Full Judgment Text
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 7374 OF 2003
Jaipur Development Authority and others ……Appellant
Versus
Vijay Kumar Data and another ……Respondent
WITH
CIVIL APPEAL NO.7375 of 2003
Jaipur Development Authority ……Appellant
Versus
Daya Kishan Data ……Respondent
J U D G M E N T
G.S. Singhvi, J.
1. These appeals filed by the Jaipur Development Authority against
judgment dated 29.7.2002 of the Division Bench of the Rajasthan High
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Court, Jaipur Bench are illustrative of how unscrupulous elements within the
State apparatus connived with the private individuals and succeeded in
partly frustrating one of the most ambitious schemes framed by Urban
Improvement Trust, Jaipur (for short, “the Trust”) (predecessor of the
appellant), which came to be popularly known as Lal Kothi Scheme, for
construction of new building of the Legislative Assembly, educational
institutions, stadium complex, district shopping centre, MLA quarters etc.
2. By notification dated 13.5.1960 issued under Section 4 of the
Rajasthan Land Acquisition Act, 1953 (for short, “the 1953 Act”), which
was published in the official gazette dated 29.6.1960, the State Government
proposed the acquisition of 552 bighas 8 biswas land of village Bhojpura
and Chak Sudershanpura for planned development of Jaipur city. The land
was to be utilised for the purpose mentioned in the preceding paragraph.
Declaration under Section 6 was issued on 3.5.1961 and was published in
the official gazette dated 11.5.1961. Thereafter, notice dated 18.7.1961 was
issued to the land owners (Khatedars) under Section 9(1) and (3). Initially,
65 Khatedars filed claims for compensation but this figure swelled to more
than 137 because those who purchased land from the Khatedars after
publication of the notification issued under Section 4 and their
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nominees/sub-nominees also filed claims for compensation. The second
category of persons included Shri Ganesh Narayan Gupta, Advocate and Dr.
Bhagwan Das Khera, both of whom managed to purchase portions of the
acquired land from one of the Khatedars, namely, Shri Vijay Lal son of Ram
Sukhji. The Land Acquisition Officer, Jaipur passed an unusual award
dated 9.1.1964 whereby he not only determined the amount of compensation
payable to the landowners and the beneficiaries of illegal transfers, but also
directed allotment of plots measuring 1000 to 2000 square yards to the
owners, their transferees and nominees/sub-nominees out of the acquired
land.
3. After passing of the award, Shri Ganesh Narayan Gupta filed
execution application and succeeded in getting an order for delivery of
possession of 1500 square yards land in the Lal Kothi Scheme. The revision
filed against the order of Executing Court was dismissed by the High Court
and in that sense, the order passed by the Executing Court became final.
However, as will be seen hereinafter, in view of the judgment of this Court
in Jaipur Development Authority v. Radhey Shyam (1994) 4 SCC 370,
all such orders and judgments will be deemed to have become nullity.
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4. In the meanwhile, 12 of the awardees filed applications for
enhancement of the compensation. District Judge, Jaipur City, Jaipur
accepted their claim. Simultaneously, he rejected the objection raised by the
State Government that the Land Acquisition Officer did not have the
jurisdiction to allot land in lieu of or in addition to the monetary
compensation. The appeals filed against the judgment of the learned District
Judge were disposed of by the High Court on the basis of compromise
arrived at between the awardees and the Trust.
5. With a view to favour those who manipulated to create documents
showing purchase of land after publication of the notification issued under
Section 4 and who had access to the power corridors, the State and the Trust
deliberately omitted to challenge the direction contained in the award of the
Land Acquisition Officer for allotment of land to the land owners
(awardees), transferees (sub-awardees) and their nominees/sub-nominees.
However when large number of execution applications were filed by the
beneficiaries, the functionaries of the State and the Trust appear to have
become alive to the grave consequences which would have ensued by
implementing the direction given by the Land Acquisition Officer.
Therefore, they questioned the authority of the Land Acquisition Officer to
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give direction for allotment of land. The Executing Court partly upheld the
objection but the revisions filed by the beneficiaries were allowed by the
Division Bench of the High Court, which held that the legality of the award
cannot be challenged in the execution proceedings.
6. During the pendency of litigation before different courts, another
attempt was made by the functionaries of the State to confer legitimacy on
the illegal transactions involving purchase of the acquired land. The then
Minister of Urban Development of Housing, who was also Chairman of the
Trust, constituted a Committee for suggesting the methodology for allotment
of land in terms of the directions given by the Land Acquisition Officer.
The members of the Committee obliged their master i.e. the Minister and
recommended that land be allotted to the beneficiaries of illegal transactions
at the rate of Rs.8/- per square yard. Thereafter, a circular disguised as
policy decision was issued in 1978 for allotment of land to sub-awardees and
their nominees/sub-nominees at the rate of Rs.8/- per square yard.
7. In furtherance of the so called policy decision, draw of lots was held
on 23.12.1980 for allotment of plots to the awardees and the beneficiaries of
illegal transfers of the acquired land and those who were successful were
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allotted plots. This exercise did not satisfy all and those who could not get
plots filed writ petitions questioning the draw of lots. The Division Bench
of the High Court held that the directions given by the Land Acquisition
Officer and the Minister for allotment of plots were ex-facie illegal and had
the effect of defeating the public purpose for which the land was acquired.
Notwithstanding this, the High Court granted relief to the writ petitioners on
the ground of violation of the equality clause enshrined in Article 14 of the
Constitution and directed that they should also be allotted plots as per their
entitlement.
8. In the meanwhile, the Lokayukta of Rajasthan made inquiry under
Section 10 of the Rajasthan Lokayukta and Up-Lokayuktas Act, 1973 in the
matter of illegal allotments of plots in the Lal Kothi Scheme and submitted
report dated 12.11.1992, the operative portion of which reads thus:
“In view of what has been stated above, it is prima facie
established that Smt Kamala, the then Hon'ble Minister, Urban
Development and Housing Department, Government of
Rajasthan-cum-Chairman, JDA Jaipur, Shri M.D. Kaurani, IAS,
the then Commissioner, Jaipur Development Authority and Shri
Subhebhan Mitra, the then Zonal Officer, Lal Kothi Scheme,
JDA, Jaipur, have blatantly misused their official position to
favour a few influential and highly placed individuals and have
also thereby caused wrongful gain to them and wrongful loss to
the Jaipur Development Authority and the public at large. But
Smt Kamala, the then Hon'ble Minister, Urban Development
and Housing Department-cum-Chairman, JDA is not now a
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public servant as defined in Section 2(1) of the Rajasthan
Lokayukta and Up-Lokayuktas Act, 1973 (for short ‘the Act’)
because she has ceased to be a Minister. So investigation is not
being commenced against her but the investigation deserves to
be commenced against S/Shri M.D. Kaurani, IAS and
Subhebhan Mitra under Section 1 of the Act, and I order
accordingly.”
