NDLI: Ganesh Ramchandra Jadhav Vs. Govardhan Sanstha (regd) Wai Pune and Others

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Maharashtra Public Trust Act 1950 collusion between the first and second respondent Tender
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case(s) Referred	Referred Case 0
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Maharashtra Public Trust Act, 1950 – Tender – In 2015, a tender notice was issued by the first respondent-registered charitable trust inviting bids for the development of the property – Bids were tendered by the appellant and the second respondent – There were various rounds of litigation between the first respondent, second respondent, third respondent-Joint Charity Commissioner and the appellant regarding the bids offered – In 2021, the appellant filed an intervention application in the writ proceedings, alleging collusion between the first and second respondent for the sale of the said property – Appellant offered an amount of Rs. 75 lakhs for the property – However, appellant did not abide by its offer despite various opportunities given by the High Court – Thereafter, second respondent made an offer of Rs.80 lakhs and accordingly, the High Court directed to complete the transaction with the second respondent – Before the Supreme Court, the appellant submitted that he was ready with Rs. 75 lakhs and High Court should have granted further extension of time – On 18.03.2021, the appellant was directed to deposit Rs.1 crore in the High Court to his bona fides and the same was complied with – It was contended by the second respondent that all along, it was second respondent who has participated in the process of auction sale and the appellant had failed to avail of the opportunities which were granted by the High Court – It was urged that having regard to the principles of law which have evolved by the judgments of the Supreme Court, it would be necessary to reject the offer which is now made by the appellant and to award the property to the second respondent – Held: At the present time, the appellant has deposited an amount of Rs. 1 crore before the High Court – To accept the bid of the second respondent in the amount of Rs. 80 lakhs will deprive the trust of the opportunity of realising the full market value – The decision of the High Court to award the sale in favour of the second respondent would cause serious jeopardy to the interests of the public charitable trust – The manner in which the second respondent has increased his offer in driblets (from Rs.50 lakhs to Rs.75 lakhs and thereafter, to Rs.80 lakhs) leads to a reasonable inference that the true value of the property was not realized – The appropriate direction would be to require the third respondent to conduct the auction process by inviting fresh bids after a proper valuation – Accordingly, directions issued.
Judge	Hon'ble Dr. Justice D.Y. Chandrachud
Neutral Citation	2021 INSC 339
Petitioner	Ganesh Ramchandra Jadhav
Respondent	Govardhan Sanstha (regd) Wai Pune And Others
SCR	[2021] 6 S.C.R. 491
Judgement Date	2021-07-19
Case Number	2748

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