GANESH RAMCHANDRA JADHAV versus GOVARDHAN SANSTHA (REGD) WAI PUNE AND OTHERS

GANESH RAMCHANDRA JADHAV versus GOVARDHAN SANSTHA (REGD) WAI PUNE AND OTHERS

The High Court order directing sale to the second respondent for Rs 80 lakhs was set aside because the incremental offers by the second respondent suggested the true market value had not been realised and acceptance would jeopardise the interests of the public charitable trust; the appropriate remedy was to direct the Joint Charity Commissioner to obtain a fresh valuation, fix an upset price not less than Rs 1 crore, invite fresh bids by public advertisement, consider all bids (including from the appellant and the second respondent) and report to the High Court, with the appellant's deposit of Rs 1 crore to be invested in a fixed deposit and available to be adjusted towards any bid if...

Parties
Appellant: Ganesh Ramchandra Jadhav; First Respondent: Govardhan Sanstha (Regd) Wai, Pune; Second Respondent: Second respondent; Third Respondent: Joint Charity Commissioner, Pune
Jurisdiction
India
Judgment Date
19 July 2021
Procedural Posture
Civil Appeal (special Leave Petition Under Article 136) / Appeal From Judgment and Order of the Bombay High Court Dated 26 February 2021 (writ Petition No.3894 of 2019)
Outcome
Appeal allowed
Legal Topics
Sale of Trust Property, Auction and Upset/reserve Price, Valuation of Property, Tender/bidding Process, Collusion Between Parties, Duties of Charity Commissioner Under Section 36 of the Maharashtra Public Trusts Act, 1950
Charitable Trusts Public Trust Law Property Law Administrative Law Sale of Trust Property Auction and Upset/reserve Price Valuation of Property Tender/bidding Process +2 more

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Parties

Ganesh Ramchandra Jadhav

Appellant

Govardhan Sanstha (Regd) Wai, Pune

First Respondent

Second respondent

Second Respondent

Joint Charity Commissioner, Pune

Third Respondent

Procedural Posture

Civil Appeal (special Leave Petition Under Article 136) / Appeal From Judgment and Order of the Bombay High Court Dated 26 February 2021 (writ Petition No.3894 of 2019)

Legal Issues

  1. 1 Whether the High Court was right to dismiss the writ petition and direct sale in favour of the second respondent for Rs 80 lakhs
  2. 2 Whether the appellant's deposit of Rs 1 crore before this Court entitles him to have the sale process reopened or to be preferred
  3. 3 Whether the incremental offers made by the second respondent indicate that the true market value of the trust property was not realized and whether a fresh auction/valuation is required

Ratio Decidendi

The High Court order directing sale to the second respondent for Rs 80 lakhs was set aside because the incremental offers by the second respondent suggested the true market value had not been realised and acceptance would jeopardise the interests of the public charitable trust; the appropriate remedy was to direct the Joint Charity Commissioner to obtain a fresh valuation, fix an upset price not less than Rs 1 crore, invite fresh bids by public advertisement, consider all bids (including from the appellant and the second respondent) and report to the High Court, with the appellant's deposit of Rs 1 crore to be invested in a fixed deposit and available to be adjusted towards any bid if...

Court Disposition

Appeal allowed

Orders

  • The impugned order of the Bombay High Court dated 26 February 2021 dismissing Writ Petition No.3894 of 2019 is set aside
  • The writ petition (Writ Petition No.3894 of 2019) is restored to the file of the High Court of Judicature at Bombay