GOWRISHANKAR AND ANR. versus JOSHI AMBA SHANKAR FAMILY TRUST AND ORS.

GOWRISHANKAR AND ANR. versus JOSHI AMBA SHANKAR FAMILY TRUST AND ORS.

Trustees suppressed appellants’ higher offer to the Court and obtained permission for sale by practising fraud; any permission or order so obtained is void and the matter must be reconsidered to ensure fair offers are considered.

Parties
Appellant: Gowrishankar and Anr.; Respondent: Joshi Amba Shankar Family Trust and Ors.; Respondent: Respondent No. 7; Respondent: Respondent Nos. 10-15
Jurisdiction
India
Judgment Date
22 February 1996
Procedural Posture
Civil Appeal / Appeal From Division Bench Judgment, Madras High Court
Outcome
Appeal allowed; impugned order set aside; matter remitted to Division Bench of High Court.
Legal Topics
Modification of Trust Deed, Fraud Upon Court, Sale of Trust Property
Trusts and Charities Property Law Modification of Trust Deed Fraud Upon Court Sale of Trust Property

Case Brief

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Parties

Gowrishankar and Anr.

Appellant

Joshi Amba Shankar Family Trust and Ors.

Respondent

Respondent No. 7

Respondent

Respondent Nos. 10-15

Respondent

Procedural Posture

Civil Appeal / Appeal From Division Bench Judgment, Madras High Court

Legal Issues

  1. 1 Whether trustees obtained permission to sell trust property by fraud by suppressing higher offer.
  2. 2 Whether sale should be set aside due to non-disclosure of highest offer to the Court.

Ratio Decidendi

Trustees suppressed appellants’ higher offer to the Court and obtained permission for sale by practising fraud; any permission or order so obtained is void and the matter must be reconsidered to ensure fair offers are considered.

Court Disposition

Appeal allowed; impugned order set aside; matter remitted to Division Bench of High Court.

Orders

  • High Court to call for fresh offers not less than Rs. 19,40,000 and grant permission to sell property at higher offer received, on terms as law and equity may demand.
  • Appellants entitled to costs of Rs. 10,000 from trustees.