{"id":219779,"date":"2011-05-09T00:00:00","date_gmt":"2011-05-08T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/noida-entrepreneurs-assocn-vs-n-o-i-d-a-ors-on-9-may-2011"},"modified":"2017-06-30T02:53:51","modified_gmt":"2017-06-29T21:23:51","slug":"noida-entrepreneurs-assocn-vs-n-o-i-d-a-ors-on-9-may-2011","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/noida-entrepreneurs-assocn-vs-n-o-i-d-a-ors-on-9-may-2011","title":{"rendered":"Noida Entrepreneurs Assocn vs N O I D A &amp; Ors on 9 May, 2011"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Noida Entrepreneurs Assocn vs N O I D A &amp; Ors on 9 May, 2011<\/div>\n<div class=\"doc_author\">Author: . B Chauhan<\/div>\n<div class=\"doc_bench\">Bench: G.S. Singhvi, B.S. Chauhan<\/div>\n<pre>                                                                                     Reportable\n\n\n                IN THE SUPREME COURT OF  INDIA\n\n                   CIVIL ORIGINAL JURISDICTION\n\n\n              WRIT PETITION (CIVIL) NO. 150 OF 1997\n\n\n\n\nNOIDA Entrepreneurs Association                                     .....Petitioner  \n\n                                        Versus\n\nNOIDA &amp; Ors.                                                        .....Respondents \n\n\n\n\n                               J U D G M E N T   \n<\/pre>\n<p>Dr. B.S. CHAUHAN,  J.\n<\/p>\n<\/p>\n<p>        1.      The   Legislature   of   Uttar   Pradesh   enacted   the   U.P. <\/p>\n<p>Industrial   Area   Development   Act,   1976,   (hereinafter   referred   to   as <\/p>\n<p>`Act   1976&#8242;)   for  the   purpose   of  proper   planning  and   development   of <\/p>\n<p>industrial and residential units and to acquire and develop the land for <\/p>\n<p>the   same.     The   New   Okhla   Industrial   Development   Authority <\/p>\n<p>(hereinafter referred to as  the `Authority&#8217;), has been constituted under <\/p>\n<p>the said Act, 1976. The object of the Act had been that genuine and <\/p>\n<p>deserving   entrepreneurs   may   be   provided   industrial   and   residential <\/p>\n<p>plots and other necessary amenities and facilities.   Thus, in order to <\/p>\n<p>carry   out   the   aforesaid   object,   a   new   township   came   into   existence. <\/p>\n<p>All   the   activities   in   the   Authority     had   to   be   regulated   in   strict <\/p>\n<p>adherence   to   all   the   statutory   provisions   contained   in   relevant   Acts, <\/p>\n<p>Rules  and  Regulations  framed for  this  purpose.    However,  from the <\/p>\n<p>very   inception   of   the   township,   there   has   always   been   a   public   hue <\/p>\n<p>and   cry   that   officials   responsible   for   managing   the   Authority   are <\/p>\n<p>guilty   of   manipulation,   nepotism   and   corruption.     Wild   and   serious <\/p>\n<p>allegations of a very high magnitude had been leveled against some of <\/p>\n<p>the officials carrying out the responsibilities of implementing the Act <\/p>\n<p>and other statutory provisions.\n<\/p>\n<\/p>\n<p> 2.      The   instant   writ   petition   was   originally   filed   seeking   a   large <\/p>\n<p> number of reliefs including the allotment of industrial and residential <\/p>\n<p> plots   to   the   members   of   the   petitioner-Association   and   a   large <\/p>\n<p> number   of   officials   who   had   acted   as   Chief   Executive   Officers <\/p>\n<p> (hereinafter   referred   to   as   `CEO&#8217;)   of   the   Authority   had   been <\/p>\n<p> impleaded therein as respondents.  However, considering the fact that <\/p>\n<p> relief   for   personal   benefits   of   the   members   had   been   sought   and <\/p>\n<p> alternative   means   for   seeking   the   redressal   of     grievances   in   that <\/p>\n<p> respect were available, the petitioner made a request to the Court that <\/p>\n<p> its   petition   may   be   treated   as   a   public   interest   litigation   (in   short <\/p>\n<p> `PIL&#8217;) for a limited purpose.  This Court vide order dated 21.4.1997 <\/p>\n<p> treated  the matter as PIL  and issued show cause notice only to the <\/p>\n<p> extent of the following reliefs:\n<\/p>\n<p><span class=\"hidden_text\">                                                                                         2<\/span><\/p>\n<blockquote><p>           &#8220;(1)   Issue   writ   of   mandamus   and\/or   any <\/p>\n<p>           appropriate   writ   and direct   the CBI  to  investigate <\/p>\n<p>           into all the land allotments and conversion of lands <\/p>\n<p>           made by the NOIDA  during the past 10 years.<\/p>\n<p>           (2)     Issue an appropriate  writ  and directions  and <\/p>\n<p>           frame   guidelines   for   allotment   of   lands   by   the <\/p>\n<p>           NOIDA.&#8221;\n<\/p><\/blockquote>\n<blockquote>\n<\/blockquote>\n<p>3.     Dr.   Rajeev   Dhavan,   learned   senior   counsel   who   had   been <\/p>\n<p>appearing for the petitioner in the matter was requested by this Court <\/p>\n<p>vide order dated 29.8.1997 to act as Amicus Curiae.          <\/p>\n<p>                  The matter  was heard several times by this Court and after <\/p>\n<p>scrutinising  of  a very  large  number  of documents, the  Court was  of <\/p>\n<p>the   opinion   that   the   allegations   made   in   the   petition   required <\/p>\n<p>investigation.     Thus,   vide   order   dated   15.12.1997,   this   Court   issued <\/p>\n<p>notice to the State of U.P. to indicate  its consent to an investigation <\/p>\n<p>being   made   by   the   Central   Bureau   of   Investigation   (hereinafter <\/p>\n<p>referred   to   as   CBI),   in   view   of   the   very   serious   nature   of   the <\/p>\n<p>allegations.   The   State   of   U.P.   had   also   received   similar   complaints <\/p>\n<p>and   thus,   it   constituted   a   Commission   of   Inquiry   headed   by   Justice <\/p>\n<p>Murtaza Hussain, a former Judge of Allahabad High Court to enquire <\/p>\n<p>about the same.  The Commission completed its task and submitted its <\/p>\n<p>report. The said report was also placed before this Court in the first <\/p>\n<p>week of January 1998. As the report indicated, prima facie view of the <\/p>\n<p><span class=\"hidden_text\">                                                                                   3<\/span><\/p>\n<p>Commission,   that   Mrs.   Neera   Yadav,   IAS,   respondent   no.7   had <\/p>\n<p>committed serious irregularities and illegalities, a copy of the report of <\/p>\n<p>the Commission was also directed to be given to her   and this Court <\/p>\n<p>vide order dated 6.1.1998 asked the State of U.P. as to whether this <\/p>\n<p>report   had   been   accepted   by   the   State   Government   and,   if   so,   what <\/p>\n<p>was   the   likely   follow   up   measure   pursuant   thereto.     