{"id":175984,"date":"1996-11-04T00:00:00","date_gmt":"1996-11-03T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/raj-kumar-karanwal-vs-the-commissioner-anr-on-4-november-1996"},"modified":"2018-11-23T03:43:46","modified_gmt":"2018-11-22T22:13:46","slug":"raj-kumar-karanwal-vs-the-commissioner-anr-on-4-november-1996","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/raj-kumar-karanwal-vs-the-commissioner-anr-on-4-november-1996","title":{"rendered":"Raj Kumar Karanwal vs The Commissioner &amp; Anr on 4 November, 1996"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Raj Kumar Karanwal vs The Commissioner &amp; Anr on 4 November, 1996<\/div>\n<div class=\"doc_bench\">Bench: K. Ramaswamy, G.B. Pattanaik<\/div>\n<pre>           PETITIONER:\nRAJ KUMAR KARANWAL\n\n\tVs.\n\nRESPONDENT:\nTHE COMMISSIONER &amp; ANR.\n\nDATE OF JUDGMENT:\t04\/11\/1996\n\nBENCH:\nK. RAMASWAMY, G.B. PATTANAIK\n\n\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n<p>\t       THE 4TH DAY OF NOVEMBER, 1996<br \/>\nPresent :\n<\/p>\n<blockquote><p>\t      Hon&#8217;ble Mr. Justice K.Ramaswamy<br \/>\n\t      Hon&#8217;ble Mr. Justice G.B. Pattanaik<br \/>\n     K.S. Chauhan and Anil Karnwal, Advs. for the Petitioner<br \/>\n\t\t\t O R D E R<br \/>\n     The following Order of the Court was delivered:<\/p><\/blockquote>\n<p>\t\t\t O R D E R<br \/>\n     The petitioner,  admittedly, had  made  a\tbid  in\t the<br \/>\nauction for the year 1993-94, conducted on February 25, 1993<br \/>\nfor a  sum of  Rs. 1,20,000\/-  per annum. The said bid could<br \/>\nnot  be\t  worked  out  for  the\t reason\t that  the  previous<br \/>\ncontractor  had\t approached  the  High\tCourt  and  had\t the<br \/>\noperation of  the contract  stayed which  period expired  by<br \/>\nefflux of time. Consequently, for the years 1995-97, instead<br \/>\nof conducting  fresh auction,  on an application made by the<br \/>\npetitioner, the\t Executive Engineer had recommended to grant<br \/>\nlease  to   the\t petitioner  for  the  same  amount  of\t Rs.<br \/>\n1,20,000\/- for\ttwo years  as was done in the previous order<br \/>\nwhich was  accepted by\tthe first respondent on September 2,<br \/>\n1995. On  subsequent instructions,  the first respondent had<br \/>\ncancelled the  grant of\t the lease  to the petitioner by his<br \/>\nproceedings dated  October 28, 1995. When the petitioner had<br \/>\nchallenged the\tlegality thereof,  the High Court in W.P.No.<br \/>\n31606 of  1995 by  order dated\tAugust 27, 1996 treating the<br \/>\ngrant of  contract to  the petitioner as an extension of the<br \/>\nprevious grant, held that the first respondent was devoid of<br \/>\npower to extend the lease without obtaining prior permission<br \/>\nof the State Government. Thus, this special leave petition.\n<\/p>\n<p>     It is  contended by  Mr. K.S.  Chauhan, learned counsel<br \/>\nfor the petitioner, that the first respondent having granted<br \/>\nthe lease  for the years 1995-97, had no power to cancel the<br \/>\nsame under  Rule 7  of the  U.P. Toll Tax Regulations Levy &amp;<br \/>\nCollection Rules,  1980 (for short, &#8220;the Rules&#8221;) which gives<br \/>\nabsolute power\tto the\tCommissioner under  Rule 7  thereof.<br \/>\nTherefore, without  any power  to review  his own order, the<br \/>\nCommissioner is\t devoid of power to cancel the same. We find<br \/>\nno force in the contention.\n<\/p>\n<p>     Even assuming  that the view taken by the High Court is<br \/>\nnot sound  in law,  since it  is a fresh grant, the ultimate<br \/>\ndecision can be rested on the following circumstances. Rules<br \/>\n4,7,8 and 9 of the Rules reads as under :\n<\/p>\n<blockquote><p>     &#8220;4. Procedure  for grant of lease.-<br \/>\n     In accordance with the provision of<br \/>\n     Section 2-C of the Act.