BAGASARWALA PROPERTY LLP Vs. JOINT CHARITY COMMISSIONER WORLI

JUDGEMENT

(1.) By filing the present petition under Articles 226 and 227 of the Constitution of India, the petitioner has questioned order dtd. 29/1/2020 passed by respondent No.1. By the said order, respondent No.1 cancelled the earlier permission granted by the Office of the Joint Charity Commissioner on 24/5/2018. Respondent No.1 further directed respondent Nos.4 to 7, who are trustees of respondent No.3-Trust, to return to the petitioner entire amount of Rs.6,53,00,000.00 paid in relation to the property along with yearly rent of Rs.30,000.00, if such amount had been paid. Respondent No.1 also directed the Trustees to take steps for bringing the property back in the records of the Trust and to make necessary entries regarding the same within 180 days from the date of the impugned order.

(2.) The facts giving rise to the present proceedings, according to the petitioner, may briefly be stated. Respondent No.3-Trust had executed a lease deed concerning the property on 5/4/1917. Thereafter, an assignment deed relating to the same property came to be executed on 6/12/1932. According to the petitioner, the Trust later issued a notice dtd. 30/8/2016 stating that the lease and assignment rights in respect of the property stood terminated. It is further the case of the petitioner that on 27/4/2018 the Trust approached the Joint Charity Commissioner seeking permission to grant the property to the petitioner on lease for a period of 29 years. The proposal also contained a provision giving the petitioner a right to renew the lease from time to time and also a right to purchase reversionary rights relating to the property. After considering the proposal, the Joint Charity Commissioner granted permission on 24/5/2018. Thereafter, a lease deed came to be executed in favour of the petitioner on 18/9/2018. Soon thereafter, by a letter dtd. 20/9/2018, the petitioner exercised the option available under the agreement for purchase of reversionary rights. As a result, a conveyance deed came to be executed by the Trust in favour of the petitioner transferring such rights.

(3.) The record further shows that thereafter the Trust submitted a Change Report seeking deletion of the property from the Trust Register and other trust records. The said Change Report was accepted by the competent authority on 12/10/2018. Subsequently, on 14/12/2018, respondent No.2 initiated proceedings before respondent No.1 under Sec. 36(2) of the Maharashtra Public Trusts Act seeking cancellation of the sanction granted by the Joint Charity Commissioner on 24/5/2018. The petitioner opposed the said proceedings by filing an Affidavit in Reply on 25/2/2019. Thereafter, respondent No.2 filed an Affidavit in Rejoinder on 18/3/2019. The petitioner then filed an Affidavit in Sur-Rejoinder on 20/8/2019 and placed additional material on record opposing the prayer seeking cancellation of the sanction.