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2007 Supreme(Pat) 76

PATNA HIGH COURT
Navaniti Prasad Singh, J.
Mandar Madhusudan Bahudhandhi swablambi Sahkari Sammittee Limited
Versus
State Of Bihar
Civil Writ Jurisdiction Case No. 112 of 2007 ;
Decided On : JANUARY 11, 2007

Headnote:Settlement Matter-Settlement of Government Mela-Settlement made in favour of petitioners subsequently cancelled without any notice as interveners offered higher amount-An arrangement legally entered into is binding on the parties and it cannot be unsettled unilaterally by any party- The State cannot walk out of a binding arrangement merely because it is economic to do so-Such an action is not permissible in fact or in law-That apart, a settlement having been made, Civil rights had accrued to the petitioners which could not be taken away in the arbitrary manner and that too without any notice-Impugned order as well as its communication quashed. (Paras 10 & 11)

Judgment

1. Heard.

2. The present application has been filed by the petitioners for quashing the order of the Commissioner, Bhagalpur Division as endorsed on the application of intervener dated 20-12-2006 (Annexure-9) and consequential communication thereof from the office of the Commissioner to the Collector and Additional Collector, Banka being communication dated 21-12-2006, as contained in Annexure-9/a. By the aforesaid impugned orders, the settlement of the right to collect rent of Bounsi Mela on behalf of the State which was settled with the petitioners has been ordered to be cancelled and the steps are ordered to be taken for fresh settlement. When the matter was taken up for admission, an intervention was sought to be made on behalf of Nikhil Bahadur Singh and Amar Kumar Singh who professed that it was on their initiative and on their application that the Commissioner had rightly set aside the settlement. They, as such, sought leave to intervene in the matter and file a counter-affidavit justifying the necessity of setting aside the settlement made in favour of the petitioners. This was permitted and that is how this case is being taken up now with the consent of all the parties.

3. In the district of Banka, a fair (Mela) is held known as Bounsi Mela. The right to collect rent therein vests in the State Government. Settlement is made for a period of one year though primarily the Mela is held for one full month. It starts from Makar Sankranti that is 14th of January for a period of one month. The State Government having taken decision to appoint collecting agents of rent and tolls therein on their behalf make settlement in this regard by calling for an open auction.

4. For the present year, it is not in dispute, that public notice was duly given. It is not in dispute that in newspaper, due advertisement was issued in regard to the said proposed settlement fixing 14-12-2006, 18-12-2006 and 22-12-2006 as the three alternative dates on which public auction would be done amongst the participants. If on 14th settlement was made then the other two dates became infructuous. If for any reason on 14th, no settlement could be made then it would be so done on 18th. If on 18th it was finalised then 22nd was an infructuous date. These three dates are usually given as there may not be necessity to readvertise each time for any reason there is failure.

5. In the present case on 14-12-2006, it is not in dispute, that there was a strike in the Collectorate and, as such, the auction could not take place. The next date being 18th, the petitioners and others were present but no one offered above the reserve Jama. It were petitioners alone who offered the highest amount equivalent to the reserve Jama which is the reserve price and, as such, the Additional Collector accepted his bid and directed him to deposit the entire amount of Rs. 2,04,988/- with 10% security totalling to Rs. 2,25,486/- which the petitioners deposited in cash on the same date as is evidenced by receipt appended as Annexure-8. Thus, the petitioners had completed his part and became a settlee of the Mela in question, right to collect rent and tolls. It now appears that an application was filed before the Commissioner, Bhagalpur Division under whose supervision, the settlements have to be made on 20-12-2006 by Vayvasasyee Kalyan Samiti, Banka. In the said application all that was said was even though there was paper advertisement fixing the dates and, accordingly, settlement was made in favour of the petitioners for the said amount as indicated above, they were how ready to offer more than the amount at which settlement had been made. 22nd was the last date indicated in the advertisement and, as such, to enable them to participate, the Commissioner may set aside the settlement and direct fresh auction on 22nd. On this application being filed on it itself, the Commissioner endorsed that that auction should be reheld and this was then followed by a formal communication dated 2








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