9911796707
TMI Blog2001 (5) TMI 967X X X X Extracts X X X X X X X X Extracts X X X X ..... ty Commissioner, Bombay, under Section 36(1) of the Bombay Public Trusts Act, 1950. 3. Five philanthropic members of the 'Parsi' community created a Trust, by name. The Tithal Parsi Sanatorium Trust . They felt the necessity of having a Sanatorium at Tithal, a small coastal town in the South Western part of the State of Gujarat. They collected some money and in the year 1907 a committee was constituted to hold these funds and to carry out the objects of the Trust. Initially, they acquired two and half acres of land with some buildings on it. Thereafter, further donations were collected and with those funds they purchased some more properties. All these properties and assets were held by the members of the committee in trust and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Shah is its promoter. The Trustees filed an application before the Charity Commissioner, Bombay, for permission under Section 36 of the Bombay Public Trusts Act, 1950. In the application, they stated that they had entered into an agreement of lease with the 5th respondent whereby 2 acres of Trust property were to be alienated and given on lease to the 5th respondent for a period of 99 years and the 5th respondent agreed to construct 8 blocks of 450 sq. feet each for the Trust at a cost of ₹ 7,75,000, which would form the Sanatorium. It was also stated that the remaining area would be leased to the 5th respondent on certain conditions. Two agreements of lease were thus entered into by the Trustees with the 5th respondent. The Charit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The appellants also urged before the High Court that there could be better proposals from other parties. The High Court, however, held that the Trust is not a position to run the Sanatorium and the leasing out of the property was being done with a view to carry out the object of the Trust. The High Court further held that the petitioners could not substantiate their claim that there were better proposals from other parties. Consequently, the order of the Charity Commissioner was upheld. 6. We heard learned counsel for the appellants as also learned counsel for respondents 2-4. The counsel for the appellants drew our attention to the various clauses in the two agreements executed by the 5th respondent in favour of the Trustees. It was poi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the 5th respondent-lessee would make use of the 12 acres of lands to be given to him at an annual rent of ₹ 1,51,000/- under the lease agreements. 9. The counsel for the appellants also pointed out that it is likely that there would be better offers from other parties. The offer made by the appellants themselves is not very encouraging and the respondents were right in not accepting the same. However, we are told that there were some other offers also from some will-known charitable institutions. In the best interests of the Trust and its objects, we feel it appropriate that respondent nos. 2 to 4 should explore the further possibility of having agreements with better terms. The objects of the Trust should be accomplished in the be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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