N D CONSTRUCTION Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) Both these petitions are directed against the order of the Charity Commissioner dated 27th April, 1994 passed under Section 36 (2) of the Bombay Public Trusts Act, 1950 (hereinafter the Act ), by which the Charity Commissioner has revoked the sanction granted for sale of the land belonging to F.E. Dinshaw Trust ( the Trust ). The said order of the Charity Commissioner is challenged by the petitioners in Writ Petition No. 1486 of 1994 in whose favour sanction was granted for sale of the land as well as by the Trust by way of Writ Petition No. 1814 of 1994. The Trust has filed the said writ petition only for expunging the remarks made against the Trust by the Charity Commissioner in the impugned order.

(2.) The subject matter of the proceedings under Section 36 of the Act is the huge property belonging to the F.E. Dinshaw Trust situated at Malad, bearing Survey No. 79 (Part), CTS No. 226 (Pt.), admeasuring 94,511 sq.mtrs. The said Trust made an application under Section 36 (1) of the Act to the Charity Commissioner seeking his sanction for the sale of the said property. The Charity Commissioner granted sanction to the Trust on 6th April, 1992, by which the Trust had agreed to sell the property to one N.D. Construction (hereinafter N.D. Construction ) i.e. Writ Petitioner in Writ Petition No. 1486 of 1994. The order passed by the Charity Commissioner granting such sanction under Section 36 (1) of the Act was challenged by one of the unsuccessful bidders viz. Bhattad Leasing & Finance Co. Ltd. (hereinafter Bhattad Leasing ), who have been joined as respondents in both the petitions. The said Bhattad Leasing filed Writ Petition No. 931 of 1992 challenging the said sanction. A Division Bench of this Court dismissed the said writ petition on 24th April, 1992, by holding that no interference is called for against the order of the Charity Commissioner granting sanction under Section 36 (1) of the Act. The Special Leave Petition filed against the said order was also dismissed by the Supreme Court vide its order dated 14th July, 1992.

(3.) Subsequently, the said Bhattad Leasing, whose offer was not found favourable by the Charity Commissioner for purchase of the said land, moved an application for revocation of the sanction granted by the Charity Commissioner on 6th April, 1992 on various grounds. The said application was preferred under Section 36 (2) of the Act. The Charity Commissioner came to the conclusion that the Trust had concealed material aspects at the time when the application under Section 36 (1) of the Act for getting sanction was made. The Charity Commissioner, accordingly, allowed the said application and revoked the sanction granted on 6th April, 1992, vide his order dated 27th April, 1994. It is the aforesaid order of the Charity Commissioner which is impugned at the instance of N.D. Construction, in whose favour the sanction was granted. The trust has also filed a substantive petition challenging the said order being Writ Petition No. 1814 of 1994. The Trust has, however, filed this petition only for a limited prayer that the observations made by the Charity Commissioner about about fraud and misrepresentation on the part of the Trustees be expunged. The Trust has not challenged the part of the order by which while revoking sanction, the Charity Commissioner has directed fresh bid between N.D. Construction and Bhattad Leasing.