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Supreme Court of India

BANGALORE MEDICAL TRUSTversusB.S. MUDDAPPA AND ORS.

Citation
1991 INSC 160
Decided
19 July 1991
Disposal
Dismissed

Holding

The State Government’s orders and the BDA’s allotment were ultra vires; the alteration of the scheme was not authorized and the allotment to the private trust is null and void.

Summary

The Bangalore Development Authority (BDA) allotted a plot reserved for a public park in a development scheme to the Bangalore Medical Trust for a private nursing home/hospital, based on State Government orders and a BDA resolution. Residents of the locality challenged the diversion as contrary to the Bangalore Development Authority Act, 1976, which mandates that public park land be preserved and any alteration to a scheme must be for "improvement" and effected by the Authority, not the Government. The High Court upheld the allotment, but the Division Bench set it aside, holding the alteration invalid. On appeal, the Supreme Court held that the State Government lacked jurisdiction to direct the BDA to convert the park, the BDA’s exercise of power under Section 19(4) was ultra‑vires because a private hospital is not a civic amenity nor an improvement, and the procedural requirements for altering the scheme were not complied with. Consequently, the orders converting the park and the allotment to the Trust were declared null and void. The Court also affirmed the locus standi of the residents to sue in public‑interest litigation.

Issues considered

  • Whether the State Government had authority under Section 65 of the Bangalore Development Authority Act, 1976 to direct the BDA to convert a public park into a civic amenity and allot it to a private trust
  • Whether the BDA could validly alter the sanctioned development scheme under Section 19(4) to replace a public park with a private hospital/nursing home
  • Whether a private hospital or nursing home qualifies as a "civic amenity" or constitutes an "improvement" within the meaning of the Act
  • Whether the procedural requirements for altering a scheme (meeting of the Authority, formal decision) were complied with
  • Whether the residents of the locality have locus standi to challenge the diversion of land reserved for public use
  • Whether the orders and allotment are void and of no legal effect

Legislation cited

Subjects

town planningpublic parkcivic amenityBangalore Development Authority Actscheme alterationadministrative lawultra virespublic interest litigationlocus standienvironmental protection

Judgment

                     BANGALORE MEDICAL TRUST
A
                                v.
                      B.S. MUDDAPPA AND ORS.

                                JULY 19, 1991

B               [T.K. THOMMEN AND R.M. SAHA!, JJ.]

          Town Planning.
          Bangalore Development Authority Act, 1976: Sections 2(b),
    2(bb), 15, 16( l)(d), 17, 19(4), 38, 38A and 65-Approved Scheme for
    development of the City-Space reserved for public park-Diversion
C   and allotment to a private Trust for construction of hospital-Whether
    valid-Exercise of power to alter the Scheme-Whether valid-Power
    of the Government to issue directions to the statutory authority regard-
    ing the user of the site and allotment to a private body-Whether unres-
    tricted-Whether statutory authority bound by Government's directions.
D         Constitution of India, I950: Articles 32, 226---Pub/ic Interest
    Litigation-Object and scope of-Space reserved for public park-
    Diversion for construction of a hospital and allotment to a private
    body-Whether residents of locality have locus standi to challenge the
    action of the authorities.

E        Administrative Law-Administrative action-Discretion shquld be
    exercised objectively and rationally, when affecting public interest-
    Authority not to act whimsically or arbitrarily.

           A site in the city of Bangalore was reserved as an open space in an
    improvement scheme adopted under the City of Bangalore Improve-
F   ment Act, 1945. This Act was replaced hy the Bangalore Development
    Authority Act, 1976 and the scheme prepared m1der the repealed enact-
    ment was deemed to have been prepared and duly sanctioned by the
    Government in terms of the new Act. In the scheme, the open space in
    question had been reserved for a public park. However, pursuant to the
    orders of the State Government, and by a Resolution, the Bangalore
G   Development Authority allotted the open space in favour of the appel-
    lant, a private medical Trust, for the purpose of constructing a hospital.
    This allotment and diversion of the user of the site was challenged
    before the High Court by the respondents, as residents of the locality
    and as general public, contending that it was contrary to the provisions
    of the Act and the scheme sanctioned thereunder, and the legislative
H   intent to protect and preserve the environment by reserving open space

                                       102
                       MEDICAL TRUST v. B.S. MUDDAPPA                     103

     for ventilation, recreation and play grounds and parks for the general      A
     public.

