1974 Supreme(Mad) 410

Madras High Court
ISMAIL
Combined Traders by its Managing Partner T.J.Cherian - Appellant
Versus
State of T.N. - Respondent
Decided On : 09/26/1974

The Government has the right to deal with its property in any manner it pleases, and a person has no fundamental right to purchase the Government property.

Headnote:

TIMBER TRANSIT RULES - SECTION 37 - ARTICLE 301 - ARTICLE 19 (1) (G) - ARTICLE 14 - GOVERNMENT PROPERTY - SALE OF GOVERNMENT PROPERTY - AUCTION - CONDITION - RESTRICTION ON REMOVAL OF BLUEGUM WOOD FROM NILGIRIS DISTRICT - VALIDITY - WRIT PETITION - DISMISSAL: The condition imposed by the Government in the auction notice for the sale of bluegum wood in the Government reserved forests, restricting the removal of the wood from the Nilgiris District, is not violative of Articles 301, 19 (1) (g) or 14 of the Constitution of India. The Government has the right to deal with its property in any manner it pleases, and a person has no fundamental right to purchase the Government property. The condition is a valid classification based on a reasonable nexus to the object sought to be achieved, namely, to conserve bluegum for the civil population to be used as firewood and to protect the interests of the only industry in the State manufacturing rayon yarn and staple fibre.

Fact of the Case:

The South India Viscose Limited (Viscose) is a company established in 1958 and engaged in the manufacture of wood pulp, rayon yarn, and staple fibre. The most essential raw material for high-grade rayon pulp manufacture is bluegum timber grown in the Government reserve as well as private forests in the Nilgiris District. To obtain this raw material without interruption, Viscose approached the Government, which entered into an agreement with Viscose on 5-4-1965 for the supply of bluegum wood over 7800 acres from 1966 to 1975 at a specified rate per acre per annum. The Government also allotted specific acreages to Viscose for working from 1966 to 1973. In order to consider Viscose's request for allotment of all the Government forest lands with bluegum plantation for its benefit, a meeting was held on 9-5-1966, attended by the Chief Minister, the Minister for Co-operation, the Secretary to Government, Department of Agriculture, the Chief Conservator of Forests, and a representative of Viscose. The Government decided not to take a final decision on Viscose's request and allotted the acreage as indicated above. The Government also decided that the bluegum wood sold out in auction in the Nilgiris District should be used only as fuel, posts, etc., for the benefit of the civil population in the Nilgiris District and should not be allowed to go out of the District. This decision was communicated to Viscose in a memorandum dated 7-6-1966. Subsequently, the Government passed G. O. Ms. No. 3440, Agricultural Department dated 26-10-1966, which dealt with the supply of bluegum and wattle to Viscose and considered its representations. The Government decided to allow up to 1000 acres to Viscose from 1972 to 1975 and revised the rate per acre. The Government order also pointed out that bluegum was more suitable than debarked wattle for rayon and paper industry, and therefore, all the bluegum raised in the departmental plantations in the Nilgiris Division should be supplied to the pulpwood industries, while the debarked wattle wood might be made available to the public for use as firewood instead of bluegum. However, the ban on the export of the bluegum raised by the Forest Department in the reserved forests in the Nilgiris District outside the district would continue, but the restriction imposed by the Government would not apply to bluegum felled by Viscose exclusively for rayon pulp manufacture. Pursuant to the decision taken by the Government in their memorandum dated 7-6-1966, condition No. 25 was imposed as a condition in the auction notice for the sale of bluegum in the Government reserved forests by public auction, which stated that "Bluegum wood should not be transported outside the Nilgiris District."

Finding of the Court:

The court held that the condition imposed by the Government in the auction notice for the sale of bluegum wood in the Government reserved forests, restricting the removal of the wood from the Nilgiris District, is not violative of Articles 301, 19 (1) (g) or 14 of the Constitution of India. The Government has the right to deal with its property in any manner it pleases, and a person has no fundamental right to purchase the Government property. The condition is a valid classification based on a reasonable nexus to the object sought to be achieved, namely, to conserve bluegum for the civil population to be used as firewood and to protect the interests of the only industry in the State manufacturing rayon yarn and staple fibre.

Issues: 1. Whether the condition imposed by the Government in the auction notice for the sale of bluegum wood in the Government reserved forests, restricting the removal of the wood from the Nilgiris District, is violative of Articles 301, 19 (1) (g) or 14 of the Constitution of India? 2. Whether the Government has the right to deal with its property in any manner it pleases? 3. Whether a person has a fundamental right to purchase the Government property?

Ratio Decidendi: 1. Articles 301 and 19 (1) (g) of the Constitution of India do not apply to the property of the Government. The Government has the right to deal with its property in any manner it pleases, just like any other owner. 2. A person has no fundamental right to purchase the Government property. The very purchase of the property by a person is subject to the condition that it has no right to remove the purchased goods from the Nilgiris District. 3. The condition imposed by the Government in the auction notice is a valid classification based on a reasonable nexus to the object sought to be achieved, namely, to conserve bluegum for the civil population to be used as firewood and to protect the interests of the only industry in the State manufacturing rayon yarn and staple fibre.

Final Decision: All the four writ petitions were dismissed.