IMPORTANT POINT
In the case of disposal of the property acquired by HUDA for public purpose, the public authorities are required to make necessary specific regulations or valid guidelines to exercise their discretionary powers to allot sites to private institutions or persons; otherwise, the salutory procedure would be by public auction.

Headnote:(i) Haryana Urban Development Authority Act, 1977-Section 15(3)-Haryana Urban Development (Disposal of Land and Buildings) Regulations 1978-Rule 3(c)-Disposal of land-Mode of-There being several modes of disposal of property-One of the modes is public auction, allotment or otherwise-Word otherwise -Would be construed to be consistent with purpose-Clear and unequivocal guidelines or rules are necessary-In absence of such statutory regulations, salutory procedure would be by public auction.
       Held : A reading thereof, in particular Section 15(3) read with Regulation 3(c) does indicate that there are several modes of disposal of the property acquired by HUDA for public purpose. One of the modes of transfer of property as indicated in sub-section (3) of Section 15 read with sub-regulation (c) of Regulation 5 is public auction, allotment or otherwise. When public authority discharges its public duty the word "otherwise" would be construed to be consistent with the public purpose and clear and unequivocal guidelines or rules are necessary and not at the whim and fancy of the public authorities or under their garb or cloak for any extraneous consideration. It would depend upon the nature of the scheme and object of public purpose sought to be achieved. In all cases relevant criterion should be pre-determined by specific rules or rugulations and published for the public. Therefore, the public authorities are required to make necessary specific regulations or valid guidelines to exercise their discretionary powers; otherwise, the salutory procedure would be by public auction. The Division Bench, therefore, has rightly pointed out that in the absence of such statutory regulations exercise of discretionary power to allot sites to private institutions or persons was not correct in law. (Para 4)
       (ii) Haryana Urban Development Authority Act, 1977-Section 15(3)-Haryana Urban Development (Disposal of Land & Buildings) Regulations, 1978-Rule 3(c)-Allotment of sites to establish schools-Validity of procedure adopted by HUDA in allotting sites challenged-Division Bench quashing allotments made, issued directions-High Court held that allotment by public auction is the only mode of allotment-Appeal against-Pending writ petitions petitioners have constructed buildings at a huge cost-Prayer made that relief should be suitably moulded-Directions given by Division Bench of High Court accepted-Committee to determine market value of sites allotted prevailing as on 11.9.1992-An option would be given only to 3 petitioners specified, for payment of market price in lump sum-Ordered accordingly.
       Held : While accepting the directions given by the Division Bench we further add that the Committee would, as suggested by the Division Bench, in evaluating the property, determine the market value of the sites alloted prevailing as on September 11, 1992 in the light of the directions issued in the judgment. After the determination so made, an option would be given only to the petitioners, i.e., Ajay Memorial School, Ashok Trehan Memorial Charitable Trust and Manav Mangal Society and Lt. Col. Y.P. Mahindru, for payment of the market price in lumpsum. In the avent of their accepting the offer the same shall be laid before the first court of the High Court to obtain the approval thereof. The High Court, before giving approval, would consider the valuation and other relevant material. The HUDA also is directed to frame an appropriate scheme for allotment of the sites under discretionary power or other made otherwise than by public auction and then place the scheme before the first court of the High Court and obtain approval of the validity and correctness of the scheme and would thereafter proceed with the disposal of properties in future. As far as allotment to the petitioners, viz., Ajay Memorial School, Ashok Trehan Memorial Charitable Trust and Manav Mangal Society and Lt. Col. Y.P. Mahindru, in these special leave petitions is concerned, the same will be subject to the above directions and in the event of their non-acceptance, the properties should be put to public auction along with other sites and buildings. The plots allotted to the rest of the petitioners other than those cases where notices were issued, will be subject to the directions issued by the Division Bench. (Para 6)

ORDER

In SLPs except SLP Nos. 12720-23/96

We have heard the counsel on both sides. These Special Leave Petitions have been filed against the order of the Division Bench of the Punjab & Haryana High Court in L.P.A. No. 1368/92 and batch, dated March 1, 1996. The Haryana Urban Development Authority (HUDA) had invited applications for allotment of sites to establish the high schools, primary schools or nursery schools in the zone earmarked for the schools in Panchkula. Pursuant thereto, several institutions/persons including the petitioners had applied for allotment of sites. HUDA had allotted, out of 23 plots available, sites to 11 persons and denied allotment to eight persons. The non-allotees filed the writ petitions in the High Court challenging the validity of the procedure adopted by the HUDA in allotting sites to the schools. Though the learned single Judge found fault with the allotment, on finding and taking into consideration that pending writ petitions, the petitioners and some of the respondents had constructed buildings and schools were being run at the allotted plots, he upheld their actions and dismissed the writ petitions with the observations mentioned therein. On appeal, the Division Bench set aside the order of the learned single Judge and while quashing the allotments made, issued directions as enumerated thus :

"(a) All the school sites required to be allotted or sold shall be notified afresh strictly in accordance with the provisions of the Act and the Regulations. All the petitioners, the private respondents and all other eligible persons shall be permitted to participate in the process of sale or allotment;

(b) preference shall be given for sale or allotment by open auction;

(c) In case, the respondent authority decides not to resort to the method of open auction, it may invite applications in accordance with the provisions of Regulation 5 and on the prescribed proforma;

(d) The tentative price/premium of each site shall be pre-determined and proportionate earnest money received alongwith the applications, if filed;

(e) appropriate reasonable uniform criterion for making the allotments, if so desired, be notified in advance;

(f) Before initiating action for sale or allotment of the school sites, value of the construction/building raised by the private respondents herein shall be got determined by the Committee of experts headed by a Chief Engineer;

(g) The intending allotees would be intimated that if they succeed in getting the school sites allotted in their favour, they will take its possession alongwith the building, staff and the students who offer to remain in their employment/institutions;

(h) In case it is decided to transfer the land by open auction it shall specifically be mentioned in the notice that in case the present allottee succeeds in such auction, they shall be given the benefit of 10 percent of the bid amount offered by them;

(i) Out of the amount realised by sale or lease on account of the price-premium, the erstwhile allottees shall be paid the amount spent by him/ it in raising construction of the building at his own risk and responsibility during the pendency of the writ petition, as calculated by Expert Committee alongwith the amount already paid to the HUDA such a provision would not be applicable where the allottee exercises his option to remove the construction raised by him/it at his/its own risk and responsibility.

(j) The process be initiated within two months and completed within four months;

(k) Till the process of fresh allotment is completed, the private respondents shall be permitted to remain in possession of the school sites allotted to them. The appellants are held entitled to the payment of costs which are assessed at Rs. 2,000/- per appeal."

2. Shri P.P. Rao, Shri Gopal Subramaniam, learned senior counsel appearing for the petitioners and Shri Arun Jaitley, learned senior counsel appearing for the HUDA contended that the HUDA had laid the criteria for allotment of the

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