TMI Blog1999 (8) TMI 1011X X X X Extracts X X X X X X X X Extracts X X X X ..... ained the same as a public interest litigation and by the impugned order, quashed an auction held by the Indore Development Authority as well as the highest bid of the appellant in the said auction which had been accepted by the Indore Development Authority and also an award of a competent arbitrator in respect of the dispute between the Indore Development Authority and the appellant. Before embarking upon an inquiry into the legality of the impugned judgment of the High Court, it is necessary to bear in mind that a public interest litigation is usually entertained by a court for the purpose of redressing public injury, enforcing public duty, protecting social rights and vindicating public interest. The real purpose of entertaining such app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... negotiating straightway at arms length with the Taj Group of Hotels. In the said judgment Justice Khalid has added a few paragraphs indicating as to how a public interest litigation pose a threat to courts and public alike. The learned Judge had sounded a word of caution that if courts do not restrict the free flow of case in the name of public interest litigation, the traditional litigation will suffer and the courts of law, instead of dispensing justice will have to take upon themselves administrative and executive functions. It was also stated by the learned Judge- it is only when the Courts are apprised of gross violation of fundamental rights by a group or a class action or when basic human rights are invaded or when there are compl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment Authority and also the appellant and in fact really, interest of public is not at all involved and it is further to be noticed that the High Court has been swayed away to entertain a petition and not only has set aside a public auction held at large but also quashed an award of a competent arbitrator in respect of the dispute referred to him between the parties and application concerning the said award is pending before a competent civil court, thereby frustrating the provisions of the Arbitration Act fully. 3. The brief facts leading to the Judgment under appeal are that the Indore Development Authority issued a notice of holding of a public auction in respect of a plot of land in Indira Complex at Naulakha Road, Indore. The auct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to the award of the arbitrator and parting with a valuable piece of land for the small price would be grossly prejudicial to the public interest. The present appellant as well as the Development Authority filed their counter affidavits before the High Court, indicating therein that there has been no illegality in referring the dispute to the arbitrator and the said arbitrator considered the matter in several sittings and passed the award which is the subject matter of an application filed under Section 14 of the Arbitration Act. It was also indicated by the Indore Development Authority that the board considered the dispute between the appellant and the board in several meetings and finally thought it appropriate to refer the matter to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iling a petition under Article 226 on the ground that the very decision of the Improvement Trust, referring the matter to the arbitrator was illegal and has caused public injury. 4. At the outset it may be stated that the land in question was admittedly put to public auction and the appellant was the highest bidder and this fact has not been disputed at any stage. The further admitted position is that the appellant had deposited some amount but could not deposit the balance amount even though the bid of the appellant was accepted by the competent authority and for non-deposit of the balance amount, the earlier amount deposited stood forfeited which however was challenged by the appellant. It is at that stage the Indore Development Auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1, who has absolutely no interest in the transaction was improper and the High Court had in fact not adverted to the parameters for entertaining a petition as a public interest litigation. It may not be out of place to mention at this stage that two other auctions, similarly held were not assailed but it is the auction where the appellant was the highest bidder was only assailed for the reasons known to respondent No. 1. When the appellant had challenged the legality of the action of the competent authority in the matter of forfeiture of the deposit made, the competent authority thought it appropriate to refer the entire dispute pertaining to the land in question for arbitration and we see no infirmity with that decision nor that decision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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