In Brief
A registered public trust sought to sell its agricultural and residential properties with the prior approval of a Charity Commissioner. However, the newly elected trustees objected to the sale. The Supreme Court held that the Charity Commissioner failed to comply with statutory requirements under the Bombay Public Trusts Act, 1950. Before sanctioning sale of charitable trust property, the Charity Commissioner must satisfy three requirements: the interest, benefit, and protection of the Trust. The Court found that no proper market valuation was done, no reserve price was fixed, and the offers relied upon were from 3-4 years before the application. The Court annulled the sale transactions and directed restoration of possession within two months."
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