K.G. SHAH, J. :---The petitioner is a citizen of India and is resident of Jaisingpur in Taluka Shirol, District Kolhapur and is a tax payer and is in service at Jaisingpur. The petitioner has come to this Court by way of a public interest litigation by filing this petition wherein he has challenged the order of the State of Maharashtra (respondent No. 2 herein) passed on 6th November, 1984 (Annexure B to the petition) whereby respondent No. 2 has cancelled its earlier order dated 30th September, 1983 and has ordered to allot Government land admeasuring 1115.4 sq.meters bearing C.T.S. Nos. 2256 and 2257 situated at Jaisingpur to Raosaheb Dhanpal Patil (respondent No. 3 herein) as a special case for Motor Mechanical Servicing Centre without auction for Rs. 78,078/- as occupancy price. This order has been passed by respondent No. 2 under section 40 of the Maharashtra Land Revenue Code, 1966 (for short "the Code"). This order, as said above, is under challenge in this petition. The petitioner has also challenged the consequential order passed by the Collector, Kolhapur (respondent No. 1 herein) on 3rd January, 1985 wherein certain terms and conditions of the allotment of the land have been specified. These orders are challenged as arbitrary and in violation of the Rules pertaining to the disposal of Government lands and thus the orders are alleged to be violative of Article 14 of the Constitution.

2. Later on, the petitioner by amending the petition has also challenged the vires of sections 20, 31 and 40 of the Code. We may mention here that at the hearing Mr. Rane, the learned Counsel for the petitioner, confined the challenge to the vires only in respect of section 40 of the Code.

3. The facts of the case insofar as they are relevant for the present judgment may be stated as follows.

4. Around 11th October, 1981 respondent No. 3 made an application to the Collector, Kolhapur for the grant of land bearing C.T.S. Nos. 2256 and 2257 admeasuring 1115.4 sq.meter situated at Jaisingpur (to be referred to hereinafter as "this land") for starting a Motor Mechanical Servicing Centre. On that application, the Assistant Director of Town Planning made valuation of the land at Rs. 55/- per sq. meter. That was so done in December 1981. On 22nd May, 1982 one Sagarmal Laxmichand Choradia also applied to the Collector for the grant of this land for starting a tobacco shop. The Collector, Kolhapur processed the application of respondent No. 3 as also of Choradia and reported the matter to the State Government under his letter dated 4th July, 1983 recommending the case of respondent No. 3 for the grant of this land to him. However, respondent No. 2 (State of Maharashtra) on 30th September, 1983, disagreeing with the proposal made by the Collector, Kolhapur, took a decision and directed that this land should be disposed of by auction after fixing the upset price with reference to the current market value to be got determined by the Assistant Director of Town Planning. That order of State Government is at Annexure-A to the petition. That order needs to be reproduced in extenso. It reads as follows:

"No. LND-3883/30940-G8

Revenue Forests Dept.

Mantralaya, Bombay-400 032.

Dated 30th September, 1983.

Sub : Lands Kolhapur.

CTS No. 2256 and 2257 of Jaisingpur allotment to Shri Raosaheb Dhanpal Patil for location of Motor Mechanical Service Centre.

Reference your letter No. Desk III R.R.C. 1446, dated 4-7-1983 on the above subject.

2. In this case the applicants have demanded the land in question for commercial purpose. Hence the disposal of the land in question has to be by public auction. In this case, Government has, therefore, taken a decision that the land in question should be disposed of by public auction after fixing the upset price with reference to the current market value to be got determined from the A.D.T.P. I am therefore directed to request you to take further action in the matter accordingly.

3. The request of Sarvashri Raosaheb Dhanpal Pat