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2010 DIGILAW 810 (MP)

Narayan Dharamshala v. Registrar, Public Trust

2010-08-10

S.K.GANGELE, S.S.DWIVEDI

body2010
ORDER S.S. Dwivedi, J.-- 1. Appellant/petitioner has filed appeal under section 2 (1) of Madhya Pradesh Uchcha Nyayalaya (Khand Nyay Peeth Ko Appeal) Adhiniyam, 2005 aggrieved by the order dated 4.9.2009 passed by learned Single Judge of this Court in WP No. 2651/2009, whereby the petition filed by the petitioner against the order dated 4.5.2009 passed by the learned Registrar, Public Trust, has been dismissed. 2. Brief facts of the case are that the petitioner being Trustee of a Public Trust filed an application before the Registrar for grant of permission to sell out the Trust property a house situated at Saudagar Santar, Morar, Gwalior, having Municipal No. 358 and Halka No. 33, on the ground that the aforesaid house has become dilapidated and is not in any use. No income is also accruing by the use of said house, therefore, permission be given to the Trust to sell the aforesaid property so that sale proceeds can be deposited in fixed deposit in a nationalised bank in the name of the Trust and accrued interest can be used for the object of the Trust. Aforesaid application has been dismissed by the Registrar, Public Trust, by the order dated 20.2.2006. Aggrieved by the aforesaid order, the petitioner filed W.P.No. 2651/2009. The learned Single Judge of this Court by order dated 4.9.2009 has also dismissed the petition. Hence, this appeal before this Court. 3. Having heard learned counsel for the parties and perused the impugned order. 4. It is submitted by learned counsel for the appellant/petitioner that admittedly the Trust property i.e., the concerning house is in so dilapidated condition that nobody can use the aforesaid house for the object of Trust concerned and for the use of any school or Ashram as directed in the Trust deed. 4. It is submitted by learned counsel for the appellant/petitioner that admittedly the Trust property i.e., the concerning house is in so dilapidated condition that nobody can use the aforesaid house for the object of Trust concerned and for the use of any school or Ashram as directed in the Trust deed. The Trust itself is not having so amount by which the aforesaid property can be re-prepared on reconstructed, therefore, only option remains with the Trust to sell out the aforesaid Trust property for betterment of the Trust and the entire amount of the sale proceed of the concerning Trust house can be deposited in a nationalised bank and accrued interest can be used for the purpose of object for which the trust has been created and the learned Registrar, Public Trust as well as learned Single Judge of this Court have wrongly disallowed the aforesaid prayer of the Trust Hence, he prayed for setting-aside of orders and also prayed for grant of permission for sale of the Trust property. 5. Learned counsel for the appellant has also placed reliance on the decision of P Rajagopala Gramani v. Baggimmal, AIR 1933 Madras 242 and also on the decision of Andhra Pradesh High Court in Sahebzadi Amina Marzia v. Syed Mohd. Hussain and others, AIR 1981 Andhra Pradesh 340. 6. In reply, learned Govt. Advocate for the State supported the impugned order and submits that in the Trust deed itself, the trustees are forbidden for any transfer of Trust property in any manner, therefore, both the Courts have rightly refused to grant permission for sale of the property concerned and no grounds are available for any interference in the impugned order. 7. On perusal of the trust deed it is apparent that in the Trust deed, a specific condition has been imposed that the Trust property cannot be leafleted in any manner and only the income of the Trust property can be used for the object for which the Trust has been created. But, on perusal of the photographs attached with the petition it is apparent that whole trust property, the concerning house is so dilapidated that cannot be used for any purpose and if the property is of no use then certainly it is also not earning any income from the aforesaid house of the property concerned. But, on perusal of the photographs attached with the petition it is apparent that whole trust property, the concerning house is so dilapidated that cannot be used for any purpose and if the property is of no use then certainly it is also not earning any income from the aforesaid house of the property concerned. Similarly, as stated hereinabove, Trust is not having so much amount on which basis the aforesaid house can be re-prepared and reconstructed and in such circumstances, for the betterment of the Trust, the aforesaid property can be sold and the sale proceeds can be deposited in a nationalised bank so that accrued interest can be spent for the object for which the trust has been created. 8. The Division Bench of Andhra Pradesh High Court in the case of Sahebzadi (supra) dealt with similar situation wherein in the trust deed there is a specific bar for sale of the Trust property then High Court came to the conclusion to achieve better object of the Trust property, trustee concerned can be permitted to sale and held here as under: "Under a trust deed executed in 1951, HEH Nizam of Hydrabad settled jewellery and ornaments and Government securities for the benefit of his two grand-daughters. Under the deed the beneficiaries were only allowed to wear and use the jewellery and ornaments on any special or festive occasion. The income out of certain security (i.e. Rs. 376 per annum) was only meant for meeting expenses for the safe custody, preservation and upkeep of the trust property. The corpus settled under the deed had been the subject matter of levy of tax under Wealth Tax Act, 1957. There was no money in the hands of trustees to meet this heavy and recurring wealth tax liability. The trustees were unable to sell the jewellery because of the .prohibition contained in the deed. Hence, they sought directions and advice of the City Civil Court under S. 34 of the Trusts Act. The Court was of the view that the selling of entire items of jewellary would amount to defeating the trust itself. The trustees were unable to sell the jewellery because of the .prohibition contained in the deed. Hence, they sought directions and advice of the City Civil Court under S. 34 of the Trusts Act. The Court was of the view that the selling of entire items of jewellary would amount to defeating the trust itself. On revision, the High Court opined that to carry out the real object of the trust and property course to be adopted in the interest of the beneficiaries was to direct the sale of the entire jewellery (the unproductive asset) in the bank idle when the trustee clearly stated that after meeting the present tax liability there would be sufficient balance which could be interested in fixed deposit to meet the recurring tax demand. Therefore, the entire jewellery and ornaments were directed to be sold." 9. Similarly, in the case of P. Rajagopala (supra) Madras High Court has also expressed the same view that "in the emergency for the benefit of the trust, the trust property can be sold after obtaining requisite permission from the competent authority." 10. On perusal of the entire facts of the case, we are of the considered opinion that it will be beneficial for the object of the trust that the Trust property can be sold out and after obtaining entire sale proceeds, another property can be purchased in the name of the Trust so that by the income of that purchased property, the object of the Trust can be fulfilled. 11. Considering the circumstances of the case, writ appeal succeeds and is hereby allowed with the following directions : (i) Petitioner trustee will find out the proposed purchaser for the property and proposal of the sale price from the proposed purchaser and thereafter, petitioner shall file an application before the Registrar, Public Trust, for the permission to execute the sale deed. (ii) Registrar shall verify the actual value of the property from the market and if the aforesaid proposed price is found to be maximum price of the house then Registrar shall grant permission to the Trustee for execution of the sale deed. (iii) Entire sale proceeds shall be deposited in the name of the Trust in a nationalised bank in the fixed deposit. (iii) Entire sale proceeds shall be deposited in the name of the Trust in a nationalised bank in the fixed deposit. (iv) Thereafter, the petitioner trustee will search out a specific house which can be purchased from the aforesaid sale proceed of the Trust property and after obtaining permission from the Registrar, Public Trust, the petitioner/Trustee shall purchase another house in the name of the Trust or purchase a plot of land and construct house thereon by the aforesaid sale proceeds and thereafter, that house can be used for the object for which the Trust has been created. With the aforesaid directions, appeal stands disposed of with no order as to costs.