However, as has happened with hundreds of similar reports submitted
by the Lokayukta and other statutory authorities entrusted with the task of
making investigation into the acts of favouritism, nepotism and corruption
committed by the bureaucrats and public representatives, no tangible action
appears to have been taken on the recommendations contained in report
dated 12.11.1992.
9. The question whether the Land Acquisition Officer could issue
direction for allotment of land to the awardees, sub-awardees and their
nominees/sub-nominees was considered by this Court in Radhey Shyam’s
case. After noticing the provisions of Section 31(3) and (4) of the 1953 Act
on which reliance was placed by the senior counsel appearing for the
respondents, this Court held that the Land Acquisition Officer did not have
the jurisdiction, power or authority to direct allotment of land to the
claimants. This is clearly borne out from the following extracts of paragraph
7 of the judgment:
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“A reading of sub-section (4) of Section 31, in our considered
view, indicates that the Land Acquisition Officer has no power
or jurisdiction to give any land under acquisition or any other
land in lieu of compensation. Sub-section (4) though gives
power to him in the matter of payment of compensation, it does
not empower him to give any land in lieu of compensation.
Sub-section (3) expressly gives power “only to allot any other
land in exchange”. In other words the land under acquisition is
not liable to be allotted in lieu of compensation except under
Section 31(3), that too only to a person having limited interest.
………..The problem could be looked at from a different
angle. Under Section 4(1), the appropriate Government notifies
a particular land needed for public purpose. On publication of
the declaration under Section 6, the extent of the land with
specified demarcation gets crystallised as the land needed for a
public purpose. If the enquiry under Section 5-A was dispensed
with, exercising the power under Section 17(1), the Collector
on issuance of notice under Sections 17, 9 and 10 is entitled to
take possession of the acquired land for use of public purpose.
Even otherwise on making the award and offering to pay
compensation he is empowered under Section 16 to take
possession of the land. Such land vests in the Government free
from all encumbrances. The only power for the Government
under Section 48 is to denotify the lands before possession is
taken. Thus, in the scheme of the Act, the Land Acquisition
Officer has no power to create an encumbrance or right in the
erstwhile owner to claim possession of a part of the acquired
land in lieu of compensation. Such power of the Land
Acquisition Officer if is exercised would be self-defeating and
subversive to public purpose.”
(emphasis supplied)
The Court also considered the question whether the appellant could
challenge the award in the execution proceedings and answered the same in
affirmative. The reasons for this conclusion are contained in para 8 of the
judgment, the relevant portion of which is extracted below:
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“…..We have already said that what is executable is only an
award under Section 26(2), namely, the amount awarded or the
claims of the interests determined of the respective persons in the
acquired lands. Therefore, the decree cannot incorporate any
matter other than the matters determined under Section 11 or
those referred to and determined under Section 18 and no other.
Since we have already held that the Land Acquisition Officer has
no power or jurisdiction to allot land in lieu of compensation, the
decree even, if any, under Section 18 to the extent of any
recognition of the directions in the award for the allotment of the
land given under Section 11 is a nullity. It is open to the appellant
to raise the invalidity, nullity of the decree in execution in that
behalf. Accordingly we hold that the execution proceedings
directing delivery of possession of the land as contained in the
award is, invalid, void and inexecutable……”
(emphasis supplied)
10. The legality and correctness of order dated 24.9.1993 passed by the
Division Bench of the Rajasthan High Court in D.B.C.S.A.W. No.680 of
1992 was considered in Secretary, Jaipur Development Authority, Jaipur
v. Daulat Mal Jain and others (1997) 1 SCC 35. This Court noted that the
Lokayukta of Rajasthan had severely criticized the actions of the then
Minister of Urban Development and Housing Department, Commissioner,
Jaipur Development Authority and Zonal Officer of Lal Kothi Scheme,
referred to the Rajasthan Improvement Trust (Disposal of Urban Land)
Rules, 1974 and held:
“Therefore, there was no policy laid by the Government and it
cannot be laid contrary to the aforestated rules and no such
power was given to individual Minister by executive action,
10
as the land was already notified conclusively under Section
6(1) for public purpose, namely, earmarked scheme. Since the
persons whose land was acquired were not owners having
limited interest therein, qua the owners having lost right, title
and interest therein, the sub-awardees or nominees, after the
acquisition under Section 4(1), would acquire no title to the
land nor such ultra vires acts of the Minister would bind the
Government. The actions, therefore, taken by the Minister-
cum-Chairman of the appellate authority and bureaucrats for
obvious reasons would not clothe the respondents with any
vestige of right to allotment. Acceptance of the contentions of
the respondents would be fraught with dangerous
consequences. It would also bear poisonous seeds to sabotage
the schemes defeating the declared public purpose. The record
discloses that such allotment in many a case was in violation
of the Urban Land Ceiling Act which prohibits holding the
land in excess of the prescribed ceiling limit of the urban land.
In some instances, a person whose land of 500 square yards
was acquired, was compensated with allotment of 2000 square
yards and above, which is against the public policy defeating
even the Urban Land Ceiling Act. Would any responsible
Minister or a bureaucrat, with a sense of public duty and
responsibility, transfer such land to sabotage the planned
development of the scheme? Answer has obviously to be in
the negative. The necessary inference is that the policy does
not bear any insignia of a public purpose, but appears to be a
device to get illegal gratification or distribution of public
property defeating the public purpose by misuse of public
office.”
(emphasis supplied)
The Court further held that the decision taken by the Minister and the
actions of the bureaucrats were meant to benefit only those who had illegally
secured transfer of land after the publication of the notification issued under
Section 4 and that the so called policy is a policy to feed corruption and to
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deflect the public purpose. This is evinced from para 23 of the judgment,
which is extracted below:
“There is no iota of evidence placed on record that under the so-
called policy, anyone from general public could equally apply
for allotment of the plots or was eligible to apply for such
allotment nor any such general policy was brought to our
notice. The allotment has benefited only a specified class,
namely, the awardees, sub-awardees or nominees and none else.
The decision by the Minister or the actions of the bureaucrats
was limited to the above class which included the respondents.
Legitimacy was given to the void acts of Chottey Lal, the
erstwhile owner as well as the LAO. Directions were given by
the Minister and the bureaucrats acted to allot the land under
the very void acts. They are ultra vires the power. These acts
are in utter disregard of the statute and the rules. Therefore, by
no stretch of imagination it can be said to have the stamp of
public policy; rather it is a policy to feed corruption and to
deflect the public purpose and to confer benefits on a specified
category, as described above.”
