Section 36(1)(a) of the Maharashtra Public Trusts Act, 1950 – Extension of time for sale deed
By the order dated 6.2.2001, permission to sell its land at Nagala Park, Kolhapur, in favour of respondent no.5 was granted to the petitioner Trust.
However, the sale-deed could not be executed within the stipulated period of one year due to procedural and legal impediments.
In 2019, the petitioner applied to the Joint Charity Commissioner for extension of time to execute the sale-deed. However, this was rejected on 2.1.2025 finally after two rounds of litigation. It was held that permitting the sale at the old rate, without re-evaluation or inviting fresh bids, would be detrimental to the interest of the Trust.
HELD that the alienation of the Trust property is in the “interest, benefit or protection” of the Trust. The authority is under a statutory duty to protect the Trust’s interest and ensure that any alienation of trust property is undertaken in a manner that secures maximum value and benefit to the beneficiaries.
The stipulation of execution of sale deed in one year i.e. 6.2.2022 was an integral part of the statutory permission and cannot be treated as a mere formality or directory in nature. The imposition of such a timeline is not without purpose, rather, it serves a vital function of protecting the interest of the Trust by ensuring that the transaction is completed promptly and without any delay, thereby safeguarding the Trust from potential undervaluation of its assets in a fluctuating real estate market.
In this case, the petitioner seeks to revive transaction almost 25 years after initial permission was granted. To permit completion of the sale at the price of 2001, without any re-evaluation or fresh offers, would be manifestly detrimental to the interest of the Trust and would amount to defeating the very object and spirit of Section 36 of the Trust Act.
It is well settled that even upon remand, the Charity Commissioner retains the discretion to accept or reject the proposed transaction, provided the decision is founded upon sound reasoning and is in consonance with the object and mandate of Section 36 of the Act.
Judgment dated 7.4.2025 of the High Court of Bombay in Writ Petition No.4373 of 2025 of Commission on Ecumenical Mission and relations of the Presbyterian Church (USA) Vs. The state of Maharashtra and others
