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2011 (5) TMI 1084

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..... 9 shall be treated as invalid and possession of the land shall be handed back to the State Government. 3. Challenging the said judgment of the Division Bench, three SLP's (11783/2011, 22503/2010 and 22305/2010) were filed before this Court and as the judgment is one, and the facts and questions are identical, the cases were heard together and are being decided by this judgment. 4. The material facts of the case are that on 5.11.2006, an advertisement was issued by the Government of West Bengal, Urban Development Department, earmarking a plot of land measuring about 50 kathas in Plot No. BF-158 in Sector-I, Salt Lake (Bidhannagar), Kolkata- 700064, for the setting up of an integrated school from primary level to higher secondary level. It was stated in the advertisement that the school would basically be academic in nature, but with extra-curricular activities, which would form an integral part of the curriculum and it was stated that the intending Organization/Institution/Body/Registered Society/ Trust which were capable of running and managing such a school by their own resources, may apply to the Principal Secretary, Urban Development Department, Government of West Beng .....

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..... ion of the allottee in respect of plot No.BF-158 was not challenged and is not the subject matter of dispute in these proceedings. 11. Thereafter, on 19.1.2009, a letter was written to Sri Ashoka Bhattacharya, Minister for Urban Development and Municipal Affairs by the allottee by stating that after going through the norms of `ICSE' he felt that allotment of a bigger plot was needed for getting affiliation and a prayer was made for allotment of another bigger plot. 12. Since the prayer made in this letter and its consideration by the Government is vitally important for the decision in this case, the letter is set out below: At present I am the owner of Plot No. 158, Block-BF in Salt Lake, Sector-I of 48 Kathas of land which was given to me for the purpose of building a school. But after going through the norms of ICSE to get an affiliation, we now need a plot of more than 60 kathas (1 acre). So I would like to surrender this allotted land to you and at the same time apply for a plot of a bigger area so that I can take the school project forward. (Underlined by Court) 13. It may be noted that in this letter, the allottee stated that he `would like to surrender .....

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..... outed the working plan which is available for Salt Lake City in the absence of a master plan. 20. The learned counsel for the State, on the other hand, submitted before this Court that there was nothing illegal in the Government's accepting the subsequent offer of the allottee and in doing so the Government acted in terms of the original advertisement where it had reserved its right to alter the original location of the allotted plot. Learned counsel for the State submitted that the subsequent plot which has been allotted to the allottee cannot be called allotment of a new plot and no fresh advertisement for the same is necessary and relied on the impugned judgment in which High Court entered a similar finding. It was also submitted that the initial allotment made in favour of the allottee was examined by a high-powered Committee and after examining everything allotment was made and there is no illegality in the entire transaction. 21. Learned counsel for the allottee submitted that the bona fide of the allottee must be looked into and considered by this court and the project is for a public purpose of setting up a good school in the area which is very much in need of the .....

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..... g a particular religious faith. The government is still the government when it acts in the matter of granting largesse and it cannot act arbitrarily. It does not stand in the same position as a private individual. (Para 11, page 505 of the report) 27. The aforesaid dictum in Ramana (supra) is still followed by this court as the correct exposition of law and has been subsequently followed in many other decisions. In M/s Kasturi Lal Lakshmi Reddy v. State of Jammu and Kashmir Another reported in 1980 (4) SCC 1, another three-Judge Bench relied on the dictum in Ramana (supra) and held whenever any governmental action fails to satisfy the test of reasonableness and public interest, it is liable to be struck down as invalid. This court held that a necessary corollary of this proposition is that the Government cannot act in a manner which would benefit a private party. Such an action will be contrary to public interest. (See para 14, p. 13 of the report) 28. The setting up of a private school may have some elements of public interest in it but Constitution Bench of this court has held in T.M.A. Pai Foundation Ors. v. State of Karnataka Others reported in 2002 (8) SCC 481, .....

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..... to change the location of the land. The second allotment is not only about a change in the location of the land, but the subsequent allotment is also of a much larger plot of land, brought about in terms of the request of the allottee for a bigger plot. The subsequent change was not brought about by the Government in its own discretion, assuming but not admitting that the Government could exercise its discretion in such a fashion but was in response to a written request of the allottee. 33. The Government was so anxious to oblige the allottee by giving bigger plot that too with no loss of time, the said allotment was made by the Government admittedly without verifying whether the allottee had surrendered the previous plot allotted to him. From the facts which have been disclosed here, it is clear that such surrender took place much later on 17.12.2009, when the allottee sent a forwarding letter the registered deed of surrender in respect of the previous plot no. BF-158. The letter of the allottee dated 16.12.2009 would show the following: Though I have executed the Deed of Surrender and made over the same to you but the formality of having the same registered could not be c .....

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..... ation of the family staying in Brahma Samaj Road and only Mr. Deepak Kumar Mitra, the Chartered Accountant, is outside the family. Therefore, constitution of such a Trust to run the school is clearly against the ICSE norms. 41. It is thus clear that the allottee is selectively seeking compliance of the ICSE norms only in asking for a bigger plot. In so far as other norms are concerned, they are clearly flouted as seen in the constitution of the Trust set up to run the school. Hence, the argument on behalf of the appellant that the plea of the allottee to ask for a bigger plot in the name of complying with ICSE norms is not a bona fide plea is of some substance. The learned counsel for the allottee has not been able to meet the said argument as to how the ICSE norms are complied with if the school is to be run by such a Trust, which consists of members of the family and this court finds that there is a lot of substance in this argument of the appellants. This point was also urged before the High Court but unfortunately the High Court brushed aside this objection, if we may say so with respect, by a very strange logic by observing: We are not required to consider this aspect o .....

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..... granted the allotment with remarkable speed and without considering all aspects of the matter. This court does not find any legitimacy in the action of the Government, which has to act within the discipline of the constitutional law, explained by this Court in a catena of cases. We are sorry to hold that in making the impugned allotment in favour of the allottee, in the facts and circumstances of the case, the State has failed to discharge its constitutional role. Recently this Court relying on Ramana (supra), Kasturi Lal (supra) and various other judgments summed up the legal position in Akhil Bharatiya Upbhokta Congress v. State of Madhya Pradesh and others reported in JT 2011 (4) SC 311. The relevant extracts from paragraph 31 (page 336 of the report) are excerpted below:- ...Every action/decision of the State and/or its agencies/instrumentalities to give largesse or confer benefit must be founded on a sound, transparent, discernible and well defined policy, which shall be made known to the public by publication in the Official Gazette and other recognized modes of publicity and such policy must be implemented/executed by adopting a non- discriminatory or non-arbitrary met .....

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..... m that, once the Government has initiated the process of advertisement, it cannot jettison the same and allot a new plot to the allottee without any advertisement. This action of the Government is certainly arbitrary and violates the principles of Article 14. 51. Neither in Sachidanand Pandey (supra) nor in Kasturi Lal (supra), any process of advertisement was ever initiated. In Sachidanand Pandey (supra), the main questions raised were issues of ecology and environment. In that case, the court dealt with the question of issuing public auction by explaining that there were direct negotiations with those who came forward to set up five star hotels, to promote the tourism industry in the State. Detailed considerations at different levels proceeded for a very long time before the Taj group of hotels, with sufficient experience in the hotel industry, was selected. In the instant case, the allottee may be a well-known sportsman but does not claim any expertise as an educationist. Here within a month of the application made by the allottee, the allotment was made in a hot haste and without disclosure by the State of any detailed consideration. Thus, the present case stand poles ap .....

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