In Brief
Ambadevi Sanstha, a registered public trust, challenged permission granted by the Joint Charity Commissioner to sell its agricultural and residential properties. The newly elected trustees opposed the sale, and higher offers were available, but the Commissioner granted permission at lower rates. The Supreme Court held that a Charity Commissioner must consider the interest, benefit, and protection of the Trust before granting sale permission under Section 36 of the Bombay Public Trusts Act, 1950. No equitable interest can be created before obtaining permission. Reserved prices must be fixed after ascertaining market value, and the best available offer must be accepted. The Court allowed the appeal, annulled the sale transactions, and directed restoration of possession to the Trust within two months.
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