) of the Maharashtra Public Trusts Act was allowed, subject to the condition that the entire proceeds from the sale of the trust properties shall be invested in Government Bonds and Securities and shall not be spent without the consent of the Joint Charity Commissioner.
JUDGMENT :
1. Heard Mr. Sunil Manohar learned Senior Counsel for the petitioners and Mr. K. L. Dharmadhikari, learned AGP for the respondent.
2. Rule. Rule made returnable forthwith. Heard finally by consent of the learned counsel appearing for the parties.
3. The present petition challenges the judgment dated 20-1-2020 passed by the learned Joint Charity Commissioner, Nagpur, rejecting the Application No. 206/2017, filed under section 36(1)(a) of the Maharashtra Public Trust Act, 1950, seeking permission to sell the land of the trust.
4. It is submitted that the trust owns the following immovable properties :
Survey No. Area (Hectors) Area (Acres) Jama Right 2 4.00 9.88 70.56 Bhumiswamy 77 14.83 36.65 0.87 Bhumiswamy 100 0.64 1.58 5.25 Bhumiswamy 183 2.63 6.50 2.12 Bhumiswamy 22.10 54.61 78.80
B) House property at Village Wajbodi, Tah. Katol, Dist. Nagpur, Ward No. 1, House No. 23, admeasuring 9463 sq.ft. which is bounded as under; East : Road West : House of Bhagatsingh Thakur North : Road South : Survey No. 2
C) House property at Village Wajbodi, Tah. Katol, Dist. Nagpur, Ward No. 1, House No. 137, admeasuring 27864 sq.ft. which is bounded as under; East : Road West : House of Pundlik Bhonge North : Agricultural field of Nitin Dongre South : Road”,
which are all situated at village Wajbodi, Tq. Katol, Dist. Nagpur, which are agricultural and house properties. By a resolution dated 24-6-2017, the trust resolved to sell the said properties, for the reason that it was very difficult to maintain and protect the same and the trust did not have any budget to engage manpower or to deploy security on a permanent basis. There was also an apprehension of encroachment. The earlier attempts to cultivate the land by letting them to local villagers, had also not fetched substantial income on account of rent or otherwise. It was, therefore, decided that since it was impossible to manage the properties of the trust and since all the trustees were resident of Nagpur and it was not possible for them to time and again visit the properties so as to look after their upkeep and it was resolved to sell off the said properties and invest the sell proceeds out of the same for the objects of the trust.
5. It is also submitted that a valuation report was duly obtained in respect of the fair market value, which has been stated to be Rs.1,86,03,000/- in the valuation report by the registered Valuer Shri S. H. Gondane, dated 6-11-2017. It is further submitted that the valuation of the trust property, as per the Ready Recknor available was Rs. 1,33,12,200/- as indicated by the Valuation Certificate placed on record vide Documents at page Nos. 87 and 88 of the record. It is submitted that in pursuance to the above valuation, the trust had already floated a tender, in which a highest offer of Rs.2,02,00,000/- had been received by the trust, in view of which the application under section 36(1)(a) of the MPT Act was made.
6. It is submitted that on 28-8-2018, the learned Joint Charity Commissioner, Nagpur, was pleased to dismiss the application, being aggrieved by which the Trust had filed Writ Petition No. 1244/2019, wherein by an order dated 25-5-2019, the order of the Joint Charity Commissioner, dated 28-8-2018, was set aside and the matter was remanded back for fresh consideration. The matter thereafter was heard by the learned Charity Commissioner, who by the impugned order, dated 20-1-2020, had rejected the application, which is challenged in the present petition.
7. Mr. Manohar, learned Senior Counsel contends that the impugned order does not consider the basic parameters, on which the permission ought to be granted. He contends that the need of the trust to sell the properties, also has to be viewed keeping into consideration the difficulties faced in managing the properties as well as generating any income from the same. The learned Senior Counsel contends that wh
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