Important point
Under the provisions of the Madhya Pradesh Nagar Tatha Gram Nivesh Adhiniyam, 1973, both the State and the Jabalpur Development Authority have been assigned specific functions under the statute and the State was not empowered to allot commercial land for industrial purposes.

Headnote:Madhya Pradesh Nagar Tatha Gram Nivesh Adhiniyam, 1973—Sections 2(e), (g), (i), 30, 49, 58, 72, 73, 85—M.P. Nagar Tatha Gram Nivesh Vikasit Bhoomiyo, Griho, Bhavanotatha Anya Sanrachnaon Ka Vyayan Niyam, 1975—Rules 3, 4, 5, 19 and 20—Madhya Pradesh Town Improvement Trusts Act, 1960—Sections 51, 52, 67 —Allotments of lands—Validity—Lands in question come within the Master Plan made in relation to town of Jabalpur brought about by the Jabalpur Development Authority—Pursuant to or in furtherance of a purported policy decisions adopted, State of Madhya Pradesh allotted land to proprietor of a newspaper published from Jabalpur for printing and publication of the newspaper—About 8000 sq. ft. of land was allotted to YMCA—Appellant filed a writ petition pleading that a proposal was made for construction of an auditorium and a cinema hall by the authority—Allegations that such allotments having been made on a pick and choose method with following the procedures laid down therefor and without issuing advertisement was illegal—Whether High Court was justified in dismissing the writ petitions—(No)—Lands in question is a developed land—Right to dispose of such lands, therefore, vests in JDA.
       Held : Concededly, the lands in question was either acquired lands or nazul lands. It also stands admitted that in terms of the provisions of Sub-section (2) of Section 71 of the 1960 Act even the nazul lands stand admittedly vested in the authority and having regard to the provisions contained in Section 87(1)(c)(iii) all assets and liability of the Town Improvement Trust shall belong to and be deemed to be the assets and liabilities of the Town and Country Development Authority established in place of such Town Improvement Trust. (Para 31)
       The power of disposal of lands, buildings and other developmental works indisputably vests in the Town and Country Development Authority i.e. the JDA. We have, however, not been informed as to whether any regulation has been framed by the authority for regulating the procedures for disposal of developed lands, houses, buildings and other structures. However, the lands in question is a developed land. The right to dispose of such lands, therefore, vests in the JDA. Such right being subject to the rules made by the State, we may closely examine the provisions thereof. (Para 32)
       The right to transfer land on concessional terms, thus, is subject to two limitations, viz., (i) approval of the State is required therefor; and (ii) no lease on concessional terms shall be allowed for purposes other than charitable purposes such as hospital, educational institutions and orphanages; which implies that in a given situation a lease may be granted on concessional terms to any other institution but therefor sufficient and cogent reasons must be assigned. The JDA, therefore, only had requisite authority to initiate the proceedings for grant of lease of land on concessional terms wherefor only the previous approval of the State was required to be taken. The State, except grant of previous approval to the proposal of the JDA and ultimate grant of lease of its land on concessional terms, has no other role to play. Disposal of the authority land is, thus, within the domain of the JDA, subject only to the previous approval of the State Government. (Paras 34 & 35)
       The State and the J.D.A. being creatures of the statute were bound to act within the four-corners thereof. Procedures for disposal of land having been laid down in the rules, power in that behalf was required to be exercised strictly in conformity therewith and de’hors the same. The State has formulated a purported policy decision on or about 10.8.1995. The said policy decision is in relation to the land belonging to the State situated in the entire State of Madhya Pradesh. It has been issued by the Revenue Department and not by the Town and Country Planning Department. The said purported policy decision is not a policy decision in terms of the 1973 Act or the rules framed thereunder. State, thus, could not even issue any direction to J.D.A. (Paras 36 & 37)
       So far as allotment of land is concerned, the purpose for which the same is allotted would be wholly irrelevant if it contravenes the mandatory provisions of the statute or the statutory rule. (Para 51)
       If any preference is to be given to any public utility service, a policy decision therefor was required to be adopted by the J.D.A. if permissible under the statute and not otherwise. Even the State may not have a role to play in the matter under the Act General policy decision adopted by the State in absence of a provision of the statute, cannot ipso facto be held to be applicable to J.D.A. (Para 55)
       Both the State and the JDA have been assigned specific functions under the statute. The JDA was constituted for a specific purpose. It could not take action contrary to the scheme framed by it nor take any action which could defeat such purpose. The State could not have interfered with the day to day functioning of a statutory authority. Section 72 of the 1973 Act authorizes the State to exercise superintendence and control over the acts and proceedings of the officers appointed under Section 3 and the authorities constituted under the Act but thereby the State cannot usurp the jurisdiction of the Board itself. The Act does not contemplate any independent function by the State except as specifically provided therein. The Development Plan was prepared in terms of the 1973 Act and the rules framed thereunder. Change of user, we have not been shown, is permissible under the Act or the Rules. In absence of such a provision and/or without following the statutory requirements therefor, if any, the State in exercise of its executive power could not have directed that lands meant for use for commercial purposes may be used for industrial purposes. (Paras 57 and 58)
       Furthermore, in terms of Section 73 of the 1973 Act, the power of the State Government to issue direction to the officers appended under Section 3 and the authorities constituted under the Act is confined only to matters of policy and not any other. Such matters of policy yet again must be in relation to discharge of duties by the officers of the authority and not in derogation thereof. The State has no power to issue any general direction. The State has furthermore no power to interfere with the day to day functioning of the JDA. Any such direction by the State to the officers must be in discharge of their duties in terms of the provisions of the Act and not otherwise. The direction of the Chief Minister being de’hors the provisions of the Act is void and of no effect. The purported policy decision adopted by the State as regards allotment of land to the newspaper industries or other societies was not a decision taken by the appropriate Ministry. If a direction was to be issued by the State to the JDA, it was necessary to be done on proper application of mind by the cabinet, the concerned Minister or by an authority who is empowered in that behalf in terms of the Rules of the Executive Business framed under Article 166 of the Constitution of India. Such a direction could not have been issued at the instance of the Chief Minister or at the instance of any other officer alone unless it is shown that they had such authority in terms of the Rules of the Executive Business of the State. (Paras 60 to 62)
       The State, as noticed hereinbefore, could not implement its purported policy decision as regard allotment of land on concessional rates. Such a direction or even a policy decision in this behalf is ultra vires being contrary to the statutory rules framed by it. An action by way of policy decision or otherwise at the hands of a statutory authority must be in consonance with the statutory rules and no de’hors the same. (Para 65)
       For the reasons aforementioned, the impugned judgments of the High Court cannot be sustained, but, having regard to the facts and circumstances of this case, we are of the opinion that the interest of justice would be subserved if the question as regards allotment of land is left to the Jabalpur Development Authority. The Authority may consider the matter afresh for grant of such allotment in favour of the Private Respondents herein treating the applications filed by them either before it or before the State Government as fresh applications. Such applications must be processed strictly in terms of the provisions of the 1973 Act and the Rules framed thereunder as also keeping in view the Master Plan. Such a decision should be taken by the Competent Authority of the JDA at an early date. (Para 73)

