J S Luthra Academy vs The State Of Jammu And Kashmir

2. The   brief   facts   leading   to   these   appeals   are   that   the Appellant­J.S.   Luthra   Academy   (hereinafter   referred   to   as   the ‘Academy’), an educational institution, initially was situated on a Wakf   property   in   Jammu.   Vide   order   dated   27.12.1995   of   the 2 authority   constituted   under   the  J&K   Wakf   Act,   1978,   the   said educational institution was ordered to be evicted from the Wakf property.   Against   the   said   order,   the   Academy   approached   the Jammu & Kashmir Special Tribunal, and an interim order of stay on eviction was granted by the tribunal on 09.01.1996. During the interregnum, the Academy made representations to the State Government   requesting   for   allotment   of   a   piece   of   land   at   any place mentioned in the representations for shifting and running the   school.   The   concerned   minister   in   the   meeting   dated 14.1.1998 considered the question of allotment of land in favour of   the   Academy.   Subsequently,   a   note   was   prepared   by   the Managing   Director   of   the   J   &   K   Housing   Board   on   25.1.1999, proposing   that   the   Board   had   4   kanals   of   land   in   Sector   2   of Channi Himmat, Jammu earmarked for schools which could be considered for allotment to the Appellant at Rs. 8,00,000/­ per kanal. In a subsequent meeting on 29.4.1999 after completion of formalities,   four   kanals   in   Sector   2   of   Channi   Himmat   were alloted to the Academy at Rs. 8,00,000/­ per kanal on lease for 40   years   and   the   Academy  was directed to deposit 50% of  the said   amount,   the   remaining   amount   to   be   deposited subsequently.   In   a   meeting   dated   28.6.2000,   a   decision   was 3 taken by the J & K Housing Board in pursuance of the orders of the Chief Minister, that two kanals of land would be allotted to the   Academy   at   the   rate   of   Rs.   8,00,000/­   per   kanal   and   the other two kanals free of cost. Further, in a Cabinet meeting dated 18.8.2000,   it   was   decided   that   the   Jammu   Development Authority was to be compensated for the free allocation of land in the   form   of   allotment   of   alternate   land   to   the   Authority.   The allotment of land to the Academy was sanctioned by the Principal Secretary, Government of J&K, vide letter dated 24.8.2000. The Academy finally paid a total of Rs.16,00,000/­ for two kanals of land and obtained two more kanals free of cost. A lease deed was executed, and possession was handed over on 12.12.2001. The Academy constructed the school building thereon and the school is   being   run   on   this   premises,   having   shifted   from   the   wakf property.

107.2     The   aforesaid   exercise   may   seem   to   be cumbersome, but is absolutely necessary to protect 25 the   sanctity   of   contracts   and   transfers.   If   the Government or its instrumentalities are seen to be frequently   resiling   from   duly   concluded   solemn transfers,   the   confidence   of   the   public   and international community in the functioning of the Government will be shaken. To save the credibility of   the   Government   and   its   instrumentalities,   an effort should always be made to save the concluded transactions/transfers wherever possible,  provided

(i) that it will not prejudice the public interest, or cause   loss   to   public   exchequer   or   lead   to   public mischief,   and   (ii)   that   the   transferee   is  blameless and   had   no   part   to   play   in   the   violation   of   the regulation.

107.3     If   the   concluded transfer  cannot  be saved and   has   to   be   cancelled,   the   innocent   and blameless transferee should be reimbursed all the payments   made   by   him   and   all   expenditure incurred   by   him   in   regard   to   the   transfer   with appropriate   interest.   If   some   other   relief   can   be granted   on   grounds   of   equity   without   harming public interest and public exchequer, grant of such equitable relief should also be considered.”                                                 (emphasis supplied)

15. Therefore,   the   Appellant   should   pay   consideration   for   two kanals of land received gratuitously, at the rate of Rs. 8,00,000/­ per kanal, which was the average auction price prevailing at the time of allocation. The Appellant is also liable to pay interest at the rate of 6% per annum from the date of the allotment till the date   of   payment.   The   payment   should   be   made   within   three months from this date.

16. In view of the above, the appeals are allowed, the impugned judgment passed by the Division Bench dated 01.04.2009 is set aside   and   the   judgment   of   the   learned   Single   Judge   dated 25.04.2008 passed in O.W.P No. 1093 of 2002 and O.W.P No.10 of 2003 is restored, with the aforementioned modification.