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HC nod for Sankara Trust to sell hospital
Tuesday June 20 2006 00:10 IST
CHENNAI: The Madras High Court has permitted Sri Kanchi Kamakoti Peetam Charitable Trust to sell its multi-crore Sri Jayendra Saraswathi Institute of Medical Sciences and Sri Kanchi Kamakoti Sankara Hospital in Perumbakkam near Chennai.

“The sale must be executed through a public auction and the minimum upset price is Rs 185 crore,” the First Bench comprising Chief Justice A P Shah and Justice D Murugesan said on Monday while passing interim orders on an appeal from the trust challenging the order of a single judge rejecting the sale plea. The Bench set aside the rejection order of the single judge.

The notice for the auction must be published in three newspapers. The offers should be received in sealed covers and placed before the court on or before July 31, the Bench said and posted the matter for further hearing on August 4.

Earlier, the Chettinadu Hospitals withdrew its offer of Rs 105 crore for the property.

Senior counsel T R Rajagopalan submitted that he had received several offers, the highest of which was Rs 185 crore.

Originally, the trust filed a civil suit seeking permission to sell its property to settle its dues, running to several crores, to various banks. The hospital was incurring huge losses and the medical college could not be started as the State Government had refused to grant the essentiality certificate, it had contended.

However, Justice R Banumathi on January 31, 2006, dismissed the petition on the ground that permitting the trust to sell the property would amount to defeating the very purpose of establishing the charitable trust.

The difficulty in running the hospital and the college could not be a reason for selling the entire assets, the judge had held. Hence, the present appeal from the trust.

 

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