Case: Humanity  Vs. State Of West Bengal

on 5.11.2006, an advertisement was issued by the Government of West Bengal, Urban Development Department, earmarking a plot of land measuring about 50 kathas in Plot No. BF-158 in Sector-I, Salt Lake (Bidhannagar), Kolkata- 700064, for the setting up of an integrated school from primary level to higher secondary level. It was stated in the advertisement that the school would basically be academic in nature, but with extra-curricular activities, which would form an integral part of the curriculum and it was stated that the intending Organization/Institution/Body/Registered Society/ Trust which were capable of running and managing such a school by their own resources, may apply to the Principal Secretary, Urban Development Department, Government of West Bengal, Nagarayan, DF-8, Sector-1, Bidhannagar, Kolkata- 700064 on plain paper within 15 days from the publication of the advertisement giving details of the project. It was intimated that the aforesaid plot of land would be leased to the aforesaid applicants for 999 years on certain terms indicated in the advertisement.5. One of the terms in the said advertisement, to which some reference shall be made later on, is asgovernment, however, reserves the right to change the location of the land and revise the rate of salami at its full discretion. Such decision shall be final.The allottee applied on 17.11.2006. In the said application, the allottee inter aliais ever increasing demand for such institutions, especially in the northern and eastern part of the metropolitan city of Kolkata. The object of the proposed educational institution would be academic excellence with a balanced blend of co-curricular activities and sports for the all round growth of the younger generation...In this context, I propose to keep a few seats reserved for such needy cum meritorious pupils.In the project report submitted by the allottee, it was stated that the school would be owned by a Registered Society/Trust. A Committee consisting of several Government officials considered about 20 applications, filed pursuant to the aforesaid>a. Chief Secretary, Government of West Bengalb. Principal Secretary/ Secretary to Chief Ministerc. Principal Secretary/ Secretary, Urban Development Departmentd. Principal Secretary/ Secretary, Information and Cultural Affairs Departmente. Principal Secretary/ Secretary, Cottage and Small-Scale Industries Departmentf. Principal Secretary/ Secretary, Commerce and Industries Departmentg. Managing Director, West Bengal Industries DevelopmentSurprisingly nobody from the Education Department was in the Committee.9. Thereafter, by resolution dated 10.1.2007, the aforesaid Committee selected the allottee and an allotment order dated 22.02.2007 in respect of plot no. BF-158 was issued by the Joint Secretary, Urban Department to the allottee. Thereupon, a lease deed was executed between the Government and the allottee on 29.10.2007 and possession of the said plot was given on 14.2.2008.10. It may be noted that the aforesaid selection of the allottee in respect of plot No.BF-158 was not challenged and is not the subject matter of dispute in these proceedings.11. Thereafter, on 19.1.2009, a letter was written to Sri Ashoka Bhattacharya, Minister for Urban Development and Municipal Affairs by the allottee by stating that after going through the norms of `ICSE he felt that allotment of a bigger plot was needed for getting affiliation and a prayer was made for allotment of another bigger plot.12. Since the prayer made in this letter and its consideration by the Government is vitally important for the decision in this case, the letter is set outpresent I am the owner of Plot No. 158, Block-BF in Salt Lake, Sector-I of 48 Kathas of land which was given to me for the purpose of building a school. But after going through the norms of ICSE to get an affiliation, we now need a plot of more than 60 kathas (1 acre). So I would like to surrender this allotted land to you and at the same time apply for a plot of a bigger area so that I can take the school projectby Court)13. It may be noted that in this letter, the allottee stated that he `would like to surrender the plot already allotted to him and would at the same time `apply for a plot of a bigger area. This the allottee was seeking to do in order to comply with the norms of ICSE.14. Within a month thereafter, by a communication dated 17.2.2009, issued from the Urban Development Department, the allottee was informed about allotment of another plot- No. CA-222 in Sector-I measuring 62 kathas (it is actually 63.04 kathas). This allotment of a different plot, which is of much bigger size, in a different area, was challenged before the High Court and before this Court on various grounds.15. The first ground of challenge was that there was no advertisement for allotment of the subsequent plot being plot No. CA-222, which is much bigger than the initial plot and allotment of this different and bigger plot, without any advertisement