1996 (10) TMI 526 - SC - Indian Laws

Summary

Issues Involved:
1. Alleged motivated, arbitrary, and high-handed actions of a Minister.
2. Prima facie conclusions by the Central Bureau of Investigation (CBI).
3. Legal consequences of misuse of power by a public official.
4. Remedies and actions to rectify the illegal allotments.
5. Accountability and damages for misuse of power.

Detailed Analysis:

1. Alleged Motivated, Arbitrary, and High-Handed Actions of a Minister:
The case concerns the alleged motivated, arbitrary, and high-handed actions of a Minister of Urban Development, who was responsible for the allotment of shops and stalls. The judgment highlights the role of a Minister in a parliamentary democracy, emphasizing that the Minister is accountable and answerable to the people, and their powers and duties are regulated by the law of the land. The legal and moral responsibility for acts or omissions rests solely on the Minister.

2. Prima Facie Conclusions by the Central Bureau of Investigation (CBI):
The CBI was tasked by the Court to inquire into the matter, known as the Housing Scam, and submitted four interim reports. According to the CBI, the then Minister of Urban Development, Smt. Shiela Kaul, allotted shops to her relatives, employees, and close friends, bypassing the required tender system. The CBI found that many other applicants were not considered without any reasons provided, and the allotments were made arbitrarily, reflecting misuse of power.

3. Legal Consequences of Misuse of Power by a Public Official:
The judgment refers to the concept of "misfeasance in public office," a recognized tort in public law. It includes malicious abuse of power and imposes liability on public officers for deliberate or injurious wrongdoing. The judgment cites various cases from international jurisdictions, emphasizing that misuse of public power is actionable in tort and can attract exemplary damages. The principle is that public functionaries must use their power for bona fide purposes and in a transparent manner.

4. Remedies and Actions to Rectify the Illegal Allotments:
To address the illegality, the Court decided to cancel the allotments. The Government was directed to reconsider its policy of 1994 and make necessary alterations to ensure fairness and justice. The shops/stalls were to be re-allotted according to the revised policy through a lawful procedure. If any current allottees were not selected under the new policy, they would be given three months to vacate. The Government was given two months to formulate the policy and another two months to complete the allotment process.

5. Accountability and Damages for Misuse of Power:
Smt. Shiela Kaul, who was prima facie personally responsible for the illegal allotments, was issued a notice to show cause why damages should not be awarded against her for each illegal allotment. The Court emphasized the need for accountability and the potential for awarding damages to deter misuse of power. The notice required her to respond within three weeks of receiving the order.

Conclusion:
The judgment addressed the issue of illegal allotments by a Minister, emphasizing the principles of accountability, transparency, and fairness in public office. The Court took steps to rectify the illegal actions by canceling the allotments and directing the Government to follow a lawful procedure for re-allotment. Additionally, the Court underscored the legal consequences of misuse of power by a public official and the potential for awarding damages to uphold the integrity of public administration.