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1999 Supreme(SC) 753

S.B.MAJMUDAR, D.P.WADHWA
M. I. Builders Private LTD. – Appellant
Versus
Radhey Shyam Sahu – Respondent


Judgement Key Points

Key Points:- The park’s transformation into underground shopping and parking was held to violate statutory duties and public trust, requiring demolition and restoration of the park. (!) (!) (!) - The High Power Committee’s formation and its actions violated relevant sections (delegation under Section 119, contract execution under Section 133, and other procedural norms), rendering the agreement with the builder invalid. (!) (!) (!) (!) - The Mahapalika’s obligations under Section 114 include maintenance of parks and construction/maintenance of parking; construction of underground parking without proper study and due process breached these duties. (!) (!) (!) (!) (!) - The transaction was found to be a disposal of property contrary to Sections 128 and 129, with the park being held in public trust; hence the agreement was void and not binding on the Mahapalika. (!) (!) (!) - The Court directed dismantling of Blocks 1, 2, and 4 and conversion of Block 3 into parking, with park restoration to be completed within 12 months. (!) (!) - The decision emphasizes that governance must adhere to statutory mandates and that public-interest considerations do not justify illegality or improper disposal of public land. (!) (!) (!) - The doctrine of public trust applies to the park, reinforcing that public properties like parks must be preserved for citizens. (!) (!) (!) - The case discusses the principles of judicial review, including ensuring actions are within the law, proper procedure, and reasonableness. (!) (!) (!) - The Master Plan and Development Act constraints limited the use of park land; master plan disapproved commercial exploitation of park land. (!) (!) (!) (!)

What is the standard for judicial review of administrative actions in this case?What is the legality of the park’s disposal and the underground complex in light of the UP Nagar Mahapalika Adhiniyam provisions?What are the consequences and remedies prescribed by the court for unauthorised construction and mismanagement of public property?


Judgment

D.P. Wadhwa, J.—These appeals are directed against the judgment dated August 23, 1994 of a Division Bench of the High Court of Judicature at Allahabad, (Lucknow Bench). By a common judgment in three writ peti­tions, High Court speaking through Shobha Dixit, J. held that the decision of the Lucknow Nagar Mahapalika (‘Mahapalika’ for short), also now called Nagar Nigam or Corporation, permitting M.I. Builders Pvt. Ltd. (the appellant herein) to construct underground shopping complex in the Jhandewala Park (also known as Aminuddaula Park) situ­ated at Aminabad Market, Lucknow, was illegal, arbitrary and unconsti­tutional. High Court set aside and quashed the relevant resolutions of the Mahapalika permitting such construction and also the agreement dated November 4, 1993 entered into between the Mahapalika and the appellant for the purpose. Writ of mandamus was issued to the Mahapa­lika to restore back the park in its original position within a period of three months from the date of the judgment and till that was done, to take adequate safety measures and to provide necessary safeguard and protection to the public, users of the park. High Court had no­ticed that the fact that




























































































































































































































































































































































































































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