LexSHIV SAGAR TIWARI versus UNION OF INDIA AND ORS.
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SHIV SAGAR TIW ARI A v. UNION OF INDIA AND ORS. NOVEMBER 8, 1996 [KULDIP SINGH AND B.L. HANSARIA, JJ.] B Adn1inistrative Lalv : Public functionary-Exercise of power in arbitrmy manner-Minister of Urban Affairs and Employment-Allotment of shops/stalls by-Allotments C made violating the norms of the policy framed by the Minister herself and without inviting tenders from eligible public-Held, while allotting the shops! stalls, the Minister did not follow any policy or criteria-Allotments were made in an arbitrary and illegal manner-The action of the Minister was wholly arbitrary, malafide and unconstitutional-The Minister is liable to pay Rs. 60 lakhs as exemplary damages to the Government exchequer- D Public Interest Litigation. Nilabati Be~era (Smt.) alias Lalita Behera v. State of Orissa and Ors., [1993] 2 SCC 746 and Common Cause, A Regd. Society v. Union of India & Ors., Writ Petition (C) No. 26 of 1995 decided on November 4, 1996, relied on. E Rookes v. Barnard & Ors., 1964 Appeal Cases 1129 and A.B. and Ors. v. South West Water Services Ltd., 1993 Queen's Bench 507, referred to. CIVIL ORIGINAL JURISDICTION : Writ Petition (C) No. 585 of I994. (Under Article 32 of the Constitution of India.) F Shiv Sagar Tiwari, Petitioner in person, Kapil Sibal and Ranjit Kumar G for the Petitioner. Altaf Ahmed, ASG, S.S. Ray Dr. Rajeev Dhawan, T.C. Sharma, Ms. Sushma Suri, V.K. Verma, Hemant Sharma, Ms. A. Subhashini, S.R. Hegde, Akshay Anand, Rama Kant, Rajiv K. Garg, N.D. Garg, R.S. Sodhi, H 65I 652 SUPREME COURT REPORTS [1996] SUPP. 8 S.C.R. A Raj Kumar Gupta, H.P. Sharma, A.N. Baadiyar and Ms. Kamini Jaiswal for the Respondents. The following Order of the Court was delivered : One of the issues for consideration before this Court in this Public B Interest Petition is the validity of the allotment of 52 shops/stalls made by Smt. Shiela Kaul, the then Minister for Housing and Urban Development,Government of India. While monitoring this case, this Court has passed various interim orders from time to time. It would be useful to quote three such orders. C The relevant part of the order dated April 17, I 996 is as under: "The material placed before us inter a/ia, discloses that 4 l shops/ stalls allotted by Smt. Shiela Kaul on June 7, 1995 and 2 shops allotted on July 3, 1995 were in total contravention of the rules/policy approved by D herself on December 26, 1994. These shops/stalls were situated in Lodhi Road Complex l & ll, Hanuman Road Market, Baba Kharak Singh Marg Market, DIZ area Market, and Pleasure Garden near Lajpat Nagar Market. The material on the record further shows that the said 43 shops/stalls were allotted by Smt. Shiela Kaul without issuing any public notice/inviting applications from the eligible persons which was in violation of the policy E formulated by her on December 26,1994. The material also discloses that orders of allotment in respect of said 41 shops/stalls were passed by Smt. Shiela Kaul on June 7, 1995 (5 shops and 36 stalls). The material further discloses that all the six shops have been allotted by her to her own relations/ employees/domestic servants of her family members and family friends. She has allotted two shops to her two grand-sons, one shop to the maid F servant of her son, Shri Vikram Kaul, who is residing in Dubai. One shop to Handloom Manager of the firm, owned by her son-in-law and another shop to a close friend. One shop has been allotted to the nephew of her Minister of State, Shri P.K. Thungon. It is further on the record that while making allotments in respect of stalls she has allotted most of the G stalls to the relations, friends of her personal staff and officials of Directorate of Estate. The details and the names of allottees and their relationship have also been placed on the record. The relevant part of the order dated July 19, 1996 is as under : H , "Mr. N.N. Singh, Superintendent of Police, CBI, New Delhi has S.S. TIWARI v. U.0.1. 653 placed on record interim report No. 3 dated June 17, 1996 and Interim A Report No. 4 dated July 16, 1996. Interim Report No. 3 indicates that a separate preliminary enquiry was registered against Smt. Shiela Kaul and others in the matters of allotment of shops/stalls made by her on June 7, 1995 and July 3, 1995 in favour of her close relations/friends of her personal staff as well as those of the officials of Directorate of Estates. According to the report, t
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