TMI Blog2004 (4) TMI 617X X X X Extracts X X X X X X X X Extracts X X X X ..... et out :- With a view to re-enact and modify the law in relation to the development and regulation of the new capital of Punjab at Chandigarh, Legislation by name Capital of Punjab [Development and Regulation] Act, 1952 [shortly referred to as the Act] was passed in the year 1952 vesting the State Government with legal authority to regulate the sale of building sites. In exercise of powers under the Act, rules for allotment of sites for building have been framed known as the Chandigarh Lease Hold of Sites and Building Rules, 1973 [hereinafter referred to as the Rules], which among others provide that the Administration of UTC, may demise 'sites for industries and buildings by allotment or auction. In accordance with the provisions of the Act and Rules mentioned above, the Administration of UTC issued an advertisement No. 1/81 on 14.4.1981 inviting applications from interested entrepreneurs seeking allotment of the industrial plots of different sizes ranging from 10 marlas to 4 kanals. Pursuant to the said advertisement, 3735 applications were received from different parties. The Screening Committee of the Administration of UTC on 16.7.1982 short-listed 339 parties for all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a letter was issued to allottees of plots measuring 4 kanal and 2 kanal to give their consent for accepting reduced size of plot by 25% of the original plot allotted to each of them. The option was invited within a period of 30 days. No option was asked from the allottees of plots measuring one kanal and 10 marlas. Some allottees had given their consent who shall be hereinafter referred to shortly as 'the consentees'. Many others who did not give their consent for reduced size of plots challenged the action of the Administration of UTC in the High Court. The new declared industrial policy of 1990 was also challenged. Such allottees who did not give consent for smaller sizes of plots and approached the High Court shall be, hereinafter, referred to as 'the non-consentees'. These non-consentees in the petitions filed by them in the High Court obtained stay against the draw of lots scheduled to be held on 27.3.1991 for allotment of specific plots of smaller sizes to the consentees. The non-consentees made a three-pronged attack in the writ petitions by challenging the notification of declaring the area as reserved forest, the new industrial policy of 1990 and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ernative plots to consentees. Despite the above order, the Administration of UTC did not choose to deliver possession of the alternative plots even to consentees as in their view, the interim orders of the High Court restrained them from reducing the size of plots allotted to non-consentees. The consentees then approached by substantive petitions before the High Court seeking relief in their favour of issuing direction to the Administration of UTC to deliver possession of alternative plots to them. In response to the writ petitions filed by consentees, the Administration expressed its inability to deliver possession of the plots even to consentees. It was stated that some part of the land to be allotted as alternative plots falls within the restricted zone under the notification issued under the Aircrafts Act for Air-Force base. The Division Bench of the High Court, after long drawn hearing and detailed consideration of the competing claims of consentees and non-consentees as also the stand of the Administration, passed a common judgement with the directions which are subject matter of these appeals preferred by non-consentees who are aggrieved by denial to them of alternativ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1991 specifying the number of plots earmarked for them. 6. Notification dated 28.4.2000 is held inapplicable and inoperative qua the allotments made to the appellants/petitioners on the basis of the draw held on 27.3.1991. In this Court when the arguments commenced, it was felt by all parties involved as also by this Court that some amicable solution reasonably acceptable to all the parties can be found out on the basis of mutual discussions and negotiations between the authorities of the Chandigarh Administration, the contesting consentees and non- consentees. Despite giving them repeated opportunities to settle the matter through negotiations, we are unhappy to record that the counsel for the parties reported that efforts to amiably solve the issue have failed. Learned senior counsel Shri M. L. Verma appearing for the non- consentees very fairly stated that the notification reserving certain lands for the forest and the restrictions imposed on construction in periphery of 900 metres from the Air-Force base under the Aircrafts Act cannot be questioned and that part of the judgment of the High Court is not being assailed in these appeals. With regard to the restrictions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stration may demise sites and buildings at Chandigarh on lease for 99 years. Such leases may be given by allotment or by auction in accordance with these rules. Rule 6. Commencement and period of lease. The lease shall commence from the date of allotment or auction, as the case may be, and shall be for a period of 99 years. After the expiry of the said period of 99 years, the lease may be renewed for such further period and on such terms and conditions as the Government may decide. Rule 10. Delivery of possession. Actual possession of the site/building shall be delivered to the lessee on payment of 25 per cent of the premium in accordance with rule 8 or rule 9 as the case may be. Provided that no ground rent payable under rule 13 and interest on the instalments of premium payable