Back
IN THE HIGH COURT AT CALCUTTA
Arun Mishra, Joymalya Bagchi, JJ.
Arunangshu Chakraborty
Versus
Bidhannagar Municipality & Ors.
W.P 24542 (W) of 2010 With C.A.N 7661 of 2011 With W.P 11819 (W) of 2011 With C.A.N 7797 of 2011 With C.A.N 7798 of 2011 With C.A.N 7939 of 2011 With W.P 23739 (W) of 2012
Decided on : 22nd and 23rd April, 2013
PUBLIC INTEREST LITIGATION - Bidhannagar Municipality (Municipality) entered into agreements with Institute of Education and Social Welfare (Institute) for the use of a sports complex for commercial activities. Petitioners filed writ petitions challenging the agreements, alleging illegality and breach of public trust. The Court held that the agreements were illegal, unauthorized, and in contravention of the West Bengal Municipal Act, 1993, and quashed them, directing the Municipality to restore possession of the sports complex and dismantle unauthorized structures.
Fact of the Case:
The Municipality, which was granted permissive possession of a sports complex for administrative control and maintenance, entered into agreements with the Institute to lease out portions of the complex for commercial activities, including construction of a banquet hall and other structures. Petitioners, alleging illegality and breach of public trust, filed writ petitions challenging the agreements.
Finding of the Court:
The Court found that the agreements were entered into without proper authority, tendering process, or compliance with relevant laws. The Municipality exceeded its authority and jurisdiction in permitting commercial activities in the sports complex, which was held in public trust for specific purposes. The Court also noted that the agreements were obtained through abuse of process and that the Institute had not taken steps to initiate arbitration proceedings despite obtaining an interim order of status quo.
Issues: 1. Whether the Municipality had the authority to enter into agreements with the Institute for commercial use of the sports complex? 2. Whether the agreements were entered into in accordance with proper procedures and compliance with relevant laws? 3. Whether the commercial activities permitted under the agreements were permissible in the sports complex, which was held in public trust? 4. Whether the Institute had obtained the interim order of status quo in the arbitration proceedings through abuse of process?
Ratio Decidendi: 1. The Municipality did not have the authority to enter into agreements with the Institute for commercial use of the sports complex, as it was granted permissive possession of the complex for administrative control and maintenance only. 2. The agreements were not entered into in accordance with proper procedures and compliance with relevant laws, as there was no tendering process and the agreements were executed by unauthorized individuals. 3. The commercial activities permitted under the agreements were not permissible in the sports complex, which was held in public trust for specific purposes, and amounted to a breach of public trust. 4. The Institute had obtained the interim order of status quo in the arbitration proceedings through abuse of process, as it had not taken steps to initiate arbitration proceedings despite obtaining the order.
Final Decision: The Court allowed the writ petitions filed by the petitioners, quashed and set aside the agreements between the Municipality and the Institute, and directed the Municipality to restore possession of the sports complex and dismantle unauthorized structures. The Court also imposed a cost of Rs. 50,000/- on the Institute to be deposited with the Legal Aid Services Authority, High Court, Calcutta.
Arun Mishra, C.J.–The writ petitions being W.P No. 24542 (W) of 2010 and W.P. 23739 (W) of 2012 have been filed by way of public interest litigation praying for the relief to direct the respondent authorities to cancel the agreement executed on 09.10.2007 between the Bidhannagar Municipality and Institute of Education and Social Welfare. Prayer has also been made to cancel the agreement dated 17.12.2009 between Bidhannagar Municipality and Institute of Education and Social Welfare. Prayer has been made to cancel the order of allotment of playground to Bidhannagar Municipality. Further prayer has been made to direct the respondents to demolish the illegal concrete construction and banquet hall, conference hall, bridal hall and other illegal constructions having no nexus with the development of sports activities. Prayer has been made to demolish the concrete construction and tower in the Central Park.
2. On the other hand, Institute of Education and Social Welfare has filed another writ petition being W.P No. 11819 (W) of 2011 wherein it has been prayed that directions be issued to cancel, recall notice dated 15th July, 2011 issued by the Chairperson, Bidhannagar Municipality calling upon the Institute to remove all furniture, utensils and/or articles which were being used for commercial activities and to vacate the premises in question, failing which padlock shall be put thereon by the Municipality.
3. Pursuant to earlier direction of this Court, all the writ petitions were heard analogously.
4. It is averred in W.P. 24542 (W) of 2010 that there is a playground situated at Central Park, Sector-II, Salt Lake, Calcutta. On 14.03.1997 Executive Engineer, Design, Salt Lake, Recl. & Dev. Circle under Urban Development Department handed over the delivery of the playground to the Bidhannagar Municipality for exercising administrative control as well as maintenance of the said ground. On 13.04.2007 the Chairman, Bidhannagar Municipality informed the councilors that as per decision taken on 21.02.2007 in Chairman-in-Council meeting that the sports complex should be given for the purpose of running and maintenance to a private organization on public private partnership basis in equal share through tender. However, without any process of the tender the then Chairman of the Bidhannagar Municipality, Dr. Biswajiban Majumder, entered into an illegal memorandum of agreement on 09.10.2007 on behalf of Bidhannagar Municipality and Institute of Education and Social Welfare through its trustee, Arun Raolka. Later on 24.04.2009 Executive Engineer, Design, Salt Lake Recl. & Dev. Circle informed the Executive Officer, Bidhannagar Municipality that there is no mention of sports academy building or multiutility Bidhannagar Municipality Sports Academy Complex in the working map of Salt Lake City. It was further averred that on enquiry being made it came to the notice of the petitioner that on 16.06.2009 through Registrar, Forms and Societies that no such society in the name of Institute of Education & Social Welfare exists. On 17.12.2009 Chairman unauthorisedly entered into another agreement on behalf of Bidhannagar Municipality with the Institute of Education & Social Welfare for the purpose of handing over the possession of additional spaces at the ground floor and the roof to the realtor group under the guise of Institute of Education and Social Welfare. It is a further case that on 02.05.2010 an advertisement appeared in the newsletter published on behalf of Saltee Group showing that the group constructed sprawling lawn, spacious A.C banquet halls, A.C conference halls, A.C hall on terrace, separate bridal rooms, automatic lift etc. in the playground situated at Central Park. It is a further case set up by the petitioner that invitation card was issued on 21.08.2010 by which it became clear that Institute of Education and Social Welfare was not, in fact, involved in sports activities but the owners of the Saltee Infrastructure Ltd.,. Sri Ar
AI
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
