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REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
Civil Appeal No.9264 of 2014
(Arising out of Spei!" Le!#e Petition (C$ No% &&&' of ()&)$
Cit* In+ustri!" De#e"op,ent
T-r% its M!n!ging Diretor . Appe""!nt (s$
Versus
P"!tinu, Entert!in,ent !n+ ot-ers . Respon+ent(s$
/ITH
Civil Appeal No.9265 of 2014
(Arising out of Spei!" Le!#e Petition (C$ No%&(&0 of ()&)$
Cit* In+ustri!" De#e"op,ent
T-r% its M!n!ging Diretor . Appe""!nt (s$
Versus
P"!tinu, S1u!re Trust !n+ Anr% . Respon+ent(s$
Civil Appeal No.9266 of 2014
(Arising out of Spei!" Le!#e Petition (C$ No%&(2) of ()&)$
Cit* In+ustri!" De#e"op,ent
T-r% its M!n!ging Diretor . Appe""!nt (s$
Versus
Poporn Entert!in,ent Corpor!tion
!n+ ot-ers . Respon+ent(s$
&
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JUDGENT
.!. E"BAL# J.
Le!#e gr!nte+%
(% T-ese !ppe!"s !re +irete+ !g!inst t-e o,,on
3u+g,ent !n+ fin!" or+er +!te+ )&%)2%())2 p!sse+ 4* t-e
Hig- Court of Ju+i!ture !t 5o,4!* 6-ere4* Di#ision 5en-
of t-e Hig- Court -!s !""o6e+ t-ree /rit Petitions 4eing
/%P%Nos% 278'9 278: of ())0 !n+ ;7(; of ())8 preferre+
respeti#e"* 4* M<s% Poporn Entert!in,ent Corpor!tion (in
s-ort9 =M<s% Poporn>$9 M<s% P"!tinu, Entert!in,ent (in s-ort9
=M<s% P"!tinu,>$ !n+ M<s% P"!tinu, S1u!re Trust (in s-ort9
=M<s% P"!tinu, S1u!re>$% 5* 6!* of t-ese 6rit petitions9 t-e
6rit petitioners -!+ -!""enge+ or+ers of !ppe""!nt? =T-e Cit*
@ In+ustri!" De#e"op,ent Corpor!tion> (in s-ort =CIDCO>$ 4*
6-i- !""ot,ent of p"ot of "!n+s to M<s% Poporn !n+ M<s%
P"!tinu, Entert!in,ent for ereting entert!in,ent o,p"eA
in N!#i Mu,4!i !n+ t-e !""ot,ent of p"ot of "!n+ to M<s%
(
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P"!tinu, S1u!re for est!4"is-,ent of ountr* "u4 6ere
!ne""e+%
;% T-e f!ts gi#ing rise to !fores!i+ 6rit petitions !n+
onse1uent"* present !ppe!"s !re !",ost si,i"!r% Ho6e#er9
for t-e s!Be of "!rit* f!tu!" ,!triA of e!- !ppe!" -!s 4een
,entione+ -ere sep!r!te"*%
7% T-e respon+ent? M<s% Poporn Entert!in,ent (SLP (C$
No%&(2) of ()&)$ in t-e !ppe!" 4* spei!" "e!#e !rising out
of /rit Petition No%278' of ())09 4* 6!* of !n !pp"i!tion
,!+e ! re1uest for !""ot,ent of p"ot in Airo"i for setting
up ,u"tip"eA?u,?!u+itoriu,?u,?entert!in,ent entre% On
CIDCO>s instrutions9 respon+ent su4,itte+ +et!i"e+ pro3et
report% CIDCO9 4* t-eir "etter of intent9 re1ueste+ t-e
respon+ent -erein to p!* !n E!rnest Mone* Deposit of
Rs%()9''9)))<? 6it-in &0 +!*s fro, t-e reeipt of t-e "etter
to en!4"e t-e 5o!r+ to onsi+er t-e !""ot,ent in f!#our of
t-e respon+ent% T-e respon+ent9 !or+ing"* ,!+e EMD on
;
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(2%8%())7% On (2%'%())79 CIDCO !ppro#e+ t-e !""ot,ent of !
p"ot in f!#our of t-e !ppe""!nt !s t-e 5o!r+ -!+ not got !n*
response for si,i"!r p"ots in pu4"i ten+er% T-e tot!" "e!se
pre,iu, in respet of t-e p"ot 6!s Rs%(9)'9')9)))<? !n+ t-e
respon+ent 6!s +irete+ to p!* t-e 4!"!ne !,ount of
Rs%&9:892;9)))<? 4* &7%2%())7% T-e !""ot,ent 6!s !""ege+"*
,!+e in ter,s of t-e Ne6 5o,4!* L!n+ Dispos!"
Regu"!tions9 &2'0 !n+ !"so in ter,s of t-e L!n+ Priing !n+
Dispos!" Po"i* of CIDCO un+er 6-i- t-e "!n+ ou"+ 4e
!""otte+ to !n* person 4* onsi+ering in+i#i+u!" !pp"i!tion
!t t-e reser#e+ prie fiAe+ 4* CIDCO% T-ere!fter9 4* ,!Bing
4!"!ne p!*,ent in"u+ing !++ition!" !,ount +ue to t-e
,!rgin!" inre!se in t-e +e,!r!tion of t-e p"ot9 M<s%
Poporn Entert!in,ent ,!+e ! tot!" p!*,ent of
Rs%(92:9((97()<? 4eing t-e fu"" !n+ fin!" p!*,ent in respet
of !""ot,ent in f!#our of t-e respon+ent !s +e,!n+e+ 4*
CIDCO% An !gree,ent to "e!se 6!s entere+ into 6it- CIDCO
in respet of t-e p"ot !""otte+ to t-e respon+ent%
7
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0% Ho6e#er9 on &%:%())09 !ppe""!nt CIDCO issue+ ! s-o6
!use notie to t-e respon+ent reg!r+ing t-e p"ot !t Airo"i
seeBing !ne""!tion of t-e !gree,ent to "e!se eAeute+ in
f!#our of t-e respon+ent% T-e respon+ent su4,itte+ rep"*
to t-e s-o6 !use notie !n+ !"so soug-t infor,!tion fro,
CIDCO un+er t-e Rig-t to Infor,!tion At reg!r+ing
!""ot,ent to #!rious p!rties !n+ t-e +et!i"s t-ereon% T-e
Agree,ent of Le!se 6!s repu+i!te+ !n+ resin+e+9 !g!inst
6-i- t-e respon+ent !ppro!-e+ t-e Hig- Court 4* 6!* of
! 6rit petition%
8% T-e respon+ent? M<s% P"!tinu, Entert!in,ent in t-e
!ppe!" 4* spei!" "e!#e (SLP(C$No%&&&'<()&)$ !rising out of
/rit Petition No%278: of ())09 4* 6!* of !n !pp"i!tion
,!+e ! re1uest for !""ot,ent of p"ot for onstrution of !
,u"tip"eA !t C-!rg-!r R!i"6!* St!tion% Upon 4eing !sBe+ 4*
t-e !ppe""!nt CIDCO9 M<s% P"!tinu, +eposite+ EMD of Rs%()
"!B- 4eing &)D of t-e tent!ti#e prie of t-e p"ot in or+er to
0
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onsi+er t-e !pp"i!tion of t-e respon+ent% T-ere!fter9
CIDCO !ppro#e+ t-e !""ot,ent in f!#our of t-e respon+ent
onsi+ering t-e f!t t-!t t-ere 6!s no ,u"tip"eA in t-e !re!
!n+ t-e e!r"ier effort of CIDCO to !+#ertise for su- p"ots
-!+ ,et 6it- no response% CIDCO issue+ !""ot,ent "etter in
f!#our of t-e respon+ent !sBing t-e petitioner to p!* Rs%
&9:)9))9)))<? 4eing t-e 4!"!ne prie of t-e p"ot% T-e
respon+ent ,!+e t6o sep!r!te p!*,ents of Rs%2) "!B- e!-
to6!r+s t-e 4!"!ne prie of t-e p"ot on &8%:%())7 !n+
&2%:%())7% T-e respon+ent p!i+ ! su, of Rs%()9))98))<?
4eing t-e ot-er -!rges +e,!n+e+ 4* t-e !ppe""!nt% T-e
respon+ent 6!s !sBe+ to p!* ! furt-er su, of Rs%809)28<?9
6-i- t-e respon+ent p!i+ i,,e+i!te"*% CIDCO uni"!ter!""*
+ei+e+ to !sB t-e respon+ent to p!* ! furt-er su, of Rs%()
"!B- 4* en-!ning t-e r!te !t 6-i- t-e p"ot 6!s to 4e
!""otte+ to t-e respon+ent fro, Rs%(0))<? per s1u!re ,eter
!s +e,!n+e+ in t-e !""ot,ent "etter to Rs%('0) per s1u!re
,eter 4e!use t-e p"ot of t-e respon+ent 6!s on ! (7 ,eter
ro!+% T-e respon+ent -erein on &'%&&%())7 p!i+ ! furt-er
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p!*,ent of Rs%() "!B- !"ong 6it- Rs%(9289)':<? p"us
Rs%720'<? 4eing t-e !++ition!" ost !n+ t-e ot-er -!rges%
On &7%&%())09 t-e respon+ent p!i+ ! furt-er su, of
Rs%&29:(:<? 4eing t-e su, +e,!n+e+% T-e respon+ent on
&'%&%())0 entere+ into !n !gree,ent to "e!se 6it- t-e
!ppe""!nt for t-e !""ot,ent of p"ot% On (:%(%())09 CIDCO
4eing t-e +e#e"op,ent !ut-orit* of t-e !re! issue+
o,,ene,ent ertifi!te to t-e respon+ent per,itting t-e
respon+ent to st!rt onstrution% Ho6e#er9 on &7%'%())09
t-e respon+ent reei#e+ ! s-o6 !use notie seeBing
!ne""!tion of t-e !""ot,ent in f!#our of t-e respon+ent on
t-e groun+ t-!t t-e !""ot,ent 6!s #oi+ in #ie6 of Setion (;
of t-e Contr!t At !s 4eing oppose+ to pu4"i po"i*% T-e
,!in groun+ in t-e s-o6 !use notie 6!s t-!t t-e !""ot,ent
6!s 6it-out issu!ne of ten+er !n+ 6!s oppose+ to pu4"i
po"i*% T-e respon+ent su4,itte+ rep"* to t-e s-o6 !use
notie% On &8%&(%())09 CIDCO issue+ !n or+er !ne""ing t-e
!gree,ent to "e!se !n+ soug-t to resu,e t-e possession of
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t-e p"ot9 !g!inst 6-i- t-e respon+ent !ppro!-e+ t-e Hig-
Court 4* 6!* of 6rit petition%
'% T-e respon+ent? M<s% P"!tinu, S1u!re Trust in t-e
!ppe!" 4* spei!" "e!#e petition (SLP(C$No%&(&0<()&)$
!rising out of /rit Petition No%;7(; of ())89 4* 6!* of !n
!pp"i!tion ,!+e ! re1uest for !""ot,ent of p"ot of "!n+
!+,e!suring :)9))) s1%,tr% !t C-!rg-!r -i"" for
est!4"is-,ent of ountr* "u4% CIDCO -!#ing ! p"ot of "!n+
e!r,!rBe+ for si,i"!r purpose9 onsi+ere+ t-e re1uest of t-e
respon+ent !n+ !""e+ upon t-e respon+ent to p!* Rs%;2%0(
"!B- on or 4efore ()
t-
Apri"9 ())7 onstituting &)D of t-e
#!"ue of t-e p"ot !s EMD so !s to en!4"e t-e CIDCO to p"!e
t-e propos!" of t-e respon+ent 4efore t-e 5o!r+ of Diretors%
CIDCO furt-er re1ueste+ t-e respon+ent to su4,it
registr!tion ertifi!te eit-er un+er t-e Trust At or t-e
Soiet* Registr!tion At 4efore !""ot,ent< possession of t-e
"!n+ so t-!t t-e !se of t-e respon+ent ou"+ 4e onsi+ere+
:
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for !""ot,ent !t su4si+iEe+ r!te in ter,s of t-e po"i*F
ot-er6ise o,,eri!" r!tes 6ere to !ttr!t for su-
!""ot,ent% T-e respon+ent in ter,s of t-e "etter of CIDCO
+eposite+ ! su, of Rs%;2%0( "!B- 6it- t-e,% T-e
respon+ent got its trust +ee+ registere+ on &7t- M!*9 ())7F
6-erein siA Trustees 6ere !ppointe+% A,ongst ot-ers9
o43eti#es of t-e Trust !re to est!4"is- !n+ support9 ,!int!in
!n+ run sports "u49 g*,n!siu,9 -e!"t- "u49 !,use,ent
p!rB9 *og! entre9 6!ter sports et% !n+ to !rr* out
!ti#ities re"!ting t-ereto%