under sub-rule(2) of rule 12 shall be paid by the lessee till the actual and physical possession of the site/building is delivered or offered to be delivered to him, whichever is earlier. Some decisions, which need not detain us for consideration, were cited to contend that on execution of lease-deads, payment of price and formal delivery of possession of the plots, a vested right in law in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... verriding public interest outweighs the obligation of a promise or representation made on behalf of the Administration. Where public interest is likely to be harmed, neither the doctrine of 'legitimate expectation' nor 'estoppel' can be allowed to be pressed into service by any citizen against the State Authorities. In M/s Jit Ram Shiv Kumar Ors. vs. State of Haryana Ors. [1981 (1) SCC 11], a two-Judge Bench of this Court by explaining and distinguishing Union of India vs. Indo- Afgan Agencies Ltd., [1968 (2) SCR 366] and Motilal Padampat Sugar Mills Co. (P) Ltd. vs. State of U.P. [1979 (2) SCC 409], observed thus :- 'It is only in public interest that it is recognized that an authority acting on behalf of the government or by virtue of statutory powers cannot exceed his authority. Rule of ultra vires will become applicable when he exceeds his authority and the government would not be bound by such action. Any person who enters into an arrangement with the government has to ascertain and satisfy himself that the authority who purports to act for the government, acts within the scope of his authority and cannot urge that the government is in the position o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in aid Legal Maxim : 'Salus populi est suprema lex : regard for the public welfare is the highest law. This principle is based on the implied agreement of every member of society that his own individual welfare shall in cases of necessity yield to that of community. His property, liberty and life shall under certain circumstances be placed in jeopardy or even sacrificed for the public good'. On the same principle and to protect larger public interest, the Chandigarh Administration can be relieved of fulfilling legitimate expectation arising from its allotment of plots on the ground that their development schemes under consideration have been found to be in contravention of Forest Act and Aircrafts Act. Another legal maxim which can be invoked to their aid is : 'Lex non cogit ad impossibilia : the law does not compel a man to do that which he cannot possibly perform'. The allottees of the plots are, no doubt, faced with an uncertain situation with loss already caused to them due to negligence and mistake on the part of the Planning Authorities of the Chandigarh Administration. In preparing the development scheme, the existing notification reserving major part o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o come to a conclusion that the action of the authorities was mala fide. It may be held to be careless or negligent. In some of the English cases, the view taken is that the public authorities cannot be absolved of their liability to provide adequate monetary compensation to the parties who are adversely affected by their erroneous decisions and actions. But in these cases, any directions to the public authorities to pay monetary compensation or damages would also indirectly harm general public interest. The public authorities are entrusted with public fund raised from public money. The funds are in trust with them for utilisation in public interest and strictly for the purposes of the Statute under which they are created with specific statutory duties imposed on them. In such a situation when a party or citizen has relied, to his detriment, on an erroneous representation made by public authorities and suffered loss and where doctrine of 'estoppel' will not be invoked to his aid, directing administrative redressal would be a more appropriate remedy than payment of monetary compensation for the loss caused by non- delivery of the possession of the plots and consequent delay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by completely depriving them of alternative plots and merely directing refund of their prices. In this respect, it is urged that pendency of court proceedings should harm no one and mere approach to the law courts for enforcement of their legal and constitutional rights should not be taken as a circumstance against the parties. The contention advanced is that discrimination between consentees and non- consentees is violative of right of equality guaranteed under Article 14 of the Constitution. We have also heard the learned senior counsel Shri M. N. Krishnamani appearing for the consentees, who has very stiffly opposed the claim for alternative plots advanced on behalf of the non- consentees. The plots of small sizes are limited in number in which both consentees and non-consentees cannot be accommodated. Learned counsel submits that differential treatment given to consentees and non-consentees by the High Court is fully justified for various reasons. It is submitted that the writ petitions filed by the non- consentees challenging the notification of reservation of land for forest and their refusal to accept alternative plots of smaller sizes, occasioned long delay in making av ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal expenditure was required to be incurred for replotting and prices of land have gone up in the meantime. It is also submitted that it may not be possible to accommodate all consentees even for smaller sizes of plots in the same scheme. Some of them will have to be accommodated in other schemes. The acquisition cost of land in other schemes is higher. The direction of the High Court to charge from the consentees for