Allowed

In the Matter of - Gouri Devi Trust -and- Hemant Bangur v. Rajesh Kumar Bihani and Anr.

Calcutta HC8 Jun 2023ACR/1/2023

Case brief

AI extract

What is this about?

This order allows the trustee of the Gouri Devi Trust to sell an onerous immovable property, invoking Section 7 of the Charitable and Religious Trusts Act, 1920, and invest the proceeds in interest-bearing government bonds or fixed deposits instead of acquiring another property.

What did the court decide?

The trusted property is permitted to be sold and proceeds invested in government bonds and/or fixed deposits in nationalized banks until further orders.

In the Matter of - Gouri Devi Trust -and- Hemant Bangur Vs Rajesh Kumar Bihani and Anr. — Calcutta HC (2023) — LawSathi Research

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ORDER SHEET

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OD-19

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IN THE HIGH COURT AT CALCUTTA ORDINARY ORIGINAL CIVIL JURISDICTION

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ACR/1/2023 IN THE MATTER OF: GOURI DEVI TRUST AND HEMANT BANGUR VERSUS RAJESH KUMAR BIHANI AND ANR.

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BEFORE:

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The Hon’ble JUSTICE ARINDAM MUKHERJEE Date: 8^th June, 2023.

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Appearance: Mr. Ranjan Bachawat, Sr. Adv. Mr. S. Ginodia, Adv. Mr. Satyaki Mukherjee, Adv. Mr. Satvik Beriwala, Adv. For the petitioner.

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Mr. Rahul Kumar Singh, Adv. For the respondent nos. 1 & 2.

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The Court :- This is an application under the provisions of Section 7

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of Charitable and Religious Trusts Act, 1920 seeking an opinion of this Court regarding a clause in the trust deed which permits sale of an immovable property of the trust but prescribes for purchase of another immovable property from out of the sale proceeds. The trust intends to invest the sale proceed in interest bearing government bonds instead of buying an immovable property. The question has arisen because the trust considers a property having become onerous and is not generating any income instead expenses are

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required to be incurred to maintain the same is much in excess of the income generated therefrom.

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After hearing the applicant and the other trustees who are also represented and considering the provisions of the trust deed I do not find any impediment as such in the trustees selling a trust property if found to be onerous. Since the trust is finding it difficult to maintain the immovable property situate and lying at Station Road, Degana-341503, Rajasthan, admeasuring about 515.50 Square Gaj (2,062 sq. ft.) and the trustees have unanimously decided to sell the same subject to compliance other detailed requirements. The trustees are permitted to sell the said property after putting the Collector of Degana on notice. The sale proceeds received by selling the said property after adjustment of the costs and expenses for the sale shall be invested in government bonds and/or in fixed deposits earning highest interest rate in any nationalized bank and shall continue to keep the same renewed until any further order with regard thereto is passed by a competent authority. The dividend/interest that may be available out of the sale proceeds so invested for the purpose of fulfilling the object of the trust.

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The application, ACR No.1 of 2023, is, accordingly, disposed of.

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(ARINDAM MUKHERJEE, J.)

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snn

In the Matter of - Gouri Devi Trust -and- Hemant Bangur v. Rajesh Kumar Bihani and Anr.

Case brief

What is this about?

What did the court decide?

In the Matter of - Gouri Devi Trust -and- Hemant Bangur v. Rajesh Kumar Bihani and Anr.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

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