2025LatestLegalSeptember 2025

Sale of Trust Property – Three Classic requirements

 

Judgment dated 3.9.2025 of the High Court of Bombay in Writ Petition No.2505 of 2023 of Vijay Narayan Sawant Vs.  The State of Maharashtra and others with connected Writ Petition (Stamp) No.7575 of 2024 of Shireen Sethna

Section 36 of the Maharashtra Public Trusts Act – Permission to sell Trust Property

Three Classic requirements – Interest, benefit and protection of the Trust

On 9.6.2011, the bids were invited for sale of the trust property admeasuring 50000 sq.mt from Survey No.479 at village Talegaon Tal Haveli District Pune,

By the order dated 28.10.2022 of the Joint Charity Commissioner, Mumbai, granted permission for sale of the said trust property to the Respondent No.7 Ms Uttam Associates for Rs.10 crores on the ground that there is possibility of acquisition and encroachment.

Full Bench Judgment in Sailesh Developers and others   Vs.   Joint Charity Commissioner, Maharashtra and others, (2007 (3) Mh LJ 717) has considerably expanded the concept of locus standi in the matter of challenging the order of sanctioning alienating of the trust property.

HELD that the averments in the application do not indicate with sufficient clarity the necessity for sale of the trust property.   The averments and assertions are too general and vague.

The considerations weighed with the Joint Charity Commissioner are far from satisfactory.  The pivotal question as to whether the proposed sale would be in the interest or benefit or protection of the Trust was not examined.

The Joint Charity Commissioner could not have lightly acceded to the ever improving version of the Respondent No.3 in regard to the necessity of sale.

The Charity Commissioner exercised parens patriae jurisdiction while considering and granting permission for sale of trust property.

The term parens patriae is Latin and in legal context, it refers to the “State or the Judiciary to act as a guardian of public interest and public trust”

 

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