Ashwin Balubhai Bhatt vs State and Others

Manmohan Singh, J.—The present application being IA No. 11866/2007 u/s 307 of Indian Succession Act, 1925 has been filed on behalf of the administrator for permission to sell the immovable property being House No. 7A-12, Western Ext. Area, Karol Bagh, New Delhi-1100 05. Vide order dated 25th May, 2005 this Court granted the probate in favour of the petitioner directing the administration of the property and credit of the deceased Dewang Mehta as detailed in the attached Schedule-I of the probate petition to the petitioner/applicant.

As per the directions contained in the order dated 25th May, 2005, the entire estate left behind by the deceased has to be settled in favour of the public charitable trust namely ''Dewang Mehta Foundation'' ("Trust"). It is stated in the application that the Trust has informed the Administrator that the abovesaid immovable property is of no use for the Trust and it is also not possible for the Trust to maintain the same. The physical condition of the house is in a very poor state which will require large amount of funds to renovate and to further maintain the property.

The Trust will have to incur expenditure on the stamp duty and the registration charges at the time of transfer, and also if the Trust sells the property at a later stage. The sale consideration would also be subject to capital gains tax if the property was sold after receiving it from the administrator and benefit intended to the Trust would be reduced substantially.

In the above circumstances, it is prayed that the petitioner be permitted to sell the property bearing House No. 7A-12, Western Ext. Area, Karol Bagh, New Delhi-110005 and thereafter to transfer/remit the sale consideration to ''Dewang Mehta Foundation Trust''.

In the valuation report of the Chief Revenue Controlling Authority dated 30th June, 2004 the property has been assessed to Rs. 20,24,025/-. In compliance of order dated 3rd November, 2008, the petitioner filed an affidavit on 6th December, 2008 alongwith the inventory of properties, credits and assets left by the deceased wherein the said property was valued at Rs. 2,50,000/- only.

The legal heirs of the deceased have already given their consent for the transfer of estate of the deceased to the Trust and also subsequently when the estate was in the process of being administered. Copies of the no-objection/consent letter issued by the legal heirs to the administrator recording their consent to the transfer of the estate to the Trust is also placed on record.

In view of the above, I allow the application. The applicant/petitioner is allowed to sell/dispose of the property only after obtaining the latest valuation report of the Chief Revenue Controlling Authority. Copy of the same shall be filed by the plaintiff before this Court. The total sale consideration shall be remitted to the Trust immediately after the sale of the property.

List the matter before the Court on 21st December, 2009 for awaiting the report.