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TMI Blog2004 (4) TMI 617X X X X Extracts X X X X X X X X Extracts X X X X ..... ts and add to their losses caused by undue delay in setting up their industries. The Administration is mainly to be blamed for the situation in which the allottees of plots find themselves today. In preparing scheme and allotting plots, it could not have ignored the notification reserving a part of land for the forest and the restriction to the extent of 900 metres around the Air-Force base. The allottees of the plots have paid full or part price and that amount throughout remained with the Administration. In such circumstances, the Administration must bear a portion of loss, if any, occasioned to it and compensate to some extent the loss caused to the consentees who never objected to allotment of alternative plots of smaller sizes. The direction no. 2 of the High Court, therefore, to the extent of charging price from the consentees as prevailing on the date of draw of lots i.e. 27.3.1991, deserves to be set aside and substituted with the directions that the consentees on being allotted a particular plot of smaller size shall be charged the same price which was prevailing at the time of original allotment of the plot in their favour. Necessary adjustment or refund of price, as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alternative plots. On this identification of 23 consentees and 13 allottees of one kanal of plot each, the Administration is justifiably required to consider their cases to allot them alternative plots available in industrial areas phase-I and phase-II as shown in their chart (Annnexure-A) annexed to their affidavit. As a result, the appeals and connected matters are disposed of by substituting/modifying above- mentioned directions for the directions contained in the impugned order of the High Court. - Shivaraj V. Patil D. M. Dharmadhikari, JJ. JUDGMENT Dharmadhikari J. These appeals and special leave petitions are preferred against the common judgement dated 30.8.2001 passed by the Division Bench of High Court of Punjab Haryana whereby a batch of writ petitions preferred by the applicants for allotment of industrial plots in the development scheme framed by the Union Territory, Chandigarh [shortly referred to as UTC] has been disposed of with certain directions. Different classes of allottees of industrial plots and UTC all feel aggrieved by the judgment of the High court and are before this Court. The full factual background leading to the dispute inter se between the applican ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed writ petitions in the year 1987 in the High Court seeking directions to the Administration of UTC to deliver possession of the industrial plots allotted to them in accordance with the short-listing done by the Screening Committee and consequent draw of lots. On 29.11.1990, the Director of Industries, Government of India, intimated to the allottees that the Administration of UTC was not in a position to deliver possession of the industrial plots allotted to them as the land was found to be a part of reserved forest. The Administration proposed to allot one kanal land to each allottee irrespective of the size of plot originally allotted. On 10.12.1990, the Administration of UTC then framed a new industrial policy to accommodate 250 allottees of 1982 who could not be given possession of the industrial plots because of the land being reserved for forest. To meet aforesaid difficult situation, the Administration decided to reduce the size of 4 kanal and 2 kanal of industrial plots by 25% so as to accommodate and to enable itself to allot plots to all 254 allottees. In view of the new industrial policy of 1990, the earlier letter dated 29.11.1990 proposing each allottee one kanal o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... original plots allotted to them. The filing of this petition and appeals resulted in stalling the allotments of alternative plots pursuant to the new industrial policy of 1990 even to consentees who had agreed for plots of reduced sizes at alternative locations and had filed affidavits in the requisite form. The consentees approached the High Court with a prayer that the Administration be directed to give them possession of the alternative plots of smaller sizes. The Division Bench of the High Court passed an order dated 22.11.1994 and by modifying its earlier order dated 13.1.1992 clarified that the Administration of UTC can proceed to allot the industrial plots to consentees subject to the condition that the plots of the size allotted to the non-consentees, who are in litigation, shall be kept reserved and not reduced. Despite the above modification and clarification made by the High Court, the Administration of UTC did not deliver possession of the plots even to consentees stating that in some other cases, stay orders against the allotments were operating against the Administration. On 12.8.1995, the High Court again modified its earlier orders and gave liberty to the Administra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, 1982 is rejected. 2. However, the authorities of Chandigarh Administration are directed to issue allotment letters to those appellants/petitioners who had given consent for allotment of alternative plots of smaller sizes and who were successful in the draw held on 27.3.1991. They should be charged price at the rate prevailing on the date of draw. 3. Those who were declared successful in the draw held on 27.3.1991 but cannot be allotted plots due to non-availability of sufficient land in the wake of prohibition imposed vide notification dated 5.1.1988 shall be allotted plots in any other scheme already framed or which may be framed hereafter by Chandigarh Administration. 4. Those who were declared successful in the draw held in 1982, but did not give consent for allotment of alternative plots shall be refunded the amount deposited by them with interest at the rate of 12% from the date of deposit till the date of actual payment. 