Section 36 of the Maharashtra Public Trusts Act, 1950 – Salutary provisions – Sale of the Trust Property – Powers and Duty of the Charity Commissioner
Respondent No.2 Shri Bageshwar Mandir, Ratnagiri, has immovable properties in Ratnagiri and Mumbai.
Bhageshwar Bhuwan building at Mahim West, Mumbai, consisting of ground plus two storeyed structure consisting of 122 rooms owned by the Trust. In 2019, it was decided to sell the said property and public notices were published.
After considering the offers, the the offer of the petitioner for Rs.9,07,00,000/- was accepted. By the letter dated 1.8.2019, the Trust authorised the petitioner to start the process of redevelopment of the building. After the brief hiatus in the redevelopment due to Covid 19, MOU was executed on 21.11.2021 and the petitioner paid Rs.51,00,000/- to the Trust.
Respondent No.2 Trust filed application under Section 36(2) of MPT Act before the Joint Charity Commissioner, for sanction of sale. The Trust obtained valuation of the property from the government-approved Valuer.
However, on 24.7.2023, the Joint Charity Commissioner passed a hand written endorsement on the application of the Trust to issue public notices for fresh offers.
The petitioner has challenged the order dated 24.7.2023 and also the public notice dated 30.9.2023. Only one offer of Rs.10 crores was received and the said party was added as respondent.
HELD that the jurisdiction of the Charity Commissioner under Section 36 of the MPT Act is essentially to ensure that the sale of property is in the interest of Trust, it is not limited to mere grant of permission to the seller chosen by the Trust and in appropriate cases it is not circumscribed to consider only the offer of bidden chosen by the Trust. In the event it is found that the tender process of the Trust does not inspire confidence, the Charity Commissioner, in appropriate cases, is justified to invite fresh offers and himself conduct bidding process to ensure that trust property fetches maximum possible price.
Sale of Trust Property – Scope of Authority of the Charity Commissioner – Three classic requirements are – interest, benefit and protection of the Trust and the power extends to inviting offers from public and directing Trust to sell or transfer property to a person whose bid is best. Thus, the Charity Commissioner is empowered to take all steps including even power to re-auction the property.
Judgment dated 6.5.2024 in Writ Petition (L) No.30379 of 2023 of ANR Group of Company Vs. The State of Maharashtra and others
