CHANDRASHEKHAR PANDURANGJI Vs. UNION OF INDIA

JUDGEMENT

(1.) RULE returnable forthwith. Heard finally by consent of Shri. Gordey, learned Counsel for the petitioner, Shri. Mishra, learned Assistant Solicitor General for the respondent no. l, Shri. Ravi Kadam, learned advocate General for respondent nos. 2, 3 and 4, and Shri. Dharmadhikari, learned Counsel for the respondent nos. 5 and 6.

(2.) SHRI. Gordey, learned Counsel for the petitioner, submitted that the petitioner is challenging tender notice dated 22-2-2007 pertaining to sale of land of the Model Mills issued by the respondent no. 3 National Textile corporation (Maharashtra North) Ltd. The petitioner is also challenging letter dated 22-2-2008 issued by the respondent no. 3 whereby offer of respondent no. 6 M/s. Golddricks infrastructure Pvt. Ltd. has been accepted.

(3.) SHRI. Gordey, learned Counsel for the petitioner, contended that in the present petition, the petitioner is espousing the cause in public interest since action of respondent nos. 2 to 4 is against public interest and has resulted in causing great loss to the Public exchequer. According to petitioner, there is a tremendous increase in the price of the landed property in and around the city of Nagpur and in order to secure appropriate market price, tender document ought to have contained upset price to enable public at large to know whether it shows the correct market value of the land in question. It was submitted that earlier Model mill was owned and run by the private entrepreneur and due to mismanagement, the government of India nationalised the Model mill under the provisions of Sick Textile undertakings (Nationalisation) Act, 1974 (hereinafter referred to as "the Act of 1974")with effect from 1974 and accordingly the property of the said Model Mill was transferred and vested in the Central Government and thereafter in the National Textile Corporation, which is a Government of India Undertaking. It is the case of the petitioner that National textile Corporation is a Company wholly owned and managed by the Union of India in view of provisions of Section 6 of the Act of 1974. Similarly, as per provisions of the Act of 1974, the respondent nos. 2, 3 and 4 are the instrumentalities of Union of India and, therefore, are "state" within the meaning of article 12 of the Constitution of India. It was submitted that National Textile Corporation (Maharashtra North) Ltd. , which is a subsidiary company of National Textile Corporation, decided to sell properties of Model Mill, which included land admeasuring 28. 96 hectares, i. e. 1,17,257 square metres located in the heart of nagpur city, which is a part of land bearing sheet Nos. 259, 260, 269, 270 and 271, along with building situated thereon, used machinery, etc. The respondent no. 3 National Textile corporation issued impugned tender notice for sale of the said properties.