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1986 Supreme(Del) 173

High Court Of Delhi
PARAMJIT SINGH SETHI - Appellant
Versus
DELHI DEVELOPMENT AUTHORITY - Respondent
Civil Writ 141 of 1982G.L.SANGHI, N.S.SISTANI, P.N.LEKHI, R.P.KAPUR, RAJIV DUTTA, Y.K.SABHARVAL
Decided On : 04/04/1986

The DDA cannot award a contract without following the proper procedure and without considering the interests of the public.

Headnote:

CONTRACT - SAND EXCAVATION - PUBLIC AUCTION - DDA's ACTION IN AWARDING CONTRACT TO M/S. NATIONAL SAND SUPPLY CO. WITHOUT PUBLIC AUCTION - VALIDITY - PRINCIPLES OF LAW - HELD, DDA'S ACTION IS INVALID.

Fact of the Case:

Petitioner, Paramjit Singh Sethi, challenges the action of respondent No. 1, Delhi Development Authority (DDA), in awarding contract (dated 27-7-1981) for excavation of Yamuna sand from the lands situated in villages Madanpur Khadar and Jasola in the Union territory of Delhi to respondent No, 3, M/s. National Sand Supply Co. The further directions sought are that the DDA should award the contract after holding public auction to the highest bidder, and to direct respondent No. 2, the Collector (Mines and Minerals), to grant permit to the highest bidder.

Finding of the Court:

The court held that the DDA's action in awarding the contract to M/s. National Sand Supply Co. without public auction was invalid. The court found that the DDA did not follow the proper procedure for awarding the contract, and that it did not consider the interests of the public in awarding the contract to M/s. National Sand Supply Co.

Issues: 1. Whether the DDA's action in awarding the contract to M/s. National Sand Supply Co. without public auction was valid? 2. Whether the DDA followed the proper procedure for awarding the contract? 3. Whether the DDA considered the interests of the public in awarding the contract to M/s. National Sand Supply Co?

Ratio Decidendi: The court held that the DDA's action in awarding the contract to M/s. National Sand Supply Co. without public auction was invalid because: * The DDA did not follow the proper procedure for awarding the contract. * The DDA did not consider the interests of the public in awarding the contract to M/s. National Sand Supply Co.

Final Decision: The court allowed the writ petition filed by Paramjit Singh Sethi and quashed the letter dt. 27-7-1981 of the DDA awarding contract to M/s. National Sand Supply Co. The court also dismissed the writ petition filed by M/s. National Sand Supply Co.

D. P. WADHWA, J.

( 1 ) THE facts are quite simple. Paramjit Singh Sethi, the petitioner, seeks to strike down the action of respondent No. 1, Delhi Development Authority (for Short dda ), in awarding contract (dated 27-7-1981) for excavation of Yamuna sand from the lands situated in villages Madanpur Khadar and Jasola in the Union territory of Delhi to respondent No, 3, M/s. National Sand Supply Co. The further directions sought are that the DDA should award the contract after holding public auction to the highest bidder, and to direct respondent No. 2, the Collector (Mines and Minerals), to grant permit to the highest bidder. The writ petition (CW No. 141/82) was filed on 16-1-1982. The Court issued show cause notice to the respondents and at the same time directed that if permit had not yet been issued it might not be issued till further orders of the Court. On 25-2-1982, the court noted that the DDA had taken the stand that the contract was valid but the petitioner was, however, challenging it and saying that he was willing to offer and run the contract at a higher prices. The writ petition was admitted to hearing by a Division Bench. As regards interim orders, the court noted the objection of the DDA and others that the contract was settled in August 1981 and because of stay obtained by some other parties other than the petitioner there had been no action on the contract. The court declined the stay.

( 2 ) M/s. National Sand Supply Co. also filed a writ petition (CW No. 208/83) on 1-2-1983 against the DDA, the Lt. Governor, Delhi, the Union of India through Secretary, Ministry of Works and Housing, New Delhi, and the Collector (Mines and Minerals), Delhi, as. respondents. M/s. National Sand Supply Co. prayed, in effect, that a mandamus be issued directing the DDA to perform the contract D/-27-7-1981. It also prayed for a mandamus directing the DDA to forward to respondent No. 4, the Collector (Mines and Minerals), the royalty and Security amount tendered by M/s. National Sand Supply Co. to the DDA and to collect the permit from the office of the Collector and to permit M/s. National Sand Supply Co. to quarry sand from the lands in the aforesaid two villages Madanpur Khadar and Jasola. This writ petition was directed to be heard along with Civil Writ Petition No. 141 of 1982. Paramjit Singh Sethi, (Petitioner in CW 141/82), filed an application to intervene. The Court, however, directed that he would be heard, if necessary. Certain interim orders were passed from time to time to keep the rights of M/s. National Sand Supply Co. alive in case of their possible success, but these need not be referred to.

( 3 ) DDA is an authority constituted under the Delhi Development Act, 1957, and is a body corporate. Its objects and functions are described in the said Act. The Collector performs his duties under the Delhi Minor Minerals Rules, 1969 (for short the Rules ) framed- under the Mines and Minerals (Regulation and Development ). Act 1957 (for short the Regulation Act ).

( 4 ) AT the time of these petitions, there are stated to be two sand points in the Union Territory of Delhi from where sand is excavated. Those points are : (1) Okhla, and (2) villages Madanpur Khadar and Jasola, on the banks of river Yamuna which passes through Delhi. It was stated that at present only one sand point at Okhla was being used. The dispute here concerns the sand point at Madanpur Khadar and Jasola villages. It is not necessary to trace the history as to how this sand point was operated earlier except to note that the lands in these villages from where sand is extracted earlier belonged to the Gaon Sabha and vested in the Central Government under S. 150 (3) of the Delhi Land Reforms Act 1954 on the urbanisation of these villages by virtue of a notification issued under S. 507 of the Delhi Municipal Corporation Act, 1957. The Central Government thereafter placed this land at the disposal of the DDA for the purpose of development by a notification















































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