9911796707
TMI Blog1990 (4) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... ffers in response to invitation by public tender without assigning any reason for the same as arbitrary, unconstitutional and contrary to the rule of law. The respondent, a Government company within the meaning of section 617 of the Companies Act, has been constituted as the new town development authority under sub-section (3A) of section 113 of the Maharashtra Regional Town Planning Act, 1966. The respondent is empowered to dispose of land vested in it and the respondent has formulated with the approval of the State Government under section 159 of the said Act, a code for regulating, inter alia, disposal of land. Regulation 4 provides : "The Corporation may dispose of plots of lands by putting to auction or considering the individual app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lated and unfettered and the highest offer, after complying with the prescribed requirements, is available to be rejected without assigning any reasons, citizens are likely to be affected by exercise of such uncanalised power. Shortly put, Mr. Dwivedi submits that the procedure is contrary to the requirement of the rule of law and, therefore, cannot be sustained. An affidavit-in-opposition has been filed on behalf of respondent No. 1 wherein the circumstances under which the highest offers have not been accepted have been indicated and the position has been explained. We do not find it difficult to agree with Mr. Dwivedi's submissions that respondent No. 1 is "State" within the meaning of article 12 and, in its dealings with citizens of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers for the specific plot in the economic interests of respondent No. 1. The question which still remains to be answered is as to whether, when the highest offer in response to an invitation is rejected, would not the public authority be required to provide reasons for such action ? Mr. Dwivedi has not asked us to look for a reasoned decision but has submitted that it is in the interest of the public authority itself, the State and every one in the society at large that reasons for State action are placed on record and are even communicated to the persons from whom the offers came so that the dealings remain above board ; the interest of the public authority is adequately protected and a citizen knows where he stands with reference to his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... very often involves high stakes and availability of reasons for action on the record assures credibility to the action, disciplines public conduct and improves the culture of accountability. Looking for reasons in support of such action provides an opportunity for an objective review in appropriate cases both by the administrative superior and by judicial process. The submission of Mr. Dwivedi, therefore, commends itself to our acceptance, namely, that when highest offers of the type in question are rejected, reasons sufficient to indicate the stand of the appropriate authority should be made available and, ordinarily, the same should be communicated to the concerned parties unless there be any specific justification not to do so. We do no ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
