Andhra Pradesh High Court
Judges : M.N.RAO
Aeronautics Employees Co-op.Housing Society Ltd. - Appellant
Versus
Governament of A.P., Hyderabad - Respondent
Decided On : 04-18-90
LAND ALLOTMENT - PROMISSORY ESTOPPEL - GOVERNMENT'S PROMISE TO ALLOT LAND TO CO-OPERATIVE HOUSING SOCIETY - SUBSEQUENT REFUSAL ON GROUND OF POLICY DECISION - HELD, GOVERNMENT BOUND BY PROMISE - WRIT PETITION ALLOWED.
Fact of the Case:
The petitioner, a society registered under the Co-operative Societies Act, sought allotment of land for construction of houses for its members, who were employees of Hindustan Aeronautics Limited (HAL), a public sector undertaking. The State Government initially agreed to the request and directed the Collector to take necessary action. The Collector identified suitable land and initiated the process of allotment. However, the Government later decided not to allot land to Co-operative Housing Societies and rejected the petitioner's request.
Finding of the Court:
The court held that the Government was bound by the principle of promissory estoppel to allot the land to the petitioner society. The Government had made a promise to allot the land, and the petitioner society had acted upon that promise by forming a society and taking steps to construct houses. The Government's subsequent refusal to allot the land on the ground of policy decision was held to be arbitrary and unreasonable.
Issues: 1. Whether the Government was bound by the principle of promissory estoppel to allot the land to the petitioner society. 2. Whether the Government's refusal to allot the land on the ground of policy decision was arbitrary and unreasonable.
Ratio Decidendi: The court relied on the principle of promissory estoppel to hold that the Government was bound to allot the land to the petitioner society. The court held that the Government had made a promise to allot the land, and the petitioner society had acted upon that promise by forming a society and taking steps to construct houses. The court also held that the Government's subsequent refusal to allot the land on the ground of policy decision was arbitrary and unreasonable.
Final Decision: The court allowed the writ petition and directed the Government to allot the land to the petitioner society.
( 1 ) THE petitioner is a society registered under the Co-operative Societies Act. Its members are employees of the Hindustan Aeronautics Limited, a public sector corporation wholly owned by the Government of India. It is a notified defence establishment. The impugned order in this writ petition was passed on 23-3-89 by the Government of Andhra Pradesh by which the request of the petitioner-society, for allotment of land in S. No. 64 of Madhavapuram village in Rangareddy District for construction of houses to the members of the society, was rejected on the ground that the Government have decided not to give Government land to Co-operative Housing Societies. The request for allotment of land originally emanated from Capt. R. S. Siva-swami, General Manager, Hindustan Aeronautics Limited (hereinafter referred to as H. A. L.) in the form of a letter dated 26-11-1981 addressed to the Chief Secretary to the State Government stating that the Honble Chief Minister of the State at a dinner hosted in honour of Honble Minister of Defence on 18-7-1981"promised land for the employees to form themselves into a Society for housing colony. . . . . . ". He, therefore, requested the Chief Secretary to expedite the matter. The State Government directed the District Collector, Hyderabad by a letter dated 11-12-1981 to take "necessary action in the matter immediately". A copy of that letter was communicated to the General Manager, H. A. L. with a request to approach the Collector, Hyderabad. The Collector, Rangareddy District by a letter dated 21-12-1981 informed the General Manager that"i have to first find out suitable areas and then decide upon inspecting the sites. I am forwarding your letter to the Revenue Divisional Officer to furnish me the list of vacant lands which could be inspected for this purpose to provide house sites to the employees of the Hindustan Aeronautics Limited. . . . . . . ". The employees of H. A. L. formed a Co-operative Society bearing Registration No. TBC-476. The General Manager by another letter dated 21-1-1982 requested the Collector that at least 100 acres of land was required -- the land covered by S. No. 64 at Maze Madhapur and the land covered by S. Nos. 347 and 361 at Kukatpally would suit the requirements of the employees. Thereafter a letter was sent on 1-2-1982 by the Collector, Rangareddy District informing the General Manager that the request is being considered. The Collector, Rangareddy District requested the General Manager, H. A. L. by a letter dated 16-2-1982 to send the requisition for the land, extent, location, sketch, necessary affidavits from the members of the Co-operative Society and their salary certificates etc. The same was duly complied with by the H. A. L. and a suitable reply in that regard was sent on 10-7-1982 to the Collector, Rangareddy District. Thereafter, by a letter dated 9-12-1982 addressed to the General Manager, the District Collector, Rangareddy, informed him that"i invite your attention to the reference cited and inform you that as already decided, no more land in excess of Ac. 89-31 guntas can be given at Madhapur village. You are therefore requested to select land in adjoining village, if need be send requisition along with full details for consideration". The land was surveyed and sub-divided by the Assistant Director of Survey and Land Records. It was found that there were some encroachers on the land and after issuing notices to the encroachers, the land was resumed. The Revenue Divisional Officer, Chevella Division in his letter dated 31-3-1983 addressed to the District Collector clearly informed that the Tahasildar rejected the request of the encroachers on the ground that "because of the ban, no land could be assigned to them". The land covered by S. No. 64 admeasuring Ac. 645-16 guntas was classified as Government land (Kancha ). He also stated in that communication that the Fertilizer Corporation of India Employees Co-operative Housing Society requested
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