Case Note & Summary
The dispute involved a property owned by a Trust, which was the subject of a sale to the petitioner at a price of Rs.1,26,09,000. The first respondent challenged this sale in the High Court, arguing that the price was unreasonably low and offered a higher price of Rs.5 crores. The High Court allowed the writ petition, directing the Trust to re-advertise the sale and consider further offers. Following this, an auction was held where M/s. Rainbow Realtors (P) Ltd. made the highest bid of Rs.6,70,25,000. The Supreme Court clarified that the auction could proceed without a stay. The petitioner later expressed willingness to make a better offer, leading to an open auction in court where the petitioner bid Rs.20.50 crores, which was accepted. The petitioner deposited the required amount, and the court found the challenge to the High Court's order infructuous due to the new auction results. The court affirmed the High Court's order, stating that the sale permission under the Bombay Public Trust Act was granted for the new price, and directed the Trust to execute the sale deed. Additionally, the court addressed contempt proceedings against the petitioner and accepted an unconditional apology, discharging the notice. The judgment was delivered on January 12, 2010.
Headnote
A) Property Law - Sale of Trust Property - Challenge to Sale Price - Bombay Public Trust Act, 1950, Section 36 - The petitioner challenged the High Court's order allowing the sale of trust property at a low price, which was later auctioned at a higher price. The court affirmed the High Court's order as infructuous due to subsequent events where the petitioner purchased the property at a higher price of Rs.20.50 crores (Paras 4-5).
Issue of Consideration
Whether the Special Leave Petition challenging the High Court's order for re-sale of property was infructuous.
Final Decision
The Supreme Court dismissed the Special Leave Petition as infructuous, affirmed the High Court's order, and directed the Trust to execute the sale deed for Rs.20.50 crores. The court also accepted the petitioner's unconditional apology regarding the contempt notice and discharged it.
Law Points
- Charity Commissioner
- Bombay Public Trust Act
- auction sale
- contempt proceedings
- unconditional apology
