Suresh Chandra v. U.P. Avas Evam Vikas Parishad & Ors.
ABHAY MANOHAR SAPRE, J.
1. Leave granted.
2. This appeal is filed against the final judgment and order dated
29.01.2018 passed by the High Court of Judicature at Allahabad, Lucknow
Bench in Writ Petition No. 6198(M/B) of 2012 whereby the Division
Bench of the High Court dismissed the writ petition filed by the appellant
herein.
3. In order to appreciate the issue involved in this appeal, which
lies in a narrow compass, it is necessary to set out the relevant facts in
brief hereinbelow.
4. While issuing notice of this special leave to appeal on 06.03.2018,
this Court passed the following order:
“Application for exemption from filing official translation
is allowed.
Issue notice on the limited question as to why the
property in question admeasuring 639 sq.metres land which
was auctioned by Uttar Pradesh Avas Evam Vikas Parishad
for which market price as of today is quite high, be not p ut
to auction sale again, returnable on 14 th March, 2018.
Status quo as of today in respect of the property i n
question shall be maintained.
Petitioner is permitted to serve the respondents by way
of dasti service within a week.”
5. Pursuant to the aforesaid order, the respondents have filed their
response/counter affidavits.
6. In short, the dispute relates to a plot of land bearing p lot No.
4B/CP-03 (Sector 4B) situated at Sikandara Yojna, Agra havi ng total
area measuring 639.75 Sq. meter owned by U.P. Avas Vikas Parishad-
respondent No. 1 herein (hereinafter referred to as “the Parisha d”).
7. On 12.08.2010, the Parishad in daily Hindi News Papers “Dainik
Jagaran” and “Amar Ujala” issued an advertisement inviting applications
from interested parties for allotment of the aforementioned lan d. The
reserved rate of the plot was fixed at Rs.17,248/- per sq. mt. The parties
were to deposit a token money of Rs.11,03,500/-.
SURESH CHANDRA v. U.P. AVAS EVAM VIKAS PARISHAD
8. It is the case of the appellant that he was one of the bidder s,
who quoted the rate of the plot at Rs.18050/- per sq. meter which was
the highest. The Parishad, however, was of the view that the offers
received did not represent the real market price and, therefore, it decided
to re-auction the same.
9. The Parishad, therefore, issued a fresh advertise ment for
allotment of land. The appellant felt aggrieved with the Parishad’s
decision to re-auction the land in question and iss uance of fresh
advertisement and filed Writ Petition No.6198/2012 in the High Court at
Allahabad. The High Court, by interim order dated 30.07.2012, directed
that re-auction may be held but it will be subject to the final outcome of
the writ petition.
10. In re-auction, respondent No. 5 submitted his b id for
Rs.28,000/- per Sq. Meter as against the reserve price of Rs.27,104/ -
fixed by the Parishad. The appellant in order to show his bona fide
interest offered to purchase the land for Rs.40,000/- per Sq. Meter and
later modified his offer at Rs.45,000/- per Sq. Meter in the Court. The
appellant also deposited a sum of Rs.1.15 crores out of the total amount
of Rs.2.87 crores.
11. The High Court, by impugned order, dismissed the appellant’s
writ petition essentially on the ground that since he was not the bidder in
the re-auction proceedings, he cannot be heard in the matter and Secondly;
since during the pendency of the writ petition, the Parishad had executed
the sale deed of the land in favour of respondent No.5 and hence nothing
now survives in the matter.
12. The appellant(writ petitioner) felt aggrieved and filed this appeal
by way of special leave in this Court. As mentioned above, notice was
issued to examine only one limited issue in relation to re-auction of the
land.
13. Heard Ms. Sonia Mathur, learned senior counsel for the
appellant and Mr. S.S. Kulshrestha, learned senior counsel, Mr. Vishwajit
Singh and Mr. Abhay Kumar, learned counsel for the respondents.
