2000 (9) TMI 1002 - SC - Indian Laws

Whether the employees of Municipal Corporation can claim any right for transfer of municipal quarters to them on the basis of the resolutions passed by the Municipal Corporation, which are not initiated or moved but objected to by the Municipal Commissioner? Held that - We have to consider the scheme of Section 200 which empowers the Commissioner to dispose of the moveable property or grant lease of any immovable property or to sell the same subject to the conditions provided thereunder. On the condition of obtaining sanction of the Corporation, the power to transfer immovable property, the value of which exceeds fifty thousand rupees vests in the Commissioner. Result is the Commissioner can transfer such immovable property only after obtaining sanction of the Corporation. Obtaining of sanction by the Commissioner is mandatory. The effect of the non-observance of the statutory prescription would vitiate the transfer. This would also mean that the power to dispose of the property would vest in the Commissioner and not in the Corporation. No specific power is conferred upon the Corporation for such transfer. The scheme envisages checks and balances for disposal of immovable property on the power of the Commissioner. In the light of the aforesaid interpretation of Section 200, it is not necessary for us to deal with other contentions raised and dealt with by the High Court. In the facts and circumstances of the case, at no point of time, Municipal Commissioner has decided or agreed to transfer the Municipal quarters in favour of its employees/allottees. There is no legal right to claim ownership on the basis of the resolutions passed by the Corporation as the said resolutions are without any power or authority. Hence, there is no substance in these petitions.

Issues Involved:
1. Whether employees of the Municipal Corporation can claim a right to transfer of municipal quarters based on resolutions passed by the Municipal Corporation.
2. The statutory provisions under the Delhi Municipal Corporation Act, 1957 regarding the disposal of immovable property.
3. The role and powers of the Municipal Commissioner and the Corporation in the disposal of property.
4. The validity and enforceability of resolutions passed by the Corporation without the Commissioner's sanction.

Issue-wise Detailed Analysis:

1. Right to Transfer of Municipal Quarters:
The primary issue is whether the employees of the Municipal Corporation can claim any right to the transfer of municipal quarters based on resolutions passed by the Municipal Corporation, which were objected to by the Municipal Commissioner. The Court held that the petitioners' contention that the Commissioner must abide by the Corporation's resolutions is without substance due to specific statutory provisions under the Delhi Municipal Corporation Act, 1957.

2. Statutory Provisions under the Delhi Municipal Corporation Act, 1957:
The Act provides the framework for the functions and duties of the Municipal Commissioner, the Standing Committee, the Corporation, and other bodies. Section 3(2) states that the Corporation has the power to acquire, hold, and dispose of property subject to the Act's provisions, indicating that the Corporation does not have absolute power to dispose of property.

3. Powers of the Municipal Commissioner and the Corporation:
The Court emphasized that the entire executive power for carrying out the Act's provisions vests in the Commissioner, as per Section 59. The Commissioner must exercise all powers and perform duties conferred or imposed upon him by the Act. Section 200 outlines the conditions under which the Commissioner can dispose of property, requiring the sanction of the Corporation for certain transactions, particularly those involving immovable property exceeding a specified value.

4. Validity and Enforceability of Resolutions:
The Court examined the series of resolutions passed by the Corporation since 1970, which were repeatedly objected to by the Municipal Commissioner. The resolutions aimed to transfer quarters to employees on a no-profit-no-loss basis, but faced legal and statutory challenges, including objections from the Lt. Governor and the Central Government. The Court noted that the Commissioner, empowered by Section 200, did not agree to transfer the quarters, and the resolutions lacked legal authority.

The Court concluded that the resolutions passed by the Corporation without the Commissioner's sanction were invalid. The statutory scheme requires the Commissioner's sanction for the disposal of immovable property, and the absence of such sanction vitiates the transfer. The Court dismissed the special leave petitions, affirming that there is no legal right to claim ownership based on the Corporation's resolutions.

Conclusion:
The Court dismissed the special leave petitions, holding that the employees have no legal right to claim ownership of municipal quarters based on the Corporation's resolutions. The statutory provisions under the Delhi Municipal Corporation Act, 1957, vest the power to dispose of property in the Commissioner, subject to the Corporation's sanction. The resolutions passed by the Corporation without the Commissioner's sanction are invalid and unenforceable. The Court granted the petitioners time to vacate the premises until the end of the academic year 2001, provided they furnish an undertaking to vacate and pay the license fee.

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