The court examined the power of judicial review under Article 226 of the Constitution of India and concluded that the direction for a public auction was not unreasonable, considering the need for fair and transparent policy decisions by the State or its instrumentalities.

JUDGMENT :

Both the appeals have been heard together with the consent of parties since common question of facts and law are involved and, thus, are being disposed of by a common order/judgment.

2. The instant intra-court appeals under Clause 10 of Letters Patent have been preferred against the order/judgment dated 06.10.2020 passed by learned Single Judge in W.P. (C) No. 1611 and 1612 of 2020, whereby the learned Single Judge has dismissed the writ petitions refusing to interfere with the impugned order as contained in memo dated 5th March, 2018, by which the respondent no. 3-Chief Executive Officer, Zila Parishad, Dhanbad cancelled the allotment of a restaurant so far writ petition being W.P. (C) No. 1611 of 2020 is concerned; and Memo dated 6th March, 2018, by which the respondent no. 3-Chief Executive Officer, Zila Parishad, Dhanbad directed the petitioner to handover the possession of the leased premises i.e. Multipurpose Building (Marriage Hall) near Kala Bhawan, Lubi Circular road, Dhanbad within 24 hours after denying renewal of the lease agreement of the said building so far it relates to writ petition being W.P.(C) No. 1612 of 2020 with a further direction to the respondent no. 1-Zila Parishad, Dhanbad to take possession of the premises in question and to conduct a fresh public auction in transparent and fair manner within a stipulated period of time.

2. The brief facts of the case, as per the pleadings made in the writ petitions, which are required to be enumerated herein for proper adjudication of the lis, are as under:

In the year 2016, the Board of Zila Parishad, Dhanbad took a decision for leasing out the multipurpose building (marriage hall) and other halls/premises to the highest bidder by way of open auction and, as such, a public auction notice was published in the local newspaper vide memo no. 306 dated 09th March, 2017 with respect to settlement of a restaurant situated at Bekarbandh and a multipurpose building situated near Kala Bhawan, Lubi Circular Road, Dhanbad for a period of three years. The petitioners participated in the said auction held on 24th March, 2017 and being the highest bidders, were declared successful.

Bipin Kumar Tiwary, petitioner in W.P. (C) No. 1611 of 2020 was allotted the restaurant at Bekarbandh and a lease agreement to that effect was executed between them on 29th March, 2017. He started to run the said restaurant in the name and style of “Apple Restaurant”.

Sanjay Kumar Singh, the petitioner in W.P.(C) No. 1612 of 2020 was allotted multipurpose building (marriage hall) near Kala Bhawan, Lubi Circular Road, Dhanbad and a lease agreement was executed between them on 29th March, 2017, renewable after every eleven months.

Subsequently, the petitioners submitted their applications on 18th February, 2018 along with payment of rent inclusive of 5% of the increased rent to the respondent no. 3 for renewal of their lease agreement on the terms and conditions as mentioned therein. But the allotment made in favour of the petitioner Bipin Kumar Tiwary for running restaurant at Bekarbandh was cancelled by the respondent no.3 vide impugned Memo no. 220/Zi.Pa. dated 05th March, 2018 in the light of letter no.C-13/2016-MPLADS dated 23rd February, 2018, which is the subject matter of W.P.(C) No. 1611 of 2020. The petitioner, Sanjay Kumar Singh, was also served with letter dated 06th March, 2018 issued by the respondent no.3 informing him that on the complaint of one Ashok Kumar Singh, the allegation was enquired by the Executive Magistrate, Dhanbad and in the light of the enquiry report, it was decided not to renew the lease agreement of the multipurpose building (marriage hall) and, hence, the petitioner-Sanjay Kumar Singh was directed to vacate the possession of the said building to the Assistant Engineer, Zila Parishad, Dhanbad.

The petitioners and others made objection against the said impugned notices before the Chairman, Zila Parishad, Dhanbad, who thereafter set aside the notices issued b