JUDGMENT

S.B. Sinha, J.—Leave granted in S.L.P.s.

2. Both these appeals involving common questions of law and fact were taken up for hearing together and are being disposed of by this common judgment.

3. Two Writ Petitions in the nature of public interest litigations were filed by the Appellant herein before the High Court questioning allotment of lands measuring 20000 sq. feet and 8000 sq. feet in favour of Sh. Bishambhar Dayal Aggrawal, proprietor Dainik Bhaskar Newspaper, Jabalpur and YMCA, private respondents herein respectively by the State of Madhya Pradesh.

Jabalpur Development Authority (JDA).

4. The lands in question indisputably come within the Master Plan made in terms of the Madhya Pradesh Nagar Tatha Gram Nivesh Adhiniyam, 1973 (for short ‘the 1973 Act’) in relation to the town of Jabalpur brought about by the Jabalpur Development Authority (for short "JDA"), a statutory authority constituted thereunder. Prior to coming into force of the 1973 Act, the legislature of the State of Madhya Pradesh enacted the Madhya Pradesh Town Improvement Trusts Act, 1960 (for short "the 1960 Act") in terms whereof Jabalpur Improvement Trust was created for the purpose of carrying out the provisions thereof in the town of Jabalpur wherefor it was entitled to acquire lands belonging to private parties and obtain such land from the State and others by way of agreement, sale etc. There appears to be some dispute as to whether the lands in question are acquired lands or nazul lands belonging to the State of Madhya Pradesh. However, it is not in dispute that the town planning scheme framed by the said trust was approved by the State and by a notification dated 20th September, 1974, the lands stood vested in the trust in terms of sub-section (2) of Section 71 of the 1960 Act.

5. The lands in question are situate in the commercial area carved out of the said Master Plan. The authority indisputably was entitled to allot plots in favour of the applicants only in terms of the rules and regulations framed thereunder. Allegedly, pursuant to or in furtherance of a purported policy decisions adopted by it, the State of Madhya Pradesh allotted land to Sh. Bishambhar Dayal Aggrawal, proprietor of ‘Dainik Bhaskar’, a newspaper inter alia published from Jabalpur for establishment of an industry, i.e., for printing and publication of a newspaper known as Dainik Bhaskar. The said newspaper is published from nine states. Similarly, an application having been made by YMCA which is said to be a charitable organization, 8000 sq. feet of land was allotted to it.

6. The Appellant herein in the writ petition filed before the High Court inter alia pleaded that a proposal was made for construction of an auditorium and a cinema hall by the authority with the cooperation of the M.P. Films Development Corporation wherefor foundation stone was also laid at the site which has since been allotted in favour of Shri Bishambhar Dayal Aggrawal.

7. Further contentions of the Appellants before the High Court are as under:-

Such allotment having been made on a pick and choose method without following the procedures laid down therefor and without issuing any advertisement was illegal. Such allotment having moreover been made for industrial purpose, was in contravention of the Master Plan drawn in terms of the provisions of the 1973 Act as thereby change of purpose as regard user thereof has been effected. Even 50 rebate both in respect of the premium and ground rent was given in utter violation of the statutory provisions.

The contention of the Respondent before the High Court, on the other hand, was that the said allotments were made in terms of a policy decision adopted by the State.

8. The High Court by reason of the impugned judgments dismissed the writ petitions filed by the Appellants herein holding that the grants in favour of the Respondents were made for public purposes which the State was empowered to do in terms of Rule 3 of the Madhya Pradesh Nagar Tatha Gram Nivesh Vikasi

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2006 Supreme(SC) 31

Important pointUnder the provisions of the Madhya Pradesh Nagar Tatha Gram Nivesh Adhiniyam, 1973, both the State and the Jabalpur Development Authority have been assigned specific functions under the statute and the State was not empowered to allot commercial land for industrial purposes.

Cases Referred (12)

Important point
Under the provisions of the Madhya Pradesh Nagar Tatha Gram Nivesh Adhiniyam, 1973, both the State and the Jabalpur Development Authority have been assigned specific functions under the statute and the State was not empowered to allot commercial land for industrial purposes.