IN THE HIGH COURT OF JUDICATURE AT BOMBAY, NAGPUR BENCH
Urmila Joshi Phalke, A. S. Chandurkar, JJ.
Megh Realty and Developers Private Limited – Petitioner
Versus
The learned Joint Charity Commissioner & Ors. – Respondents
Letters Patent Appeal No. 232 of 2012 In Writ Petition No.1131 of 2012 (D)
Decided On : 21-07-2022
Public Trust - Maharashtra Public Trusts Act, 1950 - Section 36(1)(a) - [SUMMARY]
Fact of the Case:
The appellant challenged the order of the learned Single Judge dismissing the writ petition and refusing to interfere with the order passed by the Joint Charity Commissioner, Nagpur, rejecting the application filed by the respondent no.2-Trust seeking permission to alienate its immovable property under Section 36(1)(a) of the Maharashtra Public Trusts Act, 1950.
Finding of the Court:
The Court found that the trustees had made out a case indicating the need to permit them to alienate the property for proper utilization of the other assets under Section 36(1)(a) of the Act of 1950. The Court allowed the application moved by the trustees seeking permission to alienate the property and permitted the sale of the land to the appellant for consideration at Rs.22,00,000/- per acre.
Issues: The main issue was whether the trustees had established the necessity for alienating the land and whether the interest, benefit, and protection of the Trust were served by permitting the alienation.
Ratio Decidendi: The Court considered the interest, benefit, and protection of the Trust as the paramount consideration in permitting the alienation of the land. It also emphasized the need for transparent utilization of the sale proceeds for the betterment of the Trust.
Final Decision: The Letters Patent Appeal was allowed, and the application moved by the trustees seeking permission to alienate the property was also allowed. The Court directed the trustees to act in accordance with the statements made in the affidavit of the Secretary and submit a report to the Joint Charity Commissioner after six months.
JUDGEMENT :
A. S. CHANDURKAR, J.
1. In this Letters Patent Appeal filed under Clause 15 of the Letters Patent a challenge is raised to the order dated 03.04.2012 passed by the learned Single Judge in Writ Petition No.1131 of 2012 thereby dismissing the writ petition and refusing to interfere with the order passed by the learned Joint Charity Commissioner, Nagpur dated 27.01.2012 in proceedings under Section 36(1)(a) of the Maharashtra Public Trusts Act, 1950 (for short, the Act of 1950). By that order the learned Joint Charity Commissioner was pleased to reject the application filed by the respondent no.2-Trust seeking permission to alienate its immovable property.
2. The facts relevant for deciding the Letters Patent Appeal are that the respondent no.2-Public Trust is duly registered under the provisions of the Act of 1950. As per Schedule-I of the Act of 1950, it owns field Survey No.124 admeasuring about 7 H 70 R at Mouza - Barbadi Taluka and District Wardha. Since the members of the Trust were of the view that the said land should be utitlized towards proper upkeepment of the Trust, a resolution was passed by a majority of eleven members out of twelve for selling the said land. On 15.02.2008 a public advertisement was published inviting bids for purchasing the said land. Pursuant to that advertisement the Trust received three bids. Since the offers received were not to the expectation of the trustees, it was resolved to issue another advertisement. Fresh advertisements were issued on 08.03.2008 and 10.03.2008. The appellant herein had offered an amount Rs.6,02,500/- per acre which was subsequently enhanced to Rs.6,10,000/- per acre. Since the amount offered by the appellant was the highest, a resolution was passed accepting that offer and resolving to seek permission of the Joint Charity Commissioner for selling the said land.
3. An application was accordingly moved under Section 36(1)(a) of the Act of 1950 on 17.07.2008. In that application it was stated that the said land was lying fallow and the Trust was not receiving any income from it. Construction of the temple of the Trust was required to be undertaken since it was noticed that proper arrangements of devotees visiting the temple could not be made. With a view to enhance the income of the Trust and to utilize that income for proper maintenance of the temple and provide facilities to the devotees, it was resolved to seek permission of the learned Joint Charity Commissioner. In the proceedings before the learned Joint Charity Commissioner, the President of the Trust examined himself and filed his affidavit. The respondent no.3 herein raised an objection to the aforesaid application by filing such objection on 08.07.2009. The learned Joint Charity Commissioner considered the application and on 15.02.2011 granted permission to sell the said land to the appellant. This order of the learned Joint Charity Commissioner was challenged by the Objector by preferring Writ Petition being No.1801 of 2011. The learned Single Judge while considering the said writ petition noted that the price of the land approximately was Rs.16,79,600/- per acre in January 2010. It was found that the learned Joint Charity Commissioner had failed to consider this aspect and hence by the judgment dated 08.07.2011 the learned Single Judge was pleased to remand the proceedings for a fresh consideration to the learned Joint Charity Commissioner.
4. After remand, the learned Joint Charity Commissioner heard the parties and recorded a finding that the price of the land as offered by the appellant was the market price when the advertisement was issued in the year 2008. It was however found that the Trust had failed to establish its necessity of alienating the land bearing Survey No.124. Another finding recorded was that the price offered by the respondent no.3 and other bidders except the appellant was not sufficient for granting permission to sell the land. On that count, the application moved by the Trust cam
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AI
The paramount consideration in permitting the alienation of trust property is the interest, benefit, and protection of the Trust, and the transparent utilization of the sale proceeds for the betterme....
The main legal point established in the judgment is the requirement for the respondent to justify and record satisfaction for high valuation based on comparable sale instances and material evidence w....
The main legal point established in the judgment is the need for objective consideration of the trust's decision to sell property under section 36(1)(a) of the Maharashtra Public Trust Act, 1950, and....
The Charity Commissioner has the authority to invite fresh offers for the sale of trust property, but must provide adequate reasoning for such actions, particularly when a valid bidding process has a....
Trustees must ensure any alienation of trust property is justified by genuine necessity and conducted transparently, safeguarding the trust's interests.
The central legal point established in the judgment is that the Charity Commissioner must consider the interest, benefit, and protection of the trust when granting permission for property disposal, a....
Service Matter1 - It extends to inviting offers from the members of the public and directing the trustees to sell or transfer the trust property to a person whose bid or quotation is the best, having....
The main legal point established in the judgment is the necessity for a transparent process in disposing of Trust property and the Charity Commissioner's role in verifying the genuine need for sellin....
The registrar's refusal to grant permission for trust property sale must be supported by evidence of prejudice to public interest; arbitrary denials are against statutory provisions.
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