(emphasis supplied)
The plea of discrimination which found favour with the High Court
was also negatived by this Court by making the following observations:
“The question then is whether the action of not delivering
possession of the land to the respondents on a par with other
persons who had possession is an ultra vires act and violates
Article 14 of the Constitution? We had directed the appellants
to file an affidavit explaining the actions taken regarding the
allotment which came to be made to others. An affidavit has
been filed in that behalf by Shri Pawan Arora, Deputy
Commissioner, that allotments in respect of 47 persons were
cancelled and possession was not given. He listed various cases
pending in this Court and the High Court and executing court in
respect of other cases. It is clear from the record that as and
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when any person had gone to the court to get the orders of the
LAO enforced, the appellant-Authority resisted such actions
taking consistent stand and usually adverse orders have been
subjected to decision in various proceedings. Therefore, no
blame of inaction or favouritism to others can be laid at the
door of the present set-up of the appellant-Authority. When the
Minister was the Chairman and had made illegal allotments
following which possession was delivered, no action to unsettle
any such illegal allotment could have been taken then. That
apart, they were awaiting the outcome of pending cases. It
would thus be clear that the present set-up of the bureaucrats
has set new standards to suspend the claims and is trying to
legalise the ultra vires actions of Minister and predecessor
bureaucrats through the process of law so much so that illegal
and ultra vires acts are not allowed to be legitimised nor are to
be perpetuated by aid of Article 14. That apart, Article 14 has
no application or justification to legitimise an illegal and
illegitimate action. Article 14 proceeds on the premise that a
citizen has legal and valid right enforceable at law and persons
having similar right and persons similarly circumstanced,
cannot be denied of the benefit thereof. Such person cannot be
discriminated to deny the same benefit. The rational
relationship and legal back-up are the foundations to invoke the
doctrine of equality in case of persons similarly situated. If
some persons derived benefit by illegality and had escaped
from the clutches of law, similar persons cannot plead, nor the
court can countenance that benefit had from infraction of law
and must be allowed to be retained. Can one illegality be
compounded by permitting similar illegal or illegitimate or ultra
vires acts? Answer is obviously no.”
While repelling the argument made on behalf of the respondents that
the judgment in Radhey Shyam’s case was per incuriam , this Court
observed:
“The basic postulate of the contention is the omission to refer to
Rules 31 and 36 of the Rajasthan Land Acquisition Rules,
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1956. Rule 31 was made to guide the exercise of power of the
Collector (LAO) under Section 31(3) of the Act. As seen, the
Government has empowered the Collector to allot “any other
land' in lieu of money compensation only when the land
acquired belongs to a person having “limited interest in the
land”, like widow's estate or minor's estate, Mutawali etc. In
that behalf, Rule 31 amplifies the exercise of the power by the
authorised LAO. It says that the Collector cannot force a party
to take land in lieu of cash. Where, however, the interest of the
party is so limited, as in the case of a trustee of a wakf property
or a Hindu widow, as to make it extremely difficult, if not
impossible, to arrive at an adequate cash estimate of its value or
where, from the circumstances of a case, it is impossible to
place the parties concerned by cash compensation in the same
or nearly the same position as before acquisition, sub-section
(3) enables the Collector to arrange to award land (subject to
the same limitation of interest) in lieu of cash. In Radhey
Shyam case the scope of sub-section (3) of Section 31 has been
considered and explained in extenso. Rule 31 is only to
elongate the discretion which the LAO is expected to exercise
in awarding land in lieu of cash consideration and the
circumstances in which it would be done. Equally, Rule 36
deals with disposal of the excess land acquired by the Collector
for a company and imposition of the conditions for sanction of
transfer of excess land. Therefore, the absence of reference to
them does not make any dent into the principle of law laid in
Radhey Shyam case.”
11. In Narpat Singh v. Jaipur Development Authority (2002) 4 SCC
666, this Court again considered whether the Land Acquisition Officer could
direct allotment of plots measuring 1000 to 2000 sq. yds. to the landowners
and their transferees etc. The appellants in that case were the owners of
some parcels of land acquired by the State Government. They were also
beneficiaries of the direction given by the Land Acquisition Officer. After
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disposal of the appeals filed by the Trust against the award passed by
District Judge, Jaipur City, Narpat Singh and others filed execution
application seeking implementation of the award made by the High Court.
The appellant, who had succeeded the Trust, did not contest the application.
Therefore, the Executing Court passed ex parte order and issued warrant of
possession. The revisions filed against the order of the Executing Court
were dismissed by the High Court, but in the special leave petitions, this
Court gave liberty to the State Government and the appellant to raise
objections before the Executing Court with a direction to the latter to decide
the same after hearing the parties. Thereafter, the Executing Court
reconsidered the matter and passed order dated 1.6.1990 whereby it rejected
the objections filed against the prayer made by Narpat Singh and others for
delivery of possession of the plots. This time, the High Court allowed the
revision filed against the order of the Executing Court and declared that the
earlier judgment, which was based on compromise, suffered from inherent
lack of jurisdiction and, as such, the same could not be executed. In taking
this view, the High Court relied upon the judgments of this Court in Radhey
Shyam’s case and Daulat Mal Jain’s case. Before this Court, it was
argued that the law laid down in the two cases was not applicable to the
appellants’ case because the decree was passed in their favour in terms of the
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compromise, but this argument was not accepted by the Court and the
appeals were dismissed by making the following observations:
“Without entering into the question whether it is permissible for
the Land Acquisition Officer or the Reference Court or the
High Court hearing an appeal against an award made by the
Reference Court to record a compromise whereunder the
beneficiary of land acquisition agrees to offer land in lieu of
monetary compensation and whether such a compromise would
be legal and not opposed to public policy, we are of the opinion
that the facts and circumstances of this case are enough to
decline exercise of jurisdiction by this Court under Article 136
of the Constitution to the appellants. The exercise of
jurisdiction conferred by Article 136 of the Constitution on this
Court is discretionary. It does not confer a right to appeal on a
party to litigation; it only confers a discretionary power of
widest amplitude on this Court to be exercised for satisfying the
demands of justice. On one hand, it is an exceptional power to
be exercised sparingly, with caution and care and to remedy
extraordinary situations or situations occasioning gross failure
of justice; on the other hand, it is an overriding power
whereunder the Court may generously step in to impart justice
and remedy injustice. The facts and circumstances of this case
as have already been set out do not inspire the conscience of
this Court to act in the aid of the appellants. It would, in our
opinion, meet the ends of justice, and the appellants too ought
to feel satisfied, if monetary compensation based on the
principles for assessment thereof in land acquisition cases is
awarded and in addition they are given each a plot of
reasonable size to rehabilitate themselves so as to meet the
demands of reasonability and consistency.”
12. We may now advert to the facts of these cases. Shri Ganesh
Narayan Gupta, who had purchased the acquired land in 1963 i.e. much after
publication of the notification issued under Section 4 and declaration issued
under Section 6, filed suit for injunction, which came to be registered as
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Civil Suit No.629/1983 and was renumbered as Civil Suit No.270/1985 with
the prayer that the defendant (appellant herein) may be restrained from
interfering with his possession over plot Nos.C-112 to C-115, Lal Kothi
Scheme. During the pendency of the suit, Ganesh Narayan Gupta
transferred the plots to the respondents and two others by registered sale
deeds, who were impleaded as plaintiff Nos. 2 to 5 vide order dated
19.1.2001. Shri Ganesh Narayan Gupta claimed title over the plots on the
basis of the sale deed executed in his favour by Khatedar - Shri Vijay Lal
and subsequent allotment of plots in his favour by the Trust. The
respondents laid their claim on the basis of registered sale deeds dated
18.4.1993 executed in their favour by Shri Ganesh Narayan Gupta.
