IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

SPECIAL LEAVE PETITION(C) NO. 5348 OF 2010

JAI ENTERPRISES .......PETITIONER  

Versus

AMBIKA ENTERPRISES & ORS. .....RESPONDENTS

O R D E R

The second respondent Trust is the owner of  

Survey No.124 of village Wakad,  Taluke Munshi, District  

Pune admeasuring 4 hectares 67 ares.  The first respondent  

had filed W.P. No.7373/2008 for setting aside the order  

dated 8.10.2008 passed by the Charity Commissioner under  

Section  36  of  the  Bombay  Public  Trust  Act  according  

permission for the proposed sale of the said property by  

the second respondent-Trust to the petitioner herein for a  

consideration  of  Rs.1,26,09,000/-.   The  first  respondent  

contended that the sale was at an absurdly low price and  

against the interest of the Trust. The first respondent  

also  offered  a  price  of  Rs.  Five  crores  for  the  said  

property.  The  said  writ  petition  was  allowed  by  the  

impugned order dated 4.2.2010. The High Court directed (i)  

the Trust to re-advertise the proposed sale of the said  

property;  (ii)  the  Charity  Commissioner  to  consider  the  

further offers, if any, received in that behalf; and (iii)  

that if no further offers were received,convey the property

......2.

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to  the  first  respondent  for  a  consideration  of  Rs.Five  

crores. The said order was not stayed by this Court.

2. At  an  auction  held  by  the  Joint  Charity  

Commissioner, in pursuance of the said order of the High  

Court,  M/s.  Rainbow  Realtors  (P)  Ltd.  was  the  highest  

bidder,  its  bid  being  Rs.6,70,25,000/-.   This  Court  on  

30.8.2010  clarified  that  as  there  was  no  stay  by  this  

Court, the Joint Charity Commissioner may proceed, subject  

to the final result in this petition.  On 19.10.2010, the  

petitioner made a submission before the Court that it was  

willing to make a better offer. Therefore, this Court, by  

order dated 9.10.2010, directed an open auction in Court on  

9.11.2010.  On 9.11.2010, this Court held an open auction  

in which the petitioner and M/s. Rainbow Realtors (P) Ltd.  

participated.  The first respondent stated that it was no  

longer  interested  to  buy  the  property.   At  the  said  

auction, the petitioner made the highest bid of Rs.20.50  

crores (Rupees Twenty Crores and Fifty Lakhs) which was  

accepted by this Court and the petitioner was permitted to  

deposit  the  balance  of  Rs.15.50  crores  (after  deducting  

rupees five crores already deposited by it in pursuance of  

the order dated 19.10.2010) with the Registrar General of  

the Bombay High Court within eight weeks.  In view of the

acceptance of the  bid  of  the petitioner,  the  sum  of  

......3.

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Rupees five crores deposited by M/s. Rainbow Realtors Pvt.  

Ltd. (who was the highest bidder before the Joint Charity  

Commissioner)  was  ordered  to  be  refunded  with  accrued  

interest.   

3. When the matter came up today, the petitioner  

submitted that it has deposited the balance sale price of  

Rs.15.50 crores with the Registrar, Bombay High Court on  

4.1.2011 and in proof of it produced a xerox copy of the  

demand draft dated 3.1.2011 (issued by Corporation Bank,  

Pune  Main  Branch  on  its  Mumbai  Service  Branch)  and  the  

receipt issued by the High Court.   

4. In  view  of  the  above,  this  Special  Leave  

Petition (challenging the direction of the High Court for  

re-sale) is rendered infructuous.  However, in view of the  

subsequent events, it is necessary to record the following  

consequential directions:

(i) In view of the fresh auction sale on 9.11.2010, the  

challenge to the impugned order has now become infructuous.  

The impugned order of the High Court dated 4.2.2010 setting  

aside  the  acceptance  of  the  proposal  by  the  second  

respondent for the sale of the property to the petitioner

.......4.

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at Rs.1,26,09,000/-, stands affirmed.  Having regard to the  

subsequent events, whereby the property has been purchased  

by the petitioner itself at a price of Rs.20.50 crores as  

against  the  original  price  of  Rs.1,26,09,000/-,  this  

special  leave  petition  is  disposed  of  as  no  longer  

surviving for consideration.    

(ii) The sale in favour of M/s. Rainbow Realtors (P) Ltd.  

for Rs.6,70,25,000/- is not confirmed.   

(iii) The amount deposited by the petitioner with the High  

Court (Rs.5 crores plus Rs.15.5 crores) shall be released  

to the second respondent-Trust which will deal with the  

same  in  accordance  with  further  directions  of  the  

jurisdictional  Joint  Charity  Commissioner  in  regard  to  

investment thereof.

(iv) The permission under Section 36 of the Bombay Trust  

Act shall be deemed to have been granted for the sale in  

favour of petitioner for a consideration of Rs.20.5 crores.

(v)  Subject  to  the  petitioner  paying  stamp  duty  or  

making  available  the  stamp  papers  and  meeting  other  

expenses of sale and completing the formalities, the second

......5.

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respondent Trust shall execute the sale deed in favour of  

the petitioner within two months.

(vi) If any other amount (other than Rs.20.5 crores) had  

been   paid   earlier   by  the  petitioner  to  the second  

respondent-Trust, it shall be refunded by the Trust, to the  

petitioner.

5. The  special  leave  petition  is  disposed  of  

accordingly.

Re: Contempt Notice

6. This  Court,  by  order  dated  28.9.2010,  has  

directed  issue  of  a  notice  to  the  petitioner  and  its  

partners Joharsingh Sarwarsingh Malhotra to show cause why  

proceedings for contempt should not be initiated against  

them for having lodging a complaint dated 20.8.2010 with  

the Charity Commissioner, Maharashtra and Registrar General  

of  High  Court  of  Bombay  against  the  Joint  Charity  

Commissioner  in  regard  to  the  confidential  report  dated  

19.5.2010 submitted by him to this Court.

7. The petitioner and its partner have filed an  

affidavit tendering an unconditional apology on 26.10.2010.

.....6.

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On  the  facts  and  circumstances,  the  said  apology  is  

accepted and the said notice is discharged and closed.

  ......................J.             (  R.V.  

RAVEENDRAN )

New Delhi;    ......................J. January 12, 2010.              ( A.K. PATNAIK )