:% T-e respon+ent -erein 6!s !""otte+ 0)9;0) s1%,tr% "!n+
4* CIDCO for ! tot!" s!"e onsi+er!tion of Rs% ;97;9')9:))<?%
Out of t-e s!i+ !,ount of onsi+er!tion9 t-e respon+ent -!+
!"re!+* +eposite+ Rs%;2%0( "!B- !s su- t-e !ppe""!nt 6!s
+irete+ to +eposit Rs% &90(9)297))<? in t6o inst!"",ents i%e%
on ;)t- Ju"*9 ())7 !n+ (2t- August9 ())7 4eing t-e 4!"!ne
"e!se pre,iu, p!*!4"e in respet of t-e su43et p"ot% In t-e
2
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!""ot,ent "etter9 it 6!s speifi!""* ,entione+ t-!t p!*,ent
of "e!se pre,iu, in ! stipu"!te+ perio+ is !n essene of
on"u+e+ ontr!t% It 6!s furt-er pro#i+e+ in t-e !""ot,ent
"etter t-!t eAtension of ti,e ou"+ 4e gr!nte+ 6-i- 6ou"+
4e up to ; ,ont-s for p!*,ent of t-e first inst!"",ent !n+
up to &8 ,ont-s for t-e p!*,ent of t-e seon+ inst!"",ent%
It 6!s pro#i+e+ t-erein t-!t up to ; ,ont-s t-e respon+ent
6ou"+ 4e -!rge+ &;D interest !n+ 4e*on+ ; ,ont-s t-e
respon+ent 6ou"+ 4e -!rge+ &8D interest for t-e eAten+e+
perio+ of ti,e% T-e respon+ent on &0t- Septe,4er ())79
p!i+ t-e first inst!"",ent of Rs%&90(9)297))<? 6it-in t-e
eAten+e+ ti,e per,itte+ un+er t-e !""ot,ent% T-e
respon+ent on ;r+ M!*9 ())09 6rote "etter to t-e CIDCO for
eAtension of ti,e for ,!Bing p!*,ent of seon+ inst!"",ent
up to Dee,4er9 ())0% C"e!r"* in ter,s of t-e !""ot,ent
"etter9 t-e respon+ent ou"+ !sB eAtension of seon+
inst!"",ent up to (2t- Dee,4er9 ())0% T-e respon+ent
Trust 6!s registere+ un+er t-e 5o,4!* Pu4"i Trust At9
&20) on &2t- Apri"9 ())0% T-e respon+ent su4,itte+
&)
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+ou,ents to CIDCO on (0t- M!*9 ())0 e#i+ening
registr!tion of t-e Trust% Ho6e#er9 on ()t- Ju"*9 ())0 t-e
respon+ent reei#e+ s-o6 !use notie seeBing !ne""!tion
of t-e !""ot,ent ,!+e in f!#our of t-e respon+ent on t-e
4!sis of S-!nB!r!n Report%
2% T-e respon+ent9 on ;r+ August9 ())09 su4,itte+ its
+et!i"e+ rep"* to t-e s-o6 !use notie -!""enging t-e
!ne""!tion of !""ot,ent of p"ot9 reiter!ting t-!t t-e
!""ot,ent 6!s in !or+!ne 6it- "!6 !s su- it ou"+ not 4e
!ne""e+% T-e respon+ent9 on (2t- Dee,4er9 ())09 6rote
"etter to t-e M!rBeting M!n!ger of CIDCO re1uesting -i, to
!ept p!*,ent of seon+ inst!"",ent 4eing t-e "!st +!te up
to 6-i- t-e eAtension ou"+ 4e gr!nte+ un+er t-e
!""ot,ent% Ho6e#er9 CIDCO refuse+ to !ept t-e p!*,ent%
T-e respon+ent on t-e s!,e +!te 6rote !not-er "etter
reor+ing t-e f!t t-!t CIDCO -!s refuse+ to !ept t-e
seon+ inst!"",ent !n+ t-!t t-e respon+ent 6ou"+ not 4e
&&
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"i!4"e to p!* !n* furt-er interest fro, t-e s!i+ +!te !n+ t-!t
t-e !""ot,ent ou"+ not 4e !ne""e+ on t-e groun+ t-!t t-e
p!*,ent -!s not 4een ,!+e 4* t-e respon+ent%
&)% T-e respon+ent 6!s ser#e+ 6it- t-e or+er +!te+ (:t-
Apri"9 ())0 !ne""ing !""ot,ent of p"ot ,!+e in f!#our of t-e
respon+ent% 5eing !ggrie#e+ 4* t-e !fores!i+ or+er of
!ne""!tion9 t-e respon+ent -erein !ppro!-e+ t-e Hig-
Court 4* 6!* of 6rit petition fi"e+ un+er Arti"e ((8 of t-e
Constitution of In+i!%
&&% /it- t-e !fores!i+ f!tu!" ,!triA9 it is !"so neess!r* to
note t-!t St!te of M!-!r!s-tr!9 6-o is -!#ing u"ti,!te
!ut-orit* !n+ po6er to ontro" !n+ regu"!te t-e !ti#ities of
p"!nning !n+ +e#e"op,ent un+er t-e M!-!r!s-tr! Region!"
!n+ To6n P"!nning At9 &288 (in s-ort9 =MRTP At>$9 in &2'&
!ppointe+ !ppe""!nt?CIDCO !s ne6 to6n p"!nning !ut-orit*
for t-e ne6 to6n ? N!#i Mu,4!i% In eAerise of po6ers
&(
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onferre+ 4* su4?"!use (!$ of "!use (&$ of setion &02 of
t-e MRTP At9 t-e CIDCO -!s 6it- t-e pre#ious !ppro#!" of
t-e St!te Go#ern,ent pu4"is-e+ in Ju"* &2'2 t-e Ne6
5o,4!* Dispos!" of L!n+s Regu"!tions9 &2'0 (in s-ort9 =t-e
Regu"!tions>$% T-e !fores!i+ regu"!tions9 inter !"i!9 pro#i+e
for t-e +e,!r!tion of p"ots #este+ in t-e Go#ern,ent 4*
CIDCO into +ispos!4"e p"ots -!#ing reg!r+ to t-eir siEe !n+
use% T-e s!i+ regu"!tions !"so ,!Be pro#ision for on+itions
of "e!se9 ,o+e of +ispos!" !n+ for gr!nt of "!n+ for re"igious9
e+u!tion!"9 -!rit!4"e !n+ pu4"i purposes% For t-e present
purpose9 re"e#!nt one is Regu"!tion 7 of C-!pter IV9
!or+ing to 6-i- t-e Corpor!tion ,!* +ispose of p"ots of
"!n+ 4* pu4"i !ution or ten+er or 4* onsi+ering in+i#i+u!"
!pp"i!tions !s t-e Corpor!tion ,!* +eter,ine fro, ti,e to
ti,e%
&(% It is t-e !se of t-e !ppe""!nt CIDCO t-!t t-e !fores!i+
ontesting respon+ents -!+ 4een ,!+e !""ot,ent of "!n+s
4* t-e !ppe""!nt pursu!nt to ! +iret !pp"i!tion 4eing ,!+e
&;
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to t-e offie of t-e t-en C-ief Minister !n+ in ot-er si,i"!r
!ses ! nu,4er of pu4"i interest "itig!tion 6ere fi"e+ in t-e
Hig- Court% Aor+ing"*9 t-e Go#ern,ent9 to !sert!in
6-et-er t-e !""ot,ents ,!+e 6ere 4on!fi+e9 +irete+ t-e
t-en A++ition!" C-ief Seret!r* to on+ut !n en1uir* to fin+
out 6-et-er t-e 5o!r+ of Diretors of CIDCO +ispose+ of
"!n+s in !or+!ne 6it- "!6% En1uir* 6!s on+ute+ 4* t-e
A++ition!" C-ief Seret!r* !n+ su4,itte+ t-e report (!""e+
S-!nB!r!n Report$% T-e en1uir* inter !"i! re#e!"e+ t-!t
su43et !""ot,ent 6!s i""eg!"9 !r4itr!r* !n+ t-e !ppe""!nt -!+
suffere+ ! fin!ni!" "oss in rores% T-erefore9 t-e !ppe""!nt
issue+ notie to t-e ontesting respon+ents !n+ u"ti,!te"*
!ne""e+ t-e su43et !""ot,ents9 6-i- "e+ to fi"ing of t-e
6rit petition% T-e 6rit petitions 6ere +is,isse+ 4* t-e Hig-
Court on t-e groun+ t-!t !"tern!ti#e re,e+* 6!s !#!i"!4"e to
t-e 6rit petitioners 4* fi"ing suits !n+ t-erefore 6rit
3uris+ition !nnot 4e in#oBe+%
&7
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&;% Aggrie#e+ 4* t-e +eision of t-e Hig- Court9
respon+ents !ppro!-e+ t-is Court 4* 6!* of !ppe!"s 4*
spei!" "e!#e% T-ose Ci#i" Appe!"s 4eing Ci#i" Appe!" Nos%
27)?27& of ())' 6ere +ispose+ of 4* t-is Court re,itting t-e
,!tters 4!B to t-e Hig- Court for +ei+ing t-e 6rit petitions
on ,erits% T-e s!i+ or+er is reporte+ in Popcorn
Entertainment & Anr. vs. City Industrial Development
Corpn. & Anr.9 (())'$ 2 SCC 02;% In t-e or+er of re,!n+
t-is Court ,!+e so,e o4ser#!tions 6it- reg!r+ to t-e ,erits
of t-e !se% For 4etter !pprei!tion9 p!r! 7& !n+ 7' !re
repro+ue+ -erein 4e"o6H?
I41. At t-e ti,e of -e!ring9 it 6!s suggeste+
4* t-e "e!rne+ Senior Counse" for t-e
respon+ent t-!t t-e !""ot,ent 6!s ,!+e
6it-out !n* 3ustifi!tion !n+ t-!t t-ere 6!s !
-uge +e,!n+ for su- p"ot9 it is su4,itte+ 4*
"e!rne+ ounse" for t-e !ppe""!nt t-!t t-e
!ppe""!nt -!s soug-t infor,!tion fro, CIDCO
un+er t-e Rig-t to Infor,!tion At !s to
6-et-er t-ere 6!s no !pp"i!tion pen+ing 6it-
t-e, for !""ot,ent of t-e s!i+ p"ot prior in ti,e
to t-e !pp"i!tion of t-e !ppe""!nt% CIDCO in
rep"* -!s "e!r"* st!te+ t-!t t-ere 6!s no
!pp"i!tion prior to t-e !pp"i!tion of t-e
!ppe""!nt% E#en t-e !""ot,ent in f!#our of t-e
!ppe""!nt 6!s ! re!sone+ !""ot,ent t!Bing into
onsi+er!tion t-e "!B of entert!in,ent
f!i"ities in t-e !re! !n+ t-e s!i+ issue 6!s
&0
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!"so +isusse+ in t-e 4o!r+ ,eeting 4efore t-e
!""ot,ent !n+ t-ese f!ts !re "e!r fro, t-e
infor,!tion pro#i+e+ to t-e !ppe""!nt un+er
t-e Rig-t to Infor,!tion At% Our !ttention 6!s
!"so +r!6n to t-e noting in t-e fi"e 6-i"e
onsi+ering t-e !se of t-e !ppe""!nt !n+
4efore ,!Bing t-e !""ot,ent t-!t
(i$ IT-ere is no ine,!<,u"tip"eA f!i"it*
!#!i"!4"e to+!* for t-e resi+ents of C5D
5e"!pur9 C-!rg-!r !n+ C!"!,4o"i resi+ents%
(ii$ Fro, !essi4i"it* !n+ "!n+ use
o,p!ti4i"it* point of #ie69 P"ot No% &9 Setor (9
C-!rg-!r !+,e!suring !4out :))) s1 , is !n
i+e!" "o!tion for ,u"tip"eA%
(iii$ T-is 4ui"+ing 6i"" 4e #isi4"e fro,
-ig-6!* !n+ 6i"" !++ to t-e i,!ge of t-e it*%
(iv$ A+3oining P"ot & of Setor & !tt!-e+ to
r!i"6!* st!tion !+,e!suring 08)) ,
(
(not
+e,!n+e+ *et$ is e!r,!rBe+ for it* ,!""%J
4$. /e -!#e gi#en our !refu" onsi+er!tion to
t-e ri#!" su4,issions ,!+e 4* t-e respeti#e
ounse" !ppe!ring on eit-er si+e% In our
opinion9 t-e Hig- Court -!s o,,itte+ ! gr!#e
,ist!Be 4* re"eg!ting t-e !ppe""!nt to t-e
!"tern!ti#e re,e+* 6-en "e!r"* in ter,s of t-e
"!6 "!i+ +o6n 4* t-is Court9 t-is 6!s ! fit !se
in 6-i- t-e Hig- Court s-ou"+ -!#e eAerise+
its 3uris+ition in or+er to onsi+er !n+ gr!nt
re"ief to t-e respeti#e p!rties% In our opinion9
in t-e inst!nt !se9 ; of t-e 7 groun+s on 6-i-
6rit petitions !n 4e entert!ine+ in ontr!tu!"
,!tter 6ere ,!+e out !n+ -ene it 6!s
o,p"ete"* 6rong of t-e Hig- Court to +is,iss
t-e 6rit petitions% In t-e inst!nt !se9 ;
groun+s !s referre+ to in Whirlpool Corpn.
