The Charity Commissioner must substantiate the necessity and benefit of trust property sales, ensuring the interests of the trust and its beneficiaries are prioritized.

Hardas, for Respondent No. 7. CORAM: N. J. JAMADAR, J.

RESERVED ON : 18^th AUGUST 2025 PRONOUNCED ON : 3^rd SEPTEMBER 2025 JUDGMENT:

1. Rule. Rule made returnable forthwith, and, with the consent of the learned Counsel for the parties, heard finally.

2. By these Petitions under Article 227 of the Constitution of India, the Petitioners take exception to a judgment and order dated 28^th October 2022 passed by the learned Joint Charity Commissioner, Mumbai, whereby an Application, being Application No. 77 of 2021, preferred by the Respondent Nos. 3 to 5, seeking the permission of the Charity Commissioner under Section 36 (1) of the Maharashtra Public Trusts Act 1950 (“Trust Act 1950”) for sale of the property admeasuring 50000 sq ft equivalent to 4645.11 sq mtrs, bearing old Survey No. 703, new Survey No. 479, situated Village Talegaon, Tal Haveli, District Pune (“the Trust property”), came to be allowed and permission was accorded to the Respondent Nos.3 to 5, to alienate the Trust property on ‘as is where is basis’ in favour of the M/s Uttam Associates (R7), for a consideration of Rs.10 Crores, subject to certain conditions.

3. Background facts can be stated in brief as under:

3.1 The Petitioner in Writ Petition No. 2505 of 2023 claims to be a member of the managing committee/trustee of the Society of Servants of God (“the Trust”), registered under the Trust Act 1950, vide registration No. F-454, Mumbai. The Trust was established by late Dr. Dinshaw K. Mehta. Mrs. Shireen Sethna, the Petitioner in Writ Petition (Stamp) No.

7575 of 2024, is the daughter of late Dr. Dinshaw Mehta.

3.2 The Trust is governed by the Rules and Regulations (Exhibit “A” to the Petition). Principal object of the Trust is to serve the public at large and the membership of the Trust is open to anyone who leads and aspires to lead a “God Guided way of Life”.

3.3 Dr Mehta, the original Trustee and Settler, had purchased parcels of land bearing Survey Nos. 702, 703 and 730, admeasuring 63 acres in aggregate. The said land is recorded as the Trust property in the Schedule -I of the Trust.

3.4 Respondent No.3 claims that the Respondent No.3 was the only surviving Trustee. In exercise of the power conferred by Clause 27 of the Rules and Regulations, the Respondent Nos. 4 and 5 came to be appointed as the Trustees of the Trust on 13^th January 2021. A report filed by the Respondent No.3 to record the said change awaits adjudication.

3.5 The Respondent Nos. 3 to 5 filed an Application under Section 36 (1) (a) of the Trust Act asserting that under the Rules and Regulations of the Trust, the Trustees are empowered to deal with the Trust properties. To achieve the objects of the Trust, a number of charitable and philanthropic activities are required to be carried out. To carry out such activities, funds are required. In addition, for securing and preserving the Trust property which admeasures approximately 63 acres and to pay the regular outgoings for the staff, the Trust required funds. Therefore, the Trust decided to sell the subject property to raise the funds.

3.6 A public notice inviting the bids was issued on 9^th June 2021. Three offers were received. The Respondent No. 7 gave the highest offer of Rs.9.50 crores, with willingness to further enhance the bid if directed by the Competent Authority. Thus, the Respondent Nos. 3 to 5 sought permission to sell the subject property to Respondent No. 7.

3.7 The Petitioners resisted the Application by filing intervention applications.

3.8 By the impugned judgment and order, the learned Joint Charity Commissione