alternative plots, price as was prevailing on the date of draw of lots held on 27.3.1991 is, therefore, described as highly unreasonable. After considering the rival submissions made on behalf of various parties, we are of the view that the rule of reasonableness and fairness by which every statutory authority is bound, demands that the consentees, who, for no fault on their part, were deprived of the original plots of larger sizes, should not be further made to suffer by demanding from them higher price for the alternative plots of smaller sizes. It would be highly iniquitous to demand from them higher price for smaller sizes of plots and add to their losses caused by undue delay in setting up their industries. The Administration is mainly to be blamed for the si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o because plots of small sizes available in the existing scheme in Phase-I II are extremely limited in number. After mutual negotiations for settlement between the allottees and the Administration failed, the Assistant Estate Officer, Chandigarh Administration has filed a detailed affidavit on 16.2.2004 showing the latest position with regard to the availability of alternative plots in the same scheme in phase-I II for which the original allotments were made and in the new scheme in phase-III in Mouli Jagran. We have to proceed on the facts mentioned in the latest affidavit dated 16.2.2004 filed on behalf of the Administration. It is necessary to briefly indicate the facts and developments which have been brought to our notice in the affidavit and the proposals now made on behalf of the Administration to accommodate the consentees and non-consentees. In the affidavit, it has been stated that after the order dated 17.9.2003 of this Court, parties involved in the litigation were invited before a committee in meetings held between 3.10.2003 to 12.12.2003. Other 164 applicants who were also parties to the draw of lots on 27.3.1991 and some of whom are intervenors or seeking impl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... size of plot measuring one kanal which they had applied for. In this category, from whom no consent was needed, are allottees of one kanal of plots. Thirteen applicants have been found to have given complete information and fulfilling requisite environmental norms. Their names are also mentioned under category-II of the affidavit. We have stated above that there is no justification for the non- consentees to claim parity with consentees. The third category pointed out by the Administration and some of whom are also before us represented through their counsel are allottees of one kanal of plots. They are being offered same size of alternative plots and from them no consent was asked for. This category of allottees of one kanal of plot are also required to be accommodated in the available alternative plots. On this identification of 23 consentees and 13 allottees of one kanal of plot each, the Administration is justifiably required to consider their cases to allot them alternative plots available in industrial areas phase-I and phase-II as shown in their chart (Annnexure-A) annexed to their affidavit. This chart (annexure-A) annexed to the affidavit shall be read as part of ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resent cases. This group of individuals and parties, who were not parties before the High Court either as petitioners or respondents and who are merely intervenors or parties seeking impleadments and/or have sought permission to file special leave petitions cannot be allowed to join race for allotment of available alternative plots. It will have to be presumed that having not ventilated their grievances and enforced their rights, if any, at any earlier stage, they have abandoned their claims. Merely because during pendency of court proceedings, some rounds of negotiations and discussions took place in which the Administration also invited them, would not furnish them a cause of action to raise their claims which they had earlier given up by their inaction and lapse. In adjusting equities and on rule of fairness, those who have languished and slept over their rights have to be denied any relief more so when there has been such a time lag between the original allotment and the proposed allotment of alternative plots. In the meantime, there have been various developments including escalation of land prices. Any speculative deals and attempt to take chance of getting allotment by such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... number of plots (as mentioned in annexure-A), do not get accommodation in the available plots, they be considered on the same price paid by them for alternative plots in the new industrial area phase-III i.e. Mouli Jagran. It is made clear that the requirement of the Act and the Rules and the new environmental norms as existing on the date of fresh allotment of plots in the industrial area phase-III would be made applicable to such consentees and allottees of one kanal plot. 4. The non-consentees shall be granted by the Administration of UTC, option by asking them to submit their willingness in writing within a period of one month from the date of this order for considering allottment to each of them a suitable plot in the new industrial zone Phase III at Mouli Jagran. It is left to the Administration of UTC to evolve a fair and just method of allotment by draw of lots in accordance with the Act and the Rules. It is made clear that the allotment of plots in the new industrial area III i.e. Mouli Jagran would be at the price prevailing on the date of fresh allotments. The price already paid by the non-consentees for their original plots, if so far not refunded to them, shall be a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
