Statutory authorities cannot invoke Article 131, which is limited to disputes between the Centre and States: Supreme Court

The Lucknow Development Authority (“LDA”), constituted under the Uttar Pradesh Urban Planning and Development Act, 1973, filed Writ Petition No. 3639 of 1999 before the Allahabad High Court, Lucknow Bench, against the Union of India, defence authorities and subsequently impleaded respondents, including Swarg Ashram Shakari Awas Samiti Limited and the State of Uttar Pradesh.

LDA asserted that, after developing a colony and allotting plots/flats, officers of the Union of India and defence establishments interfered with the allottees’ possession by claiming ownership over the land.

The High Court attempted to facilitate a resolution between the concerned authorities, but, by order dated 19 September 2023, dismissed the writ petition on the ground that the dispute was essentially between the State of Uttar Pradesh and the Union of India and could be pursued under Article 131 of the Constitution.

Whether the High Court erred in treating the dispute as one between the State of Uttar Pradesh and the Union of India, rather than adjudicating the writ petition instituted by the Lucknow Development Authority.

Whether the Lucknow Development Authority, as a statutory body and instrumentality of the State, could invoke the Supreme Court’s original jurisdiction under Article 131 of the Constitution.

Whether the High Court was justified in dismissing the writ petition and granting liberty to initiate proceedings under Article 131.

Article 131 of the Constitution confers original jurisdiction on the Supreme Court in disputes between the Government of India and one or more States, or between two or more States; the expression “States” in Article 131 refers to the constituent States listed in the First Schedule, and not to every entity falling within the definition of “State” under Article 12.

An authority or instrumentality of the State may fall within Article 12 but is not thereby a “State” entitled to invoke Article 131.

The Lucknow Development Authority is a statutory body corporate constituted under Section 4 of the Uttar Pradesh Urban Planning and Development Act, 1973, and is legally distinct from the State of Uttar Pradesh.

The Supreme Court held that the High Court fundamentally misconceived the nature of the proceedings by viewing them as a dispute between the State of Uttar Pradesh and the Union of India.

The writ petition had been filed by the LDA, not by the State of Uttar Pradesh.

Although the LDA is a statutory instrumentality that may fall within Article 12, it is not a constituent State for the purposes of Article 131 and could not independently institute proceedings under that provision.

Consequently, the High Court’s direction that the parties pursue an Article 131 remedy was legally untenable, and its dismissal of the writ petition failed to address the actual claim brought by the LDA.

The civil appeal was allowed, and the writ petition was remitted to the Allahabad High Court for fresh adjudication in accordance with law.

In view of the substantial delay since its institution, the High Court was requested to decide the matter expeditiously.

Delay was condoned and leave was granted.