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2026 Supreme(Guj) 1289

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
HEMANT M. PRACHCHHAK, J.
Madhavlal Bhalchandra Patel (Deceased) & Ors. - Petitioners
Versus
Patel Dineshbhai Govindbhai & Ors. - Respondents
R/Special Civil Application No. 6605 of 2002
Decided On : 01-04-2026

Advocates Appeared:
For the Petitioners: Mr. Dipak R. Dave.
For the Respondents: Ms. Nirali Sarda, AGP, Mr. Bharat T. Rao.

The primary authority vested with the power to sanction the alienation of trust property must act in the entity's best interest. Appellate courts should not substitute their own judgment for the authority's considered decision unless it is proven that the findings are perverse, illegal, or suffer from serious procedural infirmity.

Headnote:(A) Public Trust Act - Section 36 - Alienation of trust property - Grant of sanction - Duty of authority - Authority is required to examine the matter to determine if the need to alienate property has arisen and whether it acts in the interest of the trust - Factors such as financial position, market value, and potential income must be considered. (Para 7)

(B) Appellate Jurisdiction - Scope - Power vested in primary authority - Appellate body should not substitute its decision for that of the primary authority when the legislature has specifically entrusted such power to the latter, unless the original decision is afflicted by perversity or material illegality. (Para 7)

Facts of the case:
The litigation involves a dispute regarding the alienation of land belonging to a registered public trust. A bidder challenged the decision of a revenue tribunal which had remanded the matter back for fresh consideration regarding the disposal of property to a higher authority. The petitioner sought an order declaring them the successful bidder entitled to possession of the property, alleging procedural irregularities in the tendering process. The respondent asserted that the property was sold in accordance with the prior sanction of the appropriate authority, following a transparent bidding process.

Findings of Court:
The court observed that the primary authority exercised its mandate appropriately by keeping the interest of the public entity in mind. The appellate tribunal's decision to remand was assessed against the standard of whether the original sanction was legally sound. Determining that the guidelines for evaluating the alienation of property were satisfied and that no significant error of law or fact existed in the lower authority's decision, the court concluded that interference was unwarranted.

Issues: Whether the appellate tribunal erred in law by remanding the matter for fresh consideration and whether the court should substitute its own findings of fact for those recorded by the primary sanctioning authority regarding the disposal of property.

Ratio Decidendi: The court held that the primary authority tasked with granting sanction for the alienation of property must act justly and fairly, ensuring the best interests of the entity are protected. Once the primary authority has exercised this discretion based on relevant factors, an appellate body should not interfere or substitute its own opinion unless the original decision is fundamentally flawed, perverse, or legally unsustainable.

Result: Petition dismissed; rule discharged.

Table of Content
1. procedural context for review of public trust property alienation. (Para 1 , 2 , 3)
2. allegations regarding procedural fairness and suppression of facts in auction. (Para 4 , 5)
3. charity commissioner's discretion is paramount in trust property sales. (Para 6 , 7 , 8)

JUDGMENT :

1. Present petition is filed under Articles 226 and 227 of the Constitution of India and under Section 36 (1)(3) of the Bombay (now Gujarat) Public Trust Act (hereinafter be referred to as “the Act”) seeking the following reliefs:-

(A) Be pleased to quash and set aside the judgment and order of the Gujarat Revenue Tribunal dated 29th November 2001 to the extent only of remanding the matter back to the Charity Commissioner.

(B) Be pleased to hold and declare that the petitioner being the highest bidder stands entitled to property in question of the trust and therefore YOUR LORDSHIP may be pleased accordingly to direct the Respondent to execute the documents in favour of the petitioner and to hand over the vacant possession of the entire property by charging the entire amount from the petitioner quoted in the tender.

(C) during the pendency, hearing and final disposal of this petition, YOUR LORDSHIP may be pleased to restrain the respondent – authorities from changing the character of property in any manner whatsoever i.e. alienating it, disposing it, selling it, giving on lease etc and be pleased to direct that the accrued income from the property should be deposited with the Charity Commissioner regularly.

2. Brief facts of the present case are, in nutshell, that the respondent – Charity Commissioner had published an advertisement in the local daily newspaper “Sandesh” where the offer has been made for sale of property of Catholic Church to which the petitioner had made an application offering the price of Rs.7,53,313/- and sent a pay order for Rs.75,333/-. It is the case of the petitioner that there were only two offers i.e. one from the petitioner and other from respondent No.2 on the date of opening of the tender and then the petitioner was informed by the Charity Commissioner that opening of tender has been postponed to 07.01.2000. It is also the case of the petitioner that though the offer of respondent No.1 was not there, his offer was included, for which the petitioner has raised an objection for the same and Charity Commissioner assured to pass an order on objection of the petitioner. That the respondent – authority passed an order in favour of respondent No.1 but the same was not communicated to the petitioner and hence, the petitioner visited the office of the Charity Commissioner, but he was informed that no such orders came to be passed and then the petitioner applied for certified copy of the order regarding disposal of property. It is further the case of the petitioner that he was provided copy of order, which came to be passed wherein his objections have been incorporated and thereafter the petitioner had preferred Appeal No. 11 of 2000 before the Gujarat Revenue Tribunal, Ahmedabad (hereinafter be referred to as “the Tribunal”) and the Tribunal stayed the impugned order of the Charity Commissioner. Though the petitioner submitted the copy of order of the Tribunal to the Sub – Registrar, despite of that he had registered the property in question. It is further the case of the petitioner that the Sub – Registrar had given in writing to the petitioner that he was not concerned with the order of the Tribunal and the Tribunal has been leased to quash and set aside the order of the Charity Commissioner and remanded the matter back to the Charity Commissioner for inviting fresh offer under Section 36 of the Act. It is also the case of the petitioner that the Tribunal had come to the conclusion that the order was defective on the basis of appreciation of evidence that has been led and material which has been produced, therefore, it was not required to remand the matter back to the Charity Commissioner as petitioner was highest bidd

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