IMPORTANT POINT
Disposal of public property partakes the character of trust and the government or the public authorities are obliged to make all attempts to obtain the best available market price.

JUDGMENT

Aftab Alam, J.—

1.Leave granted.

2.On the writ petitions filed by the UP State Industrial Development Corporation (respondent no.1) the Allahabad High Court set aside the auction sale of two pieces of land made in favour of the appellants. The High Court held that the auction sale of the two plots was a nullity because in violation of rule 285-D of the UP Zamindari Abolition and Land Reforms (UPZALR) Rules, 1952 the appellants did not deposit one fourth of their bid amounts immediately on the conclusion of the auction, but deposited the requisite amounts on the following day. Having thus held the auction sale legally untenable, the High Court did not advert to the other circumstances and the manner in which the auction sale was held.

3.The appellants came to this court taking the plea that they had deposited one fourth of their bid amounts on the day the auction was held and the decision of the High Court was based on a patent error of law. Even while challenging the judgment of the High Court, the appellants were anxious to not enlarge the issues and to confine the case to the very limited question whether or not the requisite amounts in terms of rule 285-D were deposited on the date of the auction. But, earlier in course of hearing of the case, we came across certain disturbing features that compelled us to ask the State Government to bring on record all the relevant materials concerning the auction sale of the two pieces of land in question. And now, the more we examine the facts of the case the more we feel dismayed and distressed. It is plainly a case of appropriation of large areas of public/government land by some very unscrupulous people both outside and inside the State Government acting in cahoots. And we have reasons to fear that this is not an isolated case.

4.The two pieces of land that are at the centre of the dispute are plot nos.2/1 & 2/2 situated in the Industrial Estate, Sahibabad, in the district of Ghaziabad, UP. The two plots are owned by the Uttar Pradesh State Industrial Development Corporation (UPSIDC). Plot no.2/1 was allotted by the UPSIDC to M/s Bramic Suri Private Limited (BSPL) and plot no.2/2 to M/s Suri Asbestos Private Limited (SAPL). These two plots were purported to be purchased by Rakesh Kumar Goel (one of the two appellants) and M/s Moti Board Industries Private Limited, represented by its Director, Moti Lal Goel (the other appellant) in an auction sale held by the revenue authorities of the State Government. In course of hearing of the case, on our direction, the State of UP (respondent no.3) produced all the documents concerning the auction proceedings in respect of the two plots. Those were taken on record as “Additional Documents- Vol. 8”, (relating to plot no.2/1) and “Additional Documents- Vol. 9”, (relating to plot no.2/2). The following narration of facts is on the basis of the documents as contained in the two volumes.

5.BSPL had dues of Rs.1,55,309.85 plus interest @ Rs.26.38 per day from January 12, 1991 under the Employees State Insurance Act, 1948. The Regional Director, ESI on December 13, 1991 sent a certificate to the Collector, Ghaziabad under section 5 of the Revenue Recovery Act for recovery of the dues. In pursuance of the certificate the Additional Collector, Ghaziabad issued two proclamations on May 12, 1992, one for attachment under sections 284/286 of the UP Zamindari Abolition and Land Reforms Act, 1950 and the other restraining ‘the defaulter’ (BSPL) from selling or transferring the plot in any manner to anyone or from creating any charge on it. The service report of the proclamations, scribbled in hand on their reverse sides, simply said that, on going to the site the firm was found closed. The chowkidar declined to take copies of the proclamations. The copies of the proclamations were, therefore, affixed to the gate of the premises in presence of witnesses and it was announced in a loud voice that the premises, plot no.2/1 was under attachment for non payment