Bid for Sell and Development of the Trust Property: Court accorded permission, considering the benefits of the Trust
Civil Appeal No. 2981 of 2016
Bench: Justice Kurian Joseph and Justice Rohinton Fali Nariman
Case Brief: In the present case, there were several appeals which were brought before the concerned bench of the Apex Court against the final judgement of the High Court of Bombay. It was seen that the Division Bench of the said High Court had dismissed the letters patent appeal. The issues involved in the case was relating to the Trust Property in the Girgaun area Mumbai. The trustees in the case, have resolved to sell the concerned property to one Raunak Corporation (appellant in two appeals). And it was also seen that the permission for such sell was granted by the Charity Commissioner for the monetary consideration of Rs. 6 crores. However, the High Court of Bombay has set aside the order of the Charity Commissioner, in the writ petition which respondent in the appeals had preferred against the Trustees and also against the aforesaid Corporation. Moreover, against such judgement of the Single Judge of the High Court, the letters patent appeal was preferred before the Division Bench of High Court, however, the said judgement was against upheld. Thus, the said judgement was challenged before this bench. Moreover, this court earlier by its order of February, 2016 directed trust to issue a fresh advertisement regarding the re- development of the properties, however, with some modification in the consideration amount that was required to be replaced with Rs. 7 crores in place of Rs. 6 crores. As such, the advertisement was issued and from 9 persons initial responses were received, however, Trust considered only two offers, in which one was from Raunak Construction and second was from one ‘other company’. The Court after considering that among such two offerers the ‘other company’ was seen as only other bidder which has offered 7 crores. However, it was noted that earlier before 5 years, to such offer by the ‘Other company’ the Raunak Corporation had made offer of Rs. 6 crores and later improved its offer to Rs. 7 crores before the division bench of High Court, as such Court found that the offer of Ruanak Corporation as one reasonable. And as such finally, the court’s bench held that the initial offer was only the fair offer in the facts and circumstances of the case and also in the benefit of the trust. Thus, the order of the Division bench of the high Court was set aside and appeals were allowed.
Read the Judgement: Dattatraya Baburao Walawalkar & Ors. Vs. Siddhivinayak Construction P.Ltd.& Ors