13. In the written statement filed on behalf of the appellant, it was
pleaded that in view of the judgments of this Court in Radhey Shyam’s case
and Daulat Mal Jain’s case, the orders passed in favour of Shri Ganesh
Narayan Gupta as also the allotment of plots by the Trust were nullity and,
as such, he did not acquire any right over the suit land and he could not have
transferred the plots to the respondents.
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14. On the pleadings of the parties, the trial Court framed the following
issues:
“1. Whether the plaintiff is owner in possession over the plot
since 24.12.82.
2. Whether the defendant out of prejudice and anger is
neither accepting the application and site plan from the plaintiff
nor is approving them.
3. Whether the defendant wants to demolish the
construction existing on the disputed plot in an illegal manner
without giving notice?
4. Whether against handing over possession in execution
proceedings, appeal has been preferred and what is its effect on
the suit.
5. Whether possession of the plaintiff is not legal
possession and he is encroacher.
6. Relief.
Additional Issue No.7
7. Whether the plaintiff No.1 has cased to have any interest
with the property in dispute. In place of plaintiff No.1, the
plaintiffs Nos. 2 to 5 have got right over the disputed property
in consequence of sale of property.”
15. The trial Court considered the evidence produced by the parties,
referred to the judgments of this Court in Radhey Shyam’s case and Daulat
Mal Jain’s case and held that plaintiff No.1 – Shri Ganesh Narayan Gupta is
not entitled to relief of injunction because he could not prove his ownership
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over the suit land. The process of reasoning by which the trial Court reached
this conclusion is evinced from the discussion made under issue No.1, the
relevant portions of which are extracted below:
“The burden of proof regarding this issue lay on the
plaintiffs part. The plaintiff side was required to prove that
since 24.12.82 he has been owner in possession over the plot
in dispute. The case of the plaintiff as per plaint is that on
6.1.64 the Land Acquisition Officer passed a joint award
under which the land of the plaintiff No.1 was also acquired
and the plaintiff No.1 was recommended a residential plot of
1500 square yards and compensation amount in lieu thereof
as mentioned in the award. When the defendant as per the
award did not give plot of land and compensation to the
plaintiff No.1, then he filed execution application and over
so many dates when compliance of the award was not made,
then warrant of possession was issued from the court and the
court through sale Ameen handed over physical possession
on site by beating the drum on 24.12.82. The plaintiff since
then as per para 5 of the plaint has been in possession over
the disputed plot situated in Lal Kothi Bhojpura and Chak
Sudarshanpura Scheme. The defendant in the written
statement has denied these facts alleging to be wrong and
has stated that under the judgment of Hon’ble Supreme
Court, the Award in respect of the disputed land has been set
aside. Filing of execution application by the plaintiff is
admitted and rest of the averment is denied.
The plaintiffs have not led any oral and documentary
evidence in support of their case inspite of affording
opportunity nor filed process fee for summoning the record
of Execution Case nor obtained dasti from the court. The
plaintiffs for continuously five years have not taken any
steps for summoning the record of Execution Case inspite of
court direction nor adduced any evidence while on the other
hand the defendant produced in evidence officer incharge
Shri Maghraj Ratnu D.W.1, who has stated in his statement
that the Land Acquisition Officer passed award dated 9.1.64
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for the land in connection with planned development under
the Lalkothi Scheme under which besides cash
compensation simultaneous recommendation to allot plots of
different size was made. Many awardees were allotted plots.
In this connection various litigations were initiated in the
Court. Similar award was passed in the year 1974. In the
case of Civil Appeal J.D.A. versus Radheyshyam and others
and Secretary J.D.A. versus Daulatmal Jain and others the
Hon’ble Supreme Court has affirmed payment of
compensation to be right and recommendation regarding
allotment of plots is held to be illegal and void. The Land
Acquisition Officer while passing the award for
compensation was not competent to recommend for
allotment of plot of land in lieu thereof. In this way the
plaintiffs have got neither any proprietary right nor any
possession over the disputed plot of land. The plaintiffs
have concealed the facts. The plaintiff Ganesh Narayan has
not been allotted plot of land by the J.D.A.
The plaintiff has not cross examined the said witness D.W.1
produced by the defendant in evidence. I have sought
guidance from judgments in both the cited cases namely
Civil Appeal No.12370/96 Secretary J.D.A. versus
Daulatmal Jain and Civil Apepal No.4209 and 4210/09. In
both the judgments the Hon’ble Supreme Court has held
award in respect of allotment of plot of land by way of
compensation under the Lalkothi Scheme to be illegal and
initially null & void. The plaintiffs have not rebutted the
evidence adduced from the defendant’s side nor produced
any evidence. In the light of citations produced the
ownership of the plaintiff No.1 over the disputed plot since
24.12.82 is not found. For want of evidence the possession
of the plaintiff is also not proved. Consequently this issue is
decided against the plaintiff.”
16. After purchasing the plots from Shri Ganesh Narayan Gupta, the
respondents filed applications under Section 83 of the Jaipur Development
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Authority Act, 1982 (for short, “the 1982 Act”) questioning notice dated
19.12.1996 issued by the appellant for auction of the two plots. The
Appellate Tribunal constituted under the 1982 Act (hereinafter referred to as,
`the Tribunal’), relied upon the judgments in Radhey Shyam’s case and
Daulat Mal Jain’s case and held that the respondents do not have the locus
to challenge the proposed auction because transactions involving purchase of
land by Shri Ganesh Narayan Gupta from the original Khatedar and
subsequent purchase of plots by the respondents were nullity. Paragraphs 7,
9 and 11 of order dated 22.1.1997 passed in Vijay Kumar Data’s case
(identical order was passed in Daya Kishan Data’s case), which contain the
detailed reasons recorded by the Tribunal are extracted below:
“7. The Land Acquisition Act provides some
powers and jurisdiction in favour of the Land Acquisition
Officer, but simultaneously regarding awarding of land out of
the land acquired to the khatedar or erstwhile owner some
powers are vested about which the Hon'ble High Court in
1994(4) S.C.C. 370 and earlier cited judgment in the case of
J.D.A. versus Daulatmal Jain, it is clearly laid down that the
Land Acquisition Officer out of the acquired land at the time of
passing the Award cannot award land by way of consideration
and if he has done so, the act of the Land Acquisition Officer is
ab initio void, illegal and ineffectual and on that basis no
proprietary rights can accrue in respect of that land in favour of
any body and the Award which in the shape of a decree has
reached the final stage that too cannot bestow any right upon
the appellant, because this decree is ab initio void, illegal and
proceedings done in compliance of it and possession given is
also illegal and irregular. The Hon'ble Supreme Court in this
judgment under citation has held the allotment of the plot to be
21
illegal. In view of these two cited judgments it is clearly
ensured that the Land Acquisition Officer had no right to award
land by way of consideration out of the acquired land and on
the basis of ab initio void and illegal act Ganesh Narayan Gupta
could never acquire proprietary right because neither Ganesh
Narayan Gupta could be owner of this acquired land nor the
Land Acquisition Officer award any basis for right of
ownership to Ganesh Narayan Gupta. Thus on the given land no
right of ownership is accrued in favour of Ganesh Narayan
Gupta and entire subsequent proceedings done in respect of this
land is void in itself. Under the circumstances in view of the
cited judgment of Hon'ble Supreme Court when Ganesh
Narayan had no proprietary right, then after him question does
not arise that the subsequent owners would have any right.
