PATNA HIGH COURT
U.N.Sinha and K.B.N.Singh JJ.
Nasiruddin
Versus
State Of Bihar
Civil Writ Jurisdiction Case No. 1334 of 1970 ;
Decided On : MARCH 24, 1971
MUNICIPAL LAW - AUCTION OF MARKET - ALTERATION OF CONDITION OF DEPOSIT - POWER OF SPECIAL OFFICER - INTERFERENCE BY STATE GOVERNMENT - VALIDITY - WRIT PETITION - RELIEF - RESTORATION OF POSSESSION - CONDITIONS.
Fact of the Case:
The petitioner participated in an auction for the lease of a market and was declared the highest bidder. He deposited a portion of the bid amount and was put in possession of the market. However, the State Government, acting through the Special Officer of the Municipality, subsequently ordered the petitioner to hand over possession of the market and re-auction it. The petitioner challenged this order by filing a writ petition.
Finding of the Court:
The court held that the Special Officer had the power to alter the condition of deposit before the actual bidding and that the State Government's interference was uncalled for. However, the court also held that the petitioner was not entitled to an order for restoration of possession as he had not yet deposited the full amount of the bid money and had not executed an agreement for the lease.
Issues: 1. Whether the Special Officer had the power to alter the condition of deposit before the actual bidding? 2. Whether the State Government's interference was valid? 3. Whether the petitioner was entitled to an order for restoration of possession?
Ratio Decidendi: 1. The court held that the Special Officer had the power to alter the condition of deposit before the actual bidding as there was no provision of law which would have made such a condition an illegal one. 2. The court held that the State Government's interference was uncalled for as it had not been shown that the Special Officer had acted in excess of the powers conferred on him by law. 3. The court held that the petitioner was not entitled to an order for restoration of possession as he had not yet deposited the full amount of the bid money and had not executed an agreement for the lease.
Final Decision: The court quashed the State Government's orders but declined to grant the petitioner's prayer for restoration of possession.
U.N.Sinha, J.
1. The petitioner has filed this application under Articles 226 and 227 of the Constitution of India praying for the following reliefs:-
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(a) That the Government orders dated the 2nd April, 1970 and 1st July, 1970 be quashed and the dispossession of the petitioner from the Kedarnath Market during currency of his lease be declared void and be set aside.
(b) That the authorities be directed to restore the petitioners possession over the market at once.
(c) Any other reliefs which the petitioner is entitled may be granted to him.
A copy of the order dated the 2nd April, 1970 has been given as Annexure 4 of the application and a copy of the other order said to be dated the 1st July, 1970 has been given as Annexure 5. (The date of Annexure 5 is not very clear, as the order may have been passed earlier, that is to say, the 30th June. 1970.]
2. The relevant facts are as follows:-
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It is said that there is a fruit and vegetable market within the municipal area of Gaya Municipality, which is known as Kedarnath Market. This market is annually leased out by the Municipality, by auction, to the highest bidder. On the 4th March, 1970, the Special Officer of the Municipality, which is under supersession, issued a public notice for auction of the market, to be held on the 20th March, 1970, for the financial year 1970-71. 9n the said date, it is said that the petitioner, along with other bidders, had participated in the auction and his bid was the highest, having gone up to Rs. 72,525/-. A copy of the bid-sheet has been given as Annexure 1. It is alleged that the petitioner has deposited Rs. 18,000/-including Rs. 2,000.00 as security money. According to the petitioner, he was put in possession of the market from 1st April, 1970, and by letter dated the 1st April, 1970, written by the Special Officer, the petitioner was directed to deposit some other sums also by the 7th April, 1970. A copy of this letter has been given as Annexure 3.
It is alleged that while the petitioner was awaiting execution of a lease deed, the Special Officer ordered him on the 2nd April, 1970 to hand over charge of the market to the Municipality at once, on the basis of a telegraphic order sent by the under Secretary, Local Self Government Department. A copy of the said order of the Government including the order of the Special Officer has been given as Annexure 4. It is stated in the writ application that the petitioner had filed a title suit with a prayer for ad interim order of injunction, which was granted on the 6th April, 1970. It is alleged that the Munsif trying the title suit vacated the order of ad interim injunction on the 9th June, 1970 and thereafter the Government issued a subsequent order, which has been incorporated in Annexure 5. The substance of the orders incorporated in Annexures 4 and 5 is that by order of the State Government, the Special Officer, Gaya Municipality was to take over Khas possession of Kedarnath Market on the 1st July, 1970, without allowing the petitioner to collect toll from it, and the Special Officer was asked to reauction the market within a fortnight of the order by giving proper notice to all concerned. There is no denying that the petitioner is not in possession at present., whatever the nature of his alleged possession on the 1st April, 1970.
3. A counter-affidavit has been filed on behalf of the State of Bihar, respondent No. 1, and the main contention raised therein is, that, the Special Officer had altered condition No. 3 of the original notice for auction, just before the actual bidding, thereby enabling the successful bidder, namely, the petitioner of this case to, deposit only one-fourth of the total amount of the bid. According to this respondent, the change in the condition was favourable to the petitioner only, and may other intending bidders must have been put into disadvantage, as the change was made just before the actual bidding, and, therefore, the Government had stayed further action b
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