Judgment

THAKKAR, J.:- More often than not detriment to what belongs to many collectively, does not cause pangs to any, for no one is personally hurt directly. That is why public officials and public minded citizens entrusted with the care of public property have to show exemplary vigilance. What is true of public property is equally true of property belonging to religious or charitable institutions or endowments. The facts of the present case involving the sale of lands which have been sanctioned to be sold for about Rs. 20 lakhs by private negotiations, instead of by public auction, which the appellants are prepared to purchase for about Rs. 80 lakhs, illustrate this point in a telling manner. Background : The legality and validity of a Government Order according permission to "Bugga Math", Tirupathi, a religious endowment, in exercise of powers under proviso to cl. (c) of sub-sec. (1) of S. 74 of Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act. 1966 (Act) to sell certain lands belonging to the Math by private negotiations to Respondents 5 to 24, at the price of Rs. 62,500 per acre has been questioned by the Appellants. The impugned order, in so far as material, reads : -

"Revenue (Endowments- III) Department

G. O. Rt. No. 232 Dated : 12-2-1982

Read the following:

1. From the Commissioner, Endowments Department, Lr. No. M3/M.A. 4/81 dated 16-4-1981.

2. From the Commissioner, Endowments Department, Lt. No. 143/M.A. 4/81 dated 1-12-1981.

Order:

In the circumstances reported by the Commissioner, Endowments Department in the references read above, the Government hereby accord permission under proviso to clause (c) of the sub-section (1) of Section 74 of the Andhra Pradesh Charitable and Hindu Religious and Endowments Act, 1966 (Act 17 of 1966) for the sale of the lands belonging to Sri Bugga Math., Tirupathi, Chandragiri Taluk, Chittgor Dt., in favour of the sitting tenants as detailed by private negotiations :

Sr. No. Name Sy. No. Extent Ac. Cts. Cost per acre

1. Sri K. Subramanya Reddy 268/1A 1.81 62,500/-

x x x x x x x x (Rupees Sixty two thousands five hundred only)

20. Smt. K. Atamalamma 268/1F 2.00

Total 32.01

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)

Shravan Kumar

Second Secretary to Government."

The Appellants, who are willing to purchase the said lands, at a price four times the price offered by Respondents 5 to 24, that is to say at Rs. 2,50,000 per acre, as against Rs. 62,500 per acre offered by the latter, have challenged the impugned order dated 12th Feb. 1982 (G.O. Rt. No. 232) passed by the Government of Andhra Pradesh inter alia on the ground that it manifests total non-application of mind to the essential pre-conditions embodied in proviso to S. 74(1)(c). The pre-conditions are :-

(1) That the Government must be satisfied that it is in the interest of the institution or endowment to permit the sale of these lands otherwise than by public auction.

(2) That reasons for reaching this satisfaction must be recorded in the order.

The aforesaid two pre-conditions are clearly spelled out by the relevant provision (proviso to S. 74(1)(c)) which may be quoted in extenso :-

"(c) Every sale of any such immovable property sanctioned by the Commissioner under clause (b) shall be effected by public auction in the prescribed manner subject to the confirmation by the Commissioner within a period prescribed :

Provided that the Government may, in the interest of the institution or endowment and for reasons to be recorded therefor in writing, permit the sale of such immovable property, otherwise than by public auction".

The Problem : The question has arisen whether the High Court was justified in upholding the impugned order in the face of the fact that ex-facie there is no compliance with the pre-conditions engrafted in the relevant provision inasmuch as the order in question, far from recording the satisfaction that it is in the interest of the institution to sell the lands otherwise than by public