H NAGABHUSHANAM Vs. GOVERNMENT OF ANDHRA PRADESH

JUDGEMENT

(1.) The Municipal Council, Nalgonda in 1973 and 1980 passed two resolutions, by which certain extent of land belonging to it was alienated in favour of the employees of the Municipal Council on a nominal consideration Rs. 3/- per square yard and Rs. 6/-per square yard respectively. As seven more employees made similar requests in 1985, the Municipal Council by Resolution No. 692 dated 22-2-85 resolved unanimously to accord permission to allot 7 plots to the seven employees including the four petitioners herein, each plot admeasuring 380 square yards at the rate of Rs. 6/-per square yard and sought the approval of the Collector as required by Rule 4 of the Acquisition and Transfer of Immovable Properties Rules, 1967. The Collector by an order dated 26-6-86 in Proceedings No. B3/1662/85 accorded sanction with a modification that the price should be at the rate of Rs. 50/- per square yard but not Rs. 6/- as resolved by the Municipal Council. Thereafter the allottees made a representation to the Municipal Council saying that Rs. 50/-per square yard was too high a price they could afford and, therefore, requested that smaller extents of plots measuring 45' X 39' may be allotted to them. By Resolution No. 114 dated 23-11-86 the Municipal Council approved of the request of the employees. All the seven employees paid consideration at the rate of Rs. 50/- per square yard and the plots were also registered in their favour by the Municipal Council. Thereafter three employees- petitioners 1 to 3 herein had applied to the Municipal Council for permission to construct houses and it is claimed in the Writ Petition that pursuant to the sanction accorded by the Municipal Council, they completed construction of houses. It appears, one Sri Nandyal Narsimha Reddy and two other Councillors represented to the Director of Municipal Administration that contrary to the instructions of the Government allotments were made. The matte was referred to the District Collector who passed an order dated 24-6-89 in Proceedings E1/12265/89 in exercise of his powers under Section 70 of the A.P. Municipalities Act read with Sec. 59 suspending the operation of the two Resolutions-Resolution No. 553 dated 27-6-86 and Resolution No. 114 dated 23-11-88 and sent a communication to the Government to cancel the allotments of the seven plots made in favour of the seven Municipal Employees. Challenging the legality of that order four of the allottees have filed the present Writ petition.

(2.) Sri Rajagopala Rao, learned counsel for the petitioners contends that when once the District Collector had approved of the resolution passed by the Municipal Council, no residuary power was left in him to suspend the operation of the resolutions. The impugned order was passed at the instance of Shri Nandyal Narasimha Reddy and two other Councillors who were parties to the earlier Resolution No. 553 dated 27-6-86 by which the Municipal Council has unanimously resolved to lease out the seven plots for a period of five years on an annual rental of Rs. 200/-until the proposal to sell the plots in favour of the seven employees was approved by the Collector. After the houses were constructed in accordance with the permission accorded by the Municipal council, it is arbitrary on the part of the Collector to initiate action for cancelation of allotments.

(3.) In opposition to this the learned Government Pleader contends that the Director of Municipal Administration by a Memo dated 12-7-86 instructed all the Municipalities not to allot Municipal land in favour of employees and as the present action of the Municipal Council was contrary to the Memo of the Director of Municipal Administration, the Collector very rightly issued the impugned order suspending the two resolutions of the Municipal Council.