THE BIHAR STATE HOUSING BOARD & ORS. versus RADHA BALLABH HEALTH CARE AND RESEARCH INSTITUTE (P) LTD.

Citation: [2019] 12 S.C.R. 444 · Decided: 13-09-2019 · Supreme Court of India · Bench: L. NAGESWARA RAO · Disposal: Appeal(s) allowed

Cited by 1 judgment(s) · cites 3 · see the full citation network in Lexace

Judgment (excerpt)

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SUPREME COURT REPORTS
[2019] 12 S.C.R.
THE BIHAR STATE HOUSING BOARD & ORS.
v.
RADHA BALLABH HEALTH CARE AND RESEARCH
INSTITUTE (P) LTD.
(Civil Appeal No. 7243 of 2019)
SEPTEMBER 13, 2019
[L. NAGESWARA RAO AND HEMANT GUPTA, JJ]
Public property: Allotment of plot – Advertisement of plot for
health center by appellant – Respondent even though being the
sole applicant not allotted plot – Challenge to – In a writ petition,
direction by the High Court to the appellant to consider respondent’s
application – Appellant allotted two plots without any advertisement,
in lieu of the plot advertised earlier – Respondent paid the amount
demanded by the appellant – Thereafter, writ petition by the
respondent disputing the allotment price which was allowed by the
Single Judge of the High Court – Said order upheld – On appeal,
held: Response to an advertisement does not lead to any obligation
on the appellant to allot any plot – Mere fact that the respondent
had applied for allotment of a plot does not confer any legal or
equitable right to seek allotment of any plot – Appellant was more
than indulgent in allotting two plots without any advertisement –
Public property could not be disposed of without any advertisement
and without giving opportunity to eligible persons to apply and
seek consideration of allotment of public property in a transparent
and non-discriminatory manner – Thus, the allotment of two plots,
on the basis of direction given by the High Court to consider the
claim of the respondent, is against the public interest – However,
the respondent has constructed hospital which is operational thus,
the allotment cannot be cancelled – Action of the respondent to
dispute the allotment price after accepting the price is neither fair
nor reasonable and cannot be accepted – Appellant as a State is
required to act fairly in fixation of price for allotment of a plot –
Order of the High Court to direct the appellant to charge the price
proportionate to the price advertised earlier has no legal basis and
is set aside.
   [2019] 12 S.C.R. 444
444
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Allowing the appeal, the Court
HELD: 1.1 The respondent does not get any right of
allotment of a plot merely because it has applied for allotment
earlier. The response to an advertisement does not lead to any
obligation on the appellant to allot any plot. Admittedly, there
was no allotment in pursuance of the offer submitted by the
respondent. Mere fact that the respondent had applied for
allotment of a plot does not confer any legal or equitable right to
seek allotment of any plot. The appellant was more than indulgent
in allotting two plots of 24000 sq. feet without any advertisement
advertising such plots merely on the basis of the fact that the
respondent had applied for allotment at an earlier stage in respect
of another plot. The public property could not be disposed of
without any advertisement and without giving opportunity to
eligible persons to apply and seek consideration of allotment of
public property in a transparent and non-discriminatory manner.
[Para 25, 26] [456-E-G]
1.2 The very allotment of two plots, on the basis of direction
given by the High Court to consider the claim of the respondent,
is against the public interest. However, the fact remains that after
allotment, the respondent has constructed hospital which is
operational therefore; it is too late in the day to cancel the
allotment of the plot allotted to the respondent. [Para 27]
[457-A-B]
1.3 The respondent has accepted the price on three
occasions; firstly on March 21, 2014, then on April 2, 2014
whereby, the respondent remitted a sum of Rs.40 lakhs by two
cheques as well. The respondent has accepted the payment
schedule but subject to final measurements of plots. It is
thereafter the letter of allotment was issued on December 11,
2014. Thirdly, the respondent remitted another sum of
Rs.1,71,00,000/- vide three separate cheques in January, 2015
so as to complete 20% of the interim price of letter of allotment
dated December 11, 2014. It is thereafter an agreement was
executed on March 12, 2015 unequivocally and categorically
accepting the offer of the appellant. It was not open to the
respondent to dispute the price of allotment offered by the
THE BIHAR STATE HOUSING BOARD v. RADHA BALLABH HEALTH
CARE AND RESEARCH INSTITUTE (P) LTD.
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SUPREME COURT REPORTS
[2019] 12 S.C.R.
appellant. The respondent is estopped to dispute the allotment
price in these circu

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