NEETU TEJKUMAR BHAGAT Vs. JABALPUR DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) The core issue involved in both the writ petitions is whether a public asset can be disposed of without ascertaining its market value in a fair and transparent manner. In order to appreciate the controversy involved in the writ petitions, for the facility of reference, we are referring to the facts from W. P. No. 3151/2011.

(2.) The erstwhile Town Improvement Trust, Jabalpur prepared a scheme namely Scheme No. 13, Civil Centre, Jabalpur which later on was transferred to Jabalpur Development Authority. In the said scheme, an area admeasuring approximately 1232.169 sq. meters was reserved for construction of Cafeteria on the ground floor and the Library on the first floor. The area situate adjoining the area earmarkd for Cafeteria, has been earmarked for children park and for a water body and is in existence. The Jabalpur Development Authority (hereinafter referred as the "Authority") constructed a building admeasuring 700.00 sq. meters with two halls on the aforesaid land for the purpose of establishment of Cafeteria, under an agreement dated 18-6-1987, two halls in the building were allotted for running the Cafeteria on licence, without issuing any notice inviting tender. In the year 1992, the licence was renewed in favour of a partnership firm comprising three persons including respondent No. 2 for running the Cafeteria for a period of 5 years i.e. from 18-7-1992 to 27-7-1997. The said licence was renewable with enhancement of licence fee. During the currency of the licence, the licencee expressed its willingness to take the open terrace admeasuring 8074 sq. feet on rent and therefore the aforesaid terrace was allotted on licence for a period of three years on 1 -1 -1995. The Housing and Environment Department, Government of Madhya Pradesh by order dated 24-8-1997 directed the Chief Executive Officer of the Authority to cancel the licence, as the same was granted without inviting any tenders. The Authority was further directed to invite tenders and to allot the same to the highest bidder on licence. In compliance of the aforesaid order, the Authority issued notice of eviction to the licencee. The licencee thereafter filed a writ petition namely W. P. No. 3022/97 in which the High Court granted stay with regard to proceeding for eviction initiated against the licencee. The licencee thereafter submitted a representation on 7-8-1999 that it is willing to pay entire arrears of rent and shall withdraw the writ petition if the licence is renewed. In order to resolve the dispute, instructions were sought from the State Government by the Authority. Thereupon, the State Government vide communication dated 27-10-1999 instructed the Authority to decide the issue pertaining to renewal of the agreement at its' level keeping in view the interest of the Authority and the litigation which was pending before the High Court.

(3.) The Authority thereafter took a decision to renew the licence at an enhanced amount of rent subject to the condition that the arrears of rent would be deposited and the pending writ petition would be withdrawn from the High Court. It is pertinent to mention here that certain cart vendors had been vending food articles by encroaching upon the land situate adjoining to the property in question which belongs to the Authority. The encroachment could not be removed despite the repeated efforts. Thereupon, the Authority took special permission of the State Government to sell the land. The State Government vide order dated 3-10-2003 granted permission to the Authority to allot the land at the rate of Rs. 1595/- per sq. ft. to the aforesaid cart vendors.