PUNJAB & HARYANA HIGH COURT
M.R.Agnihotri and V.K.Bali JJ.
Managing Society, Goswami Ganesh Dutt Sanatan Dharam College
Versus
Union Of Territory, Chandigarh
Writ Petition No. 6149 of 1991,
Decided On : OCTOBER 22, 1991
LAND ALLOTMENT - LEASEHOLD - REVIEW OF DECISION - ESTOPPEL - CAPITAL OF PUNJAB (DEVELOPMENT AND REGULATION) ACT, 1952 - CHANDIGARH LEASE HOLD OF SITES AND BUILDINGS RULES, 1973 - The court held that the successor Administrator/Secretary had no power to review the decision of his predecessor particularly when the first decision was taken as long as 16 years ago during which time the petitioner had reached at such a stage that if new rates were not suitable, it could not retrieve from its position having already spent as many as Rs. seven lacs in constructing the building.
Fact of the Case:
The Chandigarh Administration allotted 10.5 acres of land to the petitioner-Society on leasehold basis for 99 years at a concessional rate of Rs. 10 per square yard and a ground rent of Rs. 100 per acre per annum. After 16 years, the Administration decided to charge ground rent at the increased rate prescribed in the Chandigarh Lease Hold of Sites and Buildings Rules, 1973. The petitioner challenged the decision and the notice issued to pay the arrears.
Finding of the Court:
The court held that the successor Administrator/Secretary had no power to review the decision of his predecessor, as there was no provision for review in the Capital of Punjab (Development and Regulation) Act, 1952 or the Chandigarh Lease Hold of Sites and Buildings Rules, 1973. The court also held that the Administration was estopped from charging the increased ground rent, as the petitioner had acted on the faith of the original allotment letter and had spent a substantial amount of money in constructing the building.
Issues: 1. Whether the successor Administrator/Secretary had the power to review the decision of his predecessor? 2. Whether the Administration was estopped from charging the increased ground rent?
Ratio Decidendi: 1. The court held that the successor Administrator/Secretary had no power to review the decision of his predecessor, as there was no provision for review in the Capital of Punjab (Development and Regulation) Act, 1952 or the Chandigarh Lease Hold of Sites and Buildings Rules, 1973. The court relied on the principle that a quasi-judicial authority cannot review its own order unless the said power is expressly conferred upon it by the Statute under which it derives its jurisdiction. 2. The court held that the Administration was estopped from charging the increased ground rent, as the petitioner had acted on the faith of the original allotment letter and had spent a substantial amount of money in constructing the building. The court relied on the principle of equitable estoppel, which prevents a party from going back on its promise or representation if the other party has acted on it to its detriment.
Final Decision: The court allowed the petition, quashed the order and notice issued by the Administration, and directed the parties to bear their own costs.
V. K. BALI, J.
1. Sequel to the order and consequent notice issued by the Chandigarh Administration for change to be brought about in the allotment letter conveying allotment of 10.5 acres of land to the petitioner nearly one and half decade ago and the threat extended by the Administration to proceed Against the petitioner-Society to face drastic consequences inclusive of resumption of land is what the petitioner has taken a strong exception by way of filing this writ petition under Articles 226/227 of the Constitution of India. Before, however, the two fold grounds on which the notice and the consequential order have been attacked are probed any further, it shall be useful to notice the facts culminating into this petition.
2. The Chandigarh Administration in pursuance of the Constitutional mandate to provide education to its citizens envisaged to establish Government Schools/Colleges in different sectors of Chandigarh town. The Chandigarh town being one of the places where all requirements of life had to be started and built up from a scratch, this massive work of providing education on account of heavy financial involvements could not be carried out by the administration exclusively at its own end, thus, necessitating involvement of private individuals and denominational societies.
3. With a view to attract individuals and the Societies, the Administration offered land at nominal price and on free hold basis. Some of such recipients of land on nominal price and on free hold basis were admittedly D. A. V. College for Men, D. A. V. College for Women, Guru Gobind Singh College for Men, Guru Gobind Singh College for Women and D. A. V. School in Sector 8. The petitioner-Society too approached the administration for allotment of 20/ 25 acres of land for establishing a non-Government Degree College at Chandigarh and the administration vide letter dated 5-2-1974 offered allotment 10.5 acres of land in Sector 32-C Chandigarh on lease-hold basis for 99 years at the rate of Rs.10.00 per square yard and in addition thereto, ground rent at the rate of Rs. 100.00 per acre per annum. For the reason that the offer for allotment of plot measuring 10.5 acres to the petitioner-Society was on lease-hold basis and also on payment of ground rent, which was not the course adopted in the case of other Institutions, reference of which has been given above, even though the President of the Society accepted the allotment yet he requested that the price be reduced as the same was exorbitant and the annual ground rent be also exempted as the same was not charged from the existing non-Government and similarly placed educational institutions at Chandigarh. A strong plea against the very system of lease hold was also made. It appears that the administration did not give any serious thought to the pleas raised by the petitioner-Society and in fact insisted upon it to give consent with regard to allotment of land proposed in Sector 32 on lease hold basis for 99 years at the rates mentioned above. The petitioner-Society was asked to expedite the action and send its consent with regard to the allotment on the conditions mentioned in the letter of its offer. The Finance Secretary vide letter dated 21-12-1974 informed the decision of the Chandigarh Administration to transfer a piece of land measuring 10.5 acres to the petitioner-Society on lease hold basis for 99 years on the same rates as proposed by the Estate Officer vide letter dated 3/04/1974. Inasmuch as consent to get the plot at the rates referred to above was also given by the petitioner-Society, although some objections as mentioned above were raised, the Estate Officer vide letter dated 2/01/1975 informed the decision of the Chandigarh Administration to the petitioner for allotment of land measuring 10.5 acres for the construction of a full-fledged co-educational Degree College on lease hold basis for a period of 99 years at premium and ground rent as depicted above. Once again, vide the afo
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