SURESH CHANDRA vs. U.P. AVAS VIKAS PARISHAD

Case Type: Civil Appeal

Date of Judgment: 03-12-2018

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REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 11760  OF 2018 (Arising out of S.L.P.(C) No. 5170 of 2018) Suresh Chandra             ….Appellant(s) VERSUS [ U.P. Avas Evam Vikas Parishad  & Ors.     ….Respondent(s)      J U D G M E N T Abhay Manohar Sapre, J. 1. Leave granted. 2. This appeal is filed against the final judgment and   order   dated   29.01.2018   passed   by   the   High Court of Judicature at Allahabad, Lucknow Bench in Writ Petition No. 6198(M/B) of 2012  whereby the Division Bench of the High Court dismissed the writ Signature Not Verified Digitally signed by ANITA MALHOTRA Date: 2018.12.03 17:00:34 IST Reason: petition filed by the appellant herein. 1 3. In order to appreciate the issue involved in this appeal,   which   lies   in   a   narrow   compass,   it   is necessary   to   set   out   the   relevant   facts   in   brief hereinbelow. 4. While   issuing   notice   of   this   special   leave   to appeal   on   06.03.2018,   this   Court   passed   the following order: “Application for exemption from filing official translation is allowed. Issue notice on the limited question as to why the property in question admeasuring 639 sq.metres land which was auctioned by Uttar Pradesh Avas Evam Vikas Parishad for which market price as of today is quite high, be not put to auction sale again, returnable th on 14  March, 2018.    Status quo as of today in respect of the property in question shall be maintained. Petitioner   is   permitted   to   serve   the respondents by way of dasti service within a week.” 5. Pursuant   to   the   aforesaid   order,   the respondents   have   filed   their   response/counter affidavits. 2 6.   In short, the dispute relates to a plot of land bearing plot No. 4B/CP­03 (Sector 4B) situated at Sikandara Yojna, Agra having total area measuring 639.75   Sq.   meter   owned   by   U.P.   Avas   Vikas Parishad­respondent   No.   1   herein   (hereinafter referred to as “the Parishad”).   7. On   12.08.2010,   the   Parishad   in   daily   Hindi News   Papers   “Dainik   Jagaran”   and   "Amar   Ujala” issued an advertisement inviting applications from interested   parties   for   allotment   of   the aforementioned land. The reserved rate of the plot was fixed at Rs.17,248/­ per sq. mt. The parties were to deposit a token money of Rs.11,03,500/­. 8. It is the case of the appellant that he was one of the bidders, who quoted the rate of the plot at Rs.18050/­ per sq. meter which was the highest. The   Parishad,   however,  was  of   the   view  that  the offers   received   did   not   represent   the   real  market 3 price   and,   therefore,   it   decided   to   re­auction   the same.  9. The   Parishad,   therefore,   issued   a   fresh advertisement for allotment of land. The appellant felt   aggrieved   with   the   Parishad's   decision   to   re­ auction the land in question and issuance of fresh advertisement and filed Writ Petition No.6198/2012 in the High Court at Allahabad. The High Court, by interim order  dated 30.07.2012, directed  that re­ auction may be held but it will be subject to the final outcome of the writ petition. 10. In re­auction, respondent No. 5 submitted his bid for Rs.28,000/­ per Sq. Meter as against the reserve price of Rs.27,104/­ fixed by the Parishad. The appellant in order to show his  bona fide  interest offered to purchase the land for Rs.40,000/­ per Sq. Meter and later modified his offer at Rs.45,000/­ per   Sq.   Meter   in   the   Court.   The   appellant   also 4 deposited a sum of Rs.1.15 crores out of the total amount of Rs.2.87 crores. 11. The High Court, by impugned order, dismissed the   appellant's   writ   petition   essentially   on   the ground that since he was not the bidder in the re­ auction   proceedings,   he   cannot   be   heard   in   the matter and Secondly; since during the pendency of the writ petition, the Parishad had executed the sale deed of the land in favour of respondent No.5 and hence nothing now survives in the matter. 12. The appellant(writ petitioner) felt aggrieved and filed   this   appeal   by   way   of   special   leave   in   this Court. As mentioned above, notice was issued to examine   only   one   limited  issue  in  relation  to  re­ auction of the land. 13. Heard   Ms.   Sonia   Mathur,   learned   senior counsel for the appellant and Mr. S.S. Kulshrestha, 5 learned senior counsel, Mr. Vishwajit Singh and Mr. Abhay Kumar, learned counsel for the respondents. 14. Having   heard   the   learned   counsel   for   the parties and on perusal of the record of the case, we are inclined to dispose of the appeal as mentioned hereinbelow. 15. Learned counsel for respondent No.1­ Parishad at the outset submitted that the Parishad has no objection if the re­auction of the plot of the land in question is done because in re­auction proceedings, the   Parishad   is   bound   to   get  more   sale   price   as against   the   price   quoted   by   the   bidders   in   the earlier two auctions. 