The court must supervise public auctions of Trust properties without participating as an auctioneer, ensuring adherence to established legal procedures.

JUDGMENT :

S.M. SUBRAMANIAM, J.

I. Introduction:

The present original side appeal has been instituted to assail the judgment and decree passed in C.S.No.51 of 2024, granting permission to sell Public Trust properties at S.Nos.290/1 to 290/8, 291/1A to 291/9, 292/1 to 292/18, 293/3 to 293/18, 294/1 to 294/22 and 264/8 at Kattagaram Village, Sriperumbudur Taluk, Kancheepuram District to an extent of 23.51 acres for a sum of Rs.16 Crore.

2. Civil Suit has been instituted by the Public Trust and its Trustee under Order VII Rule 1 and Section 92 (f) of Code of Civil Procedure, seeking permission to sell the properties of the Public Trust. No one has been shown as defendant.

II. Background of the Trust:

3. The plaintiff/Trust was founded by Mrs.Saradha Sekhar, via Trust Deed (Document No.74 of 1995 dated 30.10.1995), registered on the file of Joint Sub-Registrar-I, Dharmapuri. Properties were purchased as per the Trust Deed Clauses. After her demise, the present Trustees have taken over the Trust with Supplementary Deeds executed on 28.09.1998, registered as Document No.74 of 1998 and on 11.07.2002 vide Document No.123 of 2002. The present Managing Trustee, Mr.S.Venkateshwaran, took charge on 11.08.2018 and as per Supplementary Deed dated 13.04.2022, at present the Board of Trustees are as follows:

(1) Mr.S.Venkateshwaran – Managing Trustee with life time

(2) Mr.M.G.Sekhar – Additional Trustee

(3) Mrs.S.Rajeshwari – Additional Trustee

(4) Mr.Pradeep – Additional Trustee

III. Facts Relating to the Suit Property and Trial Court Proceedings:

4. The Public Trust is the absolute owner of the suit schedule property. As per plaint, market value of schedule property is Rs.12,34,14,000/-. The schedule properties were purchased in the name of the trust by various sale deeds. Suit has been instituted seeking permission to sell the property to maintain the colleges run by the trust. Thus, plaint has been instituted under Section 92 (f) of CIVIL PROCEDURE CODE (CPC). Paper publication has been effected. Registry, Madras High Court invited tenders from the prospective purchasers and received seven sealed covers. The Trial Court passed an order to open the sealed covers and awarded bid in favour of Mr.D.C.Elangovan for sum of Rs.16 Crore. The Trial Court found that the said amount was over and above the value projected by the plaintiff.

5. Pursuant to the order dated 22.10.2024, Trial Court declared Mr.D.C.Elangovan as successful bidder and his bid offer of Rs.16 Crore was accepted. Consequently, the successful bidder was directed to pay 23% of the bid amount initially and the said amount received was recorded. The Trial Court satisfied with the financial capacity of the successful bidder and directed to comply with the sale consideration. The successful bidder produced Demand Draft for a sum of Rs.10 Lakhs in favour of Registrar General, Madras High Court vide D.D.No.594878 dated 24.10.2024 drawing in the Indian Bank, Dharmapuri. Plaintiff/Trust was directed to execute the sale deed for the sale consideration for a sum of Rs.16 Crore within two weeks, failing which the High Court Registry shall execute the sale deed in favour of the successful bidder. The successful bidder initially paid a sum of Rs.4 Crore and thereafter Rs.10 Lakhs. The Tri