In a significant judgment, the Supreme Court of India has ruled against City Montessori School (CMS) in a long-standing land dispute involving a plot of land in Maha Nagar, Lucknow. The case, titled City Montessori School vs. State of U.P. & Ors., Civil Appeal No. 8355 of 2024, arose from a series of legal battles that began in the 1990s. The dispute centers around plot no. 90-A/A754, measuring 2238.5 sq. ft., which is Nazul property vested in the State Government.
Key Legal Issues
The primary legal issues in this case included:
– The validity of the auction process conducted by the State Government for the Nazul property.
– The legality of the conversion of leasehold rights to freehold rights.
– The procedural fairness in the cancellation of CMS’s highest bid and the subsequent acceptance of the bid by the sons of the alleged lessee.
Court’s Decision
The Supreme Court, in its judgment delivered by Justice Abhay S. Oka and Justice Augustine George Masih concurring, upheld the Allahabad High Court’s decision to set aside the order of conversion of leasehold rights to freehold rights in favor of the alleged lessee, Shri M.M. Batra, and his sons. The court found that the conversion process was not conducted in a fair and transparent manner, violating Article 14 of the Constitution of India.
Observations and Quotes from the Judgment
The Supreme Court emphasized the principles of fairness and transparency in the distribution of state largesse. Citing the case of Akhil Bhartiya Upbhokta Congress v. State of Madhya Pradesh and Others, the court reiterated:
“The State and/or its agencies/instrumentalities cannot give largesse to any person according to the sweet will and whims of the political entities and/or officers of the State. Every action/decision of the State and/or its agencies/instrumentalities to give largesse or confer benefit must be founded on a sound, transparent, discernible and well-defined policy”.
The court further noted that the conversion order allowed the alleged lessee to acquire the plot at a price significantly lower than the highest bid offered by CMS, which was deemed arbitrary and discriminatory.
Conclusion
The Supreme Court dismissed both the appeals filed by CMS and the alleged lessee, leaving open the questions regarding the validity of the lease and the possibility of a fresh auction. The court directed that any dispossession of the alleged lessee must follow due process of law and allowed both parties to seek refunds for the amounts paid.
Also Read
Case Number
The case was registered as Civil Appeal No. 8355 of 2024, arising out of Special Leave Petition (C) No. 12976 of 2015.
Parties and Legal Representation
– Appellant: City Montessori School, represented by Senior Counsel Shri Vinay Navare.
– Respondents: State of U.P. and others, represented by Senior Counsel Shri Ravindra Raizada.
– Alleged Lessee: Shri M.M. Batra and his sons, represented by Counsel Shri Jayant Bhushan.
