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2013 (10) TMI 1262 - SC - Indian LawsTenders for grant of leasehold rights - Held that:- It is not in dispute that the open spaces available at Doraisamy Reddiar Market is public property. Therefore, the same cannot be disposed of by private negotiations and the members of the appellant, who have unauthorisedly occupied the open spaces cannot be allowed to retain those spaces. Respondent No.2, which is an institution of self- Government (Article 243P(e) read with Article 243Q of the Constitution), is required to undertake and execute several schemes i.e. water-supply, lighting, drainage, sewerage, laying and maintaining of public streets etc. for the benefit of the residents of the municipal area. For fulfilling its obligation under the 1920 Act and carrying out the duties and functions which may be entrusted to it under Schedule XII of the Constitution, respondent No.2 requires substantial fund. The contribution made by the State Government to municipal bodies, like, respondent No.2 is negligible. Therefore, they are required to augment the sources by grant of lease etc. of their properties by auction or by adopting appropriate mechanism consistent with the doctrine of equality and no fault can be found with the exercise undertaken by respondent No.2 to invite tenders for holding auction for the open spaces available in Doraisamy Reddiar Market - there cannot be any policy, much less, a rational policy of allotting land on the basis of applications made by individuals, bodies, organisations or institutions dehors an invitation or advertisement by the State or its agency / instrumentality. By entertaining applications made by individuals, organisations or institutions for allotment of land or for grant of any other type of largesse the State cannot exclude other eligible persons from lodging competing claim. Any allotment of land or grant of other form of largesse by the State or its agencies/instrumentalities by treating the exercise as a private venture is liable to be treated as arbitrary, discriminatory and an act of favouritism and/or nepotism violating the soul of the equality clause embodied in Article 14 of the Constitution - respondent No.2 did not commit any illegality by inviting sealed tenders for conducting open auction for grant of lease of the spaces occupied by members of the appellant - Decided against Appellant.
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