The   State <\/p>\n<p>Government   submitted   a   reply   in   response   to   the   said   show   cause <\/p>\n<p>pointing   out   that   the   State   Government   proposed   to   initiate <\/p>\n<p>disciplinary proceedings against her.\n<\/p>\n<\/p>\n<p>4.     In   view   of   the   material   on   record,   this   Court   expressed <\/p>\n<p>tentative opinion that it would  be more appropriate that the matter is <\/p>\n<p>investigated   by   the   CBI   and   if   such   investigation   discloses   the <\/p>\n<p>commission   of   criminal   offence(s),   the   persons   found   responsible <\/p>\n<p>should be prosecuted in a criminal court.   However, considering the <\/p>\n<p>fact   that   allegations   of  a   very   high  magnitude   and  gravity   had  been <\/p>\n<p>made against a large number of officials, this Court wanted the CBI to <\/p>\n<p>investigate first the cases against Mrs. Neera Yadav, IAS, respondent <\/p>\n<p>no.7, as is evident from the proceedings dated 20.1.1998, which reads <\/p>\n<p>as under:\n<\/p>\n<\/p>\n<blockquote><p>           &#8220;For the time being, we are directing the CBI to <\/p>\n<p>           conduct   an   investigation   in   respect   of   the <\/p>\n<p><span class=\"hidden_text\">                                                                                    4<\/span><\/p>\n<p>            irregularities   in   the   matter   of   allotments   and <\/p>\n<p>            conversions of the plots&#8230;&#8230;&#8230;..<\/p><\/blockquote>\n<p>                    Shri G.L. Sanghi, the learned senior counsel <\/p>\n<p>            appearing   for   respondent   no.7   states   that   though <\/p>\n<p>            the   respondent   no.7   does   not   admit   that     she   has <\/p>\n<p>            committed   any   irregularity   in   the   matter   of <\/p>\n<p>            allotment   or   conversion   of   plots   in   NOIDA   but <\/p>\n<p>            according   to   respondent   no.7  there   are   other <\/p>\n<p>            persons   who   might   have   committed   such <\/p>\n<p>            irregularity   and   she   seeks   leave   to   file   an <\/p>\n<p>            affidavit   in   this   regard.     She   may   file   an <\/p>\n<p>            affidavit   giving   particulars   of   such   irregular <\/p>\n<p>            allotments and in the event of such affidavit being <\/p>\n<p>            filed  further   directions   in   that   regard   will   be <\/p>\n<p>            given.&#8221;          (Emphasis added)<\/p>\n<p>This   Court   by   the   same   order   also   issued   certain   directions   with <\/p>\n<p>regard to irregular allotments and conversion of plots which had been <\/p>\n<p>found   to   have   been   made   in   the   report   of   Justice   Murtaza   Hussain <\/p>\n<p>Commission.\n<\/p>\n<\/p>\n<p>5.      In view of the above referred to order, Mrs. Neera Yadav, IAS, <\/p>\n<p>respondent   no.7   filed   her   affidavit   with   regard   to   irregularities <\/p>\n<p>committed   by   other   officers,   namely,   Shri   P.K.   Mishra,   respondent <\/p>\n<p>no.5;   Shri   Bijendra   Sahay,   respondent   no.8;   Shri   Ravi   Mathur, <\/p>\n<p>respondent   no.4;   and   one   Shri   S.C.   Tripathi.     The   affidavit   filed   by <\/p>\n<p>Mrs. Neera Yadav, IAS, respondent no.7 was considered by this Court <\/p>\n<p>on   24.2.1998   and   took   note   of   the   fact   that   in   respect   of   the <\/p>\n<p><span class=\"hidden_text\">                                                                                      5<\/span><\/p>\n<p>same\/similar   allegations   made   against   Shri   Bijendra   Sahay, <\/p>\n<p>respondent   no.8,   the   State   Government     had   already   accepted   his <\/p>\n<p>explanation.  So far as the allegations made against Shri Ravi Mathur, <\/p>\n<p>IAS,  and Shri P.K. Mishra, respondent nos. 4 and 5 respectively and <\/p>\n<p>one Shri S.C. Tripathi are concerned, the State Government vide order <\/p>\n<p>dated 18.7.1997 had referred the same to the Chairman of  the Board <\/p>\n<p>of Revenue for inquiry and the same was pending.  <\/p>\n<p>6.     In   the   meanwhile,   Shri   Mahinder   Singh   Yadav,   husband   of <\/p>\n<p>Mrs. Neera Yadav, IAS, respondent no.7 and one Shri Bali Ram, Ex. <\/p>\n<p>Member   of   Parliament   also   filed   complaints   against   the   aforesaid <\/p>\n<p>officials   in   1996-1997,   which   were   also   referred   to   the   Chairman, <\/p>\n<p>Board of Revenue for inquiry.\n<\/p>\n<\/p>\n<p>7.     One   Shri   Naresh   Pratap   Singh   also   filed   a   complaint   against <\/p>\n<p>some   officers   including   Shri   Ravi   Mathur,   IAS,   respondent   no.4   on <\/p>\n<p>27.6.1997 before the Lok-Ayukta of U.P.   However, the Lok-Ayukta <\/p>\n<p>vide   letter   dated   21.4.1998   to   the   State   Government   expressed   his <\/p>\n<p>inability   to   conduct   an   enquiry   against   Shri   Ravi   Mathur,   IAS, <\/p>\n<p>respondent no.4 and suggested that the matter be referred to the CBI.  <\/p>\n<p><span class=\"hidden_text\">                                                                                 6<\/span><\/p>\n<p>8.     This   Court   vide   order   dated   11.1.2005   constituted   a <\/p>\n<p>Commission   headed   by     Justice   K.T.   Thomas   to   examine   a   large <\/p>\n<p>number   of   issues,   including   as   to   why   disciplinary   proceedings   had <\/p>\n<p>been dropped   by the State of U.P. against several officials who had <\/p>\n<p>been   impleaded   as   respondents   in   this   case.   The   Commission <\/p>\n<p>submitted   the   report   dated   24.12.2005,     and   after   considering   the <\/p>\n<p>same,  this Court   vide order dated 8.12.2008 closed the proceedings <\/p>\n<p>against Shri Bijendra Sahay, respondent no.8.  One Shri S.C. Tripathi <\/p>\n<p>also stood exonerated in earlier proceedings.<\/p>\n<p>               In   view   of   the   order   passed   by   this   Court,   the   CBI <\/p>\n<p>conducted   the   enquiry   against   Mrs.   Neera   Yadav,   IAS,   respondent <\/p>\n<p>no.7 and filed  a charge sheet  against her.   She was put on trial  and <\/p>\n<p>proceeded with in accordance with law.\n<\/p>\n<\/p>\n<p>9.     Thus, in view of the aforesaid factual matrix, this Court has to <\/p>\n<p>examine   as   to   whether   any   action   is   warranted   against   Shri   Ravi <\/p>\n<p>Mathur, IAS, respondent no.4 and if so, whether it is permissible  to <\/p>\n<p>initiate the disciplinary proceedings against him as he reached the age <\/p>\n<p>of   superannuation   and   has   retired   and   the   alleged   misconduct   had <\/p>\n<p>been committed by him in 1993-94, and as to whether the misconduct <\/p>\n<p>is of such a grave nature that it warrants the criminal prosecution and <\/p>\n<p><span class=\"hidden_text\">                                                                                  7<\/span><\/p>\n<p>if   so,   what   should   be   the   agency   which   may   be   entrusted   with   the <\/p>\n<p>investigation and prosecution.