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SH. P.G.GUPTA ETC. ETC. versus STATE OF GUJARAT AND ORS.

Citation: [1994] SUPP. 6 S.C.R. 628 · Decided: 14-12-1994 · Supreme Court of India · Bench: K. RAMASWAMY, S. MOHAN, N. VENKATACHALA · Disposal: Dismissed

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Judgment (excerpt)

A 
SH. P.G.GUPTA ETC. ETC. 
v. 
STATE OF GUJARAT AND ORS. 
DECEMBER 14, 1994 
B 
[K. RAMASWAMY, S. MOHAN AND N. VENKATACHALA, JJ.] 
c 
D 
E 
F 
G 
H 
Constitution of India, 1950: Articles 19 (J)(e) and 21-Right to 
residence. 
Article 14-Equality--Cut off date-Housing Scheme-Resolution for 
converting rental basis scheme into hire purchase-Criteria for allotment 
with reference to date fixed in resolution held not arbitrary. 
Housing-Government Housing Scheme-Allotment to Government 
employees-Conversion from rental scheme to hire purchase scheme-
Government 
Resolution 
approving 
scheme-Eligibility 
Criteria-
Requirement of continuous residence for fzve years-Challenge to allotment 
scheme-Quashing of only two eligible categories of employees by High 
Court-First those allotted better accommodation by Government and were 
consequently not in possession for five years on the date of reso/ution-
Secondly, those transferred on permanent basis-Exclusion of these two 
categories held not arbitrary. 
In a Lower Income Group ~ousing Scheme 396 houses were 
constructed at Pahari at Ahmedabad and were allotted to Government 
employees on rental basis. Subsequently the State Government 
obtained sanction from the Central Government to convert the rental 
scheme into hire purchase scheme for allotment to the Govt. employees. 
As per the criteria for allotment continuous residence for five years was 
necessary. Further retired Govt. servants were excluded from the 
scheme. Consequently, on April 17, 1971, the Govt. passed a resolution 
under which 200 houses were converted from rental basis scheme to 
hire purchase scheme. Thereafter, the Government re-considered the 
matter and by its resolution dated June 22, 1972 resolved to allot all the 
396 houses to the Government employees on hire purchase basis. Under 
the Resolution Category III and VI of employees were inter alia entitled 
to the benefit of said scheme. Category III was of those employees who 
were working in secretariat and were originally allotted the house at 
Pahari but later allotted better accommodation at Gandhinager. In 
Category VI there were employees who were transferred outside 
628 
i 
P.G.GUPTA v. STATE 
629 
Ahmedabad on permanent basis. The said scheme of allotment was A 
challenged before the Gujarat High Court which took into .account the 
criteria of June 22, 1972 as last date for fixing the entitlement for the 
priorities mentioned in the resolution and upheld the validity of the 
scheme save and except priority categories III and VI. 
In appeal to this Court, it was contended on behalf of the appellant B 
that (i) in view of the compulsion by the State Government Category 
III employees had shifted from Pahari to Gandhinager, therefore, they 
cannot be deprived of their entitlement to allotment on hire purchase 
basis; and (ii) the denial of benefit of the scheme to Category VJ 
employees violates Articles 14, 19 and 21; the High Court committed 
manifest error of law in denying the benefit to the said Category C 
inasmuch as none had challenged the entitlement of allotment to that 
category. 
Dismissing the appeals, this Court 
HELD: 1. There is no illegality in excluding employees of cate-
D 
gories (iii) and (vi) for allotment under hire purchase scheme. (636 DJ 
2. It is true that initially when the Government of India had given 
sanction for converting 396 lower income group houses from rental 
scheme to hire purchase scheme, category III employees were in 
occupation of the respective allotted houses. It is seen that they had E 
vacated the respective premises as they were allotted government 
houses having better accommodation at Gandhinagar with concessional 
rates. But on the date of the resolution passed by the government, 
admittedly, they were not in possession of the houses at Pahari or some 
of them were in illegal occupation. In these circumstances, the 
conclusion reached by the High Court that the category III employees F 
are not entitled to the allotment, is just and reasonable. It is not vitiated 
by any error of law. [632 F, G) 
3. It is true, that a date has to be fixed with reference to a 
particular case and fixation of any date always may appear to be 
arbitrary. But some connection has to be established for fixation of the G 
date of allotment of the houses. In this case, since the government had 
taken decision on June 22, 1972, to convert the rental basis scheme into 
hire purchase scheme that date bears rational rela

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