NAGPUR IMPROVEMENT TRUST Vs. NAGPUR TIMBER MERCHANTS ASSOCIATION

JUDGEMENT

(1.) Special leave granted.

(2.) These appeals raise common questions for consideration. The Nagpur Improvement Trust, the appellant herein, has been constituted under the provisions of the Nagpur Improvement Trust Act, 1936 enacted to provide for improvement and expansion of the town of Nagpur. The said Act makes provisions for acquisition of land by the Improvement Trust in connection with various schemes which are framed by the Improvement Trust. After development the land is disposed of by the Improvement Trust. The disposal of lands vested in the Improvement Trust is governed by the Nagpur Improvement Trust (Land Disposal) Rules, 1955 (hereinafter referred to as the Rules) made by the State Government, in exercise of powers conferred by Section 76 read with Section 89 of the Nagpur Improvement Trust Act, 1936. Rule 3 provides for transfer of Land Improvement Trust by (a) direct negotiation with party; (b) public auction; (c) inviting tenders; and (d) concessional rates. Rule 4 prescribes that the land shall be disposed of at a premium to be fixed in accordance with the provisions contained therein. In addition to the amount of premium, the transferee is liable to pay ground rent at 2% of the premium annually. Rule 7 lays down that every transfer of Improvement Trust land shall be made by lease which shall be either for thirty years or ninety nine years as may be determined by the Improvement Trust. If the purchaser by an application in writing requests the Improvement Trust to convert the period of lease from thirty years to ninety nine years, the Improvement Trust may do so after charging in addition 15% of the premium fixed for thirty years of lease with proportionate increase in annual ground rent. In certain specified circumstances the Improvement Trust can dispose of land by outright sale or exchange. Rule 9 of the Rules, Which is relevant for the purpose of this case, reads as under:-

(3.) The other provisions of the Rules have no bearing on the matter in issue.