IN THE HIGH COURT OF DELHI
ANIL KUMAR
Vibrant Institute of Technology - Appellant
Versus
All India Council for Technical Education - Respondent
Writ Petition (Civil) No.10104/2009
Decided On : 21-08-2009
Trust - Property Transfer - Indian Trust Act, Section 5 & 6 - Stamp Act, Section 31 - Handbook of Approval Process - Sale Deed, Gift Deed, Lease Deed for 30 years - The court discussed the validity of property transfer to a trust through a settlement deed and its compliance with the Handbook of Approval Process. The court emphasized the legal provisions of the Indian Trust Act and the Stamp Act, and their interpretations in the context of property transfer to a trust. The court found that the petitioner's trust deed settling the property with the trust was valid and should be considered for ownership, leading to the decision in favor of the petitioner.
Fact of the Case:
The petitioner, a public charitable Trust, sought approval for establishing a new engineering and technology institution. The respondent rejected the request, citing non-compliance with the Handbook of Approval Process, which required property transfer to the Trust only through specific deeds.
Finding of the Court:
The court found that the petitioner's trust deed settling the property with the trust was valid and should be considered for ownership. The court held that the respondent's decision to reject the petitioner's request was without legal basis and directed the issuance of the letter of intent to the petitioner for the block year 2009-2010.
Issues: The issues revolved around the validity of property transfer to a trust through a settlement deed and its compliance with the Handbook of Approval Process, as well as the alleged discrimination in the respondent's decision-making process.
Ratio Decidendi: The court emphasized the legal provisions of the Indian Trust Act and the Stamp Act, and their interpretations in the context of property transfer to a trust. The court held that the respondent's decision was without legal basis and directed the issuance of the letter of intent to the petitioner.
Final Decision: The court allowed the writ petition, set aside the decisions of the respondents, and directed the issuance of the letter of intent to the petitioner for the block year 2009-2010. The respondents were also directed to pay costs to the petitioner.
ANIL KUMAR, J.
The petitioner has challenged the action of the respondent rejecting the case of petitioner for grant of letter of intent on the ground that the settlement deed for creating of trust and the property settled with the Trust cannot be considered, as the said mode of Transfer of Property is not contemplated as per handbook of approval process under which the property can be transferred to the Trust only by sale deed, gift deed and lease deed for thirty years.
2. Brief facts to comprehend the controversies raised by the parties are that the petitioner is a public charitable Trust registered under the Indian Trust Act and is the owner of land measuring 15.25 acres at Kalikkamapatti Village, next to National Highway 7, Athoor Taluk, District Dindigul, Tamil Nadu. The petitioner filed a proposal for establishment of a new engineering and technology institution in the name of Vibrant Institute of Technology to the respondents.
3. The land on which the proposed technical institution is to be started was purchased by above trustee Thiru T. Dakshinamoorthy by way of a registered sale deed from Crown Tanning Company dated 20th November, 2006.
.4. Thiru T. Dakshinamoorthy created a Vijay Ganesh Public th March, 2008 and also settled his land/immovable properties with the said Trust on 19th March, 2008. According to petitioner, the property settled with the Trust stood transferred irrevocably on settlement of the Trust and as per Section 5 & 6 of the Trust Act, the transfer of property is irrevocable and the properties vest in the public charitable Trust. According to the petitioner, the objective of the Trust is for welfare of general public and in furtherance of its objection, the said Trust had decided to set up a new technical institution in the name of Vibrant Institute of Technology.
5. The petitioner contended that Revenue Authorities acknowledged the ownership of the Trust over the land which was settled with the Trust on 19th March, 2008 and issued no Encumbrance certificate. The Mutation entries were also affected in favour of the petitioner Trust by the Revenue Authorities and they also issued other relevant certificates. In the circumstances, it is contended that Shri Vijay Ganesh Public Charitable Trust is the legal and rightful owner of the said land and the said land has a clear title. The petitioner also applied for the change of land use to the Tehsildar of the area, who issued a certificate allowing the change of the land use for educational purpose by order dated 27th March, 2008.
6. That after the petitioner applied for the proposal for establishment of a new engineering and technology institution, appearance was put before the Hearing Committee of the respondent on 4th February, 2009. During the hearing, it is contended that the
7. The petitioner has contended that it was clarified that the land belonging to the founder Trustee was settled by him with the Trust at the time of its creation and, therefore, no sale deed is required and there is no defect in the title of the property which vests with the Trust. The petitioner has asserted that the respondents did not accede to the plea raised by the petitioner and rather referred the matter for opinion and consideration by its Legal Cell. Thereafter a deficiency letter dated 23rd March, 2009 was issued. The deficiency letter dated 23rd March, 2009 stipulated that as per the approval process, the ownership of the land documents should be in the name of the Society/Trust through a registered sale deed or an irrevocable registered gift deed or a government lease for a minimum period of 30 years from the concerned authority of the government and as the ownership of the land documents has not been submitted, therefore, the request is rejected and since the proposal is for the block period 2009-2010, the respondents reconsideration can be made at any time within the block period on submission of appropriate document.
8. Pursuant to the letter dated 2
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