IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
SURESHWAR THAKUR, KULDEEP TIWARI, JJ.
M/s. Vikas Gram Udyog Samiti – Petitioner
Versus
State of Punjab & Ors. – Respondents
CWP NO. 36032 of 2019
Decided On : 02-05-2023
| Table of Content |
|---|
| 1. auction process and necessity for government approval. (Para 1 , 2) |
| 2. arguments regarding validity of auction bids. (Para 3 , 4) |
| 3. reasons for rejecting claims on auction breaches. (Para 5 , 6 , 7 , 8) |
| 4. conclusion on the dismissal of the writ petition. (Para 9 , 10 , 11) |
JUDGMENT
Sureshwar Thakur, J.
Factual Background.
The petitioner was the highest bidder in respect of auction which became held on 31.10.2019, in respect of shamlat deh lands. However, since in terms of clause 4 (6) of the Gram Panchayat Lands Lease Policy dated 09.05.2014 (hereinafter for short called as 'the lease policy', as formulated in terms of Rule 6(3) of the Punjab Village Common Lands (Regulation) Rules, 1964, hereinafter in short refer to as 'the 1964 Rules', thus, approval thereto was required to be granted by the Government concerned. However, since no approval thereto became granted, thus, the petitioner has accessed this Court, rather for a mandamus being made, upon the respondents concerned, to grant the requisite approval, to the auction, as became held on 31.10.2019, whereby the petitioner's highest bid became accepted.
2. Apart from the above mandamus, being asked for by the petitioner in the instant petition, a further prayer/relief, as asked for in the petition, relates to the quashing of the auction, as became conducted on 08.11.2019, in respect of the shamlat deh lands, whereby the co-respondent No.7, was declared as the highest bidder.
Submissions of the learned counsel for the petitioner.
3. i) The learned counsel for the petitioner, has argued that, since the auction of the petition lands, as became conducted on 31.10.2019, whereby he was declared as the successful auction bidder, was then conducted in terms of the Rule 6(3) of 'the 1964 Rules', provisions whereof are extracted hereinafter.
6. Leases to be by auction. (1) xxxxxxxxxx
(2) xxxxxxxxx
[(3) The land vested in a Gram Panchayat, may be leased out up to a period of thirty-three years with the prior approval of the State Government for industrial, commercial, educational or such other professional purpose in terms of the policy framed by the State Government from time to time for giving the aforesaid land on lease. The lease of the said land may further be renewed keeping in view the public interest, for a period not exceeding the aforesaid period of thirty-three years or for a lesser period, as may be agreed upon between the parties.
Provided that,-
(i) the lease shall not create encumbrance on the leased land either by mortgaging or in any other mode; and
(ii) a lease deed signed under this rule, may be cancelled in it is found that the lease is,-
(a) misusing the land;
[(b) does not start the work on the said land within a period of one year of the date of taking over the possession and thereafter does not complete the project within a period of three years or the time period as may be specified by the Government Departments, Boards, Corporations or the Punjab Energy Development Agency, while sanctioning the project or scheme, whichever is later.]
(c) violating the terms and conditions of the lease deed or the sanction accorded by the Government, as the case may be and
(d) the private persons or private institutions or project implementers (given in serial numbers 1,2,3 and 6 of the Table, respectively, in sub-rule 3-A), to whom the land is given on lease, further sub-leases the land to a third person.]
Provided further that in the cases of solar and energy power projects which are approved by the Power or by the Punjab Energy Development Agency, the competent to accord prior approval, shall be the Commissioner of the district concerned.]
(3-A)xxxxxxxx.."
Therefore, the approving authority was bound to, in terms of the rules (supra), and thereafter, in terms of clause 4(6) of 'the lease policy', appended as Annexure P-11, to the petition, thus, imperatively endorse or grant approval to the said auction bid. The relevant clause of 'the lease policy', is extracted hereinaf
AI
If the impugned auction is not interfered with, it would amount to upholding partial auction and permitting perpetuation of illegality, which would be contrary to the Act and the Rules.
Point of Law : Special Officer is empowered to conduct auction to the leasehold rights of the shops of the Gram Panchayat in the interest of it’s revenue in exercise of powers vested under Section 14....
The main legal point established in the judgment is that the auction proceedings must adhere to the procedure envisaged in the relevant laws and regulations, and must provide a reasonable period noti....
A public auction's highest bid cannot be disregarded on arbitrary bases without substantial evidence of misconduct in the auction process.
The court established that a Gram Panchayat cannot lease property constructed by another authority without following due process, including mandatory public auction.
The court held that once a bid is accepted in a public auction, it cannot be invalidated based on subsequent complaints without evidence of fraud or collusion.
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