The High Court exceeded its supervisory role by participating as an auctioneer in the sale of trust property, which led to annulment of the auction and subsequent orders.

JUDGMENT :

S.M.SUBRAMANIAM, J.

I. Introduction:

The present original side appeal has been instituted to set aside the order dated 21.01.2025 passed in Application No.5189 of 2023 in C.S.No.721 of 1923, whereby the learned Single Judge of this Court declared the 2^nd respondent as the highest bidder in respect of the subject lands situated at Thiruvarankurichy Village, Ponnampatti Town Panchayat, Marungapuri Taluk, Trichy District and also to set aside the subsequent order dated 04.06.2025 in continuation of the above order in the Application.

II. Background Facts and Scheme Decree:

2. The brief facts show that an agreement was entered among the family members of Sri Gopaldas Govardhandas on 05.06.1955. A Scheme decree was passed on 17.02.1925 in C.S.No.721 of 1923. Application No.5189 of 2023 was filed by the Trust viz. Gopaldas Dwarakadas Family Trust Estate, represented by its Managing Trustee, seeking permission to sell the immovable properties belonging to the Trust, described in the schedule to the Judge’s Summons to one Mr.Abul Abbas for a sale consideration of Rs.2,09,50,000/-.

3. In the application itself, the Trust has identified and declared the proposed purchasers of the Trust property along with the sale consideration. Under the Scheme Decree passed by the High Court in C.S.No.721 of 1923 dated 17.02.1925, the Managing Trustees shall conduct charities by applying the surplus income. The Managing Trustee has stated that the income from the Trust properties is very meagre and in order to carry out the laudable objects of the Trust, they have decided to sell the immovable properties.

4. Clause 14 of the Scheme Decree dated 17.02.1925, clearly prohibits any alienation by the Managing Trustee except with the permission of the Court. On 27.03.2023, a General Body Meeting was convened by the Trust and a resolution was passed authorising the Managing Trustee to apply for Court permission to sell the scheduled immovable properties. According to the Trust, the cultivating tenants, who are in possession of the properties have offered to purchase the scheduled properties for Rs.2,09,50,000/-. In order to avoid further expenditure, the sale price and the purchaser were identified.

5. The learned Single Judge considered the issue of whether the price offered by the proposed buyer at Rs.2,09,50,000/- is a fair market price. According to the Trust, the tenants had pooled their resources and offered to purchase the properties for the said amount. Court while exercising Parens patriae jurisdiction under Section 92 C.P.C, it was considered just and proper to invite better offers before accepting the offer made by the cultivating tenants. Accordingly, the learned Single Judge directed the Trust to issue wide public notice in leading Tamil Dailies viz., Dina Thanthi and Dina Malar, inviting offers for purchase of the schedule properties and specifically setting out the schedule of the property. The Court further directed that the application should inform interested buyers to submit their offers in a sealed cover to the Registrar General, Madras High Court within 10 days from the date of publication.

6. In pursuance to the order dated 07.06.2024 paper publication was made in “Dinamani”, Trichy Division on 26.12.2024. Thereafter, learned Single Judge further proceeded to pass the impugned order on 21.01.2025. The said order would show that seven offers had been received by the Regist