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Issues: Whether the Government order permitting sale of the endowment lands by private negotiations, instead of by public auction, was valid when it did not record the statutory satisfaction that such sale was in the interest of the institution and did not record reasons in writing.
Analysis: The proviso to section 74(1)(c) required two essential conditions before departure from the normal rule of sale by public auction: the Government had to be satisfied that private sale was in the interest of the institution or endowment, and reasons for that satisfaction had to be recorded in writing. The impugned order did not disclose awareness of these requirements, did not record the requisite satisfaction, and did not state reasons. Mere reference to communications from the Commissioner could not cure the defect, because those communications did not themselves address the statutory preconditions or substitute for the Government's own decision-making. The order therefore suffered from non-application of mind and breach of the mandatory statutory requirement.
Conclusion: The Government order was invalid and liable to be quashed. The challenge succeeded, and the sale had to proceed only through public auction under appropriate safeguards.