The central legal point established in the judgment is the authority of public authorities in determining the reasonable price for the sale of properties under the Displaced Persons (Compensation and Rehabilitation) Act, 1954 and Rule 87.

S. Ravindra Bhat (Open Court)-In these proceedings under Article 226 the petitioner seeks suitable directions to the respondents 1 to 4 to convey property being 1/1383-89, Nicholson Road, Kashmere Gate, Delhi. A direction that respondents 1 to 4 (hereafter referred to as the official respondents) and accept the consideration of Rs. 10,70,081/- has been made. A further direction that the official respondents should be directed not to claim the prevalent market value of the property as on the date of the petition has also been made.

2. The controversy here centres around the offer made by the official respondents to the petitioner and the private respondent (i.e. respondent Nos. 5 and 6) for purchase of evacuee property. The Displaced Persons (Compensation and Rehabilitation) Act, 1954 and the Rules framed in 1955, provided for disposal of evacuee property which was vested with the Custodian of Evacuee Property. The suit property was one such; it was acquired under Section 12 of the Act by the Central Government. On 12.5.1978, the Central Government framed a policy for disposal of evacuee property vesting in it through sale.

3. The centrality of the 1978 policy was that transfers could be made to the occupants of evacuee properties by negotiations under Rule 87 of the Rules. The policy indicated the conditions which are inter alia as follows:

(i) The valuation of these properties shall be fixed on the basis of Schedule of rates as approved by the Government vide this Departments Order No. 15(3)/75-SS.II/SS.I, dated 27.8.1976.

(ii) In addition to the valuation of the property as indicated above the sitting occupants shall also have to pay arrears of rent, if any, or damages in lieu of rent as the case may be.

(iii) The offer on the above basis shall be made to the sitting occupants for transfer of properties with the stipulation that the acceptance of the offer should be conveyed to the Department within 30 days from the date of the receipt of the offer along with the payment of 20% of the value of the property plus the total amount of arrears of rent/ damages.

(iv) If the offer is accepted, the party may be allowed another six months from the date of acceptance of the offer for paying the balance amount without payment of any interest. If the party does not pay the balance amount within six months of the date of the acceptance of the offer, he may be allowed to pay in the maximum of three annual equal instalments of the balance amount from the date of the acceptance of the offer, together with interest due on the outstanding amount from time-to-time. At present the rate of interest per annum is 10% payable annually. Provided, however, that in the event of prompt payment of instalment (s) of principal and interest by the dates, the rate of interest in relation to the said instalment (s) will be reduced to 7%.

(v) In case of properties in occupation of more than one tenant or unauthorised occupant, the offer shall have to be made jointly to all the sitting occupants and the transfer documents shall also be executed on fulfilment of the terms and conditions in favour of all of them jointly.

(v) In case there is some dispute between the sitting occupants, such disputes shall be brought before the Department and decision would be taken on the merits of each case. Every possible care should be taken to ensure that the Department does not get involved in unnecessary litigation on any account with any of the parties.

(vii) Initially offers should be sent in favour of single occupant in possession of the property. It is requested that a detailed programme for disposal of these properties in the manner indicated above may be drawn up immediately.

(viii) If certain properties cannot be disposed of in the above mentioned manner, steps should be taken to dispose of these properties by means of auction. For proper conduct of auction there should be adequate publicity and adequate dissemination of conditions of auction, etc."

4. The petitioner a