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INSTITUTE OF LAW & ORS. versus NEERAJ SHARMA & ORS.

Citation: [2014] 11 S.C.R. 1096 · Decided: 19-09-2014 · Supreme Court of India · Bench: S. J. MUKHOPADHAYA · Disposal: Dismissed

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Judgment (excerpt)

A 
B 
(2014] 11 S.C.R. 1096 
INSTITUTE OF LAW & ORS. 
v.1 
NEERAJ SHARMA & ORS. 
(Civil Appeal No.12143 of 2007) 
' 
SEPTEMBER 19, 2014 
[SUOHANSU JYOTI MUKHOPADHAYA AND 
V. GOPALA GOWDA, JJ.] 
" 
' 
c 
Constitution of India, 1950,- Arts. 14, 226- Allotment of 
5. 75 acres of land in Chandigarh to the appellant-Law Institute, 
at Rs. 9001- per square yard only - Writ petition challenging 
the allotment ..., Di.vision Bench' of the .High Court, consisting 
of the then Chief Justice and a puisne Judge, by two separate 
0 but concumng orders dispose<J of the writ petition cancelling 
the allotment of land, however, the puisne Judge, did not 
agree on certain paragraph ..:. Applic.ations thereagainst -
Nominated judge held that 'though the Bench recorded 
different reasons, the conclusion was same - On appeal, 
held: Petitioner filed a bonafide writ petition and had the 
E necessary locus - Writ petition was maintainable in public 
interest as the allotment of the land made in favour of Institute 
was arbitrary, illegal and violative of Art. 14 - Administration 
of the Union Territory of Chandigarh conferred largesse on 
the appellant-Institute by allotting land in its favour for 
F inadequate· consideration without following procedure -
Allottee cannot be ailowed to make· money or profiteer with 
the aid of the public property - Impugned order passed by 
the puisne Judge, which was concurred by the then Chief 
Justice by his separate order and the order of the third 
G nominated Judge holding that there is no difference of opinion 
in the orders of the Division Bench are legal and valid - Thus, 
there is no reason to if.lterfere with the impugned orders in 
exercise of this Court's appellate jurisdiction - Allotment of 
Land to Educational Institutions (Schools)Rules Etc. on 
H 
1096 
• 
• 
INSTITUTE OF LAW v. NEERAJ SHARMA 
1097 
Lease Hold basis in Chandigarh Scheme, 1996 - cl. 18. 
A 
Dismissing the appeal, the Court 
HELD: 1.1. The settlement of the land in favour of the 
appellant-Institute was done within a few days without 
following the mandatory procedure for the allotment of 8 
land. The intention of the appellants to set up the law 
institute, however, their private interest is pitted against 
the public interest The loss to the public exchequer could 
have been easily .;ivoided had the land been settled by 
way of public auction inviting applications from eligible C 
persons. [Para 23] [1106-B, C] 
1.2. The respondent No.1-writ petitioner has filed a 
bonafide writ petition and he has the necessary locus. 
There is an apparent favour shown by the Union Territory o 
of Chandigarh in favour of the appellant-Institute which 
is a profit making company. Hence, there is a strong 
reason to hold that the writ petition is maintainable in 
public interest. The High Court rightly held that the writ 
petition is a Public Interest Litigation and not a Private 
E 
Interest Litigation. [Para 25] [1110-C-E] 
1.3. The appellants have miserably failed to show the 
malafide intention on the part of the respondent No. 1 in 
filing writ petition and he is a public spirited person. The 
record of the AAO (Audit) submitted to the Chandigarh 
F 
Administration proves the allegations made by him. The 
Administration of the Union Territory of Chandigarh has 
conferred largesse on the appellant-Institute by allotting 
land in its favour for inadequate consideration without 
following procedure. Therefore, the writ petition filed by 
G 
the fir5t respondent is maintainable as the allotment of the 
land in question made in favour of the first appellant-
Institute was arbitrary, illegal and the same was in 
violation of Article 14 of the Constitution. [Para 26] [1110-
F-H; 1111-A, B] 
H 
1098 
SUPREME COURT REPORTS 
[2014) 11 S.C.R. 
A 
Fertilizer Corporation Kamgar Union (Regd.) Sindri & 
Ors. v. Union of India & Ors .. 1981 (2 ) SCR 52 : AIR 1981 
SC 344, (1981) 1 SCC 568; S.P. Gupta v. Union of India and 
Anr. 1982 SCR 365: (1981) Supp SCC 87; Dattaraj Nathuji 
Thaware v. State of Maharashtra & Ors. 2004 (6) Suppl. SCR 
B 900: (2005) t sec 590 "'." referred to. 
2.1. The discretionary power conferred upon the 
public authorities to carry out the necessary Regulations 
for allotting land for the purpose of constructing a public 
educational institution should not be 'misused. The plea 
· C of charitable intentiOn or philanthropic goal behind the 
establishment of the appellant educational institution is 
discarded as the establishmen

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