(1998) 8 SCC 1, -!#e 4een ,!+e out !n+
!or+ing"* t-e 6rit petition 6!s "e!r"*
,!int!in!4"e !n+ t-e Hig- Court -!s
o,,itte+ !n error in re"eg!ting t-e !ppe""!nt
to t-e i#i" ourt%J
&8
Page 17
&7% Ho6e#er9 t-is Court tooB t-e #ie6 t-!t t-e ,!tter
nee+s to 4e re,!n+e+ 4!B to t-e Hig- Court9 so t-!t t-e
Hig- Court 6i"" onsi+er !"" t-e su4,issions ,!+e 4* t-e
p!rties !n+ +ispose of t-e s!,e !fres-%
&0% T-e Hig- Court on reeipt of t-e re,!n+ or+er
proee+e+ 6it- t-e -e!ring of t-e 6rit petitions !n+ !fter
-e!ring 4ot- t-e p!rties !""o6e+ t-e 6rit petitions 4*
p!ssing t-e i,pugne+ or+er !n+ 1u!s-e+ t-e or+ers p!sse+
4* t-e !ppe""!nt?CIDCO !ne""ing t-e !""ot,ent% T-e Hig-
ourt 6-i"e p!ssing t-e i,pugne+ or+er -!s gone t-roug-
t-e ,erits of t-e !se of 4ot- t-e p!rties 4ut -e"+ t-!t t-e
o4ser#!tions ,!+e 4* t-is Court in t-e re,!n+ or+er (7&9
7;9 7'9 7: !n+ 72$ re"!ting to non?o4ser#!tions of ru"e !n+
regu"!tions !using su4st!nti!" "oss to t-e CIDCO oper!te !s
o4iter !n+ is 4in+ing on t-e Hig- Court !n+9 t-erefore9 t-e
Hig- Court -!s to f!"" in "ine 6it- t-e #ie6 eApresse+ 4* t-is
&'
Page 18
Court% P!r! 2' of t-e i,pugne+ or+er is 1uote+
-erein4e"o6%
I2'% As !"re!+* st!te+ -erein!4o#e9 so f!r !s
!tegori!" !n+ une1ui#o!" o4ser#!tions
,!+e 4* t-e ApeA Court re#o"#ing !roun+ t-e
issues re"!ting to non?o4ser#!tion of ru"e !n+
regu"!tions !using su4st!nti!" "oss to t-e
CIDCO sine no ten+ers 6ere in#ite+ !n+
interpret!tion of Setion (; of t-e ontr!t At
!re onerne+9 t-e* oper!te !s o4iter 4in+ing
on us !s su- 6e -!#e to f!"" in "ine 6it- t-e
#ie6 eApresse+ 4* t-e ApeA Court%J
&8% /e -!#e -e!r+ "e!rne+ ounse" on eit-er si+e !t "engt-%
Mr% 5%H% M!r"!p!""i9 "e!rne+ senior ounse" !ppe!ring for t-e
!ppe""!nt?CIDCO9 onten+e+ t-!t t-e Hig- Court -!s
,isonstrue+ !n+ ,isinterprete+ or+er p!sse+ 4* t-is Court
in t-e !se of Popcorn Entertainment (supr!$ in t-e first
roun+ of "itig!tion 6-ereun+er t-e ,!tter 6!s re,!n+e+ to
t-e Hig- Court for fres- onsi+er!tion on ,erits Beeping !""
ontentions open% Ho6e#er9 t-e Hig- Court -ose to restrit
itse"f to onsi+er on"* t-e groun+ for !ne""!tion of t-e
!""ot,ent t!Ben in t-e fin!" s-o6 !use notie !n+ reor+e+
&:
Page 19
in t-e fin!" or+er% T-e Hig- Court 6ou"+ -!#e onsi+ere+ t-e
,!tter on ,erits 6it-out 4eing fettere+ or onstr!ine+ 4*
!n* o4ser#!tion of t-e ApeA Court% It -!s 4een furt-er
onten+e+ on 4e-!"f of t-e !ppe""!nt t-!t t-is Court -!s
+e"!re+ t-e "!6 t-!t t-e +ispos!" of t-e St!te o6ne+ or
pu4"i propert* 4* !ution or ten+ers is ! ru"e !n+ su-
+ispos!" 4* pri#!te negoti!tion is !n eAeption to 4e !r#e+
for ogent !n+ o,pe""ing re!sons to 4e reor+e+ in 6riting
!t t-e ti,e of +ispos!"% T-e "!6 so +e"!re+ is ,!n+!tor* in
its !pp"i!tion9 6!rr!nting !4so"ute !n+ i,p"iit !+-erene
t-ereto !t t-e peri" of !n* !t or o,,ission in
ontr!#ention t-ereof 4eing i""eg!" !n+ non est%
&'% Mr% 5%H% M!r"!p!""i9 "e!rne+ senior ounse" furt-er
su4,itte+ t-!t in or+er to fin+ out 6-et-er t-e 5o!r+ of
Diretors of CIDCO +ispose+ off its "!n+s in N!#i Mu,4!i in
!or+!ne 6it- "!69 t-e St!te Go#ern,ent -!+ +irete+ t-e
t-en A++ition!" C-ief Seret!r* ? Dr% D%C% S-!nB!r!n to -o"+
&2
Page 20
! +isreet en1uir* in t-e !ff!irs of CIDCO% T-e CIDCO
!ne""e+ t-e !""ot,ents +ue to t-e !r4itr!r* ,!nner in
6-i- t-e p"ots 6ere !""otte+ !n+ t-e "oss !use+ to CIDCO9
!n+ t-e 4!sis for o,puting t-e "oss 6!s t-e report of Dr%
S-!nB!r!n9 6-i- -!s referre+ to se#er!" !""ot,ents in t-e
#iinit* !n+ t-e offer ,!+e to 5ARC !n+ !s su-9 in t-e 6rit
3uris+ition9 t-e Hig- Court !nnot +ei+e t-e prie
pre#!i"ing in t-e !re! !t t-e ti,e of !""ot,ent% It is furt-er
onten+e+ on 4e-!"f of t-e !ppe""!nt t-!t !s per S-!nB!r!n
Report it 6!s neess!r* to !""ot t-e p"ots 4* in#iting ten+ers
!n+ testing t-e ,!rBet% H!+ it 4een +one so9 t-ese p"ots
6ou"+ -!#e fet-e+ !t "e!st fi#e ti,es gre!ter #!"ue t-!n t-e
!tu!" #!"ue reei#e+% Furt-er Mr% Ni"es- G!"!9 6-o is t-e
proprietor of M<s% P"!tinu, Entert!in,ent9 -!s use+ t-e
s!,e ,o+us oper!n+i for o4t!ining !""ot,ent of p"ots for
ountr* "u4 !t C-!rg-!r !n+ !not-er ,u"tip"eA p"ot in
C-!rg-!r !n+ t-e CIDCO 6!s foun+ to -!#e suffere+ ! "oss of
Rs%&) rores in t-is !se% S-o6 !use notie 6!s issue+
,entioning t-ree groun+s9 #iE% f!#oritis,9 non?issu!ne of
()
Page 21
ten+er !n+ "oss !use+ to t-e Corpor!tion% It is furt-er
urge+ t-!t t-e or+er of !ne""!tion of t-e !""ot,ent
speifi!""* st!tes t-!t t-e 5o!r+ of Diretors of t-e
Corpor!tion foun+ itse"f in su4st!nti!" onurrene 6it- t-e
fin+ings reor+e+ 4* Dr% S-!nB!r!n%
&:% Le!rne+ senior ounse" soug-t to 3ustif* t-e !tion of
CIDCO on t-e 4!sis of Setions &07 !n+ &&: of MRTP At
onten+ing t-!t t-e purpose of onstituting CIDCO is to
+e#e"op ! to6n 4* ,!Bing !""ot,ent9 !n+ in !se t-e
!""ot,ents !re !""o6e+ to 4e ,!+e in !r4itr!r* ,!nner !n+ if
su- !""ot,ents !re sust!ine+9 t-en it !,ounts +e#i!tion
fro, t-e purpose of t-e At% It is furt-er urge+ t-!t Setion
(; of t-e Contr!t At !"so en#is!ges !ne""!tion on
!ount of t-e !""ot,ent<!gree,ent9 if it is oppose+ to pu4"i
po"i* !n+ t-is Court ,!* sust!in t-e !ne""!tion 4eing
oppose+ to pu4"i po"i*% T-e !""ot,ent ,!+e 6it-out
in#iting ten+ers "e!+s to presu,ption of nepotis, et% !n+ it
(&
Page 22
!n on"* 4e 3ustifie+ 4* iting o,pe""ing re!sons% /-ere!s
in t-e present !se9 no re!sons 6ere ,entione+ !n+
!""ot,ents 6ere ,!+e surreptitious"* to one person%
&2% Ri#!" su4,issions -!#e 4een ,!+e 4* Mr% ViB!s Sing-
!n+ Mr% J%P% C!,!9 "e!rne+ senior ounse" !ppe!ring on
4e-!"f of ontesting respon+ents9 onten+ing t-!t t-e
!""ot,ent ,!+e in f!#our of t-ese respon+ents 6!s
!ne""e+ 4* t-e !ppe""!nt 4* issuing s-o6 !use noties
referring to S-!nB!r!n report !n+ !""eging t-!t CIDCO -!+
suffere+ "osses !n+ ,entioning t-e groun+ t-!t t-ere 6!s
non?issu!ne of ten+er 4efore ,!Bing !""ot,ent9 t-e s!,e
4eing #oi+ un+er Setion (; of t-e Contr!t At 6!s oppose+
to t-e pu4"i po"i*% Aor+ing to t-e,9 t-e ApeA Court9
6-i"e re,!n+ing t-e ,!tter in t-e first roun+ of "itig!tion9 in
p!r! 7: of t-e 3u+g,ent reporte+ in (())'$ 2 SCC 02;
(supr!$ set !si+e t-e or+er of CIDCO seeBing to resi"e fro, !
on"u+e+ ontr!t in f!#our of t-e ontesting respon+ents%
((
Page 23
It is su4,itte+ on 4e-!"f of t-e respon+ents t-!t t-e Ne6
5o,4!* L!n+ Dispos!" Ru"es !re t-e speifi ru"es go#erning
t-e +ispos!" of "!n+ to 4e +one 4* CIDCO% Ru"e 7 of t-e s!i+
Ru"es "e!r"* pro#i+e+ t-!t CIDCO -!s t-e !ut-orit* to
+ispose p"ots of "!n+ 4* pu4"i !ution or ten+er or 4*
onsi+ering in+i#i+u!" !pp"i!tion !s t-e Corpor!tion ,!*
+eter,ine fro, ti,e to ti,e% Mr% ViB!s Sing-9 "e!rne+ senior
ounse" onten+e+ t-!t one !n !""ot,ent is ,!+e in f!#our
of ! p!rt*9 CIDCO -!s no rig-t to !ne" t-e !""ot,ent on t-e
groun+ t-!t no ten+ers -!+ 4een in#ite+% A +e#e"op,ent
!ut-orit* 6-i"e !""otting "!n+ !n !""ot p"ot of "!n+ 6it-out
!""ing for ten+er or 6it-out in#iting offers fro, t-e gener!"
pu4"i if t-e st!tutor* regu"!tions reg!r+ing +ispos!" of "!n+
4* pu4"i !ut-orit* per,it t-e !ut-orit* to +o so% It is furt-er
urge+ t-!t CIDCO -!s 4een re"*ing upon t-e !fores!i+ ru"e to
3ustif*9 in #!rious !ses9 t-e !""ot,ents ,!+e in f!#our of
o,,eri!" o,p"eAes9 soieties !s 6e"" !s sports
o,p"eAes s!*ing t-!t su- !""ot,ent ,!+e 6it-out
(;
Page 24
issu!ne of ten+er 6ere 3ustifie+ !s 4eing 6it-in t-e po6er
#este+ in CIDCO un+er Ru"e 7 of t-e !fores!i+ Ru"es%
()% In support of -is ontention9 Mr% ViB!s Sing- ite+ t-e
portion of ! p!r!gr!p- of t-e +eision of t-is Court in
Kasturi Lal Laxmi Reddy vs. State of ammu &
Kas!mir9 &2:) (7$ SCC &9 6-i- is repro+ue+ -ereH
I((% ..%/e +o not t-inB t-e St!te is 4oun+
to !+#ertise !n+ te"" t-e peop"e t-!t it 6!nts !
p!rtiu"!r in+ustr* to 4e set up 6it-in t-e St!te
!n+ in#ite t-ose intereste+ to o,e up 6it-
propos!"s for t-e purpose% T-e St!te ,!*
-oose to +o so9 if it t-inBs fit !n+ in ! gi#en
situ!tion9 it ,!* e#en turn out to 4e
!+#!nt!geous for t-e St!te to +o so9 4ut if !n*
pri#!te p!rt* o,es 4efore t-e St!te !n+ offers
to set up !n in+ustr*9 t-e St!te 6ou"+ not 4e
o,,itting 4re!- of !n* onstitution!" or
"eg!" o4"ig!tion if it negoti!tes 6it- su- p!rt*
!n+ !grees to pro#i+e resoures !n+ ot-er
f!i"ities for t-e purpose of setting up t-e
in+ustr*% T-e St!te is not o4"ige+ to te"" su-
p!rt*H IP"e!se 6!it I 6i"" first !+#ertise9 see
6-et-er !n* ot-er offers !re fort-o,ing !n+
t-en !fter onsi+ering !"" offers9 +ei+e
6-et-er I s-ou"+ "et *ou set up t-e in+ustr*%J
(7
Page 25
(&% Referring to t-e !se of C!airman and "D# $PL Ltd.
