NDLI: Municipal Council Neemuch Vs. Mahadeo Real Estate and Ors.

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Constitution of India Art.226 Administrative action Judicial review of
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Constitution of India
Case(s) Referred	Referred Case 0
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	.Constitution of India – Art.226– Administrative action– Judicial review of – Appellant invited tenders for allotment of land on lease, for 30 years – Bid of respondent no.1 found to be highest – Objection raised with regard to the tender process– Respondent no.3-Divisional Revenue Commissioner, Ujjain passed order dtd. 03.07.10 that the tenders invited were not competitive as there was no adequate publicity and there was possibility of cartel of bidders – Direction to invite the tenders again by publishing the Notice Inviting Tender (NIT) in at least one National level English newspaper and one State level reputed Hindi newspaper– High Court quashing the order dtd. 03.07.10, directed respondent no.3 to grant approval on behalf of the State Government for allotment of the land on lease in favour of respondent no.1 – Review – Dismissed – On appeal, held: Under clause (iii) of sub-sec.3 of s.109, no land, exceeding fifty thousand rupees in the value shall be sold or otherwise conveyed without the previous sanction of the State Government – In the present case, before inviting the bids, prior approval of the State Government as required u/s.109 of the 1961 Act was not taken – Division Bench of the High Court by only referring to the communication dtd. 21.12.09 came to the conclusion that the sanction contemplated u/s.109 was granted by the State Government – Commissioner, instead of blindly accepting the directions contained in the communication dtd. 21.12.09, acted in larger public interest so that the Municipal Council earns higher revenue by enlarging the scope of the competition – State Government also, after the Commissioner pointed out anomalies, re-examined the issue and authorised the Commissioner to pass appropriate orders including invalidating the tender process and directing initiation of fresh tender process – In this background,the finding of the Division Bench that the action of the Commissioner is arbitrary and illegal, is not correct – High Court, while exercising its powers of judicial review of administrative action, could not have interfered with the decision unless the decision suffers from the vice of illegality, irrationality or procedural impropriety – Both, the Commissioner as well as the State Government acted in the larger public interest – Scope of judicial review of an administrative action is very limited – Interference by the High Court was improper – Impugned orders set aside – However, appellant to refund the amount deposited by respondent no.1 with interest @ 6% p.a.– Madhya Pradesh Municipality Act, 1961– ss.109, 323– Municipal Corporation (Transfer of Immovable Property) Rules, 1994– rr.3, 7– Principle of Wednesbury Unreasonableness.
Judge	Hon'ble Mr. Justice Bhushan Ramkrishna Gavai
Neutral Citation	2019 INSC 1040
Petitioner	Municipal Council Neemuch
Respondent	Mahadeo Real Estate And Ors.
SCR	[2019] 12 S.C.R. 532
Judgement Date	2019-09-17
Case Number	7319

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Municipal Council Neemuch Vs. Mahadeo Real Estate and Ors.

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