Therefore the appellant also cannot have any basis or right in
respect of this land.
9. When the notification under section 4
regarding acquisition of this land was published on 19.6.60 and
declaration under section 6 was published in 1961, then Ganesh
Narayan had no right to purchase this land in 1963 and after
publication of this notification out of the land to be acquired if
Ganesh Narayan at all purchased any land, even then
no right of ownership can accrue to Ganesh Narayan Gupta in
respect of this land. Thus the act of Ganesh Narayan to
purchase this land is in contravention of rules and is void.
11. The act of the Land Acquisition Officer of
giving plot of land to Ganesh Narayan out of the land acquired
is ab initio void, publication of notifications under sections 4
and 6 in 1960 and 61 and after publication of this notification
purchasing of land by Ganesh Narayan and subsequently by the
appellant from Ganesh Narayan is void, and no right is
available under the circumstances to the appellant and on the
basis of law laid down in the cited judgments in 1994(4) S.C.C.
370 and in J.D.A. versus Daulatmal Jain, the appellant has
failed to establish any of his right or basis. Therefore, this
appeal of the appellant against the respondent is not
maintainable.”
22
(emphasis supplied)
17. The respondents challenged the orders passed by the Tribunal in S.B.
Civil Writ Petition Nos.1047 of 1997 and 1046 of 1997. They pleaded that
by virtue of the sale deeds executed by Shri Ganesh Narayan Gupta, they
have become owners of the plots and the appellant has no right to auction
the same. They relied upon Section 144 of the Code of Civil Procedure and
claimed that the appellant is duty bound to restore the land to them because
the action taken for depriving them of the possession was wholly illegal.
18. In the written statement filed on behalf of the appellant, it was pleaded
that plot Nos.C-113 to C-117, Lal Kothi Scheme were allotted to Bhagwan
Das Khera in 1979 but, later on, the said allotment was cancelled. It was
further pleaded that in view of the law laid down by this Court in Radhey
Shyam’s case and Daulat Mal Jain’s case, the allotment made in favour of
Shri Ganesh Narayan Gupta in compliance of the order passed by the
Executing Court has to be treated as nullity and he had no right to transfer
the plots to the writ petitioners.
19. The learned Single Judge dismissed the writ petitions by observing
that the dispute regarding title of plot Nos.C-113 to C-114 cannot be decided
23
under Article 226 of the Constitution. The learned Single Judge noted that
no material was placed before the Court to show that the two plots were
allotted either to the original Khatedar or to the writ petitioners whereas the
respondents had produced documents to prove that the plots were allotted to
one Bhagwan Das Khera and the allotment made in his favour was also
cancelled.
20. The Division Bench of the High Court did not find any error in the
view taken by the learned Single Judge that dispute relating to title of the
property cannot be decided under Article 226 of the Constitution of India,
but entertained and accepted an altogether new case put forward by the
counsel for the writ petitioners (the respondents herein) that in terms of the
policy decision taken by the State Government, which was circulated vide
letter dated 6.12.2001 and order dated 9.1.2002 passed by another Division
Bench in D.B. Civil Writ Petition No.5776/2001 (suo motu) – Rajasthan
High Court v. State of Rajasthan and others, his clients were entitled to
regularization of the plots in question.
21. Shri S.K. Bhattacharya, learned counsel for the appellant assailed the
impugned judgment mainly on the ground that it runs contrary to the law
24
laid down in Radhey Shyam’s case and Daulat Mal Jain’s case. Learned
counsel submitted that in view of the declaration of law made in Radhey
Shyam’s case that the Land Acquisition Officer did not have the jurisdiction
to allot land to the awardees, sub-awardees and their nominees/sub-
nominees, the so-called policy framed by the State Government for
regularisation of illegal allotments is liable to be treated as nullity and the
Division Bench of the High Court committed serious error by extending the
benefit of that policy to the respondents ignoring that Shri Ganesh Narayan
Gupta from whom they had purchased the plots did not have title over the
land and also that no such case was set up in the writ petition filed by them.
Shri Bhattacharya then argued that the concurrent finding recorded by the
Tribunal and the trial Court that the transaction involving purchase of land
by Shri Ganesh Narayan Gupta after publication of the notification under
Section 4 was nullity is binding on the respondents and they did not have the
locus to take benefit of the so called policy of regularization contained in
letter dated 6.12.2001.
22. Shri M.L. Lahoty, learned counsel for respondent – Vijay Kumar Data
argued that the order passed by the Executing Court for delivery of
possession of 1500 square yards land to Shri Ganesh Narayan Gupta will be
25
deemed to have become final and is binding on the appellant because
revision filed against that order was dismissed by the High Court and it is
not open for the appellant to indirectly question the allotment of plot Nos. C-
113 to C-117 to Shri Ganesh Narayan Gupta. Shri Lahoty submitted that in
compliance of the direction given by the Executing Court, the concerned
authority had delivered possession of the plots to Shri Ganesh Narayan
Gupta and being bonafide purchasers, the respondents are entitled to seek
protection of their possession. He then argued that the policy contained in
circular dated 6.12.2001 is based on the decision taken by the Cabinet Sub-
Committee and the Division Bench of the High Court did not commit any
error by directing regularisation of the allotment of plot Nos.C-113 to C-114
in favour of the respondents by relying upon order dated 9.1.2002 passed by
the coordinate Bench in D.B. Civil Writ Petition No.5776 of 2001 (Suo
Motu). Shri Lahoty pointed out that in furtherance of the policy decision
taken by the State Government, the appellant has executed lease deeds in
favour of large number of persons who had been benefited by the direction
contained in the award passed by the Land Acquisition Officer and argued
that the appellant cannot adopt different yardsticks while dealing with
similarly situated persons.
26
23. In furtherance of the liberty given by the Court on 31.3.2011, Shri
M.L. Lahoty filed written arguments on 7.4.2011 enclosing therewith
documents marked as Annexures `A’ to `E’. Of these, Annexure ‘A’ is
xerox copy of order dated 20.11.1987 passed by Civil Judge, Jaipur City,
Jaipur whereby he dismissed an application filed by Dr. Bhagwan Das Khera
under Section 47 read with Order XXI Rules 97 and 99 of the Code of Civil
Procedure, 1908. Annexure ‘B’ is the copy of sale deed dated 18.4.1993
executed by Shri Ganesh Narayan Gupta in favour of respondent-Vijay
Kumar Data. Annexure ‘C’ is the copy of order dated 30.10.2001 by which
a Committee consisting of Minister of Urban Development, Home Minister,
Finance Minister, Industries Minister, State Minister for Mines was
constituted for solving the problems pertaining to regularisation of illegal
construction and encroachment of land in the Lal Kothi and Prithviraj Nagar
Schemes. Annexure ‘D’ is xerox copy of order dated 9.1.2002 passed by the
Division Bench of the High Court in D.B. Civil Writ Petition No.5776 of
2001 (Suo Motu). Annexure ‘E’ is a bunch of lease deeds dated 1.1.2003,
24.8.2002 and 16.8.2002 executed by the appellant in favour of different
persons in respect of different plots of land situated in the Lal Kothi Scheme.