vs. S.P. %urura&a and ot!ers9 ()); (:$ SCC 08'9 Mr% Sing-
onten+e+ t-!t non?f"o!ting of ten+ers or not -o"+ing of
pu4"i !ution 6ou"+ not in !"" !ses 4e +ee,e+ to 4e t-e
resu"t of t-e eAerise of t-e eAeuti#e po6er in !n !r4itr!r*
,!nner% T-e po6er of !ne""!tion un+er Setion (; of t-e
Contr!t At is on"* !#!i"!4"e to t-e Court !n+ on t-e
onept of sep!r!tion of po6er t-e s!i+ po6er is not
eAeris!4"e 4* eAeuti#e uni"!ter!""* 6it-out referring to t-e
Court% It -!s 4een furt-er onten+e+ t-!t !"t-oug- t-roug-
t-e i,pugne+ or+er t-e Hig- Court -!+ 1u!s-e+ t-e
!ne""!tion or+er9 on"* CIDCO -!s preferre+ !ppe!" 6-ere!s
t-e St!te of M!-!r!s-tr! !epte+ t-e i,pugne+ or+er !n+
-!s no grie#!ne 6it- t-e 1u!s-ing of t-e or+er !ne""ing
t-e ontesting respon+ents> !""ot,ent%
((% It -!s furt-er 4een onten+e+ t-!t t-e ru"es
pro#i+e for t-ree ,et-o+s of +ispos!" i%e% 4* ten+er9 4*
(0
Page 26
pu4"i !ution or 4* onsi+ering in+i#i+u!" !pp"i!tions !n+
CIDCO #i+e #!rious 4o!r+ reso"utions -!#e speifi!""*
pro#i+e+ t-e eA!t ,et-o+ of +ispos!" for #!rious t*pes of
p"ots% CIDCO -!s !or+ing"* fr!,e+ t-e L!n+ Priing !n+
L!n+ Dispos!" Po"i* !s !ppro#e+ 4* #!rious 4o!r+
reso"utions 6-erein #!rious !tegories of p"ots !re
,entione+% In t-e !se of o,,eri!" p"ots 6-ere FSI &%0 is
per,itte+ t-e "!n+ prie r!te +eter,ine+ un+er t-e po"i* is
70)D of t-e reser#e prie !n+ t-e ,et-o+ of +ispos!" is 4*
ten+er !n+ in t-e !"tern!ti#e !t fiAe+ r!te% Si,i"!r"* for
!""ot,ent of ,u"tip"eA9 t-e r!te speifie+ un+er t-e po"i* is
!t reser#e prie !n+ t-e ,et-o+ of +ispos!" is upon re1uest
!t fiAe+ r!te or 4* o,petiti#e 4i++ing% T-e t6o +ifferent
,et-o+s of +ispos!" 4et6een ! o,,eri!" !""ot,ent !n+
t-e !""ot,ent for ,u"tip"eA is signifi!nt 4e!use in t-e !se
of o,,eri!" !""ot,ent9 4* ten+er is t-e first ,et-o+ of
+ispos!" presri4e+ !n+ !t fiAe+ r!te is t-e !"tern!ti#e
,et-o+ of +ispos!" presri4e+ 6-ere!s in t-e !se of
!""ot,ent for ,u"tip"eA<!u+itoriu, on re1uest !t fiAe+ r!te is
(8
Page 27
t-e first ,et-o+ !n+ 4* o,petiti#e 4i++ing is t-e
!"tern!ti#e ,et-o+ of !""ot,ent% Furt-er,ore9 !""ot,ent in
t-e !se of M<s% P"!tinu, S1u!re Trust t-e "!n+ prie of open
!re!<running tr!B is speifie+ to 4e &)D of t-e reser#e prie
!n+ of !re! use+ for onstrution is to 4e !t 0)D of t-e
reser#e prie !n+ t-e ,et-o+ of +ispos!" is on"* upon
re1uest !t fiAe+ r!te fro, t-e registere+ trust<registere+
un+er t-e Pu4"i Trust At% Le!rne+ senior ounse"
onten+e+ t-!t !""ot,ents in f!#our of t-e respon+ents 6ere
"e!r"* in onfor,it* 6it- t-e ru"es !n+ !"so in onfor,it*
6it- t-e L!n+ Priing !n+ L!n+ Dispos!" Po"i* fr!,e+ 4*
CIDCO for !""ot,ent of #!rious t*pes of "!n+ in t-e N!#i
Mu,4!i !re!%
(;% It -!s 4een su4,itte+ t-!t in ! si,i"!r !se 6-ere
!""ot,ent -!+ !"so 4een !ne""e+ on t-e on"* groun+ t-!t
t-e s!,e -!+ 4een ,!+e 6it-out in#iting ten+ers9 t-e ApeA
Court in Sunil Pannalal $ant!ia vs. City & Industrial
('
Page 28
Development Corpn. of "a!aras!tra Ltd.# (())'$ &)
SCC 8'79 -!s -e"+ t-!t one !n !""ot,ent -!+ 4een ,!+e in
f!#our of ! p!rt*9 CIDCO -!s no rig-t t-ere!fter to !ne" t-e
!""ot,ent on t-e groun+ t-!t no ten+ers -!+ 4een in#ite+%
CIDCO -!+ po6er to ,!Be !""ot,ent 6it-out !""ing for
ten+er un+er Ru"e 7 !n+ it ou"+ not 4e s!i+ t-!t t-e
!""ot,ent in f!#our of Suni" P!nn!"!" 5!nt-i! 6!s in !n*
,!nner ontr!r* to t-e ru"es for ,!Bing su- !""ot,ent%
(7% It -!s !"so 4een onten+e+ on 4e-!"f of t-e ontesting
respon+ents t-!t !or+ing to t-e infor,!tion pro#i+e+ to
t-e respon+ents un+er t-e Rig-t to Infor,!tion At9 ! pu4"i
uti"it* p"ot -!s ne#er 4een put to ten+er 4* CIDCO +uring t-e
perio+ 6-en !fores!i+ !""ot,ents -!+ 4een ,!+e in f!#our
of t-e respon+ents% Aor+ing to t-e infor,!tion pro#i+e+9
!""ot,ent to 08 !""ottees -!#e 4een ,!+e 6it-out in#iting
ten+ers !s per L!n+ Priing !n+ L!n+ Dispos!" Po"i* !n+ t-e
prie -!rge+ is !s per t-e po"i* !s !ppro#e+ 4* 5o!r+
(:
Page 29
reso"utions% T-ese !""ot,ents 6ere not srutiniEe+ 4* Dr%
S-!nB!r!n !n+ not for,e+ p!rt of t-e en1uir* report%
Furt-er,ore9 S-!nB!r!n report -!+ 4een prep!re+ eA?p!rte
i%e% 6it-out issuing notie to t-e respon+ents% Cop* of s!i+
report 6!s not furnis-e+ to t-e respon+ents eit-er !"ong
6it- s-o6 !use notie or 4efore !ne""!tion or+er 6!s
p!sse+ !"t-oug- +e,!n+e+ 4* t-e respon+ents in t-eir
rep"*9 in 6-i- it 6!s speifi!""* ,entione+ t-!t t-e fin!"
rep"* ou"+ 4e gi#en on"* !fter t-e entire report 6!s gi#en to
t-e, !"ong 6it- t-e ,et-o+o"og* use+ 4* S-!nB!r!n to
!rri#e !t t-e !""ege+ "osses% It is onten+e+ t-!t t-e
!ne""!tion or+er is #iti!te+ 4eing in #io"!tion of prinip"es
of n!tur!" 3ustie9 for -!#ing 4een p!sse+ 6it-out gi#ing !
op* of t-e S-!nB!r!n report9 6-i- -!+ 4een prep!re+
4e-in+ t-e 4!B of t-e ontesting respon+ents%
(0% Upon perus!" of notie it is "e!r t-!t its ontents !re
si,i"!r in !"" t-ese !ppe!"s% T-e !ppe""!nt CIDCO referre+
t-e S-!nB!r!n Report in 6-i- it 6!s o4ser#e+ t-!t t-e
(2
Page 30
!""ot,ents 6ere ,!+e in f!#our of t-e respon+ents in !n
!r4itr!r* ,!nner 6it-out !""ing upon to s-o6 !use !s to
6-* su- !""ot,ent s-ou"+ not 4e repu+i!te+ -!#ing 4eo,e
#oi+ on t-e t-rust of Setion (; of t-e In+i!n Contr!t At9
&:'(% For 4etter !pprei!tion p!r! &7 of t-e s-o6 !use
notie is repro+ue+ -erein4e"o6H?
IT-e 5o!r+ of Diretors of t-e Corpor!tion !t its
,eeting -e"+ on 8
t-
June9 ())0 onsi+ere+ t-e
reo,,en+!tions of Dr% D%C% S-!nB!r!n9 t-e t-en
!++ition!" C-ief Seret!r* !n+ +iretions of t-e St!te
go#ern,ent !n+ !s +irete+ ,e to !"" upon *ou to s-o6
!use 6-* t-e Corpor!tion s-ou"+ not resin+ or repu+i!te
su- !""ot,ent -!#ing 4eo,e #oi+ on t-e t-rust of
Setion (; of Contr!t At &:'( 6-i- +e"!res t-!t !n
Agree,ent -!#ing its o43et or onsi+er!tion to +efe!t
pro#ision of t-e "!6 or oppose+ to pu4"i po"i* !s +e"!re+
4* t-e Hon>4"e Supre,e Court !s !fores!i+ is #iti!te+ 4*
i""eg!"it* !n+ is "i!4"e to 4e +e"!re+ #oi+J%
(8% Setion (; of t-e In+i!n Contr!t At9 &:'( re!+s !s
un+erH?
I%&a' (o)*i+e,a'io) a)+ o-.e('* a,e la/f0l#
a)+ /&a' )o'%KT-e onsi+er!tion or o43et of !n
!gree,ent is "!6fu"9 un"ess L
It is for4i++en 4* "!6F or
;)
Page 31
is su- of su- ! n!ture t-!t9 if per,itte+9 it
6ou"+ +efe!t t-e pro#isions of !n* "!6F or is
fr!u+u"entF or
in#o"#es or i,p"ies9 in3ur* to t-e person or
propert* of !not-erF or
t-e Court reg!r+s it !s i,,or!"9 or oppose+ to
pu4"i po"i*%
In e!- of t-ese !ses9 t-e onsi+er!tion or
o43et of !n !gree,ent is s!i+ to 4e un"!6fu"% E#er*
!gree,ent of 6-i- t-e o43et or onsi+er!tion is
un"!6fu" is #oi+%J
('% 5efore +e!"ing 6it- t-e "eg!"it* !n+ #!"i+it* of t-e
notie !fores!i+9 6e s-!"" first 6is- to ,ention so,e of t-e
re"e#!nt f!tsH?
A% In+isput!4"* !pp"i!tions 6ere ,!+e 4* t-e
respon+ents to t-e t-en C-ief Minister for !""ot,ent of
p"ots of "!n+ in 1uestion%
5% On t-e !pp"i!tion su4,itte+ on 4e-!"f of M<s%
P"!tinu, Entert!in,ent9 t-roug- its proprietor Ni"es-
G!"!9 for t-e !""ot,ent of p"ot for onstruting ,u"tip"eA
!t C-!rg-!r r!i"6!* St!tion9 t-e !ppe""!nt 6!s !""otte+
t-e p"ot !t C-!rg-!r R!i"6!* St!tionF
C% T-e s!i+ person Ni"es- G!"! !s proprietor of M<s
Poporn Entert!in,ent Corpor!tion ,!+e !not-er
;&
Page 32
!pp"i!tion for !""ot,ent of p"ot for t-e onstrution of
,u"tip"eA?u,?entert!in,ent entre !t Airo"i% T-e
!ppe""!nt CIDCO !e+e+ to t-e re1uest of Mr% Ni"es-
G!"! !n+ !""otte+ t-e p"ot fo""o6e+ 4* "e!se !gree,entF
D% T-e s!,e person Ni"es- G!"! for,e+ ! Trust !""e+
P"!tinu, S1u!re Trust t-roug- one of its Trustees D!,3i
Cun6!r3i G!"! !n+ ,!+e ! t-ir+ !pp"i!tion for
!""ot,ent of p"ot !t C-!rg-!r Hi"" for t-e onstrution of
ountr* "u4 !n+ p!i+ p!rt of t-e !,ount fiAe+ for su-
!""ot,ent !n+ rest of t-e !,ount 6!s to 4e p!i+ in
inst!",ents% T-e ,!tter is pen+ing !n+ fin!" "e!se
+ee+ -!s not 4een eAeute+%
(:% No6 t-e i,port!nt 1uestion t-!t nee+s onsi+er!tion is
!s to 6-et-er t-e !""ot,ents of #!"u!4"e "!n+ 4* CIDCO to
one person in +ifferent !p!it* for t-e purposes ,entione+
!4o#e9 t-!t too 4* entert!ining pri#!te !pp"i!tions9 !re
!r4itr!r*9 i""eg!" !n+ fr!u+u"ent !n+ !g!inst t-e pu4"i po"i*
!s onte,p"!te+ un+er Setion (; of t-e In+i!n Contr!t At%
;(
Page 33
(2% In t-e ourse of !rgu,ent9 Mr% ViB!s
Sing-9 "e!rne+ senior ounse" !ppe!ring for t-e respon+ents
in !"" t-e t-ree !ppe!"s fi"e+ ! o,pi"!tion of +ifferent
+ou,ents in"u+ing Ru"es !n+ Regu"!tions%
;)% Regu"!tion 7 "!*s +o6n t-e ,o+e !n+ ,!nner of
+ispos!" of "!n+ 4* t-e Corpor!tion% T-e s!i+ pro#ision
e,po6ers t-e Corpor!tion to +ispose of "!n+s 4* pu4"i
!ution or ten+er or onsi+ering in+i#i+u!" !pp"i!tions !s
t-e Corpor!tion ,!* +eter,ine fro, ti,e to ti,e%
Regu"!tion 7 re!+s !s un+erH?