\n<\/p><\/blockquote>\n<blockquote><p>     (i) The Governor or his nominee may<br \/>\n     invite  auction   bids   from   the<br \/>\n     persons desirous  of  taking  lease<br \/>\n     for the  collection  of  the  tools<br \/>\n     levied on\tthe bridge  specified in<br \/>\n     the  notification\t issued\t by  the<br \/>\n     Government.\n<\/p><\/blockquote>\n<blockquote><p>     (ii) The  Governor or  his\t nominee<br \/>\n     shall scrutinize  the auction  bids<br \/>\n     and verify\t the  status  any  other<br \/>\n     particulars   submitted\tby   the<br \/>\n     applicants and  after examining the<br \/>\n     documents or  papers  submitted  by<br \/>\n     the applicants shall prepare a list<br \/>\n     of the  suitable candidate\t to whom<br \/>\n     the lease contract may be granted.\n<\/p><\/blockquote>\n<blockquote><p>     (iii)     If   it\t is   considered<br \/>\n     necessary\tthe   Governor\tor   his<br \/>\n     nominee may  call any  bidders  for<br \/>\n     negotiations.\n<\/p><\/blockquote>\n<blockquote><p>     (iv) The  Governor or  his\t nominee<br \/>\n     presently\t    the\t      Divisional<br \/>\n     Commissioner,   will   select   any<br \/>\n     person  out  of  the  list\t of  the<br \/>\n     bidders and  may order    that  the<br \/>\n     said  person  contractor  shall  be<br \/>\n     granted lease  on\trespect\t of  the<br \/>\n     right  to\t collect  tolls\t on  the<br \/>\n     specified road bridge.\n<\/p><\/blockquote>\n<blockquote><p>     (v) The  Governor, if  it considers<br \/>\n     necessary, in  public interest  may<br \/>\n     put to  public auction the lease of<br \/>\n     the right\tto collect  tolls on any<br \/>\n     specified road  bridge. Such public<br \/>\n     auction shall  be held after giving<br \/>\n     prior    notice\t in    important<br \/>\n     newspapers\t  by\tthe   authorised<br \/>\n     officer by\t giving a minimum notice<br \/>\n     of one month in the first instance.<br \/>\n     If such occasion arises which makes<br \/>\n     the  tenders\/auction   to\tbe   re-<br \/>\n     invited redone. a similar notice of<br \/>\n     one month\tfor the\t public\t auction<br \/>\n     may be issued.\n<\/p><\/blockquote>\n<blockquote><p>     (vi) The  Governor or  his\t nominee<br \/>\n     presently the Division Commissioner<br \/>\n     shall have\t the power  to accept or<br \/>\n     reject  any   bid\/tender  and   his<br \/>\n     decision in  that respect\tshall be<br \/>\n     final.\n<\/p><\/blockquote>\n<blockquote><p>     (vii)  No\t lease\/contract\t of  the<br \/>\n     right to  collect the  tolls  under<br \/>\n     the Act on any road bridge shall be<br \/>\n     made for a period exceeding 5(five)<br \/>\n     years at a time.\n<\/p><\/blockquote>\n<blockquote><p>     (viii) The\t Governor or his nominee<br \/>\n     shall require the lessee to furnish<br \/>\n     security  equal   to  three  months<br \/>\n     installment  of   auction\tmoney  (<br \/>\n     including earnest money).\n<\/p><\/blockquote>\n<blockquote><p>     (ix) The  lease\/contract  shall  be<br \/>\n     executed on the standard form.\n<\/p><\/blockquote>\n<blockquote><p>     (x)  The\tcost  of  execution  and<br \/>\n     registration of  the lease be borne<br \/>\n     by the lessee.\n<\/p><\/blockquote>\n<blockquote><p>     7.\t Vesting   to  powers  accepting<br \/>\n     auction bids-  The powers accepting<br \/>\n     auctions\t and\tentering    into<br \/>\n     agreement on behalf of the Governor<br \/>\n     of Uttar Pradesh shall be vested in<br \/>\n     the Commissioner  of  the\tDivision<br \/>\n     concerned or  any officer as may be<br \/>\n     authorised by the Governor to do so<br \/>\n     in this behalf.\n<\/p><\/blockquote>\n<blockquote><p>     8. Accepting of highest auction bid<br \/>\n     if an  auction bid\/negotiated offer<br \/>\n     is not  the highest  one, the lower<br \/>\n     auction  bid\/negotiated  offer  can<br \/>\n     only be  accepted after getting the<br \/>\n     proper  approval\tof   the   State<br \/>\n     Government.