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1998 Supreme(Gau) 294

GAUHATI HIGH COURT
A.K.Patnaik, J.
Dhaniramgogoi -Appellant
Versus
State of Assam and Ors. -Respondent
Civil Rule No. 2067 of 1998
Decided On : 19-09-1998

Advocates Appeared:
R.Ali, N.C.Das, H.K.Saikia, B.D.Das

The settlement of public property can be made by negotiation and direct settlement in the public interest, provided that the reasons for such departure from the normal rule of selling the property by public auction or inviting tenders are rational and not suggestive of discrimination.

Headnote:

FORESTRY - ASSAM SALE OF FOREST PRODUCE, COUPES AND MAHALS RULES, 1977 - RULE 3 - SETTLEMENT OF FISHERY MAHAL - PUBLIC INTEREST - DISCRIMINATION - ARTICLE 14 OF THE CONSTITUTION.

Fact of the Case:

The petitioner, who had been settled with the Subansiri Reserve Fishery Mahal for the period 1995-1997, challenged the subsequent settlement of the mahal in favor of the respondent without inviting tenders or holding a public auction.

Finding of the Court:

The court held that the settlement of the mahal in favor of the respondent was in the public interest as it was made at the request of the local villagers, including the fishermen, and that the respondent belonged to the Scheduled Castes community and was entitled to special treatment in matters relating to the settlement of fishery.

Issues: Whether the settlement of the fishery mahal in favor of the respondent without inviting tenders or holding a public auction was discriminatory and violative of the petitioner's right to equality under Article 14 of the Constitution.

Ratio Decidendi: The court held that the settlement of the mahal in favor of the respondent was not discriminatory as it was made in the public interest and that the respondent belonged to the Scheduled Castes community and was entitled to special treatment. The court also held that the settlement was made at the value of 30% above the last settled value of the mahal and did not bring about any loss of Government revenue.

Final Decision: The court dismissed the petition, holding that the settlement of the mahal in favor of the respondent was in the public interest and that no discrimination had been caused to the petitioner.

The Subansiri Reserve Fishery Mahal was settled with the petitioner for the period from 1995 to 1997 and the petitioner took possession of the fishery. On 31.3.97 the petitioner submitted an application before the Commissioner and Secretary to the Govt of Assam, Forest Department for extension of the period of settlement but no orders were passed on the application of the petitioner for extension. Instead, by an order dated 30th April 1998, the Govt of Assam in the Forest Department settled the Subansiri Reserved Fishery Mahal in favour of the respondent No. 5 for a period of 2 years with effect from the date of actual possession of the mahal subject to payment of 30% above the last settled value of the mahal. Aggrieved, the petitioner has filed this application under Article 226 of the Constitution praying for quashing the said order dated 30th April, 1998 of the Govt of Assam, Forest Department, settling the fishery mahal in favour of the respondent No. 5.

2. At the hearing, the only contention raised by Mr. BD Das, learned counsel for the petitioner is that the impugned order of settlement dated 30th April, 1998 has been made with the respondent No.5 without inviting tenders or without holding any public auction. He submitted that although under Rule 3 of the Assam Sale of Forest Produce, Coupes and Mahals Rules, 1977, the Govt can settle a forest mahal directly by negotiation, this Court has held in the case of Jeng Hanser vs. Karbi Anglong Autonomous District Council & others, (1997) 3 GLR 436 (1997 (2) GLJ 149) that the sale of forest produce by inviting tenders of public auction should be the normal rule. He argued that in the present case no compelling reasons have been disclosed by the State Govt for settling the fishery mahal in favour of the respondent No. 5 directly by negotiation without inviting any tender or without holding a public auction and therefore the impugned order of settlement in favour of the respondent No. 5 is liable to be quashed. He further submitted that, had tenders been invited or public auction held, the petitioner would have had the opportunity to participate in the tender or the public auction. But as no tender was invited nor any public auction held, the petitioner has been discriminated against and his right under Article 14 of the Constitution had been affected.

3. Mr. NC Das, learned counsel for the respondent No. 5, on the other hand, referred to the various averments made in the affidavit-in-opposition filed by the respondent No. 5 and contended that the fishery mahal has been settled in favour of the respondent No. 5 as he belonged to Scheduled Castes community and about 500 local fishermen in the area had held a public meeting and adopted a resolution that the fishery should be settled in favour of the respondent No. 5 so that local fishermen can earn their livelihood out of the fishery. He argued that the settlement had been made in favour of the respondent No. 5 in the public interest and that the decision of this Court in the case of Jeng Hanser vs. Karbi Anglong Autonomous District Council & others (supra) cited by Mr. BD Das, learned counsel for the petitioner, was not applicable in the facts of the present case.

4. On a perusal of the records produced by Mr. Chutia, learned counsel for the respondent Nos 1, 2, 3 and 4,1 find that a request has been made by a large number of villagers of the area that the fishery be settled with the respondent No. 5 and accordingly, the Govt in the Forest Department called for a report and the Divisional Forest Officer, Lakhimpur Division, North Lakhimpur vide his letter dated 17.6.97 eported that the respondent No.5 was a permanent inhabitant of No. 1 Damati Sonapur and belonged to Scheduled Castes community and that the village people of Damati Sonapur and four other Sonapur villagers approved the name of the respondent No.5 for direct settlement of the mahal in apublic meeting.It is on these facts that the fishery mahal was settled with the





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