IM!nner of +ispos!" of "!n+ L T-e Corpor!tion
,!* +ispose p"ots of "!n+ 4* pu4"i !ution or
ten+er or 4* onsi+ering in+i#i+u!" !pp"i!tions
!s t-e Corpor!tion ,!* +eter,ine fro, ti,e%J
;&% T-e "!n+ Priing !n+ L!n+ Dispos!" Po"i* of CIDCO
6ou"+ s-o6 t-!t t-e o,,eri!" p"ots 6it- FSI &%09 t-!t is
p"ots for offies9 s-op9 rest!ur!nt9 s-o6roo,s et%9 is to 4e
+ispose+ of 4* ten+er<!t fiAe+ prie% Si,i"!r"*9 p"ots for
;;
Page 34
!u+itoriu,9 ,u"tip"eA9 t-e!tre o,p"eA et%9 s-!"" 4e
+ispose+ of on re1uest !t fiAe+ r!te<4* o,petiti#e 4i++ing%
For 4etter !pprei!tion9 t-e re"e#!nt !""ot,ent po"i* of
CIDCO is repro+ue+ -ereun+erH?
ICo,,eri!" P"ots (6it- FSI &%0$
P"ots for offies9 S-op
M Res% !n+ pure
o,,eri!" S-o6
Roo,s<S-o6 /in+o6s
!"" t*pes of 5!nBs et%
(FSI?&%0$
!% At 70)D of RP in
De#e"ope+ No+es%
4% At 7))D of RP in
De#e"oping No+es%
% At ;))D of RP in
Ne6 No+es
5* ten+er<At
fiAe+ prie
P"ots for Au+itoriu,<
Mu"tip"eA t-e!tre
o,p"eA to 4e
+e#e"ope+ in Pri#!te
Setor
At Reser#e Prie On re1uest !t
fiAe+ r!te 5*
o,petiti#e
4i++ing
;(% Fro, t-e o,pi"!tion9 it re#e!"s t-!t Respon+ent M<s%
Popoorn Entert!in,ent Corpor!tion soug-t infor,!tion
un+er t-e Rig-t to Infor,!tion At9 4* ,entioning so,e
1ueries% One of t-e 1uestions !sBe+ 4* t-e respon+ent 6!s
!s to 6-!t is t-e ,et-o+ of +ispos!" of p"ot for ,u"tip"eA !s
;7
Page 35
per L!n+ Priing !n+ Dispos!" Po"i* +uring t-e s!i+ perio+%
It 6!s !ns6ere+ t-!t ,et-o+o"og* !s per t-e urrent "!n+
priing po"i* !ppro#e+ 4* t-e 5o!r+ is on re1uest !t fiAe+
r!te<4* o,petiti#e 4i++ing% In !not-er 1uer* ,!+e 4* t-e
proprietor of M<s% P"!tinu, Entert!in,ent 6!s !s to 6-et-er
!n* ot-er !pp"i!tion -!s 4een ,!+e for !""ot,ent of t-e
s!i+ p"ot for t-e s!,e purpose !n+ t-e !ns6er 6!s t-!t no
ot-er !pp"i!tion prior to t-is !""ot,ent for t-e s!,e purpose
6!s pen+ing%
;;% It furt-er !ppe!rs t-!t !n !u+it o43etion 6!s r!ise+ 4*
t-e offie of t-e Aount!nt Gener!"9 Mu,4!i to t-e effet
t-!t t-ere 6!s "!B of tr!nsp!ren* in t-e !""ot,ent of p"ot
to M<s% P"!tinu, Entert!in,ent !s no ten+ers 6ere !""e+ for
t-e s!"e of t-e p"ot% In t-e "!rifi!tion "etter +!te+
(&%7%())8 issue+ 4* t-e M!n!ging Diretor of t-e Appe""!nt?
CIDCO9 it 6!s !+,itte+ t-!t no su- ten+er 6!s !""e+ for%
In t-e eAp"!n!tion9 it is st!te+ t-!t g"o4!" ten+er<ten+er 6!s
!""e+ for !""ot,ent of p"ot ne!r V!s-i St!tion% It 6!s not
;0
Page 36
fruitfu" !n+9 t-erefore9 it 6!s t-oug-t fit for !""otting p"ot !t
Airo"i to ! o,petent !n+ resourefu" p!rt* on e#!"u!tion of
t-e pro3et report for ,u"tip"eA !n+ !u+itoriu, !n+
entert!in,ent entre% Si,i"!r eAp"!n!tion 6!s gi#en !s
!g!inst t-e !u+it o43etion in respet of !""ot,ent of p"ot to
M<s% Poporn Entert!in,ent Corpor!tion%
;7% On perus!" of t-e !fores!i+ +ou,ents9 it is ,!nifest
t-!t !"t-oug- !""ot,ent of p"ot for t-e purposes ,entione+
!4o#e 6!s eit-er !t ! fiAe+ prie or 4* o,petiti#e 4i++ing9
4ut no proe+ure 6!s !+opte+ 4* t-e !ppe""!nt for !""ot,ent
of t-ese p"ots eit-er 4* ten+er or 4* o,petiti#e 4i++ing% It
-!s !"so o,e on reor+ t-!t !s !g!inst t-ese p"ots !""otte+
to t-e respon+ents9 no ot-er !pp"i!tion 6!s eit-er in#ite+ or
reei#e+ fro, intereste+ persons% O4#ious"*9 6-en t-e
ten+er 6!s not !+#ertise+ or !n* notie in#iting !pp"i!tions
6ere ,!+e t-en t-ere 6!s no o!sion for !n* person to
!pp"* for !""ot,ent of t-ese p"ots%
;8
Page 37
;0% As notie+ !4o#e9 t-e ,!in person #iE% Ni"es- G!"! !s
proprietor of t6o +ifferent o,p!nies #iE%9 M<s P"!tinu,
Entert!in,ent !n+ M<s Poporn Entert!in,ent Corpor!tion9
4* ,!Bing pri#!te !pp"i!tions to t-e t-en C-ief Minister got
!""ot,ent of t6o #!"u!4"e p"ots in t6o +ifferent !re!s for
setting up ,u"tip"eA?u,?!u+itoriu,?u,?entert!in,ent
entre !n+ for ,u"tip"eA t-e!tre% T-is is not t-e en+ of t-e
,!tter% T-e s!,e proprietor for,e+ ! Trust onsisting 3of
trustees in t-e n!,e of M<s P"!tiu, S1u!re Trust !n+ fi"e+
!pp"i!tion for !""ot,ent of !not-er p"ot for t-e purpose of
est!4"is-ing ountr* "u4% T-ese t-ree !pp"i!tions fi"e+ 4*
t-e respon+ents 6ere onsi+ere+ 4* t-e !ppe""!nt?CIDCO
!n+ t-e 5o!r+ !or+e+ s!ntion for !""ot,ent of p"ots in
t-ese t-ree p"!es%
;8% /e9 t-erefore9 !fter -!#ing onsi+ere+ f!ts +et!i"e+
-erein!4o#e9 !re pri,! f!ie of t-e #ie6 t-!t no
tr!nsp!ren* -!s 4een ,!int!ine+ 4* t-e !ppe""!nt?CIDCO
in ,!Bing t-ese !""ot,ents of Go#ern,ent "!n+%
;'
Page 38
;'% It is 6e"" sett"e+ t-!t 6-ene#er t-e Go#ern,ent +e!"t
6it- t-e pu4"i est!4"is-,ent in entering into ! ontr!t or
issu!ne of "iene9 t-e Go#ern,ent ou"+ not !t !r4itr!ri"*
on its s6eet 6i"" 4ut ,ust !t in !or+!ne 6it- "!6 !n+ t-e
!tion of t-e Go#ern,ent s-ou"+ not gi#e t-e s,!B of
!r4itr!riness% In t-e !se of Raman Dayaram S!etty vs.
International Airport Aut!ority of India & 'rs.# (&2'2$
; SCC 7:29 t-is Court o4ser#e+ !s un+erH?
111. To+!* t-e Go#ern,ent in ! 6e"f!re
St!te9 is t-e regu"!tor !n+ +ispenser of spei!"
ser#ies !n+ pro#i+er of ! "!rge nu,4er of
4enefits9 in"u+ing 3o4s9 ontr!ts9 "ienes9
1uot!s9 ,iner!" rig-ts9 et% T-e Go#ern,ent
pours fort- 6e!"t-9 ,one*9 4enefits9 ser#ies9
ontr!ts9 1uot!s !n+ "ienes% T-e #!"u!4"es
+ispense+ 4* Go#ern,ent t!Be ,!n* for,s9
4ut t-e* !"" s-!re one -!r!teristi% T-e* !re
ste!+i"* t!Bing t-e p"!e of tr!+ition!" for,s of
6e!"t-% T-ese #!"u!4"es 6-i- +eri#e fro,
re"!tions-ips to Go#ern,ent !re of ,!n* Bin+s%
T-e* o,prise soi!" seurit* 4enefits9 !s-
gr!nts for po"iti!" sufferers !n+ t-e 6-o"e
s-e,e of St!te !n+ "o!" 6e"f!re% T-en !g!in9
t-ous!n+s of peop"e !re e,p"o*e+ in t-e St!te
!n+ t-e Centr!" Go#ern,ents !n+ "o!"
!ut-orities% Lienes !re re1uire+ 4efore one
!n eng!ge in ,!n* Bin+s of 4usinesses or
6orB% T-e po6er of gi#ing "ienes ,e!ns
po6er to 6it--o"+ t-e, !n+ t-is gi#es ontro"
;:
Page 39
to t-e Go#ern,ent or to t-e !gents of
Go#ern,ent on t-e "i#es of ,!n* peop"e% M!n*
in+i#i+u!"s !n+ ,!n* ,ore 4usinesses en3o*
"!rgesse in t-e for, of Go#ern,ent ontr!ts%
T-ese ontr!ts often rese,4"e su4si+ies% It is
#irtu!""* i,possi4"e to "ose ,one* on t-e, !n+
,!n* enterprises !re set up pri,!ri"* to +o
4usiness 6it- Go#ern,ent% Go#ern,ent o6ns
!n+ ontro"s -un+re+s of !res of pu4"i "!n+
#!"u!4"e for ,ining !n+ ot-er purposes% T-ese
resoures !re !#!i"!4"e for uti"is!tion 4* pri#!te
orpor!tions !n+ in+i#i+u!"s 4* 6!* of "e!se or
"iene% A"" t-ese ,e!n gro6t- in t-e
Go#ern,ent "!rgesse !n+ 6it- t-e inre!sing
,!gnitu+e !n+ r!nge of go#ern,ent!"
funtions !s 6e ,o#e "oser to ! 6e"f!re St!te9
,ore !n+ ,ore of our 6e!"t- onsists of t-ese
ne6 for,s% So,e of t-ese for,s of 6e!"t- ,!*
4e in t-e n!ture of "eg!" rig-ts 4ut t-e "!rge
,!3orit* of t-e, !re in t-e n!ture of pri#i"eges%
5ut on t-!t !ount9 !n it 4e s!i+ t-!t t-e* +o
not en3o* !n* "eg!" protetionN C!n t-e* 4e
reg!r+e+ !s gr!tuit* furnis-e+ 4* t-e St!te so
t-!t t-e St!te ,!* 6it--o"+9 gr!nt or re#oBe it
!t its p"e!sureNJ
I&(% ...%%It ,ust9 t-erefore9 4e t!Ben to 4e
t-e "!6 t-!t 6-ere t-e Go#ern,ent is +e!"ing
6it- t-e pu4"i9 6-et-er 4* 6!* of gi#ing 3o4s
or entering into ontr!ts or issuing 1uot!s or
"ienes or gr!nting ot-er for,s of "!rgesse9
t-e Go#ern,ent !nnot !t !r4itr!ri"* !t its
s6eet 6i"" !n+9 "iBe ! pri#!te in+i#i+u!"9 +e!"
