G R HANUMAYYA Vs. STATE OF MYSORE

JUDGEMENT

(1.) The petitioners were the Councillors of the Town Municipal Council, Tarikere. By the order made under sub-sec.(2) of S.308 of the Mysore Municipalities Act, 1964, they were called upon to pay to the Municipal Council a total amount of Rs.2,529-99 to make good the loss sustained by the Council. In this petition under Arts.226 and 227, they challenge the validity of the said order.

(2.) The matter arises in this way: Four sites belonging to the Muni- pal Council have been in occupation of T. J. Ramachandrappa, M.R. Krishnoji Rao, M.P.Parashuram Rao and Lakshmanachar. The occupants offered to purchase the sites at upset price. The Municipal Council accepted the proposal of the occupants and sought approval of the Divisional Commissioner for the disposal of sites Before the approval was accorded, the Council resolved that the sites should be sold by public auction. Accordingly the sale was notified to be held on 26-7-1965, but the sale did not take place on that day. It was postponed to 29-7-1965 without a fresh proclamation. On 29-7-1965 the sale was held by accepting the bid of the said occupants and on 16-8-1965, it was confirmed by the Council. The price fetched in the auction sale was less than the upset price offered by the occupants. On coming to know of all these facts, the Divisional Commissioner directed the Deputy Commissioner to take surcharge proceedings against the petitioners under S.308(2) of the Act. The Deputy Commiissioner called upon the petitioners to show cause why they should not be asked to make good the loss sustained by the Municipal Council. In reply, the petitioners said that they were not responsible for any loss occasioned by the auction sale, conducted by the authorities. The Deputy Commissioner, however, held that the petitioners should have taken enough care while confirming the sale. He was of the view, that the sale ought not to have been confirmed by the Council. In conclusion he observed thus :

(3.) Aggrieved by the above order, the petitioner appealed before the Government under sub-sec. (3) of S.308. The Government, while dismissing the append, have stated that the action taken by the Councillors in confirming the sale was illegal and should not be encouraged.