27
24. Shri A.D.N. Rao, learned counsel for Smt. Sunita Agarwal, whose
application for impleadment was allowed on 31.3.2011, argued that the
direction given by the Division Bench of the High Court should be set aside
because plot No.C-114, Lal Kothi Scheme was purchased by his client in the
auction held by the appellant on 26.12.1996. Shri Rao pointed out that
possession letter was issued in favour of his client on 17.6.2000 and
registered sale deed was executed on 21.6.2000. Similar prayer has been
made on behalf of Shri D.S. Bhandari and two others, who also filed
impleadment application being I.A. No.3/2008. In that application, it has
been averred that the applicants were successful in the auction held by the
appellant on 19.6.2000 in respect of plot No.C-113, Lal Kothi Scheme and
after deposit of the entire money, the appellant executed sale deed dated
7.4.2005 and delivered possession on 13.5.2005. It has been further averred
that after getting necessary approval from the appellant on 23.1.2007, the
applicants have constructed house on the plot and occupied a portion thereof
and leased out another portion to one Mr. Vijay Sharma.
25. We have considered the respective arguments and submissions and
carefully scanned the records. We have also gone through the written
arguments furnished by learned counsel for respondent – Vijay Kumar Data.
28
26. The first question which needs consideration is whether the Division
Bench of the High Court could have granted relief to the respondents by
entertaining an altogether new case set up by their counsel with reference to
the so called policy framed by the State Government for regularization of the
illegal allotments / encroachments of the acquired land in the Lal Kothi and
Prithviraj Nagar Schemes.
27. It is not in dispute that the only issue raised in the writ petitions filed
by the respondents was whether the Tribunal was right in dismissing the
applications filed by them against the auction of plot Nos. C-113 and C-114,
Lal Kothi Scheme. The Tribunal had negated the respondents’ challenge on
the ground that Shri Ganesh Narayan Gupta from whom they had purchased
the plots vide sale deeds dated 18.4.1993 did not have valid title. The
Tribunal noted that Shri Ganesh Narayan Gupta had purchased land from its
Khatedar Shri Vijay Lal son of Shri Ram Sukhji after publication of the
notification issued under Section 4 and held that such transactions did not
create any title in his favour. The Tribunal also relied upon the judgments of
this Court in Radhey Shyam’s case and Daulat Mal Jain’s case and held
that once the Supreme Court had declared the transactions involving
purchase of the acquired land and the direction given by the Land
29
Acquisition Officer for allotment of land to the awardees, sub-awardees and
their nominees/sub-nominees to be nullity, the transferees of such purchasers
cannot claim any right over the plots which were auctioned by the appellant.
In the opinion of the Tribunal, when the purchase of land by Shri Ganesh
Narayan Gupta was null and void, he could not have transferred a valid title
in favour of the respondents so as to enable them to challenge the
advertisement issued by the appellant for auction of the two plots. The
learned Single Judge dismissed both the writ petitions primarily on the
ground that the disputes questions of fact relating to title of the plots cannot
be determined under Article 226 of the Constitution and the writ petitioners
are free to avail any other alternative remedy for determination of their
rights.
28. What is most significant is that till the disposal of the writ petitions by
the learned Single Judge, the seeds of the so called policy decision, which
was allegedly circulated vide letter dated 6.12.2001 had not even been sown.
A reading of Annexure `C’, which forms part of the written arguments filed
by Shri M.L. Lahoty, learned counsel for respondent – Vijay Kumar Data,
shows that the Committee of Ministers was formed vide order dated
30.10.2001 to suggest solution of the problems in the regularization of
30
illegal constructions/encroachments of land under the Lal Kothi and
Prithviraj Nagar Schemes in relation to which several cases were pending in
different Courts. The recommendations made by the Committee were given
the colour of the Government’s decision (though, no material has been
placed on record to show that the recommendations made by the Committee
were accepted by the State Government) as would appear from letter dated
6.12.2001 written by Deputy Secretary (Administration), Urban
Development Department to the Secretary, Jaipur Development Authority,
Jaipur. That letter reads as under:
“GOVERNMEN OF RAJASTHAN
URBAN DEVELOPMENT DEPARTMENT
No.F.3(32)UDD/3/2001 Jaipur Dated: Dec. ,2001
6 DEC 2001
The Secretary,
Jaipur Development Authority,
Jaipur.
Subject: Regarding regularization of illegal construction /
encroachment under Lai Kothi Scheme.
Sir,
In the above context it is stated that under the Ministerial Secretariat
Order No.F. 4(1)M.M./99 dated 30th October, 2001 for the solution of
problems arising from comp1ications of regularization of illegal
construction/encroachments under Lal Kothi and Prithviraj Nagar
Schemes, a sub committee was constituted. This Sub Committee
comprised of Minister, Urban Development as convenor and Home
Minister, Finance Minister, Minister for Industries and State Minister
for minerals were nominated its members and Secretary
Administration, Urban Development Department was nominated as
member secretary of this sub committee.
31
The Committee discussed in detail over various aspects of Lal Kothi
Scheme and after taking into consideration the entire facts
unanimously took the following decision:
1. As per the awards pronounced so far under the Lal
Kothi Scheme, whatever amount is due for payment to the
awardees, that may be paid to the concerned cultivators.
2. The awardees who besides compensation amount could not be
allotted plot of land or after allotment were cancelled, may now be
allotted per awardee a plot measuring 250 square yards in other
schemes of J.D.A. Such plot be awarded at rate of 25 percent of the
prevalent residential reserved rate under the scheme.
3. The developed and vacant plots be regularized in the similar
manner. These may be regularized at the following rates:
up to 200 sq.yards 25 percent of the reserved
residential rate.
A)
B) More than 200 sq. yards 35 percent of the reserved
residential rate
4. In the remaining cases of worth regularizing plots of
Everest and Salt colonies (which are about 80 plots) which
could not be regularized inspite of decision of 1976, the rate of
regularization is fixed at 25 percent of the reserved residential
rate.
5. In connection with regularization of the plots the
amount on the basis of self-assessment be asked to be deposited
by 28.2.2002.
6. Those who fail to get regularisation within stipulated
time limit, it is decided to afford them opportunity of
depositing the amount by 31.3.2002 with 5 per cent, additional
amount to obtain regularization. After expiry of the said date, it
is decided that no regularization be done and after notice to
such occupants over the plots their construction shall be
demolished and such plot's shall then vest in the Authority and
32
for the purpose of rehaoi1itation they shall be allotted as
residential plots under other schemes of Jaipur Development
Authority.
