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2007 Supreme(SC) 249

SUPREME COURT OF INDIA
DR. AR. LAKSHMANAN & ALTAMAS KABIR, JJ.
M/s Popcorn Entertainment & Anr.- Appellants
Versus
City Industrial Development Corpn. & Anr.- Respondents
Civil Appeal No. 940, 941 of 2007
(Arising out of SLP (C) No. 11085, 11087 of 2006)
Decided on : 23.02.2007
Advocates appeared
Mr. Vikas Singh, ASG, Ms. Amritam Narayan, Mr. Yunus Malik, Ms. Shiva Lakshmi, Mr. Prashant Chaudhary, Advocates with him or the Appellants.
Mr. Altaf Ahmad, Senior Advocate, Mr. Varun Thakur, Mr. Sanjay Dubey, Mr. A.S. Bhasme, advocates with him for the Respondents.

The main legal point established in the judgment is that the writ petitions were maintainable under certain circumstances, and the allotments made in accordance with the relevant rules and policies were valid and not subject to cancellation by CIDCO.

Headnote:

CIDCO - Allotment of Plots - New Bombay Land Disposal Rules, 1975, Land Pricing and Land Disposal Policy - Section 23 of the Indian Contract Act - Right to Information Act, 2005

Fact of the Case:

The appellants sought allotment of plots for construction of multiplexes. CIDCO approved the allotment and the appellants made the required payments. However, CIDCO issued show cause notices seeking to cancel the allotments, alleging that they were opposed to public policy. The appellants approached the High Court through writ petitions, which were dismissed on the ground of availability of alternative remedy.

Finding of the Court:

The High Court erred in rejecting the writ petitions solely on the ground of availability of alternative remedy. The Court found that the writ petitions were maintainable under certain circumstances, as per previous decisions. The Court also noted that the allotments were made in accordance with the New Bombay Land Disposal Rules, 1975 and the Land Pricing and Land Disposal Policy.

Issues: The main issue was the maintainability of the writ petitions, with the Court finding that the petitions were maintainable under certain circumstances. The Court also considered the legality of the allotments and the grounds for cancellation by CIDCO.

Ratio Decidendi: The Court held that the writ petitions were maintainable under certain circumstances, as per previous decisions. The Court also found that the allotments were made in accordance with the relevant rules and policies, and CIDCO's grounds for cancellation were not sustainable in law.

Final Decision: The Court set aside the orders of CIDCO seeking to cancel the allotments and directed the High Court to decide the matter afresh on merits within 6 weeks. The Court also requested the High Court to restore the writ petitions to their original numbers and decide the same on a priority basis.

JUDGMENT

DR. A.R. LAKSHMANAN, J.

SLP (C) NO. 11085 OF 2006

1. Leave granted.

2. The above appeal was filed against the final judgment and order dated 30.06.2006 passed by the High Court of Judicature at Bombay in W.P.No. 9467 of 2005 whereby the High Court has rejected the writ petition filed by the appellants by holdin that the appellants have an equally officious remedy of filing a civil suit and thus the writ jurisdiction cannot be invoked.

BACKGROUND FACTS:

The appellant made an application for allotment of a plot on 18.05.2004 for construction of a multiplex at Kharghar railway station. The first respondent, The City Industrial Development Corporation (in short, "CIDCO") asked the appellants to pay an EMD of Rs. 20 lacs being 10% of the tentative price of the plot in order to consider the application of the appellant. The appellant deposited the said amount of EMD immediately. CIDCO, vide its Board Resolution dated 03.06.2004, approved the allotment in favour of the appellant considering the fact that there were no multiplex in the area and the earlier effort of CIDCO to advertise for such plots had met with no response. CIDCO issued allotment letter in favour of the appellant asking the appellant to pay Rs.1,80,00,000/- lacs being the balance price of the plot. The appellant made two separate payments of Rs. 90 lacs each towards the balance price of the plot on 16.08.2004 and 19.08.2004. The appellant paid a sum of Rs.20,00,600/- being the other charges demanded by the respondent. The appellant was asked to pay a further sum of Rs.65,096/- which the appellant paid immediately. CIDCO unilaterally decided to ask the appellants to pay a further sum of RS.20 lacs by enhancing the rate at which the plot was to be allotted to the appellant metre because the plot of the appellant was on a 24 metre road. The appellant on 17.11.2004 paid a further payment of RS.20 lacs along with Rs.2,96,078/- plus RsA,957/- being the additional cost and the other charges. On 14.01.2005, the appellant paid a further sum of Rs.19,828/- being the sum demanded by the respondent. The appellant on 17.01.2005 entered into an agreement to lease with the respondent for the allotment of the plot. On 28.02.2005, CIDCO being the Development Authority of the area issued commencement certificate to the appellant permitting the appellant to start construction. On 14.07.2005, the appellant received a show cause notice seeking to cancel the allotment in favour of the appellant on the ground that the allotment was void in view of Section 23 of the Contract Act as being opposed to public policy. The main ground in the show cause notice was that the allotment was without issuance of tender and was opposed to public policy. On 27.07.2005, the appellant submitted a detailed reply to the show cause notice. On 16.12.2005, CIDCO issued an order canceling the agreement to lease and sought to resume the possession of the plot. According to the appellant only the appellant was singled out for cancellation whereas hundreds of allotments made without issuance of tender were allowed to remain which is also a matter of record. In these facts, on 28.12.2005, the appellant approached the High Court by way of writ petition against the said cancellation order dated 16.12.2005. The writ petition was numbered as 9467 of 2005 on 02.01.2006 and the High Court granted stay of the order dated 16.12.2005 and fixed the matter for further hearing on 04.01.2006. The appellant, vide reference dated 08.03.2006 of CIDCO, under the Right to Information Act, 2005 has asked them to supply information regarding the allotments made by Social Service Department without any advertisement i.e. by considering individual applications.

4. On 16.03.2006, the appellants filed their rejoinder before the High Court pointing out further information sought under the Right to Information Act which clearly proved that the allotment in favour of the appellant was completely in order and was made in terms of the Land Pri










































































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