\n<\/p>\n<\/p>\n<p>10.     Shri   K.T.S.   Tulsi,   learned   senior   counsel   appearing   for <\/p>\n<p>respondent no.7 submitted that on similar allegations, this Court had <\/p>\n<p>directed   CBI   to   initiate   criminal   proceedings   against   his   client   and <\/p>\n<p>criminal   prosecution   has   been   launched   and   ended   in   logical <\/p>\n<p>conclusion,   thus,   there   could   be   no   justification   not   to   initiate   the <\/p>\n<p>similar proceedings against Shri Ravi Mathur, IAS, respondent no.4. <\/p>\n<p>Not   initiating   the   proceedings   on   the   similar   or   more   grave   charges <\/p>\n<p>would   amount   to   treating   the   said   respondent   no.7   with   hostile <\/p>\n<p>discrimination.   The   disciplinary   proceedings   cannot   be   initiated <\/p>\n<p>against   him   in   view   of   delay   and   latches   as   the   statutory   rules <\/p>\n<p>applicable do not permit such a course at such a belated stage.   The <\/p>\n<p>criminal   prosecution   can   easily   be   launched.   The   matter   requires <\/p>\n<p>investigation as to whether the said respondent no.4 had committed an <\/p>\n<p>offence   under   the   provisions   of  Prevention   of  Corruption   Act,   1988 <\/p>\n<p>(hereinafter called the Act 1988).\n<\/p>\n<\/p>\n<p>11.     Dr.   Rajeev   Dhavan,   learned   senior   counsel\/Amicus   Curiae <\/p>\n<p>would   submit   that   the   gravity   of   allegations   made   against   the   said <\/p>\n<p><span class=\"hidden_text\">                                                                                      8<\/span><\/p>\n<p>respondent no.4 is of such a high magnitude that it warrants the same <\/p>\n<p>treatment as given to Mrs. Neera Yadav, IAS, respondent no.7.   Dr. <\/p>\n<p>Dhavan has taken us through all the proceedings including the reports <\/p>\n<p>of   the   Chairman,   Board   of   Revenue   and   K.T.   Thomas   Commission <\/p>\n<p>and submitted that it is a fit case directing the CBI to conduct enquiry <\/p>\n<p>against the respondent no.4. However, Dr. Rajeev Dhavan has raised <\/p>\n<p>serious objection in respect of intervention of the respondent no. 7 and <\/p>\n<p>opportunity  of hearing accorded to Shri K.T.S. Tulsi, learned  senior <\/p>\n<p>counsel on her behalf  that in a case of this nature the respondent no.7 <\/p>\n<p>had no locus standi and right to raise any grievance whatsoever.<\/p>\n<p>12.    Shri   Rakesh   Dwivedi,   learned   senior   counsel   appearing   for <\/p>\n<p>respondent no.4, has vehemently opposed the initiation of disciplinary <\/p>\n<p>proceedings or criminal prosecution on the ground that the  Authority <\/p>\n<p>did not suffer any financial loss. There is nothing on record to show <\/p>\n<p>that the said respondent indulged in corruption, thus, the provisions of <\/p>\n<p>the Act 1988 were attracted.   The said respondent had acted in good <\/p>\n<p>faith.     The   disciplinary   proceedings   cannot   be   initiated,   being   time <\/p>\n<p>barred.  All the allegations had been made against the said respondent <\/p>\n<p>no.4 at the behest of respondent no.7, thus, suffers from mala fide and <\/p>\n<p>bias.   The said respondent had paid the transfer charges only once to <\/p>\n<p><span class=\"hidden_text\">                                                                                  9<\/span><\/p>\n<p>the   tune   of   Rs.1.80   lacs.   The   second   conversion   had   subsequently <\/p>\n<p>been cancelled  by  the respondent no.7 herself.  Due to   pendency  of <\/p>\n<p>this case, the said respondent could not get the physical possession of <\/p>\n<p>any   of   the   plots.     The   change   of   user   of   the   land   in   Sector   32   was <\/p>\n<p>made  in good faith.   More so, such a change was cancelled  and the <\/p>\n<p>green area was restored by the respondent no.7 herself.   The contract <\/p>\n<p>given   by   the   respondent   no.4   to   certain   contractors   had   been   at   the <\/p>\n<p>rate on which they had been working earlier.  Thus, the Authority did <\/p>\n<p>not suffer any loss whatsoever.\n<\/p>\n<\/p>\n<p>13.     Before   we  proceed  with  the  case  on  merits,  we  would  like  to <\/p>\n<p>make it clear that Mrs. Neera Yadav, IAS, respondent no.7, had been <\/p>\n<p>given an opportunity by this Court vide order dated 20.1.1998  to file <\/p>\n<p>her affidavit disclosing the delinquency committed by other officers. <\/p>\n<p>In pursuance of the said order, she submitted her affidavit.  Therefore, <\/p>\n<p>it is not possible for us at such a belated stage to deny her the right of <\/p>\n<p>hearing and ignore the submissions made by her counsel, Shri K.T.S. <\/p>\n<p>Tulsi. (vide:  <a href=\"\/doc\/1296574\/\">V.S. Achuthanandan v. R. Balakrishna Pillai &amp; Ors.,<\/a> <\/p>\n<p>(2011) 3 SCC 317).\n<\/p>\n<\/p>\n<p>14.     We   have   considered   the   rival   submissions   made   by   learned <\/p>\n<p>counsel for the parties and perused the record.<\/p>\n<p><span class=\"hidden_text\">                                                                                            1<\/span><\/p>\n<p>        15.     The services of Shri Ravi Mathur, IAS, respondent no.4 <\/p>\n<p>stood     governed   by   All   India   Services   (Death-cum-Retirement <\/p>\n<p>Benefits)   Rules,   1958.     Rule   6(b),   thereof,   provides   that   in  case   the <\/p>\n<p>delinquent had already retired, the proceedings shall not be instituted <\/p>\n<p>against him without the sanction of the Central Government and shall <\/p>\n<p>be in respect of an event which took place  not more than four years <\/p>\n<p>before the institution of such proceedings.  Thus, it is evident that law <\/p>\n<p>does   not   permit   holding   disciplinary   proceedings   against   Shri   Ravi <\/p>\n<p>Mathur,   IAS,   respondent   no.4   at   this   belated   stage   and   this   view <\/p>\n<p>stands fortified by the judgments of this Court in <a href=\"\/doc\/166815\/\">B.J. Shelat v. State <\/p>\n<p>of Gujarat &amp; Ors., AIR<\/a> 1978 SC 1109; <a href=\"\/doc\/631062\/\">State Bank of India v. A.N. <\/p>\n<p>Gupta &amp; Ors.,<\/a> (1997) 8 SCC 60;  <a href=\"\/doc\/1642808\/\">State of U.P. &amp; Ors. v. Harihar <\/p>\n<p>Bholenath,<\/a> (2006) 13 SCC 460; <a href=\"\/doc\/1132155\/\">UCO Bank &amp; Anr. v. Rajinder Lal <\/p>\n<p>Capoor,  AIR<\/a> 2007 SC 2129;  <a href=\"\/doc\/1461990\/\">Ramesh Chandra Sharma v. Punjab <\/p>\n<p>National Bank &amp; Anr.,<\/a> (2007) 9 SCC 15; and <a href=\"\/doc\/1132155\/\">UCO Bank &amp; Anr. v. <\/p>\n<p>Rajinder Lal Capoor, AIR<\/a> 2008 SC 1831.