6it- !n* person it p"e!ses9 4ut its !tion ,ust
4e in onfor,it* 6it- st!n+!r+ or nor,s 6-i-
is not !r4itr!r*9 irr!tion!" or irre"e#!nt% T-e
po6er or +isretion of t-e Go#ern,ent in t-e
,!tter of gr!nt of "!rgesse in"u+ing !6!r+ of
3o4s9 ontr!ts9 1uot!s9 "ienes9 et% ,ust 4e
onfine+ !n+ struture+ 4* r!tion!"9 re"e#!nt
!n+ non?+isri,in!tor* st!n+!r+ or nor, !n+ if
t-e Go#ern,ent +ep!rts fro, su- st!n+!r+ or
nor, in !n* p!rtiu"!r !se or !ses9 t-e !tion
;2
Page 40
of t-e Go#ern,ent 6ou"+ 4e "i!4"e to 4e struB
+o6n9 un"ess it !n 4e s-o6n 4* t-e
Go#ern,ent t-!t t-e +ep!rture 6!s not
!r4itr!r*9 4ut 6!s 4!se+ on so,e #!"i+
prinip"e 6-i- in itse"f 6!s not irr!tion!"9
unre!son!4"e or +isri,in!tor*%J
;:% In t-e !se of A(!il $!artiya )p*!o(ta Con+ress
vs. State of "ad!ya Prades! & ors.# (()&&$ 0 SCC (29
t-is Court 6-i"e onsi+ering t-e 1uestion of "eg!"it* of
!""ot,ent of "!n+ 4* t-e St!te or its !genies on t-e 4!sis of
!pp"i!tions ,!+e 4* in+i#i+u!"9 o4ser#e+ !s fo""o6sH?
I80% /-!t nee+s to 4e e,p-!sise+ is t-!t t-e
St!te !n+<or its !genies<instru,ent!"ities
!nnot gi#e "!rgesse to !n* person !or+ing
to t-e s6eet 6i"" !n+ 6-i,s of t-e po"iti!"
entities !n+<or offiers of t-e St!te% E#er*
!tion<+eision of t-e St!te !n+<or its
!genies<instru,ent!"ities to gi#e "!rgesse or
onfer 4enefit ,ust 4e foun+e+ on ! soun+9
tr!nsp!rent9 +iserni4"e !n+ 6e""?+efine+
po"i*9 6-i- s-!"" 4e ,!+e Bno6n to t-e
pu4"i 4* pu4"i!tion in t-e Offii!" G!Eette !n+
ot-er reognise+ ,o+es of pu4"iit* !n+ su-
po"i* ,ust 4e i,p"e,ente+<eAeute+ 4*
!+opting ! non?+isri,in!tor* !n+ non?
!r4itr!r* ,et-o+ irrespeti#e of t-e "!ss or
!tegor* of persons propose+ to 4e 4enefite+
4* t-e po"i*% T-e +istri4ution of "!rgesse "iBe
!""ot,ent of "!n+9 gr!nt of 1uot!9 per,it
"iene9 et% 4* t-e St!te !n+ its
!genies<instru,ent!"ities s-ou"+ !"6!*s 4e
+one in ! f!ir !n+ e1uit!4"e ,!nner !n+ t-e
7)
Page 41
e"e,ent of f!#ouritis, or nepotis, s-!"" not
inf"uene t-e eAerise of +isretion9 if !n*9
onferre+ upon t-e p!rtiu"!r funtion!r* or
offier of t-e St!te%
88% /e ,!* !++ t-!t t-ere !nnot 4e !n*
po"i*9 ,u- "ess9 ! r!tion!" po"i* of !""otting
"!n+ on t-e 4!sis of !pp"i!tions ,!+e 4*
in+i#i+u!"s9 4o+ies9 org!nis!tions or institutions
+e-ors !n in#it!tion or !+#ertise,ent 4* t-e
St!te or its !gen*<instru,ent!"it*% 5*
entert!ining !pp"i!tions ,!+e 4* in+i#i+u!"s9
org!nis!tions or institutions for !""ot,ent of
"!n+ or for gr!nt of !n* ot-er t*pe of "!rgesse
t-e St!te !nnot eA"u+e ot-er e"igi4"e persons
fro, "o+ging o,peting "!i,% An* !""ot,ent of
"!n+ or gr!nt of ot-er for, of "!rgesse 4* t-e
St!te or its !genies<instru,ent!"ities 4*
tre!ting t-e eAerise !s ! pri#!te #enture is
"i!4"e to 4e tre!te+ !s !r4itr!r*9 +isri,in!tor*
!n+ !n !t of f!#ouritis, !n+<or nepotis,
#io"!ting t-e sou" of t-e e1u!"it* "!use
e,4o+ie+ in Arti"e &7 of t-e Constitution%
;2% In t-e !se of Kasturi Lal La(s!mi Reddy & 'rs. vs.
State of ammu and Kas!mir & Anr.# (&2:)$ 7 SCC &9 t-is
Court o4ser#e+ !s un+erH?
I&7% /-ere !n* go#ern,ent!" !tion f!i"s to
s!tisf* t-e test of re!son!4"eness !n+ pu4"i
interest +isusse+ !4o#e !n+ is foun+ to 4e
6!nting in t-e 1u!"it* of re!son!4"eness or
"!Bing in t-e e"e,ent of pu4"i interest9 it
6ou"+ 4e "i!4"e to 4e struB +o6n !s in#!"i+% It
,ust fo""o6 !s ! neess!r* oro""!r* fro, t-is
proposition t-!t t-e Go#ern,ent !nnot !t in
! ,!nner 6-i- 6ou"+ 4enefit ! pri#!te p!rt*
!t t-e ost of t-e St!teF su- !n !tion 6ou"+
7&
Page 42
4e 4ot- unre!son!4"e !n+ ontr!r* to pu4"i
interest% T-e Go#ern,ent9 t-erefore9 !nnot9
for eA!,p"e9 gi#e ! ontr!t or se"" or "e!se out
its propert* for ! onsi+er!tion "ess t-!n t-e
-ig-est t-!t !n 4e o4t!ine+ for it9 un"ess of
ourse t-ere !re ot-er onsi+er!tions 6-i-
ren+er it re!son!4"e !n+ in pu4"i interest to +o
so% Su- onsi+er!tions ,!* 4e t-!t so,e
+ireti#e prinip"e is soug-t to 4e !+#!ne+ or
i,p"e,ente+ or t-!t t-e ontr!t or t-e
propert* is gi#en not 6it- ! #ie6 to e!rning
re#enue 4ut for t-e purpose of !rr*ing out !
6e"f!re s-e,e for t-e 4enefit of ! p!rtiu"!r
group or setion of peop"e +eser#ing it or t-!t
t-e person 6-o -!s offere+ ! -ig-er
onsi+er!tion is not ot-er6ise fit to 4e gi#en
t-e ontr!t or t-e propert*% /e -!#e referre+
to t-ese onsi+er!tions on"* i""ustr!ti#e"*9 for
t-ere ,!* 4e !n infinite #!riet* of
onsi+er!tions 6-i- ,!* -!#e to 4e t!Ben
into !ount 4* t-e Go#ern,ent in for,u"!ting
its po"iies !n+ it is on ! tot!" e#!"u!tion of
#!rious onsi+er!tions 6-i- -!#e 6eig-e+
6it- t-e Go#ern,ent in t!Bing ! p!rtiu"!r
!tion9 t-!t t-e ourt 6ou"+ -!#e to +ei+e
6-et-er t-e !tion of t-e Go#ern,ent is
re!son!4"e !n+ in pu4"i interest% 5ut one 4!si
prinip"e 6-i- ,ust gui+e t-e ourt in !rri#ing
!t its +eter,in!tion on t-is 1uestion is t-!t
t-ere is !"6!*s ! presu,ption t-!t t-e
go#ern,ent!" !tion is re!son!4"e !n+ in
pu4"i interest !n+ it is for t-e p!rt*
-!""enging its #!"i+it* to s-o6 t-!t it is
6!nting in re!son!4"eness or is not infor,e+
6it- pu4"i interest% T-is 4ur+en is ! -e!#* one
!n+ it -!s to 4e +is-!rge+ to t-e s!tisf!tion
of t-e ourt 4* proper !n+ !+e1u!te ,!teri!"%
T-e ourt !nnot "ig-t"* !ssu,e t-!t t-e !tion
t!Ben 4* t-e Go#ern,ent is unre!son!4"e or
6it-out pu4"i interest 4e!use9 !s 6e s!i+
!4o#e9 t-ere !re ! "!rge nu,4er of po"i*
onsi+er!tions 6-i- ,ust neess!ri"* 6eig-
6it- t-e Go#ern,ent in t!Bing !tion !n+
7(
Page 43
t-erefore t-e ourt 6ou"+ not striBe +o6n
go#ern,ent!" !tion !s in#!"i+ on t-is groun+9
un"ess it is "e!r"* s!tisfie+ t-!t t-e !tion is
unre!son!4"e or not in pu4"i interest% 5ut
6-ere it is so s!tisfie+9 it 6ou"+ 4e t-e p"!inest
+ut* of t-e ourt un+er t-e Constitution to
in#!"i+!te t-e go#ern,ent!" !tion% T-is is one
of t-e ,ost i,port!nt funtions of t-e ourt
!n+ !"so one of t-e ,ost essenti!" for
preser#!tion of t-e ru"e of "!6% It is i,per!ti#e
in ! +e,or!* go#erne+ 4* t-e ru"e of "!6
t-!t go#ern,ent!" !tion ,ust 4e Bept 6it-in
t-e "i,its of t-e "!6 !n+ if t-ere is !n*
tr!nsgression9 t-e ourt ,ust 4e re!+* to
on+e,n it% It is ! ,!tter of -istori!"
eAperiene t-!t t-ere is ! ten+en* in e#er*
Go#ern,ent to !ssu,e ,ore !n+ ,ore po6ers
!n+ sine it is not !n uno,,on p-eno,enon
in so,e ountries t-!t t-e "egis"!ti#e -eB is
getting +i"ute+9 it is "eft to t-e ourt !s t-e on"*
ot-er re#ie6ing !ut-orit* un+er t-e
Constitution to 4e inre!sing"* #igi"!nt to
ensure o4ser#!ne 6it- t-e ru"e of "!6 !n+ in
t-is t!sB9 t-e ourt ,ust not f"in- or f!"ter% It
,!* 4e pointe+ out t-!t t-is groun+ of
in#!"i+it*9 n!,e"*9 t-!t t-e go#ern,ent!"
!tion is unre!son!4"e or "!Bing in t-e 1u!"it*
of pu4"i interest9 is +ifferent fro, t-!t of ,!"!
fi+es t-oug- it ,!*9 in ! gi#en !se9 furnis-
e#i+ene of ,!"! fi+es%
&0% T-e seon+ "i,it!tion on t-e +isretion
of t-e Go#ern,ent in gr!nt of "!rgess is in
reg!r+ to t-e persons to 6-o, su- "!rgess
,!* 4e gr!nte+% It is no6 6e"" sett"e+ !s !
resu"t of t-e +eision of t-is Court in Ramana
D. Shetty #% International irport !thority of
In"ia t-!t t-e Go#ern,ent is not free9 "iBe !n
or+in!r* in+i#i+u!"9 in se"eting t-e reipients
for its "!rgess !n+ it !nnot -oose to +e!" 6it-
!n* person it p"e!ses in its !4so"ute !n+
unfettere+ +isretion% T-e "!6 is no6 6e""?
est!4"is-e+ t-!t t-e Go#ern,ent nee+ not +e!"
7;
Page 44
6it- !n*one9 4ut if it +oes so9 it ,ust +o so
f!ir"* 6it-out +isri,in!tion !n+ 6it-out unf!ir
proe+ure% /-ere t-e Go#ern,ent is +e!"ing
6it- t-e pu4"i 6-et-er 4* 6!* of gi#ing 3o4s
or entering into ontr!ts or gr!nting ot-er
for,s of "!rgess9 t-e Go#ern,ent !nnot !t
!r4itr!ri"* !t its s6eet 6i"" !n+9 "iBe ! pri#!te
in+i#i+u!"9 +e!" 6it- !n* person it p"e!ses9 4ut
its !tion ,ust 4e in onfor,it* 6it- so,e
st!n+!r+ or nor, 6-i- is not !r4itr!r*9
irr!tion!" or irre"e#!nt% T-e go#ern,ent!"
!tion ,ust not 4e !r4itr!r* or !priious9 4ut
,ust 4e 4!se+ on so,e prinip"e 6-i- ,eets
t-e test of re!son !n+ re"e#!ne% T-is ru"e 6!s
enuni!te+ 4* t-e ourt !s ! ru"e of
!+,inistr!ti#e "!6 !n+ it 6!s !"so #!"i+!te+ 4*
t-e ourt !s !n e,!n!tion f"o6ing +iret"* fro,
t-e +otrine of e1u!"it* e,4o+ie+ in Arti"e &7%
T-e ourt referre+ to t-e !ti#ist ,!gnitu+e of
Arti"e &7 !s e#o"#e+ in E.P. Royappa #% State
of #amil $a"! !n+ %ane&a 'an"hi ca(e9 (&2':$
& SCC (7: !n+ o4ser#e+ t-!t it ,ust fo""o6
!s ! neess!r* oro""!r* fro, t-e
prinip"e of e1u!"it* ens-rine+ in Arti"e
&7 t-!t t-oug- t-e St!te is entit"e+ to
refuse to enter into re"!tions-ip 6it-
!n*one9 *et if it +oes so9 it !nnot
!r4itr!ri"* -oose !n* person it "iBes for
entering into su- re"!tions-ip !n+
+isri,in!te 4et6een persons si,i"!r"*
iru,st!ne+9 4ut it ,ust !t in
onfor,it* 6it- so,e st!n+!r+ or
prinip"e 6-i- ,eets t-!t test of
re!son!4"eness !n+ non?+isri,in!tion
!n+ !n* +ep!rture fro, su- st!n+!r+ or
prinip"e 6ou"+ 4e in#!"i+ un"ess it !n 4e
supporte+ or 3ustifie+ on so,e r!tion!"
