Bombay High Court Allows Trust's Petition for Sale of Property Under Section 36(1) of Maharashtra Public Trusts Act, 1950 — Remand for Fresh Consideration. The court directed the Joint Charity Commissioner to consider the application on merits, including necessity and benefit of sale, and not to reject solely on the ground that the property is a source of income.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The petitioner, Shree Brahmanath Devasthan Unchagaon, a public charitable trust registered under the Maharashtra Public Trusts Act, 1950, sought permission under Section 36(1) of the Act to sell Gat No.351, measuring 42.5 Guntha at village Usgaon, Taluka Karveer, District Kolhapur. The Joint Charity Commissioner, Kolhapur Region, rejected the application by order dated 5th August 2019. The trust had initially applied in 2015, which was rejected, leading to Writ Petition No.3035 of 2015, which was remanded for fresh consideration. After remand, the respondent invited tenders but again rejected the application on 6th April 2017. The trust filed Writ Petition No.8501 of 2017, and the High Court directed an inspection and report. Based on the report, the High Court set aside the rejection order on 11th April 2019, granting liberty to file a fresh application. The trust filed a fresh application, which was again rejected by the impugned order dated 5th August 2019. The High Court, in the present writ petition, noted that the respondent had not considered the application on its own merits and had merely rejected it on the ground that the property is a source of income. The court held that the respondent must consider the application afresh, including the necessity and benefit of the sale, and pass a reasoned order within three months. The writ petition was disposed of accordingly.

Headnote

A) Charitable Trusts - Sale of Trust Property - Section 36(1) Maharashtra Public Trusts Act, 1950 - Permission for Alienation - The petitioner, a public charitable trust, sought permission to sell a plot of land. The Joint Charity Commissioner rejected the application. The High Court set aside the order and remanded the matter for fresh consideration, directing the respondent to consider the application on its own merits, including the necessity and benefit of the sale, and not to reject solely on the ground that the property is a source of income. (Paras 1-5)

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Issue of Consideration

Whether the Joint Charity Commissioner's rejection of the petitioner's application under Section 36(1) of the Maharashtra Public Trusts Act, 1950 for permission to sell trust property was justified.

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Final Decision

The High Court allowed the writ petition, set aside the order dated 5th August 2019, and remanded the matter to the Joint Charity Commissioner for fresh consideration. The respondent was directed to consider the application on its own merits, including the necessity and benefit of the sale, and pass a reasoned order within three months from the date of the order.

Law Points

  • Section 36(1) of the Maharashtra Public Trusts Act
  • 1950
  • Sale of trust property
  • Permission for alienation
  • Necessity and benefit of sale
  • Remand for fresh consideration
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Case Details

2024 LawText (BOM) (03) 35

Writ Petition No.3511 of 2020

2024-03-06

Amit Borkar

2024:BHC-AS:11841

Mr. Anil Anturkar, Senior Advocate with Mr. Ranjit D. Shinde, for the petitioner. Mrs. V. R. Raje, AGP for the State/respondent.

Shree Brahmanath Devasthan Unchagaon, Through Trustee Shri. Rajendra Shantaram Zurale

The Joint Charity Commissioner, Kolhapur Region, Kolhapur

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Nature of Litigation

Writ petition challenging the rejection of an application under Section 36(1) of the Maharashtra Public Trusts Act, 1950 for permission to sell trust property.

Remedy Sought

The petitioner sought to set aside the order dated 5th August 2019 rejecting its application for permission to sell trust property and sought a direction to grant such permission.

Filing Reason

The Joint Charity Commissioner rejected the petitioner's application for permission to sell trust property under Section 36(1) of the Maharashtra Public Trusts Act, 1950.

Previous Decisions

The application was initially rejected on 5th February 2015, which was remanded by the High Court in Writ Petition No.3035 of 2015 on 31st March 2016. After remand, the respondent rejected the application on 6th April 2017, which was challenged in Writ Petition No.8501 of 2017. The High Court set aside that order on 11th April 2019, granting liberty to file a fresh application. The fresh application was rejected by the impugned order dated 5th August 2019.

Issues

Whether the Joint Charity Commissioner's rejection of the application under Section 36(1) of the Maharashtra Public Trusts Act, 1950 was justified. Whether the respondent considered the application on its own merits.

Submissions/Arguments

The petitioner argued that the respondent did not consider the application on its own merits and merely rejected it on the ground that the property is a source of income. The respondent contended that the property is a source of income for the trust and therefore permission should not be granted.

Ratio Decidendi

The court held that the respondent must consider the application under Section 36(1) of the Maharashtra Public Trusts Act, 1950 on its own merits, including the necessity and benefit of the sale, and cannot reject the application solely on the ground that the property is a source of income.

Judgment Excerpts

The challenge in this writ petition is to the order dated 5th August 2019 rejecting the petitioner's application for permission under section 36(1) of the Maharashtra Public Trust Act, 1950. The respondent has not considered the application on its own merits and has merely rejected the application on the ground that the property is a source of income. The respondent is directed to consider the application on its own merits, including the necessity and benefit of the sale, and pass a reasoned order within three months from the date of this order.

Procedural History

The petitioner initially applied under Section 36(1) of the Maharashtra Public Trusts Act, 1950 for permission to sell trust property. The application was rejected on 5th February 2015. The petitioner filed Writ Petition No.3035 of 2015, which was remanded on 31st March 2016. After remand, the respondent rejected the application on 6th April 2017. The petitioner filed Writ Petition No.8501 of 2017, and the High Court set aside the order on 11th April 2019, granting liberty to file a fresh application. The fresh application was rejected by the impugned order dated 5th August 2019, leading to the present writ petition.

Acts & Sections

  • Maharashtra Public Trusts Act, 1950: 36(1)
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