\n<\/p>\n<p>16      So far as the initiation of criminal proceedings is concerned it is <\/p>\n<p>governed   by   the   provisions   of   Code   of   Criminal   Procedure,   1973 <\/p>\n<p>(hereinafter   referred   to   as   Cr.P.C.).   Section   468   thereof   puts   an <\/p>\n<p>embargo on the court to take cognizance of an offence after expiry of <\/p>\n<p><span class=\"hidden_text\">                                                                                      1<\/span><\/p>\n<p>limitation   provided   therein.     However,   there   is   no   limitation <\/p>\n<p>prescribed   for   an   offence   punishable   with   more   than   3   years <\/p>\n<p>imprisonment.     Section   469   declares   as   to   when   the   period   of <\/p>\n<p>limitation   would   start.     Sections   470-471   provide   for   exclusion   of <\/p>\n<p>period of limitation in certain cases.  Section 473 enables the court to <\/p>\n<p>condone the delay provided the court is satisfied with the explanation <\/p>\n<p>furnished by the prosecution or where the interest of justice demands <\/p>\n<p>extension of  the period of limitation.\n<\/p>\n<\/p>\n<p>                   This Court in   <a href=\"\/doc\/1432851\/\">Japani Sahoo v. Chandra Sekhar Mohanty, <\/p>\n<p>AIR<\/a> 2007 SC 2762, dealt with the issue and observed as under:<\/p>\n<blockquote><p>           &#8220;14. The  general  rule of criminal justice  is that a <\/p>\n<p>           crime never dies. The principle is reflected in the <\/p>\n<p>           well-known   maxim  nullum   tempus   aut   locus  <\/p>\n<p>           occurrit regi  (lapse of time is no bar to Crown in <\/p>\n<p>           proceeding against offenders)&#8230;&#8230;. It is settled law <\/p>\n<p>           that   a   criminal   offence   is   considered   as   a   wrong <\/p>\n<p>           against the State and the Society even though it has <\/p>\n<p>           been   committed   against   an   individual.   Normally, <\/p>\n<p>           in serious offences, prosecution is launched by the <\/p>\n<p>           State  and  a  Court of Law  has   no power to  throw <\/p>\n<p>           away   prosecution   solely   on   the   ground   of   delay. <\/p>\n<p>           Mere delay in approaching a Court of Law would <\/p>\n<p>           not   by   itself   afford   a   ground   for   dismissing   the <\/p>\n<p>           case   though   it  may   be  a   relevant   circumstance   in <\/p>\n<p>           reaching a final verdict.&#8221;\n<\/p><\/blockquote>\n<blockquote>\n<\/blockquote>\n<p>17.    The aforesaid judgment was followed by this Court in  <a href=\"\/doc\/178248\/\">Sajjan <\/p>\n<p>Kumar v. Central Bureau of Investigation,<\/a> (2010) 9 SCC 368.<\/p>\n<p><span class=\"hidden_text\">                                                                                1<\/span><\/p>\n<p>18.     Thus, it is evident that question of delay in launching criminal <\/p>\n<p>prosecution may be a circumstance to be taken into consideration in <\/p>\n<p>arriving   at   a   final   decision,   but   it   cannot   itself   be   a   ground   for <\/p>\n<p>dismissing the complaint.   More so, the issue of limitation has to be <\/p>\n<p>examined in the light of the gravity of the charge. <\/p>\n<p>19.     Thus,   we   have   to   examine   as   to   whether   the   said   respondent <\/p>\n<p>could   be   tried   for   commission   of   an   offence,   if   any,   under   the <\/p>\n<p>provisions of the Act, 1988.\n<\/p>\n<\/p>\n<p>         Section 13 thereof, reads:\n<\/p>\n<p>\n            &#8220;Criminal  misconduct by a public servant.- (1) <\/p>\n<p>            A public servant is said to commit  the offence of <\/p>\n<p>            criminal misconduct,-\n<\/p>\n<\/p>\n<p>            (b)     &#8230;&#8230;&#8230;\n<\/p>\n<\/p>\n<p>            (c)      if   he   dishonestly   or   fraudulently <\/p>\n<p>                     misappropriates   or   otherwise   converts   for <\/p>\n<p>                     his own use any property entrusted to him <\/p>\n<p>                     or under his control as a public servant or <\/p>\n<p>                     allows any other person to do so; or<\/p>\n<p>            (d)      if he, &#8211;\n<\/p>\n<\/p>\n<p>            (i)     by   corrupt   or   illegal   means,   obtains   for <\/p>\n<p>                    himself or for any other person any valuable <\/p>\n<p>                    thing or pecuniary advantage; or<\/p>\n<p>            (ii)    by   abusing   his   position   as   a   public <\/p>\n<p>                    servant,   obtains   for   himself   or   for   any <\/p>\n<p><span class=\"hidden_text\">                                                                                       1<\/span><\/p>\n<p>                     other   person   any   valuable   thing   or <\/p>\n<p>                     pecuniary advantage; or<\/p>\n<p>            (iii)    while   holding   office   as   a   public   servant, <\/p>\n<p>                     obtains for any person  any  valuable thing <\/p>\n<p>                     or  pecuniary   advantage   without   any <\/p>\n<p>                     public interest.&#8221;         (Emphasis added)  <\/p>\n<p>20.      Shri   Ravi   Mathur,   IAS,   respondent   no.4   had   been   the   CEO, <\/p>\n<p>NOIDA   from   July   1993   to   9.1.1994   and   the   CEO,   Greater   NOIDA <\/p>\n<p>from   10.1.1994   to   26.1.1995.     Altogether,   there   had   been   14 <\/p>\n<p>allegations  against  him  which  the  Chairman, Board   of Revenue  had <\/p>\n<p>examined. The findings recorded by the Chairman, Board of Revenue <\/p>\n<p>were also placed before Justice K.T. Thomas Commission.  However, <\/p>\n<p>at the time of arguments, Dr. Rajeev Dhavan, learned Amicus Curiae <\/p>\n<p>has   submitted   that   there   are   three   major   allegations   in   respect   of <\/p>\n<p>which   this   Court   must   direct   the   CBI   enquiry.     He   has   drawn   our <\/p>\n<p>attention to the findings recorded by the Chairman, Board of Revenue <\/p>\n<p>on allegation nos. (iv), (ix) and (xiii) which are as under :<\/p>\n<p>  Allegation No. (iv) :\n<\/p>\n<\/p>\n<p>            Shri Ravi Mathur allotted contracts worth Rs.10 crores <\/p>\n<p>  to   different   contractors   on   selection   basis   without   inviting <\/p>\n<p>  tenders.\n<\/p>\n<p>\n  Findings:\n<\/p>\n<\/p>\n<p>  (i)      The  award of  the  contract   to  M\/s. Anil  Kumar  &amp; Co., <\/p>\n<p>  was   approved   by   the   CEO.     