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2022 Supreme(Guj) 449

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
A. P. Thaker, J.
Akshar Associates - Appellant
Versus
Special secretary revenue deptt. Appeals & others - Respondent
Special Civil Application No. 17881 of 2016
Decided On : 22-04-2022

Advocates:
Advocate Appeared:
For the Appellant :Mr Bhatt, Senior Advocate with Vijay H Patel
For the Respondent: Mr Nikunj Kanara, AGP.

The revenue authorities cannot decide the title of the property and must exercise their powers within a reasonable period of time.

Headnote:

Trust Act - Land Sale - Section 36 of the Trust Act - [36] - The court discussed the application filed by the Trust seeking permission for selling the land, the public advertisement, auction process, and the subsequent sale to respondent No. 3. The court highlighted the legality and validity of the sale transaction, the mutation entries, and the authority of the revenue authorities to decide the title of the property. The court found that the orders passed by the revenue authorities were beyond a reasonable period of time and not sustainable in the eyes of the law.

Fact of the Case:

The Trust sought permission to sell the land for financial reasons. After a public auction, the land was sold to respondent No. 3. The petitioner later purchased the land and constructed residential buildings. Subsequently, the revenue authorities initiated suo motu revision proceedings, leading to the quashing of the sale orders and suspension of construction activities.

Finding of the Court:

The court found that the revenue authorities' exercise of power was beyond a reasonable period of time and not sustainable in the eyes of the law. The court also emphasized that the revenue authorities had no authority to decide the title of the property and that the orders were in contravention of settled legal principles.

Issues: The legality and validity of the sale transaction, the authority of the revenue authorities to decide the title of the property, and the timing of the revenue authorities' actions.

Ratio Decidendi: The revenue authorities cannot exercise powers under any other Act while exercising power under RTS proceedings, and they cannot decide the title of the property. The exercise undertaken by the revenue authority was beyond a reasonable period of time and not sustainable in the eyes of the law.

Final Decision: The court quashed and set aside the orders passed by the revenue authorities, ruling in favor of the petitioner.

JUDGMENT :

1. By filing this petition, the petitioner has prayed to quash and set aside order dated 2.12.2015 passed by respondent no.1 bearing reference No.MVV/HKP/VDD/29/2015 and further played to quash and set aside order dated 12.2.2015 passed by respondent no.2 in RTS/Suo-Motu/Revision/Case No.17 of 2013.

2. As per the facts of the case, the Trust was original owner of the subject land and considering the financial difficulties, it was decided unanimously by Trustees of the Trust to make an application before the office of Hon'ble Charity Commissioner, Vadodara, to seek necessary permission for selling the subject land so as to generate finances and to utilize the same for betterment of the Trust Properties. Accordingly, the Trustees filed an application under Section 36 of the Trust Act bearing No. 36/38/2005 dated 24% October, 2005 before the office of Hon'ble Charity Commissioner, Vadodara, for seeking reliefs as more particularly prayed therein. In furtherance of the aforesaid application and on 28th January, 2009, the office Hon'ble Charity Commissioner, Vadodara was pleased to direct the Trust to give public advertisement inter alia inviting offers from public at large for purchasing the subject land. It is submitted that the reserve price for subject land was fixed at Rs.30,00,000/- (Rupees Thirty Lakhs Only) and the public at large was called upon give their objections/offer on or before 26th February, 2009. It is stated that the aforesaid public notice was also published in Gujarat Samachar on 30th January, 2009.

2.1 It is stated that after publication of public notice, no objections came forward and in all 7 (seven) offers were received by the office of Hon'ble Charity Commissioner for purchasing the subject land. It is submitted that out of 7 (seven) offers received, a few were rejected by the office Charity Commissioner, Vadodara, considering that the same were in violation of the terms and conditions of public notice. From the remaining offers, bidding process was conducted and respondent No.3 was declared as highest bidder with an offer of Rs. 1,00,00,000/- (Rupees One Crore Only). It is stated that vide an order dated 18" April, 2009, the office of Hon'ble Charity Commissioner, Vadodara, was pleased to accept the offer of Respondent No. 3 and was further pleased to direct him to abide by the directions/conditions given under the said order.

2.2 Pursuant to order dated 18" April, 2009, respondent No. 3 complied with all the directions/conditions mentioned therein and accordingly, vide a registered Sale Deed bearing No. 7596 dated 24th August, 2009, Trustees of the Trust transferred/sold the subject land in favor of Respondent No. 3. It is stated that after the registered transfer, name of Respondent No. 3 was mutated in the revenue records vide Mutation Entry No. 1949 on 26th August, 2009.

2.3 It is stated that the subject land being old tenure agricultural land, Respondent No. 3 applied before Respondent No. 2 inter alia seeking to use the same for non-agricultural usage on 18th May, 2010. It is stated that after inviting the details from all concerned departments and considering the matter from all aspects, vide an order dated 25th November, 2010, Respondent No. 2 was pleased to allow said application of Respondent No. 3 and was further pleased to permit usage of subject land for non-agriculture activities subject to conditions mentioned therein. In furtherance to above, respondent No. 3 also applied before the Town Development Department, Municipal Corporation, Vadodara, inter alia seeking development permission of the subject land. It is further stated that on 19th March, 2011, concerned authority was pleased to grant development permission to Respondent No.3. It is stated that along with the development permission, the Deputy Town Development Officer, Vadodara, was also pleased to sanction the plan submitted by Respondent No. 3. The petitioner states that after N.A. order passed by respondent No. 2, necessar

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