!n+ non?+isri,in!tor* groun+%
T-is +eision -!s re!ffir,e+ t-e prinip"e of
re!son!4"eness !n+ non?!r4itr!riness in
go#ern,ent!" !tion 6-i- "ies !t t-e ore of
77
Page 45
our entire onstitution!" s-e,e !n+
struture%J
7)% In t-e !se of State of ,aryana vs. a+e Ram9 (&2:;$
7 SCC 0089 t-e !ution of "i1uor #en+s 4* eAise +ep!rt,ent
6!s -!""enge+% Dei+ing t-e 1uestion t-is Court in p!r! :
-e"+H?
I....%/-en ! ru"e re1uires =pu4"iit*> to 4e
gi#en to !n !ution?s!"e9 6-!t is neess!ri"*
i,p"ie+ is t-!t +ue steps ,ust 4e t!Ben to gi#e
suffiient"* !+#!ne inti,!tion of t-e inten+e+
s!"e !n+ its ,!teri!" ter,s to t-e ,e,4ers of
t-e pu4"i or9 !t "e!st9 to t-!t setion of t-e
pu4"i 6-i- nor,!""* eng!ges in t-e Bin+ of
4usiness 6-i- is t-e su43et?,!tter of t-e
!ution?s!"e% E#en t-e fi#e spei!" in#itees
6ou"+ -!#e foun+ it +iffiu"t to o,e prep!re+
to t!Be p!rt in t-e res!"e 6-i- 6!s -e"+ on
M!* (;% T-e* 6ere not in#ite+ to ! 6e++ing
fe!st% T-e* 6ere in#ite+ to !tten+ t-e res!"e of
! "i1uor #en+ !n+ it is 6e"" Bno6n t-!t ! ert!in
!,ount -!s to 4e p!i+ 4* t-e suessfu" 4i++er
on t-e f!"" of t-e -!,,er% /e !re !"so un!4"e
to !pprei!te t-!t t-e EAise Aut-orities of t-e
Go#ern,ent of H!r*!n! s-ou"+ -!#e piBe+
!n+ -osen so,e fi#e p!rtiu"!r persons !s
reipients of t-e notie of re!ution% Ho6 t-eir
n!,es tr!nspire+ !n+ 6-!t is t-eir p!rtiu"!r
st!tus9 respet!4i"it* !n+ st!n+ing in t-e "i1uor
tr!+e9 !re ,!tters on 6-i- no "ig-t is t-ro6n%
T-ere is no ,!teri!" 4efore us on 6-i- to
+ou4t t-e integrit* of t-e !ut-orities 6-o 6ere
onnete+ 6it- t-e re!ution% 5ut t-eir
on+ut ,ust 4e !4o#e suspiion%J
70
Page 46
7&% In t-e !se of Sac!idanand Pandey & Anr. vs. State
of -est $en+al & 'rs.9 (&2:'$ ( SCC (209 t-is Court !fter
onsi+ering #!rious +eisions on t-is point !,e to t-e
fo""o6ing on"usionH?
I7)% On ! onsi+er!tion of t-e re"e#!nt !ses
ite+ !t t-e 5!r t-e fo""o6ing propositions ,!*
4e t!Ben !s 6e"" est!4"is-e+H St!te?o6ne+ or
pu4"i?o6ne+ propert* is not to 4e +e!"t 6it- !t
t-e !4so"ute +isretion of t-e eAeuti#e%
Cert!in preepts !n+ prinip"es -!#e to 4e
o4ser#e+% Pu4"i interest is t-e p!r!,ount
onsi+er!tion% One of t-e ,et-o+s of seuring
t-e pu4"i interest9 6-en it is onsi+ere+
neess!r* to +ispose of ! propert*9 is to se""
t-e propert* 4* pu4"i !ution or 4* in#iting
ten+ers% T-oug- t-!t is t-e or+in!r* ru"e9 it is
not !n in#!ri!4"e ru"e% T-ere ,!* 4e situ!tions
6-ere t-ere !re o,pe""ing re!sons
neessit!ting +ep!rture fro, t-e ru"e 4ut t-en
t-e re!sons for t-e +ep!rture ,ust 4e r!tion!"
!n+ s-ou"+ not 4e suggesti#e of +isri,in!tion%
Appe!r!ne of pu4"i 3ustie is !s i,port!nt !s
+oing 3ustie% Not-ing s-ou"+ 4e +one 6-i-
gi#es !n !ppe!r!ne of 4i!s9 3o44er* or
nepotis,.
7(% In t-e !se of Padma vs. ,iralal "otilal Desarda,
(())($ ' SCC 0879 t-e proess !+opte+ 4* t-e Cit* In+ustri!"
De#e"op,ent Corpor!tion for +ispos!" of "!n+ 4* 4u"B se""
78
Page 47
!,e for onsi+er!tion 4efore t-is Court9 6-en it -e"+ !s
un+erH?
I;7% T-ere is *et !not-er !ng"e of "ooBing !t
t-e propriet* of t-e 1uestione+ 4u"B s!"e of
"!n+ 4* CIDCO !n+ t-e ,!nner in 6-i- it 6!s
+one% T-e "!n+ !1uire+ !n+ entruste+ to
CIDCO !nnot 3ust 4e per,itte+ to 4e p!rte+
6it- gui+e+ 4* t-e so"e onsi+er!tion of
,one*?,!Bing% CIDCO is not ! o,,eri!"
onern 6-ose perfor,!ne is to 4e !ssesse+
4* t-e !,ount it e!rns% Its perfor,!ne 6ou"+
4e 4etter !ssesse+ 4* fin+ing out t-e nu,4er
of nee+* persons 6-o -!#e 4een !4"e to
seure s-e"ter t-roug- CIDCO !n+ 4* t-e
4e!ut* of t-e to6ns-ip !n+ t-e 1u!"it* of "ife
for t-e peop"e !-ie#e+ 4* CIDCO t-roug- its
p"!nne+ +e#e"op,ent s-e,es% So "ong !s
su- o43eti#es !re fu"fi""e+ CIDCO>s oper!tion
on Ino?profit?no "ossJ 4!sis !nnot 4e foun+
f!u"t 6it-% T-ere s-ou"+ -!#e 4een no -urr* on
t-e p!rt of CIDCO in +isposing of t-e 4!"!ne
"!n+ !n+ t-!t too gui+e+ 4* t-e so"e
onsi+er!tion of e!rning ,ore ,one*% E#en
t-!t o43et CIDCO -!s not 4een !4"e to !-ie#e
for !t t-e en+ it -!s p!rte+ 6it- "!n+ !t ! prie
"ess t-!n Rs &0)) per s1u!re ,etre K t-e
reser#e+ prie% E#en if ! s!"e of "efto#er "!n+
6!s ! fe"t neessit* it s-ou"+ -!#e s!tisfie+ !t
"e!st t6o on+itionsH (i$ ! 6e""?onsi+ere+
+eision !t t-e -ig-est "e#e"F !n+ (ii$ ! s!"e 4*
pu4"i !ution or 4* ten+ers !fter gi#ing ,ore
6i+e pu4"iit* t-!n 6-!t 6!s +one so !s to
!ttr!t ! "!rger nu,4er of 4i++ers%J
7'
Page 48
7;% In t-e !se of Centre for Pu*lic Interest Liti+ation
vs. )nion of India# (()&($ ; SCC &9 t-is Court o4ser#e+ !s
un+erH?
I'0% T-e St!te is e,po6ere+ to +istri4ute
n!tur!" resoures% Ho6e#er9 !s t-e* onstitute
pu4"i propert*<n!tion!" !sset9 6-i"e
+istri4uting n!tur!" resoures t-e St!te is
4oun+ to !t in onson!ne 6it- t-e prinip"es
of e1u!"it* !n+ pu4"i trust !n+ ensure t-!t no
!tion is t!Ben 6-i- ,!* 4e +etri,ent!" to
pu4"i interest% LiBe !n* ot-er St!te !tion9
onstitution!"is, ,ust 4e ref"ete+ !t e#er*
st!ge of t-e +istri4ution of n!tur!" resoures% In
Arti"e ;2()$ of t-e Constitution it -!s 4een
pro#i+e+ t-!t t-e o6ners-ip !n+ ontro" of t-e
,!teri!" resoures of t-e o,,unit* s-ou"+ 4e
so +istri4ute+ so !s to 4est su4ser#e t-e
o,,on goo+9 4ut no o,pre-ensi#e
"egis"!tion -!s 4een en!te+ to gener!""*
+efine n!tur!" resoures !n+ ! fr!,e6orB for
t-eir protetion% Of ourse9 en#iron,ent "!6s
en!te+ 4* P!r"i!,ent !n+ St!te Legis"!tures
+e!" 6it- speifi n!tur!" resoures i%e% forest9
!ir9 6!ter9 o!st!" Eones9 et%
AAAAAAA
:)% In *am(he" +orm!(,i Wa"ia, (())7$ ; SCC
(&7 !se9 t-is Court -e"+ t-!t t-e St!te>s
!tions !n+ t-e !tions of its
!genies<instru,ent!"ities ,ust 4e for t-e
pu4"i goo+9 !-ie#ing t-e o43ets for 6-i-
t-e* eAist !n+ s-ou"+ not 4e !r4itr!r* or
!priious% In t-e fie"+ of ontr!ts9 t-e St!te
!n+ its instru,ent!"ities s-ou"+ +esign t-eir
!ti#ities in ! ,!nner 6-i- 6ou"+ ensure
o,petition !n+ non?+isri,in!tion% T-e* !n
!ug,ent t-eir resoures 4ut t-e o43et s-ou"+
4e to ser#e t-e pu4"i !use !n+ to +o pu4"i
7:
Page 49
goo+ 4* resorting to f!ir !n+ re!son!4"e
,et-o+s%J
77% T-e Hig- Court in t-e i,pugne+ or+er tooB notie9 in
p!r!gr!p- :09 t-!t t-e !ppe""!nt?CIDCO trie+ to 3ustif* t-eir
!tion of !ne""!tion of !""ot,ent of p"ots on t-e fo""o6ing
re!sons%
I&% Mr% Ni"es- G!"!9 t-e proprietor of M<s%
P"!tinu, entert!in,ent -!s use+ s!,e ,o+us
oper!n+i for o4t!ining !""ot,ent of p"ots ,e!nt
for ountr* "u4 !n+ !not-er p"ot for ,u"tip"eA
in C-!rg-!r%
(% An !pp"i!tion 6!s ,!+e 4* t-e petitioners
to t-e Hon>4"e C-ief Minister !n+ t-e s!,e 6!s
onsi+ere+ f!#our!4"* 4* t-e 5o!r+ of CIDCO%
;% T-e un+ue -!ste is s-o6n in !""ot,ent of
P"ots resu"ting in i""eg!" !n+ !r4itr!r* !""ot,ent
6it- ,!"!fi+e intention to !use 6rongfu" g!in
to t-e in+i#i+u!" person% It is ! !se of
f!#ouritis, supporte+ 4* t-e Report of Dr% D%C%
S-!nB!r!n%
7% T-e !gen+! note !n+ t-e reso"utions
+e,onstr!te no +isussion !4out t-e in+i#i+u!"
,erits of t-e !""otters eAept nee+ for
,u"tip"eAes soug-t to 4e 3ustifie+ +uring t-e
!se of +isussion 6it-out in+i!ting !n*
re!son for -oosing group of petitions for
!""ot,ent of p"ots%
72
Page 50
0% A4sene of offii!" ,e,4ers in t-e 5o!r+
Meeting 6-erein t-e +eisions of !""ot,ent of
p"ots to t-e petitioners 6ere t!Ben%
8% T-e !""ot,ent of p"ots of "!n+ !re
f!tu!""* for o,,eri!" purposes in t-e g!r4
of onstrution of ,u"tip"eAes !n+ ountr* "u4
6it- ! #ie6 to inure profit to t-e !""ottees%
'% T-e ,u"tip"eA po"i* 6-ere4* ert!in t!A
4enefits 6ere gr!nte+ 6it- effet fro, *e!r
())( 6ere ignore+ 6-i"e ,!Bing t-e !""ot,ent
of p"ots to t-e petitioners o#er"ooBing t-e
+e,!n+ for ,u"tip"eAes +ue to onessions
gr!nte+ 4* t-e go#ern,ent%
:% No re!sons !re to 4e foun+ to 3ustif*
!""ot,ent of t-ree p"ots in f!#our of one group
of persons%
2% Refus!" on t-e p!rt of o,ptro""er of
Au+itor Gener!" to !ept t-e re!sons gi#en 4*
CIDCO 3ustif*ing !4sene of "!6 suffere+ 4*
CIDCO 4* #irtue of t-e su43et !""ot,ents of
p"ots to t-e petitioners%
&)% Dr% D%C% S!nB!r!n report is t-e 4!sis for
!"u"!tion of "oss suffere+ 4* CIDCO%
&&% Justifi!tion of t-e po6ers of t-e st!te
go#ern,ent +ireting !ne""!tion of !""ot,ent
of p"ots on t-e 4!sis of setions &&: !n+ &07 of
t-e M%R%T%P% At%
&(% Surreptitious !r4itr!r* !""ot,ent ,!+e
6it-out in#iting ten+ers "e!+s to t-e
presu,ption of nepotis, !n+ 4i!s et%
&;% T-e petitioners M<s% P"!tinu,
Entert!in,ent 6ere not registere+ !s !