The   argument   that   the   usual <\/p>\n<p><span class=\"hidden_text\">                                                                                   1<\/span><\/p>\n<p>process   was   not   followed   on   account   of   urgency   is   not <\/p>\n<p>acceptable. (para 1.4.3.2)<\/p>\n<p>(ii)     The award of the contract to M\/s. Techno Construction <\/p>\n<p>Co. was a pre-detemined decision. No satisfactory explanation <\/p>\n<p>why this company only was selected. (para 1.4.3.3.)<\/p>\n<p>(iii)    The notes in the file for the award of the contract to M\/s. <\/p>\n<p>Anil Kumar &amp; Co. in Sector Gamma were tailor made and the <\/p>\n<p>urgency projected cannot be accepted. (para 1.4.3.4)<\/p>\n<p>(iv)     There was no urgency warranting the award of contract <\/p>\n<p>to Mr. J.K. Jain, which was approved by the CEO also. (para <\/p>\n<p>1.4.3.5)<\/p>\n<p>(v)      The proposal to award work to M\/s. Fair Deal Engineers <\/p>\n<p>was faulty and the urgency clause was not well defined.   The <\/p>\n<p>note was approved by the CEO. (para 1.4.3.6)<\/p>\n<p>(vi)     The argument of urgency advanced is not acceptable in <\/p>\n<p>some   cases   (para   1.4.4).     At   least   in   one   case   there   was   not <\/p>\n<p>even a necessity to award the work. (para 1.4.4)<\/p>\n<p>(vii)    No   cogent   regions   were   given   in   the   note   file   for <\/p>\n<p>selecting a particular contractor. Some of the notes appear to <\/p>\n<p>be   tailor   made.   The   works   were   got   done   by   the <\/p>\n<p>Manager\/Senior   Manager   through   hand   picked   contractors <\/p>\n<p>without   inviting   tenders   and   without   following   financial <\/p>\n<p>norms. (para 1.4.4.)<\/p>\n<p>Allegation No. (ix):\n<\/p>\n<\/p>\n<p>         Shri   Ravi   Mathur   caused   financial   loss   to   NOIDA   by <\/p>\n<p>not paying conversion charges with respect to the plot allotted <\/p>\n<p>to  him.    He   initially   asked   for   conversion   from  Sector   35  to <\/p>\n<p>Sector 27 but since he did not deposit the required amount the <\/p>\n<p>offer of conversion was withdrawn.   Subsequently he applied <\/p>\n<p>for conversion from Sector 35 to Sector 44.\n<\/p>\n<p>Findings:\n<\/p>\n<p><span class=\"hidden_text\">                                                                                        1<\/span><\/p>\n<p>            The only conversion which took place was from Sector <\/p>\n<p>35 to Sector 44 for which conversion charges were deposited. <\/p>\n<p>It is a matter under the exclusive competence  of the Authority <\/p>\n<p>and its Chief Executive as to whether it was to be treated  as <\/p>\n<p>two conversions or one conversion only.  It appears that it was <\/p>\n<p>a subtle and  fine way  to help  a fellow officer.   In any  event <\/p>\n<p>Smt.   Neera   Yadav   had   approved   the   second   application   on <\/p>\n<p>26.10.1994.   The file  regarding the allotment and conversion <\/p>\n<p>of plot of Shri Ravi Mathur is not traceable in NOIDA but that <\/p>\n<p>is for the Authority to take appropriate action. (para 1.9.5)<\/p>\n<p>Allegation No. (xiii):\n<\/p>\n<\/p>\n<p>           A 13 hectare City Park situated near Sectors 24, 33 and <\/p>\n<p>35 in NOIDA was destroyed and a new residential Sector 32 in <\/p>\n<p>violation of the Master Plan was carved out comprising of 200 <\/p>\n<p>plots.\n<\/p>\n<p>\nFindings:\n<\/p>\n<\/p>\n<p>(i)        The   procedure   as   prescribed   in   the   1991   Regulations <\/p>\n<p>was not followed while making the change of land use. (para <\/p>\n<p>1.13.7)<\/p>\n<p>(ii)       The decision of land use change was based on logic but <\/p>\n<p>the proposal should have been put up before the Board.   The <\/p>\n<p>then   Chief   Architect   Planner   did   not   point   out   this   legal <\/p>\n<p>requirement   and   failed   in   his   primary   duty   in   advising   the <\/p>\n<p>ACEO and CCEO. (para 1.13.7)<\/p>\n<p>(iii)      There was no urgency for the development work in this <\/p>\n<p>sector.     The   development   work   was   started   and   awarded <\/p>\n<p>without following the tender procedure in flagrant violation of <\/p>\n<p>established   procedure   for   which   the   then   Chief   Project <\/p>\n<p>Engineer   and   the   then   General   Manager   (F)   are   responsible. <\/p>\n<p>(para 1.13.7)<\/p>\n<p>(iv)       The Board has taken its duties casually and there was no <\/p>\n<p>serious effort to check, analyse and advise. (para 1.13.7)<\/p>\n<p><span class=\"hidden_text\">                                                                                 1<\/span><\/p>\n<p>21.     So far as these allegations are concerned, it is evident from the <\/p>\n<p>record   that M\/s Anil Kumar &amp; Co.   had been allotted originally the <\/p>\n<p>work on the basis of tender for Rs. 2.75 crores in Sector `Gamma&#8217; in <\/p>\n<p>Greater NOIDA, in connection with the construction of water drains. <\/p>\n<p>However,   they   had   been   awarded   additional   work   by   Shri   Ravi <\/p>\n<p>Mathur, IAS, respondent no. 4, worth Rs.3.75 crores on a &#8220;deviation <\/p>\n<p>basis&#8221;. In fact, awarding such work cannot be termed as an `addition&#8217; <\/p>\n<p>or `additional work&#8217; because the work is worth Rs.1 crore more than <\/p>\n<p>the amount of original contract. In such a fact-situation, even if there <\/p>\n<p>had   been   no   financial   loss   to   the   Greater   NOIDA,   indisputably,   the <\/p>\n<p>additional   work   for   such   a   huge   amount   had   been   awarded   without <\/p>\n<p>following the procedure prescribed in law. More so, there is nothing <\/p>\n<p>on record to show as to whether the said contractor M\/s Anil Kumar <\/p>\n<p>&amp;   Co.   was   eligible   to   carry   out     the   contract   worth   Rs.6.50   crores. <\/p>\n<p>Awarding the contract under the garb of so-called extension, amounts <\/p>\n<p>to   doing   something   indirectly   which   may   not   be   permissible   to   do <\/p>\n<p>directly. Admittedly, such a course of action is not permissible in law. <\/p>\n<p>22.     It is a settled proposition of law that whatever is prohibited by <\/p>\n<p>law   to   be   done,   cannot   legally   be   affected   by   an   indirect   and <\/p>\n<p>circuitous contrivance on the principle of &#8220;quando aliquid prohibetur,  <\/p>\n<p><span class=\"hidden_text\">                                                                                       1<\/span><\/p>\n<p>prohibetur   at   omne   per   quod   devenitur   ad   illud&#8221;,   which   means&#8221; <\/p>\n<p>&#8220;whenever a thing is prohibited, it is prohibited whether done directly <\/p>\n<p>or indirectly&#8221;. (See: <a href=\"\/doc\/5477\/\">Swantraj &amp; Ors. v. State of Maharashtra, AIR<\/a> <\/p>\n<p>1974   SC   517;  <a href=\"\/doc\/126650\/\">Commissioner   of   Central   Excise,   Pondicherry   v. <\/p>\n<p>ACER India Ltd.,<\/a> (2004) 8 SCC 173; and <a href=\"\/doc\/510213\/\">Sant Lal Gupta &amp; Ors. v. <\/p>\n<p>Modern   Co-operative   Group   Housing   Society   Ltd.   &amp;   Ors.,   JT<\/a> <\/p>\n<p>(2010) 11 SC 273).\n<\/p>\n<\/p>\n<p>23.     <a href=\"\/doc\/1413166\/\">In  Jagir Singh  v.  Ranbir  Singh  &amp; Anr.,  AIR<\/a>  1979  SC  381, <\/p>\n<p>this Court has observed that an authority cannot be permitted to evade <\/p>\n<p>a   law   by   &#8220;shift   or   contrivance.&#8221;   While   deciding   the   said   case,   the <\/p>\n<p>Court placed reliance on the judgment in Fox v.  Bishop of Chester, <\/p>\n<p>(1824) 2 B &amp;C 635, wherein it has been observed as under:-<\/p>\n<blockquote><p>             &#8220;To carry out effectually the object of a statute, it  <\/p>\n<p>         must be construed as to defeat all attempts to do, or  <\/p>\n<p>         avoid doing in an indirect or circuitous manner that  <\/p>\n<p>         which it has prohibited or enjoined.&#8221;<\/p>\n<\/blockquote>\n<p>24.     The second work had been allotted to M\/s Techno Construction <\/p>\n<p>Co.   worth   Rs.1.00   crore   without   inviting   fresh   tenders   etc.,   on   the <\/p>\n<p>ground   that   earlier   a   contract   for   execution   of   similar   work   i.e. <\/p>\n<p>construction of road had been awarded to it. In view of the fact that <\/p>\n<p>there was no urgency, such a contract should not have been awarded. <\/p>\n<p><span class=\"hidden_text\">                                                                                     1<\/span><\/p>\n<p>Undoubtedly,     the   respondent   no.4     is   guilty   of   proceeding   in   haste <\/p>\n<p>and that amounts to arbitrariness.\n<\/p>\n<\/p>\n<p>25.      While dealing with the issue of haste, this Court in  the case of <\/p>\n<p><a href=\"\/doc\/622430\/\">Bahadursinh   Lakhubhai   Gohil   v.   Jagdishbhai   M.   Kamalia   &amp; <\/p>\n<p>Ors.,<\/a>  (2004)  2  SCC  65,  referred   to  the  case   of  <a href=\"\/doc\/173865\/\">Dr.  S.P.  Kapoor  v. <\/p>\n<p>State   of   Himachal   Pradesh   &amp;   Ors.,   AIR<\/a>   1981   SC   2181   and   held <\/p>\n<p>that:\n<\/p>\n<\/p>\n<p>             &#8220;&#8230;..when a thing is done in a post-haste manner,  <\/p>\n<p>          mala fide would be presumed.&#8221;\n<\/p>\n<\/p>\n<p>26.      <a href=\"\/doc\/1722738\/\">In Zenit Mataplast Private Limited v. State of Maharashtra <\/p>\n<p>&amp; Ors.,<\/a> (2009) 10 SCC 388, this Court  held :\n<\/p>\n<\/p>\n<p>             &#8220;Anything done in undue haste can also be termed  <\/p>\n<p>          as arbitrary and cannot be condoned in law&#8221;.\n<\/p>\n<\/p>\n<p>27.      Thus,  in  case  an  authority  proceeds   in undue  haste,  the  Court <\/p>\n<p>may draw an adverse inference from such conduct.  It further creates <\/p>\n<p>a doubt that if there was no sufficient reason of urgency, what was the <\/p>\n<p>occasion   for   the   respondent   no.4   to   proceed   in   such   haste   and   why <\/p>\n<p>fresh tenders  had not been invited.\n<\/p>\n<\/p>\n<p>28.      It   is   evident   from   the   record   that   the   respondent   no.4   had <\/p>\n<p>originally   been   allotted   plot   no.118,   Sector-35   measuring   360   sq. <\/p>\n<p><span class=\"hidden_text\">                                                                                    1<\/span><\/p>\n<p>meters   which   was   converted   to   plot   no.G-25,   Sector-27   measuring <\/p>\n<p>392 sq. meters.   However, as the respondent no.4 did not deposit the <\/p>\n<p>required charges the said order of conversion stood withdrawn.     By <\/p>\n<p>subsequent conversion, respondent no.4 got plot no.A-15 in Sector-44. <\/p>\n<p>Thus, two conversions had been made on   different dates.   However, <\/p>\n<p>he paid the transfer charges only once to the tune of Rs.1.80 lacs.  It is <\/p>\n<p>alleged that by first conversion, the respondent no.4 not only got the <\/p>\n<p>plot   in   a   better   location,   but   also   a   plot   of   bigger   size.   Second <\/p>\n<p>allotment was further, as alleged, in a far better geographical position. <\/p>\n<p>29.     There is no provision under the Act 1976 or Regulation 1991 <\/p>\n<p>for   conversion.     It   is   rather   governed   by   Office   Order   No.4070\/ <\/p>\n<p>NOIDA\/DCEO\/92 dated 3.7.1992.  The relevant part thereof basically <\/p>\n<p>provides   that   conversion   was  permissible   only   in   case   of   residential <\/p>\n<p>plots.  Relevant part thereof reads as under:\n<\/p>\n<\/p>\n<blockquote><p>            &#8220;3. In case of residential plots, only cancelled and <\/p>\n<p>            surrendered   properties   shall   be   offered   for <\/p>\n<p>            conversion&#8230;&#8230;&#8230;\n<\/p><\/blockquote>\n<blockquote><p>                    The details of availability of properties shall <\/p>\n<p>            be   available   in   the   office   of  Dy.   Chief   Executive <\/p>\n<p>            Officer.\n<\/p><\/blockquote>\n<pre>                    xx      xx      xx\n\n\n                    xx      xx      xx\n\n\n\n<\/pre>\n<blockquote><p>            6.   All expenses pertaining  to conversion such  as <\/p>\n<p>            conversion   charges,   locational   benefit   charges, <\/p>\n<p><span class=\"hidden_text\">                                                                                      2<\/span><\/p>\n<p>           stamp duty, registration charges etc. shall be borne <\/p>\n<p>           by the allottee.\n<\/p><\/blockquote>\n<blockquote><\/blockquote>\n<blockquote><p>                   xx       xx     xx<\/p>\n<\/blockquote>\n<blockquote><p>           8.  Conversion shall not be allowed more than once <\/p>\n<p>           to any allottee.\n<\/p><\/blockquote>\n<blockquote><\/blockquote>\n<blockquote><p>                   xx       xx     xx<\/p>\n<\/blockquote>\n<blockquote><p>           11.     Chairman-cum-Chief   Executive   Officer   may <\/p>\n<p>           relax   the   above   guidelines   in   exceptional <\/p>\n<p>           circumstances.&#8221;\n<\/p><\/blockquote>\n<blockquote>\n<\/blockquote>\n<p>30.    The aforesaid Office Order dated 3.7.1992 stood modified vide <\/p>\n<p>order   dated   27.9.1993   (when   the   respondent   no.4   was   the   CEO, <\/p>\n<p>NOIDA)   to   the   effect   that   a   large   number   of   vacant   plots   were <\/p>\n<p>available in old developed sectors.  The same may be included in the <\/p>\n<p>plots availability list.\n<\/p>\n<\/p>\n<p>31.    That   the   list   of   available   plots   had   been   expanded   during   the <\/p>\n<p>period when the respondent no.4 was CEO, NOIDA   and unallotted <\/p>\n<p>plots of various sectors including Sector 27 were also included in that <\/p>\n<p>list in which the respondent no.4 himself got the first conversion.  