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High Court of Bombay, Nagpur Bench, adjudicates appeal against order in a suit for specific performance of contract for sale of agricultural land by a public trust. The appeal concerns the validity of an order rejecting an application to restrain a bank from auctioning the land pending the suit.

High Court: Bombay High Court Bench: NAGPUR
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2026-09-09 17:49:21
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Issue of Consideration

Appeal against Order No. 23 of 2003

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Case Details

2006 LawText (BOM) (11) 137

Appeal against Order No. 23 of 2003

2006-11-29

A.H. Joshi, J.

Mr. R.L. Khapre for appellants, Mr. A.M. Ghare for Respondent Nos. 1 and 3, Mr. K.K. Pillai for Respondent No.9

Shaikh Sikandar Sk. Haidar, Gulam Khwaja Gulam Habib, Raisabee wife of Bismilla, Shanaj Parvin wife of Sk. Shabbir, Gulam Mohsin Gulam Khawaja, Taimunabee wife of Sk. Majeed, Sk. Majeed Sk. Haidar, Sk. Salim Sk. Kadir, Gulam Ayajaz Gulam Khawja, Afshanbi wife of Gulam Sarvar

Shri Saraswati Education Society represented by Secretary Keshav Krishnaji Joshi, Keshav Krishnaji Joshi, Dinkar Abaji Dabhadkar, Deleted as per Court's order dated 14-8-03, Yeshwant Eknath Deshpande, Shyamsundar Mohanlal Sharma, Sau. Shailaja wife of Keshav Joshi, Sau. Nalini wife of Vinayak Joshi, Allahabad Bank through its Branch Manager

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Nature of Litigation

The appeal is against an order passed in a suit for specific performance of an agreement to sell agricultural land owned by a public trust.

Remedy Sought

Plaintiffs (appellants) sought to restrain the respondent Bank from auctioning the suit property, dealing with it, or dispossessing them.

Filing Reason

The suit was filed because the trustees failed to execute the sale deed despite permission, and the application for restraint was filed after a DRT decree to protect the suit property.

Previous Decisions

The Joint Charity Commissioner granted permission to sell the suit land to the appellants on 1998-09-11; the writ petition challenging that permission was dismissed on 2001-07-30; the DRT decreed the bank's claim against the trust and rejected the appellants' intervention application on 2003-02-28; the order appealed against is not detailed in the available text.

Judgment Excerpts

The Tribunal is constituted only to receive applications from the Banks and other financial institutions, and the power is limited only to adjudicate and recover the amount due to it. The Joint Charity Commissioner found that the petitions raising objections did not merit consideration for want of any substance and genuineness and also that any objection from any of the trustees or any person having interest in the Trust, contending that the sale was not intended for advancement of object of the Trust was not received.

Procedural History

The respondent Public Trust resolved on 1994-01-05 to sell immovable properties and issued a public notice. The appellants' highest offer was accepted and an agreement of sale dated 1994-09-28 was executed with earnest money paid. The Trust applied under Section 36(1)(b) of the Bombay Public Trusts Act for permission to sell, which was granted by the Joint Charity Commissioner on 1998-09-11. A writ petition challenging that permission was dismissed on 2001-07-30. Meanwhile, the respondent Bank filed a suit for recovery of loans, which was transferred to the DRT and decreed on 2003-02-28, with the appellants' intervention application rejected. The appellants had filed Special Civil Suit No. 81 of 1999 for specific performance of the agreement. During that suit, they filed an application (Exh.37) on 2003-03-20 seeking restraint against the Bank. The present appeal challenges the order passed on that application.

Acts & Sections

  • Bombay Public Trusts Act: Section 36(1)(b)
  • Recovery of Debts Due to Banks and Financial Institutions Act, 1993: Preamble
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Tags :
specific performance agreement of sale agricultural land public trust Bombay Public Trusts Act Section 36(1)(b) Joint Charity Commissioner Debt Recovery Tribunal Recovery of Debts Due to Banks and Financial Institutions Act, 1993 intervention application auction temporary injunction trust property

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