14. Having heard the learned counsel for the parties and on perusal
of the record of the case, we are inclined to dispose of the appe al as
mentioned hereinbelow.
15. Learned counsel for respondent No.1- Parishad at the outset
submitted that the Parishad has no objection if the re-auction of the plot
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of the land in question is done because in re-auction proce edings, the
Parishad is bound to get more sale price as against the price quoted by
the bidders in the earlier two auctions.
16. Learned Counsel for respondent No.5, however, defended
the impugned order and contended that since the sale has already been
concluded in his favour and sale deed has also been executed, the appeal
deserves dismissal.
17. We are of the considered opinion that in order to do complete
justice between the parties in relation to subject matter of the proceedings
in question and to balance the equities and further having regard to all
the facts and circumstances of the case, the fresh auction of the land in
question can be ordered. It is also necessary for the following reasons.
18. First, the 2 nd re-auction proceedings conducted by the Parishad
were made subject to final outcome of the writ petition by order dated
30.07.2012 passed by the High Court in the appellant’s writ petition and,
therefore, even if Parishad had proceeded to finalize the sale of the land
in question in favour of respondent No.5, it did not affect any of the
rights of the appellant while prosecuting the writ petition. It was more so
because the respondent No.5 was also aware of the o rder dated
30.07.2012, he being part to the writ petition.
19. Second, the Parishad did not give adequate publicity for sale
of the land in question while conducting two auctions because we find
that only two bidders could participate in the auctions.
20. In our view, the Parishad, keeping in view, the value and the
potential of the land, should have given adequate publicity in the leading
national English, Hindi newspapers having circulation all over the country
including any other prescribed mode of publication with a sole object to
attract participation of more and more persons in the auction proceedings.
21. Third, the Parishad committed an error in fixing reserve price
of the land at a very less amount. The Parishad should have s een that
the land has a tremendous potential in commercial market a s is clear
from the fact that both the bidders had volunteered to pay much higher
price as against their original bid amount.
22. In the light of the aforementioned reasons, we are of the view
that the land in question deserves to be re-auctioned afresh.
SURESH CHANDRA v. U.P. AVAS EVAM VIKAS PARISHAD
[ABHAY MANOHAR SAPRE, J.]
23. In view of the foregoing discussion, the appeal succeeds and
is accordingly allowed. Impugned order is set aside. The Parisha d is
directed to re-auction the land in question by giving wide publicity in
various leading national newspapers having circulation all over India in
bold letters including giving publicity in local daily newspapers also in the
States with a view to enable more and more persons to participate in the
auction for allotment of the said land.
24. The Parishad is also directed to get the reserve price fixed
after consulting experts in the subject.
25. The Parishad is also directed to provide adequate conditions
so that the auction process becomes transparent and at the same time
the bidders are able to submit their bids properly.
26. The Parishad is also directed to refund the entire mon ey to
the appellant and the respondent No. 5, which they had deposited f or
purchase of the land in question in auctions with interest payable at the
rate of 6% p.a..
27. The State will issue a necessary certificate in f avour of
respondent No.5 to enable him to claim refund of stamp duty amount
from the State which he has paid on the sale deed executed b y the
Parishad in his favour in relation to the land in question. Since this Court
has directed re-auctioning of the land, the sale deed has now bec ome
void. Respondent No.5 is, therefore, entitled to claim refund of entire
stamp duty amount paid by him on the sale deed for its exe cution/
registration.
28. The appellant and respondent No. 5 will be free to participate
in the auction proceedings as a fresh bidder along with others. However,
they will not be entitled to claim any kind of benefit in re -auction
proceedings on the ground that they had earlier participated in the auction
proceedings.
29. The Parishad would ensure that the auction proceedings are
conducted in fair and transparent manner and fetch maximum price of
the land.
30. Let the fresh auction proceedings be completed withi n 6
months from the date of this order.
Kalpana K. Tripathy Appeal allowed.