It is <\/p>\n<p>a matter of investigation as to whether the Order dated 3.7.1992 was <\/p>\n<p>modified vide Order dated 27.9.1993 with ulterior purpose.<\/p>\n<p>32.    Section   12  of the  Act     1976  makes  the  provisions   of Chapter <\/p>\n<p>VII and Sections 30, 32, 40 to 47, 49, 50, 51, 53 and 58   of the U.P. <\/p>\n<p><span class=\"hidden_text\">                                                                                     2<\/span><\/p>\n<p>Urban Planning and Development Act 1973  (hereinafter referred to as <\/p>\n<p>the `Act 1973&#8242;) mutatis mutandis   applicable to the Act 1976. Section <\/p>\n<p>17 of the Act 1976 declares that the Act 1976 would have an over-<\/p>\n<p>riding effect over the provisions of  the Act 1973. Section 18 confers <\/p>\n<p>the   power   on   the   State   Government   to   make   rules   by   issuing   a <\/p>\n<p>Notification for carrying out the purposes of the Act 1976. Section 19 <\/p>\n<p>of the Act 1976 provides for the framing of regulations by the NOIDA <\/p>\n<p>in respect of holding of meetings; defining the powers and duties of <\/p>\n<p>the CEO; and management of properties of the Authority etc.  In view <\/p>\n<p>thereof, the New Okhla Industrial Development Area (Preparation and <\/p>\n<p>Finalisation   of   Plan)   Regulations   1991   (hereinafter   called   as <\/p>\n<p>`Regulations 1991&#8242;)   had been framed with the prior approval of the <\/p>\n<p>State Government as required under Section 19 of the Act 1976 and, <\/p>\n<p>therefore,   have   statutory   force.   By   virtue   of   the   provisions   of   sub-<\/p>\n<p>section 2(b) of Section 6 of the Act 1976, it is a statutory requirement <\/p>\n<p>that   in   the   plan   to   be   prepared   by   the   NOIDA,     it   must   necessarily <\/p>\n<p>provide as to for what particular purpose any area\/site is to be used, <\/p>\n<p>namely,   industrial,   commercial   or   residential.   The   Authority   is <\/p>\n<p>competent   under   sub-section   2(c)   of   Section   6,   to   regulate   the <\/p>\n<p>construction   etc.   having   regard   to   the   nature   for   which   the   site   has <\/p>\n<p>been earmarked. Section 8 of   the Act 1976 restrains   the use of any <\/p>\n<p><span class=\"hidden_text\">                                                                                        2<\/span><\/p>\n<p>site for the purpose other than for which it is earmarked in the Master <\/p>\n<p>Plan.   Section   9   prohibits   the   use   of   any   area   or   erection   of   any <\/p>\n<p>building in contravention of Regulations 1991. Section 14 of the Act <\/p>\n<p>1976 clearly provides for cancellation of allotment and resumption\/re-<\/p>\n<p>entry, where the allotment had been made in contravention of the rules <\/p>\n<p>and regulations.   In case the Authority wants to change the user of the <\/p>\n<p>land, condition precedent remains to amend the Master Plan. <\/p>\n<p>33.     There   is   nothing   on   record   to   show   that   any   amendment   had <\/p>\n<p>ever been made either in the Master Plan or in the Regulations 1991 <\/p>\n<p>before   the   change   of   user   of   land,   when   a   13   hectare   City   Park <\/p>\n<p>situated   near   Sectors   24,   33   and   35   was   abolished   and   a   new <\/p>\n<p>residential Sector 32 was carved out comprising 200 plots. Even if the <\/p>\n<p>said change made by Shri Ravi Mathur, IAS, respondent no.4   stood <\/p>\n<p>nullified, subsequently by Smt. Neera Yadav, respondent no.7,  it does <\/p>\n<p>not   exonerate   him   from   committing   an   illegality.     It   is   a   matter   of <\/p>\n<p>investigation as to what was the motive for which such a change had <\/p>\n<p>been made by Shri Ravi Mathur, IAS, respondent no.4, unauthorisedly <\/p>\n<p>and   illegally.   Admittedly   he   was   not   competent   to   do   so   without <\/p>\n<p>seeking the amendments as mentioned hereinabove.                            <\/p>\n<p><span class=\"hidden_text\">                                                                                       2<\/span><\/p>\n<p>34.     The State or the public authority which holds the property for <\/p>\n<p>the  public   or   which   has   been   assigned  the   duty   of  grant   of  largesse <\/p>\n<p>etc., acts as a trustee and, therefore, has to act fairly and reasonably. <\/p>\n<p>Every holder of a public office by virtue of which he acts on behalf of <\/p>\n<p>the   State   or   public   body   is   ultimately   accountable   to   the   people   in <\/p>\n<p>whom the sovereignty vests. As such, all powers so vested in him are <\/p>\n<p>meant   to   be   exercised   for   public   good   and   promoting   the   public <\/p>\n<p>interest.   Every   holder   of   a   public   office   is   a   trustee.     State   actions <\/p>\n<p>required to be non-arbitrary and justified on the touchstone of Article <\/p>\n<p>14 of the Constitution. Action of the State or its instrumentality must <\/p>\n<p>be in conformity with some principle which meets the test of reason <\/p>\n<p>and   relevance.  Functioning   of   a   &#8220;democratic   form   of   Government <\/p>\n<p>demands   equality   and   absence   of   arbitrariness   and   discrimination&#8221;. <\/p>\n<p>The rule of law prohibits arbitrary action and commands the authority <\/p>\n<p>concerned to act in accordance with law. Every action of the State or <\/p>\n<p>its   instrumentalities   should   neither   be   suggestive   of   discrimination, <\/p>\n<p>nor   even   apparently   give   an   impression   of   bias,   favouritism   and <\/p>\n<p>nepotism. If a decision is taken without any principle or without any <\/p>\n<p>rule,   it   is   unpredictable   and   such   a   decision   is   antithesis   to   the <\/p>\n<p>decision  taken  in accordance  with  the rule  of law.  The  Public   Trust <\/p>\n<p>Doctrine is a part of the law of the land. The doctrine has grown from <\/p>\n<p><span class=\"hidden_text\">                                                                                          2<\/span><\/p>\n<p>Article 21 of the Constitution. In essence, the action\/order of the State <\/p>\n<p>or State instrumentality would stand vitiated if it lacks bona fides, as it <\/p>\n<p>would   only   be   a   case   of   colourable   exercise   of   power.   The   Rule   of <\/p>\n<p>Law is the foundation of a democratic society.   (Vide:  <a href=\"\/doc\/743328\/\">M\/s. Erusian <\/p>\n<p>Equipment   &amp;   Chemicals   Ltd.   v.     State   of   West   Bengal   &amp;   Anr., <\/p>\n<p>AIR<\/a> 1975 SC 266;  <a href=\"\/doc\/1281050\/\">Ramana Dayaram Shetty v. The International <\/p>\n<p>Airport Authority of India &amp; Ors., AIR<\/a> 1979 SC 1628;  <a href=\"\/doc\/830683\/\">Haji T.M. <\/p>\n<p>Hassan   Rawther   v.   