7. The plots which are not regularized under this order, they
be finally refused and their list be published in the news paper,
and possession on the site if any, be removed.
8. The awardees/sub awardees whose allotments have not
yet been cancelled, but they have construction on site of their
plots, it is decided that their earlier allotment be cancelled and
treating the plot as acquired, on the basis of possession, be
regularized under this order. It is decided to adjust the amount
deposited earlier. On interest shall be chargeable on this
amount.
9. In the cases wherein litigation is pending in courts, in
connection with them it is decided to follow action as under:
(a) Such of the vacant plots where there is stay order
from the court or any adverse order etc. in force and
which have been taken over in possession by the Jaipur
Development Authority as per rules, it is decided to sell
them through auction. It is decided to draw a list or such
plots.
b) In cases of acquired or under
acquisition and / plot of land/constructed building
which is under effect of any order or stay order
from the court, in connection with them it is
decided to follow action as under:
Where in connection with acquired or under
acquisition land/plot of land/ constructed building stay
order/order for status quo is issued in favour of cultivator,
it is decided to follow regularization proceeding in favour
of such cultivator treating the land/ plot of land/
constructed building in his favour. If the order/ stay
order/ order for status quo is in favour of J.D.A. then
treating the concerned plot/land to be of J .D.A. it is
33
decided to follow further taken and such plot/land is
decided not to be regularized. On the contrary if such
orders are in favour of other person and he is in
possession, and he withdraws the case from the court,
then regu1arization of that plot/land be done in his
favour. In cases of plots where J.D.A. has gone in appeal
and no decision is taken by the court in favour of the
Authority then honouring the judgment of the court below, case
shall be withdrawn by the J.D.A. the plot/ land/ constructed
building is decided to be regularised in favour of concerned
person. In such cases the basis of regularization will be physical
possession. In connection with regularization on above basis,
the Samjhota Samiti will review each and every case and give
its decision which shall he binding on J.D.A.
10. In connection with land under acquisition, land of
9 bigha 6 biswa of Pratap Nursary, 5 bigha of Anand
Nursary, 2 bigha 12 biswa of Kailashwati, Maharchand & Sons
is decided not to acquire. Simultaneously it is decided to
regularize on payment of 25 percent of reserved residential rate
of these land.
No decision was taken in connection with land of
Amrudon Ka Bagh. It is thought proper to take any action after
decision from Delhi High Court.
Yours faithfully,
Sd/- 6.12.01
(H.S. Bhardwaj)
Dy. Secretary Administration”
29. In our view, the Division Bench of the High Court committed serious
error by entertaining an altogether new case set up on behalf of the
respondents, who had not even prayed for amendment of the pleadings and
granted relief to them by declaring that they are entitled to get benefit of the
34
policy of regularization contained in letter dated 6.12.2001. It is difficult, if
not impossible, to comprehend as to how the Division Bench could rely
upon the so called policy decision taken by the Government in flagrant
violation of the two judgments of this Court wherein it was categorically
held that the transactions involving transfer of land after the issue of
notification under Section 4 were nullity and the Land Acquisition Officer
did not have the jurisdiction to direct allotment of land to the awardees/sub
awardees, their nominees/sub-nominees. The basics of judicial discipline
required that the Division Bench of the High Court should have followed the
law laid down by this Court in Radhey Shyam’s case and Daulat Mal
Jain’s case and refused relief to the respondents.
30. Another grave error committed by the Division Bench of the High
Court is that it ignored the unchallenged findings recorded by the Tribunal
and the trial Court that the transferor of the respondents, namely, Shri
Ganesh Narayan Gupta did not have valid title over the land and he had no
right to secure allotment of 1500 sq. yds. land in the Lal Kothi Scheme and
that the order passed by the Executing Court for delivery of possession was
liable to be ignored in view of the law laid down in Radhey Shyam’s case
and Daulat Mal Jain’s case.
35
31. At this juncture, we may notice order dated 9.1.2002 passed by the
Division Bench of the Rajasthan High Court in D.B. Civil Writ Petition
No.5776/2001 (Suo Motu) titled Rajasthan High Court v. State of Rajasthan
and others. The preface of that order shows that a learned Single Judge of
the High Court had suo motu taken cognizance of three different news items
dated 8.12.2001, 10.12.2001 and 11.12.2001 published in the daily
newspaper – Rajasthan Patrika, Jaipur edition. The first news item
highlighted the grievance of one Lali Devi against the construction of road
through her land. The second news item related to regularization of the Lal
Kothi Scheme and the third news item related to the alleged irregularities
committed in the construction of high rise buildings. When the matter was
listed before the Bench, which had the roster to hear such matters, it was felt
that the issue raised in the order passed by the learned Single Judge who, in
our considered opinion, was not at all justified in suo motu taking
cognizance of the newspaper reports and the order made by him could
appropriately be termed as coram non judis , directed that the matter be
placed before the Division Bench. On behalf of the State Government and
the appellant, affidavits were filed to justify the so called policy contained in
letter dated 6.12.2001. 15 villagers of village Herver and some residents of
36
Everest Colony, Lal Kothi also appeared before the Division Bench through
their advocates. While dealing with the second news item, the Division
Bench did take cognizance of the fact that people having connection in the
power corridors and those who were economically affluent had illegally
taken possession of the acquired land and raised construction, but approved
the so called policy decision taken by the State Government to regularize the
illegal transfers. The reasons recorded by the Division Bench of the High
Court for adopting this course are extracted below:
“The second item with regard to the regularisation of Lal Kothi
Scheme is concerned, declaration has been taken as a
part of the policy by the Government and there is ample
authority of law to support the contention that such policy
decisions cannot be made the subject matter of the judicial
review. No doubt in the cases where any policy decision is
taken for any reasons which are against the public interest,
the judicial review is possible, but in case of this nature,
'it cannot be said in the facts and circumstances of this
case which have been established before us with
support of documents Including documentary evidence of
contemporaneous nature that public interest has not suffered in
any manner by the decision of regu1arisation. To bring an end
to a 40 years prolonged agony of litigation without any avail
to the State, realising the ground realities that
demolition of hundreds of constructed houses of the
members of public belonging to middle/lower middle
class is a tough task coupled with other considerations
which are germane, if the popular (elected) Government
has taken a policy decision in tune with the pulse of masses,
it is difficult for this Court to say that it is contrary to public
interest. Public interest litigation is of-course meant to protect
the rights and to take care of the problems of those who
cannot take care of themselves in want of awareness of their
37
own rights or to espouse a common cause and in such
cases, the cognizance can certainly be taken by the Court even
by way of suo-motu action in a given case on the basis of
the news item or otherwise, but the public interest is neither
an unbridled nor an unruly horse, which can enter any arena
in an aimless race. In view of the reply public
interest is transparent in the State action and we are satisfied
and convinced that had there been a correct and complete
disclosure of full facts perhaps the cognizance may not
have been taken by the Court suo-motu. Be that as it may,
now that the full facts have come on record and we have
heard all the parties which are present, we have no hesitation
in holding that in the instant case, there is no scope of any
judicial review and to sit over the wisdom of the state
functionaries and therefore, no interference is warranted by
this Court with the decision which has been taken by the
Government, as a part of public policy. In larger public
interest even if the Government has to pay a
little price, it is a small price in deed, which has to be paid,
if at all we want the object of a welfare State to prevail.
