VidhiSangh

Supreme Court of India · 02/08/2024

CITY MONTESSORI SCHOOL versus STATE OF U.P. & ORS.

[2024] 8 S.C.R. 23 · 2024 INSC 570

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

A Nazul garden plot in Lucknow, owned by the State, was auctioned in 1995; the school's highest bid was cancelled, and while the school's writ petition (with a status quo order) was pending, the authority converted the plot to freehold in favour of the claimed lessee for a sum less than 10% of the school's bid. The Supreme Court upheld the High Court's setting aside of the conversion and freehold deed as arbitrary and a covert way of defeating the interim order, but refused to restore the school's bid after some 20 years, leaving the lease's validity and any fresh auction open.

Issues

  1. Whether the State could transfer its ownership rights in a Nazul plot to the claimed lessee by converting the lease to freehold at a nominal price, without a fair and transparent process.
  2. Whether the school's amendment challenging the conversion and the freehold deed was properly before the High Court.
  3. Whether the conversion order, passed while the school's writ petition and a status quo order were pending, was valid.
  4. Whether the order of 1995 accepting the school's highest bid should be restored.

Provisions considered

Held

Result

Both appeals dismissed; High Court judgment setting aside the conversion and freehold deed upheld; validity of the lease and any fresh auction left open, with the State to decide on auction under current policy; lessee not to be dispossessed without due process; school and lessee may apply for refunds, to be made within six weeks; no costs.

Judgment PDF: Supreme Court of India, [2024] 8 S.C.R. 23.