TaxTMI 
TaxTMI 
1986 (4) TMI 350
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.... of 'public property' is equally true of property belonging to religious or charitable institutions or H endowments. The facts of the present case involving The sale of lands which have been sanctioned Lo be sold for about Rs. 20 lakhs by private negotiations, instead of by public auction, which the appellants are prepared to purchase for about Rs. 80 lakhs, illustrate this point in a telling manner Background : The legality and validity of a Government Order according permission to "Bugga Math", Tirupathi, a religious endowment, in exercise of powers under proviso Lo clause (c) of sub-section (I) of Section 74 of Andhra Pradesh Charitable and Hindu Religious and Endowments Act, 1966 (Act) to sell certain lands belonging to the Math b....
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.... acre, as against Rs. 62,500 per acre offered by the latter, have challenged the impugned order dated 12th February, 1982 (G.O. Rt. No. 232) passed by the Government of Andhra Pradesh inter alia on the ground that it manifests total non-application of mind to the essential pre-conditions embodied in proviso to section 74 (1)(c). The pre-conditions are :- (1) That the Government must be satisfied that lt is in the interest of the institution or endowment to permit the sale of these lands otherwise than by public auction. (2) That reasons for reaching this satisfaction must be recorded in the order. The aforesaid two pre-conditions are clearly spelled out by the relevant provision (proviso to Section 74(1)(c) which may be....
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....d to say, what it was bound to say, if it was so satisfied, that the departure from the prescribed mode of selling by public auction was in the interest of the 'Math'. Nor could it have failed to record its reasons in support of this conclusion, for, the statute in so many words, casts an obligation on the concerned authority to record such reasons in the order itself. The inference is therefore irresistible that the competent authority had failed to direct its mind to the requirements of law before passing the impugned order. It was argued that the impugned order reveals that the competent authority had 'read the two communications (dated 16.4.1981 and 1.12.1981) emanating from the Commissioner of endowments Department, and the reasons ....
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....lease to Original Respondent No. 8 (A. Munaswamy : Now deceased : represented by his Legal Representatives) in 1964. (4) The lands are in occupation of respondents 5 to 7 and 9 to 24. Their Legal capacity and legal right, if any, to be in possession of the land, has yet to be established. (5) Respondent No. 8 who claims to be a sitting tenant obtained a decree from the Court of District Munsiff, Tirupati, in O.S. No. 361/76 restraining the Manager from auctioning the lease hold rights before evicting him from the land. (6) The income derived by the Math from these lands is Rs. 1,225 per annum as at present. (7) The proposal to sell the lands to respondents 5 to 24 at Rs. 60,000 per acre would have fetched....
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....r the petitioners, states that the petitioners are willing to buy the land in question at the rate of Rs. 2,50,000 per acre and would deposit In this Court a sum of Rs. 10 lacs within three months from today and another Rs. 10 lacs within three months thereafter as earnest money with the condition that the amount of Rs. 20 lacs so deposited would be forefeited if the petitioners failed to purchase the land at the rate of Rs. 2,50,000 per acre. All further proceedings including execution of sale deed are stayed. This case be listed for hearing in the first week of March, 1986." In compliance with this Order the appellants have deposited the sum of Rs. 20,00,000 (Rupees Twenty Lakhs) in due course subject to the condition that the said amo....
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....e to be forfeited if the transaction is not completed. (4) special notice shall be given to the appellants And the concerned respondents herein. (5) the appellants' offer made in this Court for purchase at the rate of Rs. 2,50,000 per acre on the condition specified in clause (1) herein will be treated as the minimum bid of the appellants and the sum of Rs. 20,00,000 deposited in this Court (which will be transmitted to the Commissioner, Endowment in due course), shall be treated as the deposit made by them in pursuance to clause (3) herein. (6) The other terms and conditions may be such as are usually incorporated in such public auctions by the Commissioner who shall specify them along with the above mentioned te....