16. Learned   Counsel   for   respondent   No.5, however,   defended   the   impugned   order   and contended   that   since   the   sale   has   already   been concluded in his favour and sale deed has also been executed, the appeal deserves dismissal. 6 17. We are of the considered opinion that in order to   do   complete   justice   between   the   parties   in relation   to   subject   matter   of   the   proceedings   in question  and to balance  the  equities and  further having regard to all the facts and circumstances of the case, the fresh auction of the land in question can be ordered. It is also necessary for the following reasons. nd 18.   First,   the   2   re­auction   proceedings conducted by the Parishad were made subject to final outcome  of the  writ petition  by order dated 30.07.2012   passed   by   the   High   Court   in   the appellant’s   writ   petition   and,   therefore,   even   if Parishad had proceeded to finalize the sale of the land in question in favour of respondent No.5, it did not affect any of the rights of the appellant while prosecuting   the   writ   petition.   It   was   more   so because the respondent No.5 was also aware of the 7 order dated 30.07.2012, he being part to the writ petition. 19. Second,   the   Parishad   did   not   give   adequate publicity   for   sale   of   the   land   in   question   while conducting two auctions because we find that only two bidders could participate in the auctions.  20. In our view, the Parishad, keeping in view, the value and  the  potential of  the land, should  have given   adequate   publicity   in   the   leading   national English,   Hindi   newspapers   having   circulation   all over   the   country   including   any   other   prescribed mode   of   publication   with  a  sole   object  to  attract participation   of   more   and   more   persons   in   the auction proceedings. 21. Third,   the   Parishad   committed   an   error   in fixing   reserve   price   of   the   land   at   a   very   less amount. The Parishad should have seen that the land   has   a   tremendous   potential   in   commercial 8 market   as   is   clear   from   the   fact   that   both   the bidders had volunteered to pay much higher price as against their original bid amount.  22.   In the light of the aforementioned reasons, we are of the view that the land in question deserves to be re­auctioned afresh. 23. In view of the foregoing discussion, the appeal succeeds   and   is   accordingly   allowed.   Impugned order is set aside. The Parishad is directed to re­ auction the land in question by giving wide publicity in   various   leading   national   newspapers   having circulation all over India in bold letters including giving publicity in local daily newspapers also in the States with a view to enable more and more persons to participate in the auction for allotment of the said land.  24. The Parishad is also directed to get the reserve price fixed after consulting experts in the subject.  9 25. The   Parishad   is   also   directed   to   provide adequate   conditions   so   that   the   auction   process becomes   transparent   and   at   the   same   time   the bidders are able to submit their bids properly.  26. The   Parishad   is   also   directed   to   refund   the entire money to the appellant and the respondent No. 5, which they had deposited for purchase of the land in question in auctions with interest payable at the rate of 6% p.a..    27. The State will issue a necessary certificate in favour of respondent No.5 to enable him to claim refund of stamp duty amount from the State which he   has   paid   on   the   sale   deed   executed   by   the Parishad  in his  favour  in relation  to the  land  in question.   Since   this   Court   has   directed   re­ auctioning   of   the   land,   the   sale   deed   has   now become void. Respondent No.5 is, therefore, entitled to claim refund of entire stamp duty amount paid 10 by   him   on   the   sale   deed   for   its execution/registration.  28.     The appellant and respondent No. 5 will be free to participate in the auction proceedings as a fresh bidder along with others. However, they will not be entitled to claim any kind of benefit in re­ auction proceedings on the ground that they had earlier participated in the auction proceedings. 29. The Parishad would ensure that the auction proceedings are conducted in fair and transparent manner and fetch maximum price of the land. 30. Let the fresh auction proceedings be completed within 6 months from the date of this order.      ………...................................J. [ABHAY MANOHAR SAPRE]                                    …...……..................................J.                             [INDU MALHOTRA] New Delhi; December 03, 2018  11