TMI Blog1997 (3) TMI 646X X X X Extracts X X X X X X X X Extracts X X X X ..... he exact plot of land or exact Measure or class of plot in respect of which allotment was sought. When the allotment application was made Government Resolution of 1970 Annexure-A was in force providing procedure for allotment of plots of various categories. The Collector acknowledging the receipt of application dated 23-12-1982 and required certain information about the existing construction which the Housing Society might be having along with its plan and requested that only thereafter a proper application along with the earnest money may be made. The petitioner in his reply dated 31-1-1983 pointed out four different plots of varying sizes in respect of which he was interested for allotment and by calculating the earnest money on that basis the petitioner filed an application alongwith National Savings Certificates worth Rs. 8000/- dated 13-7-1983 as earnest money payable along with application. 3. Letter dated 13-7-1983 was acknowledged by the Collector vide his letter dated 27-7-1983. However, he enquired that when allotment is sought to be made for Housing Society whether the Housing Society has been registered or not. It appears that notwithstanding the enquiry, matter rest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he decision contained in Resolution of 1991 in the matter of allotment of plot at Saputara Hill Station. Making of an application on 24-9-1982 when the Resolution of 1970 was in force gave rise to legitimate expectation in favour of the petitioner that he will be fairly treated under the said Resolution within a reasonable period. No-fulfillment of that legitimate expectation by inaction on the part of the respondents in the matter of allotment of land to the petitioner under the procedure prescribed by Resolution of 1970 amounts to rejection of his application by adopting the procedure which is arbitrary and unreasonable, violating the fundamental guarantees under Article 14 of the Constitution. Reliance was placed in support of the aforesaid submission on a decision of the Hon'ble Supreme Court in the case of Assistant Commissioner of Commercial Taxes v. Dharmendra Trading Co. reported in AIR 1988 SC 1247 and a decision of this Court in Special Civil Application No. 10463 of 1993 decided on 20-10-1994. It has been urged by the learned counsel for the petitioner that the Letters Patent Appeal against the aforesaid decision of this Court has since been dismissed and the S.L.P. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g advice, which tend to operate unfairly. 9. He quoted from Lord Bridge : The Courts have developed a relatively novel doctrine in public law that a duty of consultation may arise from a legitimate expectation of consultation aroused either by a promise or by an established practice of consultation . 10. The requirement of giving due weightage to the legitimate expectation of a citizen while considering the State or its functionaries in action effecting such expectation as a part of general duty to act fairly in all circumstances has found its approval by a number of decisions of Courts of our land. In Food Corporation of India v. M/s. Kamdhenu Cattle Feed Industries reported in (1993) 1 SCC 71 : (AIR 1993 SC 1601) Justice J.S. Verma speaking for the apex Court while considering the scope and ambit of rights under Article 14 in contractual sphere said (at page 1604 (of AIR) : There is no unfettered discretion in public law. A public authority possesses powers only to use them for public good. This imposes the duty to act fairly and to adopt a procedure which is 'fairplay in action'. Due observance of this obligation as a part of good administration raises a r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the deciding authority without legal bounds and when such decision is taken fairly and objectively, the Courts are not to interfere on the ground of procedural fairness of a person whose interest to legitimate expectation may be affected. Following observations of the learned judge in Attorney General for New South Wales v. Quin (1990) 64 LJR 327 are apt : To strike down the exercise of administrative power solely on the ground of avoiding the disappointment of the legitimate expectations of an individual would be to set the Courts adrift on a featureless sea of pragmatism. Moreover, the notice of a legitimate expectation (falling short of a legal right) is too nebulous to form a basis for invalidating the exercise of a power when its exercise otherwise accords with law. 14. This statement of law has found approval of the Supreme Court in Hindustan Development Corporation's case (supra). The Court while enunciating that due weightage must be given to the legitimate expectation of a citizen while considering any State action, said : the protection of such legitimate expectation does not require the fulfilment of the expectation where an overriding public intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cial review of such action being challenged on the ground of legitimate expectation. The Court after considering a large number of precedent including decision referred to above came to the conclusion if there is a change in policy or in public interest the position is altered by a rule or legislation, no question of legitimate expectation would arise. 17. In a situation very much akin to the facts of the present case the apex Court considered the applicability of principle of legitimate expectation in the matter of cancellation of selection process prior to appointment in State of M.P. v. Raghuveer Singh Yadav reported in (1994) 6 SCC 151. The facts of the case were that the Weight and Measures Department of the M.P. Government invited applications for the posts of Inspectors from eligible candidates. The qualification prescribed for eligibility was degree in Art or Commerce or Science or Engineering or Diploma in Engineering. Written examinations were held, results were declared and interview cards were issued to successful candidates. In the meanwhile, the Government amended the rules by M.P. Standard of Weights and Measurement (Enforcement) Rules, 1989 and altered the qua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plication and deposit of the earnest money the Collector had made an enquiry about the fact whether the housing society has been registered in accordance with law in order to be considered a person. It is candidly stated by the learned Advocate for the petitioner that until date registration of the said society has not taken place and in law it cannot be said that any housing society, as a juristic person for whose members land in question was to be allotted exists. While the application of the petitioner was thus pending in November 1991 the policy of the State in the relevant field (sic) of the procedure of allotment changed. Instead of considering the individual allotment application as per the procedure prescribed under the 1970 Resolution the Government decided to allot plot by public auction only. Law is well settled in the matter of public largesses or allotment of land, ordinarily the best procedure in public interest is to adopt the procedure of. public auction in order to sec that the State gets highest possible price for the largesse or the property it offers and there is transparency in State action minimising the possibility of clandestine dealing with grant of such la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise inviting a person to alter his position to his detriment to invoke the principle of promissory estoppel against the State in the present circumstances when the procedure for allotment itself is changed and petitioner has not shown any right of allotment of land to himself, the principle whether of promissory estoppel or of legitimate expectancy has no application. 21. Reliance on a decision of this Court in Special Civil Application No. 1045 of 1993, D/-20-10-1994 is of title assistance to the petitioner. That was a case in which 3 applications for allotment of land were made at about same time, one of which in question was for allotment of land whose total value at the time of application as per market value exceeded Rs. 25 lakhs; while other land valued at less than Rs. 25 lakhs. Due to this fortuitous difference in circumstances while the latter two applications came to be decided by different Competent authorities resulting in early disposal, the former was required to be approved by the Government which delayed the matter. While the two plots, which came to be decided earlier by lower authorities were allotted at price ranging from Rs. 450/- to Rs. 475A per sq. mtr. the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by any applicant could be considered. By merely making an application no person gets any vested right that on making an application and deposit of earnest money and in absence of any other applicant he would get allotment. As a matter of fact, on the facts of the case, it cannot be said that there was any proper application by an existing person for allotment of land before the competent officer which could have been considered by him. In these circumstances this contention of learned counsel that fault of non-consideration squarely lays at the doors of the competent authority is devoid of any substance. 24. On the other hand facts of the case betrays the behind the screen object of the petitioner as a person engaged in construction of buildings to acquire land under old procedure for his own profit by constructing buildings and then directly transferring the property to intending purchasers, who only will be forming the nucleus of housing society to come into existence. As a matter of fact, during the course of arguments it was stated in response to Court query that direct negotiation for purchase of property has taken place between the petitioner and proposed purchasers indiv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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