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2022 Supreme(Guj) 474

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Vaibhavi D. Nanavati, J.
Yashwant Amratlal Thakkar – Petitioner
Versus
The Charity Commissioner Gujarat State – Respondents
R/Special Civil Application No. 4164 of 2021
Decided On : 26-04-2022

Advocates:
Advocate Appeared:
For the Petitioner: Mr Bharat T Rao
For the Respondent: Mr Ishan Joshi, AGP, Mr Vishal T. Patel

The court emphasized the importance of adhering to principles of natural justice and ensuring fair treatment of parties involved in auction proceedings.

Headnote:

Mandamus - Sale of Land - Section 36 of the Act - 36/57/2019, 36/02/2021 - The court quashed the public advertisement issued by the respondent Trust in Nav Gujarat Samachar daily dated 21.2.2021 pursuant to the order passed by the Charity Commissioner dated 12.2.2021 in Application No.36/02/2021. The court directed the Charity Commissioner to take into consideration all the aspects and the fact that the entire amount of Rs.2,06,00,000/- along with interest in accordance with the order dated 22.10.2019 stands deposited by the writ-applicant pending the present writ-application.

Fact of the Case:

The respondent Trust sought permission to sell agricultural land. The writ-applicant deposited 25% of the offered price and offered the highest bid. However, a public notice revealed a prior agreement to sell the land to another party. The respondent Trust forfeited the amount deposited by the writ-applicant and sought permission for a fresh auction. The writ-applicant challenged this in court.

Finding of the Court:

The court found that the respondent Trust's actions were in breach of the principles of natural justice. The court quashed the public advertisement and directed the Charity Commissioner to consider the writ-applicant's deposit and the fact that the entire amount stands deposited pending the writ-application.

Issues: The issues included the validity of the prior agreement to sell, the forfeiture of the amount deposited by the writ-applicant, and the Charity Commissioner's decision to permit a fresh auction.

Ratio Decidendi: The court held that the respondent Trust's failure to disclose the prior agreement to sell and the subsequent forfeiture of the amount deposited by the writ-applicant were in breach of the principles of natural justice. The court also found that the Charity Commissioner's decision to permit a fresh auction without considering the writ-applicant's deposit was unjust.

Final Decision: The court quashed the public advertisement and the Charity Commissioner's order, and directed the Charity Commissioner to consider the writ-applicant's deposit and the fact that the entire amount stands deposited pending the writ-application.

JUDGMENT :

1. The present writ-application is filed under Article 226 of the Constitution of India seeking the following reliefs :-

“(A) To issue a writ of mandamus or a writ in the nature of mandamus or any other appropriate writ, order or direction by quashing and setting aside the public advertisement issued by the respondent no.2 - Trust in 'Navgujarat Samay' daily newspaper dated 21.02.2021, pursuant to the order passed by the Charity Commissioner dated 12.02.2021 in Application No . 36/02/2021, auction is fixed on 05.03.2021, as there is already order passed by the Charity Commissioner in favour of the present petitioner dated 22.10.2019 in Application No. 36/57/2019 which was not fulfilled because of the material suppression of facts by the Trust before the Charity Commissioner and further be pleased to direct the respondent, no.2-Trust to accept the remaining amount of Rs.2,06,00,000/- alongwith accrued interest thereon to show the bona-fide of the present petitioner, for the reasons stated in the memo of the petition and in the interest of justice;

(B) Be pleased to direct the respondent no.2-Trust to execute the sale in favour of the present petitioner, on petitioner depositing the remaining amount of Rs.2,06,00,000/- alongwith the interest, forthwith, as there is already order passed by the Charity Commissioner in favour of the present petitioner dated 22.10.2019 in Application No. 36/57/2019, for the reasons stated in the memo of the petition and in the interest of justice;

(C) Pending admission, hearing and final disposal of the above Special Civil Application, Your Lordships may be pleased to restrain the respondent No.1 - Charity Commissioner to proceed further with the Application No. 36/02/2021 which is fixed on 05.03.2021, for the reasons stated in the memo of the petition and in the interest of justice;

(D) To grant ad-interim relief in terms of Para - (C) hereinabove for the reasons stated in the Memo of Petition.

(E) The Hon'ble Court may kindly be pleased to grant any other appropriate relief as the nature circumstances of the case may require.”

2. The brief facts as stated by the writ-applicant in the present writ-applicant are stated thus :-

2.1 A public advertisement came to be issued by the respondent no.2 Trust on 20.9.2019 inviting offers from persons interested for sale of agricultural land of old tenure bearing Survey No.232/1 admeasuring 2125 sq.mtrs. at Ghatlodia (for short ‘subject land’). The upset price was fixed at Rs.67.00 lacs.

2.2 Before the Charity Commissioner, 23 persons offered their bids pursuant to the advertisement issued by the Trust for the purchase of the said land. On 17.10.2019, the bids were opened and bid of the present writ-applicant was found highest for Rs.2.76 crores. Charity Commissioner confirmed the sale in favour of the present writ-applicant by order dated 22.10.2019.

2.3 The writ-applicant deposited 25% amount of the offer price i.e. Rs.53,25,000/- as per the terms and conditions to the Trust on 24.10.2019 by Pay Order.

2.4 On 10.2.2020, a public advertisement came to be published in the daily newspaper on behalf of one Nagjibhai Shivabhai Patel though his advocate stating that by virtue of the agreement to sale dated 23.2.1988 Nagjibhai Shivabhai Patel is in possession of the land bearing Survey No.232/1 of Ghatlodia admeasuring 2125 sq.mtrs. owned by Ramji Mandir Trust.

2.5 On 20.2.2020, writ-applicant has issued notice by Regd. Post to respondent No.2 - Ramji Mandir Trust and the trustees of the Trust, bringing to their notice, public notice issued by Shri Nagjibhai Shivabhai Patel and called upon the respondent No.2 for clarification with regard to the same advertisement dated 10.2.2020 stating that the writ-applicant is interested to purchase the property by depositing the remaining amount.

2.6 The writ-applicant has produced computation of networth certificate issued by the Chartered Accountant. The respondent No.2 Trust on 24.10.2020 without replying to the writ-applica

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