A Collector lacks jurisdiction to stay auction proceedings without meeting statutory grounds for public injury or annoyance under the C.P. and Berar Municipalities Act.

1. By this application under Art.226 of the Constitution of India, the Municipal Committee, Senoi, asks for a writ of certiorari to bring up and quash an order of the Collector, Seoni, made on 5th March, 1960, staying the public auction of municipal Kothas and Chabutras and for a writ of prohibition to the Collector, Seoni, and the opponent State restraining them from giving effect to the said order of the Collector.

2. The facts and circumstances in which this petition has been filed are that on 1st February, 1960, the Municipal Committee issued a public proclamation stating that the Kothas and Chabutras located in market sites would be leased out for the period from 1st April, 1960 to 31th March, 1961, by public auction on 24th February 1960. The proclamation directed all defaulters to clear off their arrears of taxes and rent by 23rd February, 1960, adding that on their failure to do so they would not be permitted to bid at the auction.
Subsequently, another proclamation was issued postponing the date of auction from 24th February, 1960 to 6th March, 1960 and giving publicity to the terms and conditions upon which leases would be granted. On 5th March, 1960, the respondents Nos.3 to 16, who are occupying the Kothas and Chabutras intended to be leased out by the Municipal Committee by public auction, presented an application to the Collector under S.53 of the C.P. and Berar Municipalities Act, 1922 . In that application they stated that they were occupying the Kothas and Chabutras for over thirty years and were also paying the rent enhanced by the Committee from time to time in respect of the Kothas and Chabutras in their occupation; that the resolution of the Committee for leasing out the Kothas and Chabutras by public auction for the year 1960-61 was illegal and contrary to the practice of the Municipal Committee in the matter of leases of this property; and that the resolution of the Committee would also disturb their business and was likely to create a breach of the peace. The said respondents prayed that the execution of the resolution of the Municipal Committee be stayed. On receiving the application, the Collector made the impugned order on 5th March, 1960, which is as follows : -
"Execution of the order of the Municipal Committee be stayed till the disposal of the application.
A report be made to Government that such an application having been submitted, the execution of the order of the M.C. has been stayed pending final decision of the application as several of the applicants claim to be tenants of the M.C. for the last 30 to 40 years and it will not be just to displace them all of a sudden without giving them adequate notice and a hearing.
M.C. be noticed."
A copy of the respondents' application was served on the Municipal Committee who was asked to file a reply to it. The parties were then heard by the Collector, and on 2nd May, 1960, the Collector made a report to the Government under S.53 (2) of the Act recommending that the order passed by him on 5th March, 1960, staying the auction be continued in force and that the respondents be continued as monthly tenants of the Kothas and Chabutras till the order of 5th March, 1960 is vacated or rescinded by him. The Collector stated that in the meantime he would make efforts to bring about a compromise between the Municipal Committee and the respondents in regard to the leasing out of the Kothas and Chabutras. This petition was filed on 25th April, 1960.

3. The petitioner - Committee questions the legality of the order of the Collector dated the 5th March, 1960, on the grounds that the proposed auction of the Municipal Kothas and Chabutras is only in discharge of the statutory duty of th