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

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

......3.
 - 3 -

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

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

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.

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.