5. Within one month from the date of receipt of this order, Chandigarh Administration shall get published in the Tribune the list of the applicants who had given consent for allotment of alternative plots and were declared successful in the draw held on 27 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring on behalf of the non-consentees. On their behalf, learned counsel states that amongst them are large number of allottees who, on having been only given letter of allotment, have paid full price of the plots. Lease-deeds have been executed in their favour and they have been placed in formal possession of the plots although they have not been allowed to take physical possession and raise super-structures. Such allottees, it is contended, have acquired a vested right to obtain the plots. Reliance is placed on section 3(3) of the Act read with rules 4, 6 10 of the Rules which read as under :- Section 3. Power of Central Government in respect of transfer of land and building in Chandigarh. (1).............. (2) ................... (3) Notwithstanding anything contained in any other law for the time being in force, until the entire consideration money together with interest or any other amount, if any, due to the Central Government on account of the transfer of any site or building, or both, under sub-section (12) is paid, such site or building, or both, as the case may be, shall continue to belong to the Central Government. Rule 4. The Chandigarh Administration may demise sites and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lation of a statutory provision of law or Constitution. The claim, therefore, based on alleged vested right, has to be outright rejected. The learned senior counsel then made some attempts to rely on the doctrines of 'promissory estoppel' and 'legitimate expectation'. Doctrine of 'legitimate expectation' has developed as a principle of reasonableness and fairness and is used against statutory bodies and government authorities on whose representations or promises, parties or citizens act and some detrimental consequences ensue because of refusal of authorities to fulfil their promises or honour their commitments. The argument under the label of 'estoppel' and 'legitimate expectation' are substantially the same. The Administration herein no doubt is guilty of gross mistake in including in its development scheme, a portion of land covered by the forest and land with restrictions under the Aircrafts Act. A vital mistake has been committed by the Chandigarh Administration in overlooking the notification reserving land under the Forest Act and the restrictions imposed under the Aircrafts Act, but overriding public interest outweighs the obligation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stoppel' against the exercise of legislative power of the State. So also the doctrine cannot be invoked for preventing the government from acting in discharge of its duty under the law. The government would not be bound by the act of is officers and agents who act beyond the scope of their authority and a person dealing with the agent of the government must be held to have notice of the limitations of his authority. The court can enforce compliance by a public authority of the obligation laid on him if he arbitrarily or on his mere whim ignores the promises made by him on behalf of the government. It would be open to the authority to plead and prove that there were special considerations which necessitated his not being able to comply with his obligations in public interest'. In public law in certain situations, relief to the parties aggrieved by action or promises of public authorities can be granted on the doctrine of 'legitimate expectation' but when grant of such relief is likely to harm larger public interest, the doctrine cannot be allowed to be pressed into service. We may usefully call in aid Legal Maxim : 'Salus populi est suprema lex : regard for the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... book on 'Judicial Review of Administration Action' [5th Edition at page 565 para 13-028], have stated one of the principles of public law powers thus : 'A public body with limited powers cannot bind itself to act outside of its authorised powers; and if it purports to do so it can repudiate its undertaking, for it cannot extend its powers by creating an estoppel'. Surely, the doctrine of estoppel cannot be applied against public authorities when their mistaken advice or representation is found to be in breach of a Statute and therefore, against general public interest. The question, however, is whether the parties or individuals, who had suffered because of the mistake and negligence on the part of the statutory public authorities, would have any remedy of redressal for the loss they have suffered. The 'rules of fairness' by which every public authority is bound, requires them to compensate loss occasioned to private parties or citizens who were misled in acting on such mistaken or negligent advice of the public Authority. There are no allegations and material in these cases to come to a conclusion that the action of the authorities was mala fide. It may be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of bigger sizes, constitute two different groups requiring different treatment in the matter of directing grant of appropriate redressal to them by the Administration. The learned counsel on behalf of non-consentees submitted that in denying choice of alternative plots to non-consentees at par with consentees, the High Court unreasonably discriminated the non- consentees. It is submitted that the non-consentees were legitimately fighting for their rights for the original plots allotted of required sizes and which suited to their industrial projects. Merely because in the course of court proceedings, draw of lots for alternative plots were stayed and held up, is no ground to deny non-consentees the allotment of alternative plots, when in many of their cases, full prices have been paid, lease-deeds executed and even formal possessions have been obtained although they could not set up industries. It is submitted that the rule of fairness requires consentees and non- consentees be treated at par for allotment of alternative plots. No prejudicial treatment could be meted out to non-consentees by completely depriving them of alternative plots and merely directing refund of their prices. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 of the High Court is questioned on behalf of the consentees by stating that they had paid full or part price for the original plots as allotted to them in the year 1982 and the said money was throughout with the Administration. Now directing the consentees to pay the price for the alternative plots on the price prevailing on the date of draw i.e. 27.3.1991 is prima facie unfair and highly burdensome because the consentees for no fault on their part are made to pay much higher price. The Administration despite their vital mistake in preparing schemes for the land partly covered by reserved forest should not be allowed enrichment by allowing them to charge higher price for smaller sizes of plots in the same scheme or the alternative schemes. We have heard learned senior counsel Shri Rakesh Dwivedi assisted by Ms. Kamini Jaiswal appearing for the Administration on the question of charging of price for alternative plots of smaller sizes in the same scheme or the other schemes. The justification advanced for demanding higher price is that in the course of long drawn litigation, additional expenditure was required to be incurred for replotting and prices of land have gone up in the me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ees. The consentees have to be considered in priority as, at the first available opportunity, they agreed to the offer of alternative plots of smaller sizes. The non-consentees not only questioned the offer made by the Administration to provide them plots of smaller sizes but even assailed the government notification declaring major part of the land in the scheme as reserved forest. They might have a legitimate right to approach the courts for necessary reliefs but having failed in their challenges in the court, they can claim no right of being treated similarly with consentees who right from the earliest opportunity were willing and trying through the Administration and the court for early allotment of alternative plots. The consentees and the non-consentees, on the basis of their actions and inactions, constitute two different classes of allottees and a differential treatment to them cannot be held to be unjustified or in violation of Article 14 of the Constitution. On a just and reasonable ground, the consentees deserve a more favourable treatment than non-consentees more so because plots of small sizes available in the existing scheme in Phase-I II are extremely limited in numb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the course of the mutual negotiations for settlement, it is reported to this Court that 47 projects fall in red category and 4 projects fall in orange category. These projects cannot be considered to be set up as per the prevalent pollution norms. They can be considered if they submit fresh project reports which comply with the latest environmental/pollution norms and are viable in the existing marketing conditions. It has been stated on affidavit by the Administration that out of 35 consentees who have furnished the necessary information, only 23 consentees are fulfilling the laid down criteria. The names of those 23 allottees with full details are shown in paragraph no. 7 of the affidavit and the names and details of other 12 consentee allottees who did not furnish complete information and do not fulfil the requisite conditions are also given in the same paragraph of the affidavit. In the affidavit, there is a second category shown by the Administration as comprising such allottees from whom consent was not asked for as it was proposed to allot them the same size of plot measuring one kanal which they had applied for. In this category, from whom no consent was needed, are all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of acquisition and development has been much higher calculated at ₹ 2,892 per sq. yard. Based on the above affidavit, the only relief that can be granted to the non-consentees would be to permit them to submit their willingness within a period of one month from the date of our order in writing to the Administration to be considered for allotment of a suitable plot in the new industrial zone i.e. Mouli Jagran but at the price prevailing on the date of such fresh allotment. Suitable direction is, therefore, required to be issued in favour of such willing non-consentees. Now we are left with the individuals and parties falling in none of the three categories i.e. 1) consentees, 2) non-consentees, or 3) allottees of one kanal of plot. They were not parties before the High Court and were invited to participate in the discussions and negotiations which have taken place during pendency of these cases before us. They have approached by way of special leave petitions or applications seeking interventions or impleadment as parties in the present cases. This group of individuals and parties, who were not parties before the High Court either as petitioners or respondents and who are mer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... keeping in view the industrial projects submitted by the consentees and other restrictions, if they make it necessary, to suitably alter the sizes of plots to accommodate the identified 23 consentees. It is clarified that allotment of plots from the area of the scheme which falls within restricted 900 metres zone from the air-base under Aircrafts Act, would be granted by the Administration with a condition that if in future, any such restriction is reimposed, the allotments may be cancelled and there would be no liability on the Administration of UTC to pay any damage or compensation to the parties due to non-utilisation of plots or its cancellation. If the allotments of plots in the restricted zone are cancelled due to restriction aforesaid, the price paid for the plots shall be refunded to the parties concerned without any liability of interest on the price which remained as deposit with the Administration. 3. The consentees and allottees of one kanal plot, who even though found eligible for allotment, because of limited number of plots (as mentioned in annexure-A), do not get accommodation in the available plots, they be considered on the same price paid by them for alternative ..... X X X X Extracts X X X X X X X X Extracts X X X X
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