It may also be observed in all fairness to the State that
after the suo-motu action had been taken by this Court and the
notices had been issued, the Government has shown due regard
for Court's cognizance by, staying its own order as it is stated
before us that the State Government honoured the pendency of
the matter in Court by directing the J.D.A. vide order dated
31st December, 2001 not to act upon the decision dated 6th
December, 2001 and not to proceed further with the process of
regu1arisation and has directed the J.D.A. to produce all the
relevant records before the Court. It is, therefore, clear that the
decision as had been taken on 6th December, 2001 had been
stayed by the Government itself, showing due regard for the
action initiated by the Court. Having heard all the parties, we
find that the policy decision hardly warrants any interference by
this Court. The Government and all concerned are free to
th
proceed on the basis of the order dated 6 December, 2001 as
had been passed by the Government.”
38
32. In our opinion, the High Court had undertaken a wholly unwarranted
and unjustified exercise for putting the seal of approval on the so called
policy contained in letter dated 6.12.2001 and, that too, by ignoring the law
laid down by this Court in Radhey Shyam’s case and Daulat Mal Jain’s
case. What the High Court has done is to legitimised the transactions, which
were declared illegal by this Court and this was clearly impermissible. The
High Court’s understanding of the so called policy framed by the
Government was clearly erroneous. The letter written by Deputy Secretary
(Administration), Urban Development Department to the Secretary, Jaipur
Development Authority, Jaipur cannot, by any stretch of imagination, be
treated as a policy decision taken by the State Government. No document
was produced before the High Court and none has been produced before us
to show that the recommendations made by the Committee of Ministers had
been approved by the State Government culminating in issuance of a policy
circular. It is trite to say that all executive actions of the Government of
India and the Government of a State are required to be taken in the name of
the President or the Governor of the State concerned, as the case may be
[Articles 77(1) and 166(1)]. Orders and other instruments made and
executed in the name of the President or the Governor of a State, as the case
may be, are required to be authenticated in such manner as may be specified
39
in rules to be made by the President or the Governor, as the case may be
[Articles 77(2) and 166(2)]. Article 77(3) lays down that:
“The President shall make rules for the more convenient
transaction of the business of the Government of India, and for
the allocation among Ministers of the said business.”
Likewise, Article 166(3) lays down that:
“The Governor shall make rules for the more convenient
transaction of the business of the Government of the State, and
for the allocation among Ministers of the said business insofar
as it is not business with respect to which the Governor is by or
under this Constitution required to act in his discretion.”
Article 166 was interpreted in State of Bihar v. Kripalu Shankar
(1987) 3 SCC 34 and it was observed:
“Now, the functioning of Government in a State is governed by
Article 166 of the Constitution, which lays down that there shall
be a Council of Ministers with the Chief Minister at the head, to
aid and advise the Governor in the exercise of his functions
except where he is required to exercise his functions under the
Constitution, in his discretion. Article 166 provides for the
conduct of government business. It is useful to quote this
article:
‘166. Conduct of business of the Government of a State.
—(1) All executive action of the Government of a State
shall be expressed to be taken in the name of the
Governor.
(2) Orders and other instruments made and executed in
the name of the Governor shall be authenticated in such
manner as may be specified in rules to be made by the
Governor, and the validity of an order or instrument
which is so authenticated shall not be called in question
40
on the ground that it is not an order or instrument made
or executed by the Governor.
(3) The Governor shall make rules for the more
convenient transaction of the business of the Government
of the State, and for the allocation among Ministers of the
said business insofar as it is not business with respect to
which the Governor is by or under this Constitution
required to act in his discretion.’
Article 166(1) requires that all executive action of the State
Government shall be expressed to be taken in the name of the
Governor. This clause relates to cases where the executive
action has to be expressed in the shape of a formal order or
notification. It prescribes the mode in which an executive action
has to be expressed. Noting by an official in the departmental
file will not, therefore, come within this article nor even noting
by a Minister. Every executive decision need not be as laid
down under Article 166(1) but when it takes the form of an
order it has to comply with Article 166(1). Article 166(2) states
that orders and other instruments made and executed under
Article 166(1), shall be authenticated in the manner prescribed.
While clause (1) relates to the mode of expression, clause (2)
lays down the manner in which the order is to be authenticated
and clause (3) relates to the making of the rules by the
Governor for the more convenient transaction of the business of
the Government. A study of this article, therefore, makes it
clear that the notings in a file get culminated into an order
affecting right of parties only when it reaches the head of the
department and is expressed in the name of the Governor,
authenticated in the manner provided in Article 166(2).”
33. It is thus clear that unless an order is expressed in the name of the
President or the Governor and is authenticated in the manner prescribed by
the rules, the same cannot be treated as an order made on behalf of the
Government. A reading of letter dated 6.12.2001 shows that it was neither
41
expressed in the name of the Governor nor it was authenticated manner
prescribed by the Rules. That letter merely speaks of the discussion made
by the Committee and the decision taken by it. By no stretch of imagination
the same can be treated as a policy decision of the Government within the
meaning of Article 166 of the Constitution.
34. We are further of the view that even if the instructions contained in
letter dated 6.12.2001 could be treated as policy decision of the Government,
the High Court should have quashed the same because the said policy was
clearly contrary to the law declared by this Court in Radhey Shyam’s case
and Daulat Mal Jain’s case and was a crude attempt by the concerned
political functionaries of the State to legalise what had already been declared
illegal by this Court.
35. Although, we are prima facie satisfied that execution of lease deeds by
the appellant in favour of some persons in 2002 and 2003 is a clear
indication of deep rooted malaise in the functioning of the appellant and is
also indicative of sheer favouritism and nepotism, we refrain from
pronouncing upon the legality of those transactions because the beneficiaries
are not parties to these appeals.
42
36. In the result, the appeals are allowed. The impugned judgment is set
aside. The writ petitions filed by Vijay Kumar Data and Daya Kishan
Data are dismissed and they are directed to pay cost of Rs.5 lacs for pursuing
unwarranted litigation for last over 15 years. The amount of cost shall be
deposited with the Rajasthan State Legal Services Authority within a period
of two months. The respondents shall be entitled to recover the price paid to
Shri Ganesh Narayan Gupta along with the amount of cost by availing
appropriate legal remedy.
37. Since we have found that the so called policy decision contained in
letter dated 6.12.2001 is contrary to the law declared by this Court, the State
Government and the appellant are restrained from taking any action in future
on the basis of the said letter.
…..…..…….………………….…J.
[G.S. Singhvi]
…..…..……..…..………………..J.
[Asok Kumar Ganguly]
New Delhi
July 12, 2011.