R.S. Garg, J.

1. By this petition under Article 226 of the Constitution of India the petitioners seek to challenge the correctness, validity and propriety of the order dated 6-5-2000. (Annexure P-19) passed by the Ministry of Urban Administration and Development Department, cancelling the building permission No. 398, dated 27-6-98. On the ground that the order passed by the State Government is contrary to law and is also bad on the factual foundation. The order Annexure P-19 has been issued by the State Government in exercise of Powers under Section 299-A of the M.P. Municipal Corporation Act, 1956.

2. The facts necessary for the disposal of the petition are that the petitioner No. 1 Raj Kumar College as alleged was founded at Jabalpur in 1882 and was later on shifted to Raipur at its present site in 1894. By a registered indenture of lease dated 24-10-1964, the State Government leased out an area admeasuring 54,06,612 Sq. Ft. of nazul land situated at West Civil Station, G.E. Road, within the limits of Municipal Corporation, Raipur for a term of 30 years, commencing from 24-10-64. The lease was later on renewed and is effective upto 31-3-2022. The details of the demised premises are mentioned in Paragraph 5.2 of the petition and have not been disputed by the respondents. According to the petitioners, in March, 1953 memorandum of association and rules and regulation of petitioner Society were amended for the second time by which Hon'ble Governors of Madhya Pradesh, Orissa and Bihar were made Patrons of the Society and the President of India as Patron-in-Chief. According to the petitioners, it has almost 800 students studying in the said college/school. The school is affiliated to the Central Board of Secondary Education, They submit that the Government of India so also the State Government due to financial constraints have drastically reduced their contribution for education and the State Government has advised the educational institutions to devise ways and means to generate their own funds for carrying out their further developmental activities in the institution

3. The premises which have been leased out in favour of the petitioners on the northern side abuts national high-way No. 6, popularly known as Great Eastern Road (G.E. Road) and passes through the middle of the city of Raipur. According to the petitioners for the past several years the petitioner No. 1 was facing acute problems of encroachment over the demised land abutting on the G.E. Road, the recurring encroachment became regular nuisance and the same was also posing a potential threat to the peace and tranquility of the hostel run and managed by the petitioner No. 1 Society in which according to the petitioner No. 1 almost about 500 students have been boarded. The society took a decision to construct permanent shops all along the northern boundary wall facing G.E. Road and covering approximately an area of 20,000 Sq. Ft. The Society by a resolution dated 30th June, 1994 gave powers to its Managing Committee to control and administer the property movable and immovable of the Society to raise funds, acquire and sell the property to hold interest for the Society. This resolution was approved by the Registrar of Firms and Societies, Bhopal. The Managing Committee thereafter took-up the project for construction of the shops/shopping complex on the strip of the land facing G.E. Road admeasuring 40 x 1120 Ft. on the eastern side of the northern gate and 40 x 960 Ft. on the western side of the gate and invited tenders from the builders and contractors to undertake the project.

4. According to the petitioners M/s. Avinash Builders, Raipur represented by Ashok Singhania - petitioner No. 2 agreed to the terms and conditions of the petitioner society, therefore, the Society approved the offers of M/s. Avinash Builders - Petitioner No. 2 and one M/s. Jitendra Properties to develop both the strips of the land to pay premium of Rs. 12,00,000/- each and also to pay annual leas