GOWRISHANKAR Vs. JOSHI AMBA SHANKAR FAMILY TRUST

JUDGEMENT

(1.) Special leave granted. Heard the learned counsel for the parties.

(2.) This appeal is directed against the judgment and order dated July 11, 1995 rendered by the Madras High Court disposing of two Original Side appeals. Facts leading to this appeal and relevant for its disposal are as under: By a deed of declaration dated January 15, 1939 (sic) one Ambasankar Joshi created the respondent No.1 - trust in relation to his three immovable properties, one of which is house and ground No.429 (new No. 162) at that street, Madras (hereinafter referred to as the 'property') for the benefit of his poor relations and for other charitable and pious purposes. As the trustees were finding it difficult to carry out the purposes of the trust for paucity of funds they moved the High Court in 1979 for modification of the terms of the trust deed so as to empower them to sell the above properties. By its order dated November 28, 1988 the High Court granted such power subject to the condition that it would be exercised only with the permission of the Court and the concurrence of 3/4th of the total number of trustees in office.

(3.) Armed with the above order the trustees invited offers for purchase of the property and on receipt of some offers sought permission of the High Court to sell the same at the highest price offered which was granted on February 9, 1984. However, in spite of the permission so granted, the trustees did not sell the property at the highest price offered, which was Rs.8,18,000/- till then, and instead thereof invited, and received, fresh offers including one from the respondent Nos. 10 to 18 (hereinafter referred to as the 'purchasers') who are brothers and members of a joint family, for Rs.9,00,000/-, by a resolution dated December 9, 1989 the trustees accepted the offer of the purchasers and entered into a formal agreement for sale with them on December 15, 1989, after receiving a sum of Rs.1,80,000/- an earnest money. Then on Janaury 15, 1990, the trustees applied for the clearance certificate required under the Income Tax Act for sale of the property. A week thereafter on Janaury 23, 1990 to be precise the appellants herein sent a letter to the trustees which reads as under: