In a significant legal battle, the Supreme Court of India recently delivered a judgment in the case related to a land exchange for educational purposes. The Court upheld the rights of the Doaba Public School in the matter, ensuring that the suit property remains dedicated to educational activities. The case sheds light on the importance of safeguarding educational institutions’ interests. Read on to discover the key highlights of this landmark judgment.
Facts
- The Respondent No.1 was permanently restrained from alienating the suit property or using it for any other purpose than for the educational needs of the school.
- The Trial Court held that the Respondent No.2-School was the duly appointed trustee in possession of the land donated by the plaintiffs.
- The mutation of exchange No.1824 was declared illegal, null, and void.
- Entries in the revenue record were ordered to be corrected in favor of the Respondent No.2-School as the owner and in possession of the suit property.
- The exchange of 24 Kanals of un-arable, unirrigated land for the valuable property of the school was deemed to be a ruse.
- The Appellants contended that the exchange was illegal and motivated by ulterior motives.
- The Gift Deed executed for the advancement of education vested the property in the Doaba Public School.
- The 4 Kanals 10 Marlas of land donated by Smt. Randhir Kaur was of high value and quality, being sought to be exchanged for inferior land without proper authority.
- The exchange of lands on 1.8.1988 was later reduced to writing in an agreement dated 25.08.1988.
- The exchange was found to be illegal due to lack of authorization from the society running the school.
- The mutation of the suit property was changed into the name of Respondent No.1, who claimed ownership over the property.
- The Court held that the exchange was void as the Principal did not have authority to enter into it without a society resolution.
- The registered Gift Deed without any reserved rights in the suit property could not be revoked.
- The alternative relief for a declaration that the Doaba Education Society is the rightful owner in possession was granted.
- Respondent No.1 had no right to use the suit property for any purpose other than the educational activities of the school.
- The High Court affirmed the order of the First Appellate Court in a judgment dated 25.5.2018.
- The First Appellate Court held that the donor cannot claim the gift to be invalid and the gift deed could not be cancelled.
- The Appellate Court determined that the Appellants lacked standing to challenge the matter after the Gift Deed was executed.
- The Court overturned the Trial Court’s judgment and declared the cancellation of the mutation in favor of the Appellant was incorrect.
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Arguments
- The land was exchanged to set up a school in a remote area for the children of Village Khanni to access education.
- Despite the exchange, the school continued to run from the suit property.
- The Counsel suggested that an Undertaking would be given by the Respondents to ensure the school continues to operate from the suit property in the future.
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Analysis
- The Appellant Court and High Court granted the right of the alternate prayer made by the Appellant.
- The exchange of land was claimed to benefit the students, but it was actually a breach of faith and trust by the President and Principal of the School.
- The collusive transaction between the Principal and President of the School resulted in the Principal becoming the owner of the land, which was illegal and unauthorized.
- The exchange lacked proper resolutions from the Doaba Education Society, which owned the land as per the Gift Deed.
- Additional documents were not allowed to be submitted by the Respondent at the end of the proceedings.
- The First Appellate Court and High Court limited their discussion to the possession declaration prayer, overlooking the illegality of the exchange.
- The school could not lose ownership of the property through the unauthorized exchange.
- The Trial Court correctly decreed in favor of the alternate prayer for a declaration of ownership.
- The mutation entries for the exchange were deemed invalid, contrary to the erroneous belief held by the courts.
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Decision
- The purported exchange dated 01.08.1988 and 25.08.1988 is deemed illegal and is set aside.
- The Jamabandis reflecting the purported exchange are quashed.
- Revenue authorities are to restore the Jamabandis in the name of the Doaba Public School, Garhshankar, Village Parowal, District Hoshiarpur, Punjab.
- The Appeals are granted in favor of the Appellants.
- Respondents must pay costs of Rs. 1 lac to the Appellants within 12 weeks and provide proof of compliance to the Court.
Case Title: RANDHIR KAUR (DECEASED) THROUGH HER LRS Vs. BALWINDER KAUR
Case Number: C.A. No.-004629-004630 / 2019