Kerala   Financial   Corporation,  AIR<\/a>   1988   SC <\/p>\n<p>157; Kumari Shrilekha Vidyarthi etc. etc. v. State of U.P. &amp; Ors., <\/p>\n<p>AIR 1991 SC 537; and  <a href=\"\/doc\/1937304\/\">M.I. Builders Pvt. Ltd. v.   Radhey Shyam <\/p>\n<p>Sahu &amp; Ors., AIR<\/a> 1999 SC 2468).\n<\/p>\n<\/p>\n<p>35.     Power   vested   by   the   State   in   a   Public   Authority   should   be <\/p>\n<p>viewed as a trust coupled with duty to be exercised  in larger public <\/p>\n<p>and   social   interest.   Power   is   to   be   exercised   strictly   adhering   to   the <\/p>\n<p>statutory   provisions   and   fact-situation   of   a   case.   &#8220;Public   Authorities <\/p>\n<p>cannot   play   fast   and   loose   with   the   powers   vested   in   them&#8221;.   A <\/p>\n<p>decision   taken   in   arbitrary   manner   contradicts   the   principle   of <\/p>\n<p>legitimate   expectation.   An   Authority   is   under   a   legal   obligation   to <\/p>\n<p>exercise   the   power   reasonably   and   in   good   faith   to   effectuate   the <\/p>\n<p>purpose   for   which   power   stood   conferred.   In   this   context,   &#8220;in   good <\/p>\n<p><span class=\"hidden_text\">                                                                                         2<\/span><\/p>\n<p>faith&#8221; means &#8220;for legitimate reasons&#8221;. It must be exercised  bona fide <\/p>\n<p>for the purpose and for none other.  (Vide:  <a href=\"\/doc\/1008845\/\">Commissioner of Police, <\/p>\n<p>Bombay   v.   Gordhandas   Bhanji,  AIR<\/a>   1952   SC   16;  <a href=\"\/doc\/1687907\/\">Sirsi <\/p>\n<p>Municipality v. Ceceila Kom Francis Tellis, AIR<\/a> 1973 SC 855; <a href=\"\/doc\/354241\/\">The <\/p>\n<p>State   of   Punjab   &amp;   Anr.   v.   Gurdial   Singh   &amp;   Ors.,  AIR<\/a>   1980   SC <\/p>\n<p>319; <a href=\"\/doc\/1679367\/\">The Collector (Distt. Magistrate) Allahabad &amp; Anr. v. Raja <\/p>\n<p>Ram Jaiswal, AIR<\/a> 1985 SC 1622; <a href=\"\/doc\/459738\/\">Delhi Administration (Now NCT <\/p>\n<p>of   Delhi)   v.   Manohar   Lal,<\/a>  (2002)   7   SCC   222;   and  <a href=\"\/doc\/1875824\/\">N.D.   Jayal   &amp; <\/p>\n<p>Anr. v. Union of India &amp; Ors., AIR<\/a> 2004 SC 867).\n<\/p>\n<\/p>\n<p>36.     In   view   of   the   above,   we   are   of   the   considered   opinion   that <\/p>\n<p>these   allegations   being   of   a   very   serious   nature   and   as   alleged,   the <\/p>\n<p>respondent   no.4   had   passed   orders   in   colourable   exercise   of   power <\/p>\n<p>favouring himself and certain contractors, require investigation. Thus, <\/p>\n<p>in view of the above, we direct the CBI to have preliminary enquiry <\/p>\n<p>and   in   case   the   allegations   are   found   having   some   substance <\/p>\n<p>warranting further proceeding with criminal prosecution, may proceed <\/p>\n<p>in accordance with law.\n<\/p>\n<\/p>\n<p>                It may be pertinent to mention that any observation made <\/p>\n<p>herein against respondent no.4 would be treated  necessary to decide <\/p>\n<p>the present controversy. The CBI shall investigate the matter without <\/p>\n<p><span class=\"hidden_text\">                                                                                       2<\/span><\/p>\n<p>being influenced by any observation made  in this judgment.  <\/p>\n<p>      The writ petition stands disposed of accordingly. <\/p>\n<p>               Before   parting   with   the   case,   we   would   like   to   express <\/p>\n<p>our gratitude and record appreciation  to Dr. Rajeev Dhavan, learned <\/p>\n<p>senior counsel for rendering commendable assistance to the Court as <\/p>\n<p>Amicus Curiae.\n<\/p>\n<\/p>\n<p>                                                       &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;J.\n<\/p>\n<p>                                                (G.S. SINGHVI)<\/p>\n<p>                                                &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..J.\n<\/p>\n<p>                                                (Dr. B.S. CHAUHAN)<\/p>\n<p> New Delhi,<\/p>\n<p> May 9,  2011<\/p>\n<p><span class=\"hidden_text\">                                                                                    2<\/span><\/p>\n<p>                                                                         REPORTABLE<\/p>\n<p>                        IN THE SUPREME COURT OF INDIA<\/p>\n<p>                          CIVIL ORIGINAL JURISDICTION<\/p>\n<p>                     WRIT PETITION (CIVIL) NO. 529 OF 1998<\/p>\n<p>           Naresh Pratap Singh                                              ..Petitioner <\/p>\n<p>                                                        Versus<\/p>\n<p>                  State of U.P.                                                   ..Respondent<\/p>\n<p>                                             J U D G M E N T<\/p>\n<p>      Dr. B.S. CHAUHAN, J.\n<\/p>\n<\/p>\n<p>                       In view of our judgment delivered today in Writ Petition <\/p>\n<p>      (C)   No.   150   of   1997   <a href=\"\/doc\/31990\/\">(NOIDA   Entrepreneurs   Association   v. <\/p>\n<p>      NOIDA   &amp;   Ors.),<\/a>   no   separate   order   is   required   in   this   writ   petition <\/p>\n<p>      which is accordingly disposed of.\n<\/p>\n<\/p>\n<p>                                                                        &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..J.\n<\/p>\n<p>                                                                        (G.S. SINGHVI)<\/p>\n<p>                                                                        &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.J.\n<\/p>\n<p>                                                                                          (Dr. B.S. CHAUHAN)<\/p>\n<p>      New Delhi,<\/p>\n<p>      May 9, 2011<\/p>\n<p><span class=\"hidden_text\">                                                                                              2<\/span><\/p>\n<p><span class=\"hidden_text\">2<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Noida Entrepreneurs Assocn vs N O I D A &amp; Ors on 9 May, 2011 Author: . B Chauhan Bench: G.S. Singhvi, B.S. Chauhan Reportable IN THE SUPREME COURT OF INDIA CIVIL ORIGINAL JURISDICTION WRIT PETITION (CIVIL) NO. 150 OF 1997 NOIDA Entrepreneurs Association &#8230;..Petitioner Versus NOIDA &amp; Ors. &#8230;..Respondents J [&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-219779","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Noida Entrepreneurs Assocn vs N O I D A &amp; Ors on 9 May, 2011 - 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\/noida-entrepreneurs-assocn-vs-n-o-i-d-a-ors-on-9-may-2011\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Noida Entrepreneurs Assocn vs N O I D A &amp; 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