06 May 2024 Property/Real Estate Law >> Property & Real Estate   |   Sale of Property >> Property & Real Estate  

A legal battle over the sale of a dilapidated building owned by a Public Trust in Mumbai has finally reached a conclusion. The court has ruled in favor of the initial highest bidder, ANR Group of Companies.

The case centred around the Trust's decision to seek fresh bids after ANR emerged as the winner in the initial process. This move was challenged by ANR, who argued they followed proper procedures and submitted the highest offer.

The court acknowledged a four-year delay by the Trust in submitting the sale application. While the Joint Charity Commissioner initially invited fresh bids, only one new bidder participated, offering Rs. 10 crores. Interestingly, this bidder, Respondent No. 5, had previously offered a significantly lower amount.

The court criticized the delays by both the Trust and ANR. However, prioritizing securing the best price for the Trust, the court considered the existing tenant agreements with ANR. The possibility of a new developer offering less favorable terms for the tenants weighed heavily in the decision.

In a key ruling, the court rejected the idea of further bidding between ANR and Respondent No. 5. Instead, they allowed the sale to proceed with ANR at the matched offer price of Rs. 10 crores. This amount represents a substantial increase over the initial valuation of the property.

The Joint Charity Commissioner is now directed to issue the necessary sale permission with appropriate terms and conditions. Respondent No. 5's bid deposit will be refunded.

This case highlights the importance of transparency and efficiency in handling public trust property sales. While maximizing value is crucial, the court also recognized the importance of honouring existing agreements and ensuring a smooth transition for tenants.

BOMBAY PUBLIC TRUSTS ACT, 1950        

MAHARASHTRA PUBLIC TRUSTS ACT, 1950