Summary
The Supreme Court quashed MHADA’s decision to dispose of Powai flats to three societies while excluding the appellant society’s offer. The offer had reached the Board through its authorised selling agent before the relevant meetings and required equal consideration. The Board could not justify exclusion through a reason first advanced in court. The appeal and writ petition were allowed, leaving the Board free to proceed according to law; no direct allotment to the appellant was ordered.
Issues
- Whether excluding the appellant’s offer from consideration violated fairness in disposal of public property.
- Whether the Board’s explanation first advanced in litigation justified its decision.
Held
- A public authority disposing of its property must act fairly rather than choose recipients arbitrarily. The appellant and the three societies were similarly situated and entitled to equal consideration of their offers. (¶¶ 20, 21, 22, 23, 24, 28, 29, 30)
- The authorised agent received and forwarded the appellant’s proposal before the meetings. Its letter specified a purchase of 110 flats for Rs.17 crore and was an offer, rather than merely a request for information. (¶¶ 25, 26, 27)
- The Board’s asserted reason for exclusion was not recorded in its deliberations and could not first be supplied before the High Court. It also failed on the substance of the letter. (¶¶ 31, 32)
- The exclusion rendered the resolution arbitrary and contrary to Article 14. Having decided the legal grounds, the Court did not examine allegations of mala fides against officials. (¶¶ 33, 34)
- The appeal and writ petition were allowed. Resolution No.192 was quashed insofar as it disposed of the Powai flats to the three societies, and the Board was left at liberty to proceed according to law. (¶¶ 35, 36)
Result
Appeal and writ petition allowed; Resolution No.192 dated 10/14 May 2003 quashed insofar as it concerned disposal of the Powai flats to the three societies. Board at liberty to proceed according to law.