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1981 Supreme(Del) 265

Delhi High Court
D. K. KAPUR,J. D. JAIN
S. S. Sobti - Appellant
Versus
Union of India - Respondent
Civil Writ No.1839 of 1981
Decided On : 09/09/1981

Advocates:
P.N. Lekhi Sr. Advocate with M.K. Garg and C.V. Francis, for Petitioner; R.K. Anand, for Respondents.

A person who has no direct or remote connection with a transaction cannot challenge its validity through a public interest litigation.

Headnote:

PUBLIC INTEREST LITIGATION - LOCUS STANDI - VALIDITY OF TRANSACTION - LICENCE FOR BUILDING AND RUNNING A HOTEL - NEW DELHI MUNICIPAL COMMITTEE - PUNJAB MUNICIPAL ACT, 1911 - CONSTITUTION OF INDIA, ART.299 - POLITICAL CONSIDERATIONS - OPEN PUBLIC TENDERS - LEGALITY OF TRANSACTION.

Fact of the Case:

The petitioner, an erstwhile member of the Delhi Development Authority and an alderman of the Delhi Municipal Corporation, challenged the validity of a licence granted by the New Delhi Municipal Committee to M/s. Delhi Automobile (P.) Ltd. for building and running a hotel on a plot situated at Barakhamba Road, New Delhi. The petitioner contended that the transaction was politically motivated, not in accordance with law, and that he had a legal right to ensure that public property was not wastefully used for personal ends.

Finding of the Court:

The court held that the petitioner lacked the necessary locus standi to challenge the transaction as he had no direct or remote connection with it. The court further held that the transaction was not hit by Section 238(2)(c) of the Punjab Municipal Act, 1911, as the land was allotted by the Union Government and not vested in the Union of India. The court also found that the transaction was not arbitrary and arose out of the circumstances when the same plot was originally to be licensed to the 4th respondent, M/s. Delhi Automobiles (P.) Ltd, for building and running a hotel, but the transaction was cancelled in 1977 leading to the filing of the suit.

Issues: 1. Whether the petitioner had the necessary locus standi to challenge the transaction? 2. Whether the transaction was hit by Section 238(2)(c) of the Punjab Municipal Act, 1911? 3. Whether the transaction was arbitrary or politically motivated?

Ratio Decidendi: 1. The court held that the petitioner lacked the necessary locus standi to challenge the transaction as he had no direct or remote connection with it. The court relied on the judgments in Ramana Dayaram Shetty v. International Airport Authority of India, AIR 1979 SC 1628 and Fertilizer Corporation Kamgar Union (Regd.) Sindri v. Union of India, AIR 1981 SC 344, which held that not everybody could file a petition which can be described as 'public interest' litigations. 2. The court held that the transaction was not hit by Section 238(2)(c) of the Punjab Municipal Act, 1911, as the land was allotted by the Union Government and not vested in the Union of India. The court noted that the land was placed at the disposal of the New Delhi Municipal Committee in order to set up a 5 Star Hotel to meet the requirements of the Asian Games 1982 and that a formal lease would be drawn up later. 3. The court held that the transaction was not arbitrary and arose out of the circumstances when the same plot was originally to be licensed to the 4th respondent, M/s. Delhi Automobiles (P.) Ltd, for building and running a hotel, but the transaction was cancelled in 1977 leading to the filing of the suit. The court found that the decision to allot the plot in favour of M/s. Delhi Automobiles (P.) Ltd., was taken much earlier and the politics concerning the same arose later.

Final Decision: The court dismissed the petition in limine.

Judgement

D. K. KAPUR, J. :- The writ petition under consideration seeks to challenge the validly of certain transactions which have resulted in a licence deed dated 11th March,1981, being granted by the New Delhi Municipal Committee to M/s. Delhi Automobile (P.) Ltd., New Delhi, for building and running a hotel on a plot situated at Barakhamba Road New Delhi. The petitioner is an erstwhile member of the Delhi Development Authority and an alderman of the Delhi Municipal Corporation. He is also a social worker and a rate-payer. He claims to have a legal right to sec that public property vested in the Union Government or the New Delhi Municipal Committee is not wastefully used to serve personal ends.

2. We issued a show cause notice on the petition and have heard learned counsel of the concerned parties. It has been stressed before us that the project of building the hotel is of an extremely urgent nature and involves the investment of large funds. We have, therefore, been called upon to decide the petition at this very stage, as otherwise, the project (even if valid) would come to disaster, because of the difficulty of continuing the same, with a petition like the present hanging over the heads of all interested parties. In these circumstances, we have heard the parties extensively at this very Stage.

3. The facts of the case are that the plot in question was placed at the disposal of the New Delhi Municipal Committee some time in 1976. This was part of a plan to redevelop an area of about 30 acres in the Barakhamba Complex. The Government had considered that at least a portion of this land should be used for constructing a 5-Star Hotel. The highest tender for this purpose was made by M/s. Delhi Automobiles (P.) Ltd. Then the area of the plot was increased to over six acres in place of 4.5 acres and the licence fee was increased to Rs. 37.78 lakhs per year. In furtherance of this, the 4th respondent, (M/s. Delhi Automobiles) deposited a sum of Rs. 20 lakhs and was to pay the balance when actual possession of the site was delivered. However, in March 1977, after the change of Government, the New Delhi Municipal Committee was informed that it should not finalise the transaction and later the allotment in favour of the New Delhi Municipal Committee was cancelled in March 1978. The amount deposited was refunded to the 4th respondent, who represented their case to the Lt. Governor and also filed a Civil Suit No.144 of 1979 in this High Court for specific performance of the contract/damages. The petitioner's case is that this acceptance of tender was not a valid and bona fide transaction. In any event, the suit in this Court resulted in a compromise which led to a new licence being granted for the same area in favour of the 4th respondent, but the licence fee has now been fixed at Rs. 1.45 crores in place of the previous amount of Rs. 37.78 lakhs annually. The petitioner has raised many different points in relation to the transaction. It has been urged that the New Delhi Municipal Committee was superseded and, therefore, the property of the Committee could not be dealt with by Shri P.N. Behl, respondent No.5 under the provisions of S.238(b) of the Punjab Municipal Act, 1911. It is contended that no licence could be granted by the New Delhi Municipal Committee if this land belongs to the Union of India, as is contended by the respondents. Furthermore, it is contended that it was a political decision which was admitted by the 7th respondent, Shri Bhishma Narain Singh, Minister of Works and Housing in the Lok Sabha.

4. On behalf of the respondents, it is contended that the transaction is entirely in accordance with law and cannot be described as politically motivated. Furthermore, the locus standi of the petitioner to move the present petition has been seriously challenged.

5. Reference was made during the arguments to the judgements of the Supreme Court in Ramana Dayaram Shetty v. International Airport Authority of India. AIR 1979 SC 1628 a



















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