by the Government, only on the prayer of the allottee is arbitrary, discriminatory and violative of Article 14 of the Constitution.16. The second ground of challenge is that even though the impugned allotment was made on 17.2.2009 "subject to execution of registration of deed of surrender," the lease deed pursuant to such allotment was executed on 01.04.2009 and the same was presented for registration on 3.4.2009 and was registered on 6.4.2009. The possession of the plot was made over to the allottee on 30.4.2009. A draft deed of surrender was sent by the State Government to the allottee and was signed by the allottee on 5.3.2009 but the same was not presented for registration and the same was registered only after filing of the petition before the High Court. The complaint of the petitioner is that the plot was surrendered only after the writ petition was admitted by the High Court and direction for filing of affidavit was given.17. The third ground of challenge was that when the allottee initially applied and was allotted the previous plot, the norms of ICSE affiliation were already notified and the allottee claiming to set up a school for ICSE affiliation must be aware of those norms.18. The fourth ground was that the claim of the allottee for complying with the ICSE norm is just a specious plea, in fact the Trust which the allottee has set up for the school does not at all comply with the ICSE norms.19. The fifth ground was that in allotting the subsequent plot, to the allottee, the authorities have flouted the working plan which is available for Salt Lake City in the absence of a master plan.

Court's reasoning:
When the Government decided to allot a substantial plot for setting up of a school by private organizations and when on the basis of an advertisement to that effect various organizations responded, the action of the Government was one of granting largesse in as much as land of which the Government is owner and which was allotted is a very scarce and valuable property.25. It has been repeatedly held by this court that in the matter of granting largesse, Government has to act fairly and without even any semblance of discrimination. Law on this subject has been very clearly laid down by this court in the case of Ramana Dayaram Shetty v. International Airport Authority of India and Others reported in 1979 (3) SCC 489. A three- Judge Bench in the said decision has recognized that the Government, in a welfare State, is in a position of distributing largesse in a large measure and in doing so the Government cannot act at its pleasure. This court perusing the new jurisprudential theory of Professor Reich in his article on the "The New Property" (73 Yale Law Journal 733) accepted the following dictum containedgovernment action be based on standards that are not arbitrary andGovernment initially issued advertisement for allotment of land for setting up of a school and to which the allottee responded. Thereafter, a Committee considered all the applications and decided to allot the land in favour of the allottee. The matter rested there. Then came the letter of the allottee dated 19.1.2009, which has been set out above. It is very surprising that the Division Bench of Calcutta High Court, in paragraph 5 (page 6) and paragraph 21 (page 18) of the impugned judgment, recorded a finding that the allottee was informed by ICSE that for obtaining affiliation for integrated educational institution, land should not be less than 60 kathas. This court fails to understand the basis on which the Division Bench came to such a conclusion. The letter of the allottee dated 19.1.2009 does not even whisper that he was informed of any objection by ICSE. The letter proceeds on a totally different basis. The letter states that after going through the norms of ICSE, it was the allottees own understanding that a plot of more than 60 kathas is necessary to take the school project forward. Therefore, the High Courts recording of fact, that the allottee was `informed by the ICSE of any objection, is not substantiated by any material on record. This is a grave error on the part of the High Court.50. Apart from that, once the Government has initiated the process of advertisement, it cannot jettison the same and allot a new plot to the allottee without any advertisement. This action of the Government is certainly arbitrary and violates the principles of Articleorder of allotment of plot no. CA-222, Sector-V, Salt Lake (Bidhannagar),Kolkata made in favour of Mr.Sourav Ganguly,the allottee,is quashed. In consequence thereof, the lease deed dated 1.4.09, pursuant to such allotment stands quashed. The allottee must, within two weeks from date, handover the peaceful and vacant possession of plot No. CA-222 measuring 63.04 Kathas in Sector-V, Salt Lake City (Bidhannagar), Kolkata to the concerned department of the State Government. Within two weeks thereafter the State Government must refund to the allottee, by a Cheque, the entire money paid by him for such allotment.