Trust property leasing requires scrutiny of best interests, alternative proposals, and protective conditions before approval.

Long-term leasing of substantial trust property under the Bombay Public Trusts Act requires the Charity Commissioner to be satisfied that the arrangement best serves the trust's charitable object. Where the lease covers a major part of the land, the property yields little income, and the proposed terms do not clearly show how the lessee will use it, the material must justify why the permission is in the trust's interests. The Commissioner should also consider whether better proposals are available and whether conditions can be imposed to protect the trust. On that basis, the earlier permission could not stand as granted and reconsideration was required.

---

---

Issues: Whether permission granted under section 36 of the Bombay Public Trusts Act, 1950 for a long-term lease of substantial trust land was proper, and whether the matter required fresh consideration in the best interests of the trust.

Analysis: The trust property comprised a large extent of land, with no meaningful income to sustain the sanatorium, and the proposed lease was for 99 years over a major portion of the property. The terms disclosed no clear covenant showing how the lessee would use the land, and the material before the Charity Commissioner did not adequately explain why the arrangement would best serve the charitable object. The Court held that, in deciding whether to permit alienation or long-term leasing of trust property, the Charity Commissioner should examine whether better proposals are available and whether suitable conditions can be imposed to secure the trust's objects.

Conclusion: The permission could not stand as granted, and the matter was required to be reconsidered by the Charity Commissioner with liberty to invite fresh proposals and impose appropriate conditions.

---