TaxTMI 
TaxTMI 
1996 (7) TMI 589
X X X X Extracts X X X X
X X X X Extracts X X X X
....etitions in the high Court challenging the validity of the procedure adopted by the HUDA in allotting sites to the schools. Though the learned single Judge found fault with the allotment, on finding and taking into consideration that pending writ petitions, the petitioners and some of the respondents had constructed buildings and schools were being run at the allotted plots, he upheld their actions and dismissed the writ petitions with the observations mentioned therein. On appeal, the Division Bench set aside the order of the learned single Judge and while quashing the allotments made, issued directions as enumerated thus: (a) All the school sites required to be allotted or sold shall be notified afresh strictly in accordance with the provisions of the Act and the Regulations. All the petitioners, the private respondents and all other eligible persons shall be permitted to participate in the process of sale or allotment; (b) preference shall be given for sale or allotment by open auction; (c) In case, the respondent authority decides not to resort to the method of open auction, it may invite applications in accordance with the provisions of Regulation 5 and on the prescrib....
X X X X Extracts X X X X
X X X X Extracts X X X X
....licants. Therefore, the procedure adopted by the HUDA cannot be found fault with. Shri Rao and Gopal Subramaniam further contended that allotment by auction is not the only criteria provided in Section 15 of the Haryana Urban Development Authority Act, 1977 (for short, the "Act"). The Haryana Urban Development (Disposal of Land and Buildings) Regulations 1978 (for short, the Regulations) do indicate the provision for allotment by modes other than public auction. Proviso to Regulation 5(3) itself gives power for allotment to groups or individuals or persons practicing any profession or carrying on any occupation, trade or business or for any such categories of persons or government department or institution or charitable institutions or other organisations for public welfare as may be decided by the authority from time to time. Therefore, the Division Bench was not right in its conclusion that allotment by public auction is the only mode of allotment. 3. It is also further contended that pending writ petitions the petitioners have constructed the buildings at a huge cost. Compliance of the directions of the Division Bench would put them to great disadvantage and that, the....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (5) of Section 15 of the Act: (a) the Authority may dispose of any land belonging to it in developed or an undeveloped form; (b) any land or building of the Authority may be disposed of by Authority by way of sale or lease or exchange or by the creation of any easement right or privilege or otherwise; (c) the Authority may dispose of its land or building by way of sale or lease either by allotment or by auction, which may be by open bid or by inviting tenders. SALE OR LEASE OR LAND/BUILDING BY ALLOTMENT. 4. Fixation of tentative price/premium- (1) The tentative price/premium for the disposal of land or building by the Authority shall be such as may be determined by the authority taking into consideration the cost of land, estimated cost of development, cost of buildings and other direct and indirect charges, as may be determined by the Authority from time to time. (2) An extra 10% and 20% of the price/premium shall be payable for "preferential" and Special preferential" Plots respectively. 5. Procedure in case of sale or lease of land or building by allotment-(1) In the case of sale or lease of residential and industrial land or building by allotme....
X X X X Extracts X X X X
X X X X Extracts X X X X
....elevant criterion should be pre-determined by specific rules or regulations and published for the public. Therefore, the public authorities are required to make necessary specific regulations or valid guidelines to exercise their discretionary powers; otherwise, the salutary procedure would be by public auction. The Division Bench, therefore, has rightly pointed out that in the absence of such statutory regulations exercise of discretionary power to allot sites to private institutions or persons was not correct in law. 6. The Division Bench has doubted the bona fides in the allotments in question, as expressly found in the Judgment. Since the learned single Judge had accepted the averments, but the Division Bench was not inclined to accept the same and doubted the bona fides of the actions of the authorities and resultant allottees, due to absence of any strong material we cannot lightly brush aside or disagree with the observations made by the learned Judges of the Division Bench. Under those circumstances, we are inclined to uphold the order of the Division Bench subject to the following further directions: While accepting the directions given by the Division Bench we further ....