Case Note & Summary
The present petition was filed by S.S. Mhatre and others seeking recall and setting aside of an order dated 11.1.1994 passed in Misc. Petition No. 43 of 1993, which sanctioned the sale of trust property by the Board of Trustees to the original respondent no. 10. The petitioners also sought a declaration that the agreement for sale dated 14.2.1994 be declared null and void, and pending hearing, an injunction restraining the respondents from implementing the agreement. The background facts reveal that on 6.11.1930, a scheme was propounded before the Bombay High Court in respect of Worli Gupchar & Bhoeye Sansthan Trust, which provided that all assets and properties vest in the Official Trustee appointed by the State Government, with Malaks appointed on the Board of Trustees for management. On 18.3.1935, a lease was granted by the Municipal Corporation for Greater Bombay for a plot of land for 999 years, and buildings were constructed and let out to tenants belonging to the Pathare Kshatriya Caste community. The Bombay Public Trusts Act, 1950 came into force in 1950, and the scheme is governed by its provisions. A proposal for redevelopment of the trust property was formulated, and on 20.10.1992, a proposal was submitted by the Board of Trustees to the court for sanction of sale. The court sanctioned the sale on 11.1.1994, and an agreement for sale was executed on 14.2.1994. The petitioners, claiming to be beneficiaries of the trust, filed the present petition in 1996 seeking to challenge the sale. The court held that the petition was not maintainable as the petitioners were not parties to the original proceedings and had not shown any sufficient cause for the delay. The court also noted that the sale was validly sanctioned under the Bombay Public Trusts Act, 1950 and that the petitioners had no locus standi to challenge the order after such a long period. The petition was dismissed with no order as to costs.
Headnote
A) Trust Law - Scheme of Trust - Vesting of Property - Under a scheme propounded in 1930, all assets and properties of Worli Gupchar & Bhoeye Sansthan Trust vest in the Official Trustee appointed by the State Government, with Malaks appointed on the Board of Trustees for management (Paras 2-3). B) Trust Law - Sale of Trust Property - Sanction of Court - The Board of Trustees sought and obtained sanction of the court under the Bombay Public Trusts Act, 1950 for sale of trust property. The court held that the sale was validly sanctioned and the petitioners, who were not parties to the original proceedings, cannot challenge the order after a long delay (Paras 4-6). C) Civil Procedure - Recall of Order - Maintainability - A petition seeking recall of an order sanctioning sale of trust property is not maintainable when filed by persons who were not parties to the original proceedings and who have not shown any sufficient cause for the delay (Paras 7-8).
Issue of Consideration
Whether the order dated 11.1.1994 sanctioning the sale of trust property can be recalled and set aside, and whether the agreement for sale dated 14.2.1994 is null and void.
Final Decision
The petition is dismissed. No order as to costs.
Law Points
- Scheme of trust
- vesting of property in Official Trustee
- sale of trust property
- sanction of court
- recall of order
- Bombay Public Trusts Act
- 1950
- limitation
- maintainability of petition
