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2009 Supreme(J&K) 245

IN THE HIGH COURT OF JAMMU AND KASHMIR AT JAMMU
J.P. Singh, J.
Rahul Pant & Ors. - Appellant
Versus
State & Ors. - Respondent
OWP No. 855/2007
Decided On : 01 June, 2009

Advocates Appeared:
Advocate For Appellant: U.K. Jalali
Advocate For Appellant: A.V. Gupta
Advocate For Appellant: D.C. Raina
Advocate For Appellant: Sunil Sethi
Advocate For Appellant: D.K. Khajuria
Advocate For Appellant: D.S. Thakur
Advocate For Appellant: P.N. Raina
Advocate For Appellant: M.L. Gupta
Advocate For Appellant: F.S. Bhat
Advocate For Appellant: M.K. Raina
Advocate For Appellant: I.H. Bhat
Advocate For Respondent: Seema Sheikher
Advocate For Respondent: Adarsh Sharma
Advocate For Respondent: A.G. Sheikh

Headnote:

Government Order - Allotments for 31 Shops/Halls at Bahu Plaza Complex, Jammu - Jammu and Kashmir Development Act, 1970, Section 37 - Summary: The court considered the legality of the government order directing cancellation of allotments made by the Jammu Development Authority without affording the allottees a reasonable opportunity of being heard. The court held that the government was obliged to hear the petitioners before issuing directions for cancellation of their allotments, as mandated by the Proviso to Section 37 of the Act. The court also found the government order to be arbitrary and in violation of the principles of natural justice, and therefore quashed the order.

Fact of the Case:

Allotments for 31 Shops/Halls at Bahu Plaza Complex, Jammu, made by the Jammu Development Authority were found to have been made without following the procedure of Open Auction. The Jammu and Kashmir Government issued directions to cancel the allotments without affording the allottees a reasonable opportunity of being heard.

Finding of the Court:

The court found that the government was obliged to hear the petitioners before issuing directions for cancellation of their allotments, as mandated by the Proviso to Section 37 of the Act. The court also found the government order to be arbitrary and in violation of the principles of natural justice.

Issues: The main issue was whether the government was obliged to hear the petitioners before issuing directions for cancellation of their allotments. An ancillary issue was whether the directions issued by the government were prejudicial to the petitioners and if they were required to be heard before issuance of the government order.

Ratio Decidendi: The court held that the government was required to comply with the requirements of the Proviso in providing a reasonable opportunity of hearing to the petitioners before passing the impugned government order which prejudicially affects the rights of the petitioners in the allotted Shops/Halls. The government order was found to be issued in violation of the mandatory provisions of the Proviso appended to Section 37 of the Act and was liable to be quashed.

Final Decision: The court allowed the petitions and quashed the Government Order No. 1126-GAD of 2007 dated 22.09.2007, but left the State Government free to examine the issue of the impropriety or illegality of the allotments and pass appropriate orders/directions after affording reasonable opportunity of hearing to those who may be prejudicially affected.

1. Allotments for 31 Shops/Halls situated at Bahu Plaza Complex, Jammu, made by the Jammu Development Authority were found to have been made without following the procedure of Open Auction. The Jammu and Kashmir Government, in exercise of power, under Section 37 of the Jammu and Kashmir Development Act, 1970, hereinafter to be referred as "the Act", therefore, issued directions vide Government Order No. 1126-GAD of 1997 dated 22.09.2007 to the Jammu Development Authority to cancel the allotments and take appropriate steps for restoration of the property.

2. The Government Order aforementioned has been questioned in all these writ petitions which, taken up for joint consideration, are being disposed of by this judgment.

3. Justifying the allotments of the Shops/Halls made in their favour, the petitioners have, inter alia, pleaded that the Government Order impugned in the writ petitions, canceling their allotments, was illegal and unwarranted, in that, it had been issued without complying with the statutory requirement of issuing notice to them, in terms of the Proviso to Section 37 of the Act, before issuing directions which affect their rights, And that the State Government had initiated action directing cancellation of the allotments, on the basis of truncated information which the Vice Chairman of the Jammu Development Authority, hereinafter to be referred as "the Authority", had supplied to it. It is stated that the decision taken by the Board of Directors of the Authority in its 65th meeting providing for its earlier Board Resolution for making the allotment of Shops/Halls on First Come First Served, basis, to remain operational until all the Shops/Halls were allotted, had not been brought to the notice of the Government by the Vice Chairman of the Authority.

4. According to the petitioners, the Government had cancelled the allotments to avoid embarrassment to the Chief Minister whose brother had been allotted space at Bahu Plaza Complex Jammu, in violation of the decision of the Authority to follow the First Come First Served, rule.

5. The State Government has justified the impugned Government Order saying that the Board Resolution of the Authority adopted in its 65th meeting was unwarranted, in that, it had been taken without holding any deliberations on the subject, and the fact situation, that the area had been fully developed and the Authority would get better price for the Shops and Spaces at Bahu Plaza Complex, Jammu had not been taken into consideration. The 65th meeting of the Board of Directors, where the post facto approval of the Board had been obtained, is stated to have been a result of the non-application of mind by the Authority. It is further stated by the State-respondents that the Authority had not given publicity to its policy of First Come First Served, in the matter of allotment of Shops/Spaces available at Bahu Plaza Complex so as to provide opportunity to all those who were interested in availing the opportunity, the allotments were, therefore, illegal and improper.

6. The specific plea raised by the petitioners in their writ petitions that the Government had not heard them before issuing directions under Section 37 of the Act, has not been adverted to by the State-respondents and all that has been said in this respect is that the Government had issued the impugned order after due application of mind and in terms of the provisions of Section 37 of the Act, which, according to them, would not prejudice the petitioners because they can project their grievance, if any, while responding to the show cause notice which has been issued by the Jammu Development Authority to them pursuant to the Government Order in question.

7. I have considered the submissions of learned counsel for the petitioners, the counsel for the Authority and learned Additional Advocate General appearing for the State-respondents.

8. The first issue that falls for consideration in these petitions is as to whether the Government was obliged













































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