IN THE HIGH COURT OF JUDICATURE AT MADRAS
V.LAKSHMINARAYANAN
M.Baskar – Appellant
Versus
Special Secretary, CMDA, Chennai – Respondent
| Table of Content |
|---|
| 1. allotments were made under discretionary quota. (Para 2 , 4 , 12 , 15) |
| 2. court found allotments contrary to law. (Para 6 , 41 , 53) |
| 3. arguments presented regarding notice and legality of transactions. (Para 32 , 34 , 39) |
| 4. doctrine of lis pendens applies to invalid allotments. (Para 46 , 56 , 63) |
| 5. writ petitions dismissed; time granted for vacating property. (Para 74) |
ORDER :
V.LAKSHMINARAYANAN, J.
These three writ petitions present a similar issue. Hence, they are clubbed together and disposed of through a common judgment.
2.The petitioner in W.P.No.19568 of 2015 is in possession of a shop bearing No.V/D-8 in Koyambedu Wholesale Vegetable Market. This shop was allotted to one Tmt.P.Shanthi through a proceeding of the Chief Executive Officer, CMDA on 01.04.2010. The basis for allotment was a letter given by the said Tmt.P.Shanthi to the Chairman of the CMDA on 30.09.2009.
3.The Chairman, CMDA had been conferred with the power to allot Plots/Houses/Flats/Shops etc., in all categories in all projects in M.M.Nagar, Manali New Town, KWMC, MBTT, I&SM, CMBT etc., pursuant to a resolution dated 22.10.2008. The Member Secretary, CMDA had issued a proceeding in Proc.No.K5/545
ITC Vs. State of Uttar Pradesh and others
Godde Venkateswara Rao Vs. Government of Andhra Pradesh and others
The discretionary allotments made by the CMDA Chairman were invalid; any property transactions based on such allotments are unenforceable, subject to the outcomes of ongoing litigation.
Subsequent allottees of fair price shops must be heard in appellate proceedings; failure to do so violates their rights and is contrary to established legal principles.
Writ petitions can be maintained against administrative actions affecting contracts, especially when principles of natural justice and public policy are at stake.
The court emphasized the legal principles related to the disposal of public properties, legitimate expectations, and the authority's discretion in allotment decisions.
The court established that a Gram Panchayat cannot lease property constructed by another authority without following due process, including mandatory public auction.
The court affirmed that public auction is mandatory for property transfers by Panchayats, regardless of lease duration, and unauthorized allotments cannot create rights for allottees.
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