\n<\/p><\/blockquote>\n<blockquote><p>     9. Extension  of  the  lease  &#8211;  No<br \/>\n     Extension of  lease may  be granted<br \/>\n     without the  prior sanction  of the<br \/>\n     State Government&#8221;.<\/p><\/blockquote>\n<p>     Rule 4(i)\tgive power to the Governor or his nominee to<br \/>\ninvite auction\tbids from  the persons\tdesirous  of  taking<br \/>\nlease for  the collection  of the tolls levied on the bridge<br \/>\nspecified in the notification issued by the Government. Rule<br \/>\n4(ii) envisages\t that the  Governor  or\t his  nominee  shall<br \/>\nscrutinize the\tauction bids and verify the status and other<br \/>\nparticulars submitted  by the applicants and after examining<br \/>\nthe documents  or papers  submitted by the applicants, shall<br \/>\nprepare a  list of  the suitable candidate to whom the lease<br \/>\ncontact may  be granted.  If it\t is considered necessary the<br \/>\nGovernor or his nominee may call any bidder for negotiations<br \/>\nunder sub-rule\t(iii). Under  sub-rule (iv)  power has\tbeen<br \/>\ngiven  to  select  nay\tbidder\tand  thereafter\t the  person<br \/>\nnominated has power to grant contract of lease in respect of<br \/>\nthe right  to collect  tolls on\t the specified\troad bridge.<br \/>\nSub-rule (v)  gives alternative\t mode of  grant of  lease by<br \/>\npublic action  with which we are not concerned in this case.<br \/>\nAfter the  grant of  the lease,\t not exceeding five years as<br \/>\nenvisaged under\t sub-rule (vii),  the lessee  shall  furnish<br \/>\nsecurity equal\tto three months instalment of auction money.<br \/>\nHe shall  execute the  contract in  the standard  from under<br \/>\nsub-rule  (ix).\t  After\t execution  thereof,  the  power  of<br \/>\nacceptance has been given to the Commissioner-Ist respondent<br \/>\nunder Rule  7  of  the\tRules.\tIf  the\t auction  bid  after<br \/>\nnegotiation is\tnot the\t highest one,  the lower auction bid<br \/>\ncan only be accepted after getting the approval of the State<br \/>\nGovernment under Rule 8; extension of the lease is regulated<br \/>\nunder Rule 9.\n<\/p>\n<p>     Thus the  mode conducting auction is a complete code by<br \/>\nitself regulating  the right  to collect  the tolls  on\t the<br \/>\nspecified road\tbridges by  public notification.  It is seen<br \/>\nthat the  first respondent was devoid of any power to accept<br \/>\nany bid\t for the  previous years  which expired by efflux of<br \/>\ntime except  in the  manner prescribed\tunder Rule 4 and the<br \/>\nfollowing  rules   thereafter.\tThe   action  of  the  first<br \/>\nrespondent,  therefore,\t is  one  without  jurisdiction\t and<br \/>\nthereby it  is a  nullity. The\tGovernment,  therefore,\t was<br \/>\nright in  directing the\t first respondent  to have the order<br \/>\ngranting lease\tby him\tto the\tpetitioner, cancelled. We do<br \/>\nnot  find   any\t illegality  in\t the  action  taken  by\t the<br \/>\nrespondent warranting interference.\n<\/p>\n<p>     The special Leave Petition is accordingly dismissed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Raj Kumar Karanwal vs The Commissioner &amp; Anr on 4 November, 1996 Bench: K. Ramaswamy, G.B. Pattanaik PETITIONER: RAJ KUMAR KARANWAL Vs. RESPONDENT: THE COMMISSIONER &amp; ANR. DATE OF JUDGMENT: 04\/11\/1996 BENCH: K. RAMASWAMY, G.B. PATTANAIK ACT: HEADNOTE: JUDGMENT: THE 4TH DAY OF NOVEMBER, 1996 Present : Hon&#8217;ble Mr. Justice K.Ramaswamy [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-175984","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Raj Kumar Karanwal vs The Commissioner &amp; Anr on 4 November, 1996 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/raj-kumar-karanwal-vs-the-commissioner-anr-on-4-november-1996\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Raj Kumar Karanwal vs The Commissioner &amp; 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