0)
Page 51
-!rit!4"e trust *et t-eir !pp"i!tion for
!""ot,ent 6!s onsi+ere+ 4* CIDCO f!#our!4"*%
&7% F!i"ure on t-e p!rt of t-e petitioner to
pro+ue !n* #!"u!tion report to 3ustif* !t 6-i-
r!te t-e !""ot,ent 6!s ,!+e 4* t-e CIDCO%J
70% T-e Hig- Court inste!+ of "ooBing into t-ese !spets of
t-e ,!tter9 o,p"ete"* ignore+ t-e s!,e on t-e groun+ t-!t
in t-e s-o6 !use notie none of t-e groun+s 6ere ,!+e
4!sis of t-e or+er of !ne""!tion of !""ot,ent% In our
onsi+ere+ opinion9 t-e Hig- Court 6-i"e eAerising po6er of
3u+ii!" re#ie6 is suppose+ to -!#e gone into t-e 1uestion !s
to -o6 t-e t-ree p"ots 6ere !""otte+ in f!#our of one group of
persons% T-e Hig- Court -!s "ost sig-t of t-e !+,itte+ f!t
t-!t 4* entert!ining pri#!te !pp"i!tions of t-e s!,e person
t-ree +ifferent #!"u!4"e p"ots -!#e 4een !""otte+ in +ifferent
n!,es% T-e Hig- Court fe"" in error in -o"+ing t-!t t-e
!""ot,ent of p"ots of "!n+ to t-e s!,e person 4ut in t-e
n!,es of trust is !"so 3ustifie+%
0&
Page 52
78% C-!pter 0 of Ne6 5o,4!* Ro!+ Dispos!" Ru"es9 &2'0
pro#i+es for !""ot,ent of "!n+ for re"igious9 e+u!tion!"9
-!rit!4"e et% purposes !n+ t-oug- t-e !""ot,ent of p"ots of
"!n+ for onstrution of ,u"tip"eA !re tre!te+ !s !""ot,ent
for pu4"i uti"it* purposes9 in su4st!ne9 t-e !""ot,ent 1u!
t-ese !""ottees 6!s for o,,eri!" purpose% T-e !""ot,ents
6-i- !re ,!+e for t-e soi!"9 e+u!tion!"9 -!rit!4"e
purposes +o not ent!i" !n* profit to t-e !""ottees% Ho6e#er9
,u"tip"eA is for o,,eri!" eAp"oit!tion9 6-i- ensures profit
to t-e !""ottees !n+ t-e ,!nner of +ispos!" of "!n+s
enu,er!te+ in t-e s!i+ po"i* 4* !n+ "!rge suggests t-!t
,ost of t-e !""ot,ents -!#e to 4e ,!+e 4* in#iting ten+ers
or 4i+s%
7'% T-e +ou,ent on reor+ "e!r"* +e,onstr!tes t-!t
t-ere 6!s no +isussion !4out in+i#i+u!" ,erits of t-e
!""ottees !n+ 6!s on"* gener!" onsi+er!tion9 6-i- resu"te+
in ,!Bing !r4itr!r* !""ot,ent 6it-out going t-roug- t-e
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ten+er proess% T-e report of t-e Co,ptro""er !n+ Au+itor
Gener!" 6ou"+ s-o6 t-!t t-e re!sons gi#en 4* CIDCO !re not
!ept!4"e !n+ t-ere is "oss !use+ to t-e Corpor!tion 4*
#irtue of t-e s!i+ !""ot,ent ,!+e to t-e respon+ents%
7:% T-e Hig- Court oug-t to -!#e seen t-e !tion of t-e
t-en 5o!r+ of Diretors of CIDCO +e,onstr!ting t-!t in t-e
first ,eeting of t-e 5o!r+ itse"f t-e* "e!re+ t-e spei!"
propos!"s 6it-out onsi+ering t-e in+i#i+u!" ,erits% In t-e
,eeting9 -!r+"* !n* offii!" ,e,4ers 6ere present 6-en t-e
!""ot,ents 6ere ,!+e to t-e respon+ents%
72% St!te !n+ its !genies !n+ instru,ent!"ities !nnot
gi#e "!rgesse to !n* person !t s6eet 6i"" !n+ 6-i,s of t-e
po"iti!" entities or offiers of t-e St!te% Ho6e#er9 +eisions
!n+ !tion of t-e St!te ,ust 4e foun+e+ on ! soun+9
tr!nsp!rent !n+ 6e"" +efine+ po"i* 6-i- s-!"" 4e ,!+e
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Bno6n to t-e pu4"i% T-e +ispos!" of Go#ern,ent "!n+ 4*
!+opting ! +isri,in!tor* !n+ !r4itr!r* ,et-o+ s-!"" !"6!*s
4e !#oi+e+ !n+ it s-ou"+ 4e +one in ! f!ir !n+ e1uit!4"e
,!nner !s t-e !""ot,ent on f!#oritis, or nepotis,
inf"uenes t-e eAerises of +isretion% E#en !ssu,ing t-!t if
t-e Ru"e or Regu"!tion presri4es t-e ,o+e of !""ot,ent 4*
entert!ining in+i#i+u!" !pp"i!tion or 4* ten+ers or
o,petiti#e 4i++ing9 t-e Ru"e of L!6 re1uires pu4"iit* to 4e
gi#en 4efore su- !""ot,ent is ,!+e% CIDCO !ut-orities
s-ou"+ not !+opt piB !n+ -oose ,et-o+ 6-i"e !""otting t-e
Go#ern,ent "!n+%
0)% Furt-er,ore9 t-is Court -!s !"re!+* st!te+ in A(!il
$!artiya )p*!o(ta Con+ress vs. State of "ad!ya
Prades! & 'rs.9 (()&&$ 0 SCC (29 t-!t t-e St!te or its
!genies or instru,ent!"ities ,ust gi#e "!rgesse foun+e+ on
! soun+9 tr!nsp!rent9 +iserni4"e !n+ 6e""?+efine+ po"i*9
6-i- s-ou"+ 4e ,!+e Bno6n to t-e pu4"i !t "!rge !n+
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furt-er -e"+ t-!t ! r!tion!" po"i* of !""otting "!n+ on t-e
4!sis of in+i#i+u!" !pp"i!tions !nnot +e -ors !n in#it!tion
or !+#ertise,ent 4* t-e St!te or its instru,ent!"it*9 4ringing
it to t-e Bno6"e+ge of pu4"i !t "!rge so t-!t t-e e"igi4"e
persons s-ou"+ not 4e eA"u+e+ fro, "o+ging t-eir
o,petiti#e "!i,s%
0&% T-e !tion of !ne""!tion of !""ot,ent of p"ots9 !s trie+
to 4e 3ustifie+ 4* CIDCO9 6ou"+ s-o6 t-!t t-e Hig- Court
f!i"e+ to !pprei!te su- ogent re!sons in +ei+ing t-e
,!tter 6-i"e eAerising t-e po6er of 3u+ii!" re#ie6% It is
,ore e#i+ent !n+ "e!r t-!t !r4itr!riness -!+ ! ro"e to p"!*
in t-e ,!tter 6-i"e !""otting t-e t-ree p"ots in f!#our of one
group of persons 6-i- ert!in"* 6ou"+ o,e 6it-in t-e
,e!ning of !r4itr!riness on t-e p!rt of CIDCO !n+ !g!inst
t-e pu4"i po"i*% Su- !n !tion on t-e p!rt of CIDCO9 it
!ppe!rs to us9 is not-ing 4ut ! f!#ouritis, 4!se+ on
nepotis, !n+ 6!s irr!tion!" !n+ unre!son!4"e !n+
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funtioning in ! +isri,in!tor* ,!nner !s #oie+ 4* t-is
Court in t-e !se of Raman Dayaram S!etty (supr!$%
0(% Ru"e 79 to 6-i- our notie 6!s +r!6n 4* t-e "e!rne+
ounse" !ppe!ring on 4e-!"f of t-e respon+ents9 !"t-oug-
pro#i+e+ !n !ut-orit* to +ispose of p"ots of "!n+ 4* pu4"i
!ution or 4* ten+er or 4* onsi+ering in+i#i+u!" !pp"i!tions
!s t-e Corpor!tion 6ou"+ +eter,ine fro, ti,e to ti,e9 4ut
su- !tion on t-e p!rt of t-e Corpor!tion s-ou"+ -!#e 4een
t!Ben r!tion!""* !n+ !fter !pp"*ing t-e ,et-o+s 6-i- !re
,ore r!tion!" !n+ ref"et non?!r4itr!riness !n+ 6ou"+ not 4e
s,!Be+ un+er t-e "out of f!#ouritis, !n+<or nepotis, or
4eing inf"uene+ 4* po"iti!" person!"ities% In our opinion9
!"t-oug- CIDCO -!+ t-e po6er to !""ot t-e "!n+ in !n* one of
t-e ,!nners st!te+ in Ru"e 7 !4o#e9 4ut t-e on+ut of su-
!""ot,ent s-ou"+ -!#e 4een ,ore "e!r !n+ tr!nsp!rent !n+
6it-out presene of !n* e"e,ent of f!#ouritis, !n+<or
08
Page 57
nepotis, !n+ 6it-out 4eing inf"uene+ 4* !n* su- t-ing in
eAerising t-e +isretion onferre+ upon CIDCO%
0;% In t-e !se of ,umanity and Anr. vs. State of -est
$en+al and 'rs.9 (()&&$ 8 SCC &(09 t-is Court o4ser#e+
t-!t in t-e ,!tter of gr!nting "!rgesse9 t-e Go#ern,ent -!s
to !t f!ir"* !n+ 6it-out e#en !n* se,4"!ne of
+isri,in!tion% It 6!s -e"+ !s un+erH
IIt is !Aio,!ti t-!t in or+er to !-ie#e ! 4on! fi+e
en+9 t-e ,e!ns ,ust !"so 3ustif* t-e en+% T-is Court
is of t-e opinion t-!t 4on! fi+e en+s !nnot 4e
!-ie#e+ 4* 1uestion!4"e ,e!ns9 spei!""* 6-en t-e
St!te is in#o"#e+% T-is Court -!s not 4een !4"e to get
!n* !ns6er fro, t-e St!te 6-* on ! re1uest 4* t-e
!""ottee to t-e Hon>4"e Minister for Ur4!n
De#e"op,ent9 t-e Go#ern,ent gr!nte+ t-e !""ot,ent
6it- re,!rB!4"e spee+ !n+ 6it-out onsi+ering !""
!spets of t-e ,!tter% T-is Court +oes not fin+ !n*
"egiti,!* in t-e !tion of t-e Go#ern,ent9 6-i-
-!s to !t 6it-in t-e +isip"ine of t-e onstitution!"
"!69 eAp"!ine+ 4* t-is Court in ! !ten! of !ses% /e
!re sorr* to -o"+ t-!t in ,!Bing t-e i,pugne+
!""ot,ent in f!#our of t-e !""ottee9 in t-e f!ts !n+
iru,st!nes of t-e !se9 t-e St!te -!s f!i"e+ to
+is-!rge its onstitution!" ro"e%J

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07% /e t!Be serious note !n+ eApress our !nguis-9 t-e 6!*
t-e !ut-orities of CIDCO s-o6e+ un+ue f!#our to t-e
respon+ents !n+ ,!n!ge+ to !""ot t-e Go#ern,ent "!n+ in
f!#our of one person Bno6ing fu""* 6e"" t-!t t-e !fores!i+
proprietor of t-e Co,p!n*9 in +ifferent !p!it* !n+ in
+u,,* n!,es9 soug-t !""ot,ents of p"ots% T-e 6!* CIDCO
-!s 4een +e!"ing 6it- t-e Go#ern,ent propert*9 it is -ig-
ti,e9 6e o4ser#e9 t-!t not6it-st!n+ing Regu"!tion 79 !s
ont!ine+ in t-e Regu"!tions9 t-e !ppe""!nt CIDCO ,!* t!Be
!"" en+e!#our to ,!Be !""ot,ents of p"ots 4* open ten+er or
o,peting 4i+s !n+ s-!"" not t!Be !n* +eision for !""ot,ent
of Go#ern,ent "!n+ !t t-e inst!ne of t-e Ministers !n+ Hig-
Dignit!ries for !n* purposes 6-!tsoe#er%
00% T!Bing into onsi+er!tion t-e entire f!ts of t-e !se
!n+ t-e "!6 +isusse+ -erein!4o#e9 6e -!#e no -esit!tion in
-o"+ing t-!t t-e CIDCO 6!s 3ustifie+ in !ne""ing !"" t-e
!""ot,ents ,!+e in f!#our of t-e respon+ents%
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08% For t-e re!sons !fores!i+9 t-ese !ppe!"s !re !""o6e+
!n+ t-e 3u+g,ent !n+ or+er p!sse+ 4* t-e Hig- Court in t-e
6rit petitions !re set !si+e% Conse1uent"*9 6e up-o"+ t-e
or+er p!sse+ 4* t-e CIDCO !ne""ing t-e !""ot,ents ,!+e
in f!#our of t-e respon+ents%
22222222222.J.
3.!. E4-al5
22222222222.J.
3Pi)a6i C&a)+,a G&o*e5
Ne6 De"-i9
Septe,4er (89 ()&7%
02
Page 60
8)