            A Single Judge of the ,High Court dismissed the Writ Petition
                                  a
     holding that a hospital being civic amenity, the allotment of the site by
     the BDA in favour of the appellant for the purpose of constructing a
     hospital was valid and in accordance with law, and, rejected the claim      B
     of the petitioners that the BDA had no power to alter the scheme, and in
     any event, a site reserved for a civic amenity could not have been
     allotted for construction of a hospital, on the ground that the scheme
     could be altered under Section 19(4) of the Act, and it was done with
-,   approval of State Govt.

            On appeal, the Division Bench held that though the BDA had the
                                                                                 c
     authority to deal with the plot in question, the area, having been
     reserved in the sanctioned scheme for a public park, its diversion from
     that object and allotment in favour of a private body was not permissi-
     ble under the Act, even if the object of the allotment was the construc-
     tion of a hospital, since a hospital could not be considered to be an D
     amenity in 1976, and that in alloting the site to the appellant-Trust,
     largesse was conferred on it in utter violation of law and rules, and set
     aside the allotment of the site in question to the appellant with liberty to
     the BDA to make a fresh allotment of any alternative site in favour of
     the appellant.
                                                                                  E
            In appeal before this Court, on behalf of the appellant-trust, it
     was contended that the Division Bench exceeded its jurisdiction in set-
     ting aside an allotment which was purely an administrative action by
     the BDA pursuant to a valid direction by the Government in that
'    behalf, that in the absence of any evidence of mala fide the decision of
     the BDA was not liable to be interfered with, that the decision to allot a F
     site for a hospital rather than a park was a matter within the discretion
     of the BDA and that the hospital being not only an amenity hut also a
     civic amenity under the Act, as amended from time to time, the diver-
     sion of the user of the land for that purpose was justified, that under
     Section 65 the BDA was bound by all directions of the Government,
     irrespective of the nature or purpose of the directions, and that Section G
     38A prohibiting sale or any other disposal of land reserved for 'public
     parks or playgrounds and Section 16(l)(d) requiring that 15% of the
     total area of the lay out be reserved for public parks and playgrounds
     and an additional area of not less than 10% of the total area for civic
     amenities were enacted subsequent to the relevant orders of the
     Government dated 27 .5. 76 and 11.6. 76 and the resolution of the BDA He
    104                   SUPREME COURT REPORTS              [1991) 3 S.C.R.

    dated 14.7.76 resulting in the allotment of the site in favour of the
A
    appellant and at the material time when the Government made these
    orders and the BDA acted upon them, there was no restriction on the
    diversion of the user of the land reserved for the public park or a
    playground to any other purpose.

B         On behaif of the respondents, it was contended that it was impro-
    per to confer a largesse on a private party at the expense of the general
    public and the special consideration extended to the appellant was not
    permissible under the Act, and that to allot in favour of the appellant an
    area reserved for public park even if it be for the purpose of cunstruct-
    ing a hospital was to sacrifice the public interest in preserving the open
    spaces for ventilation, recreation and protection of the environment.
c
          Dismissing the appeal, this Court,

          HELD: Per Sahai, J.

D         I. The entire proceedings before the State Government suffered
    from absence of jurisdiction. Even the exercise of power was vitiated
    and ultra vires. Theref'ore,the orders of the Government to convert the
    site reserved for public park to civic amenity and to allot it for private
    nursing home to the appellant Trust and the resolution of the Develop-
    ment Authority. in compliance of it were null, void and without
E   jurisdiction. [148C-D)

           2.1 The purpose for which the Bangalore Development Authority
    Act, 1976 was enacted is spelt out from the preamble itself which pro-
    vides. for establishment of the Authority for development of the city and
    areas adjacent thereto. To carry out this purpose, the development
F   scheme framed by the Improvement Trust was adopted by the Develop-
    ment Authority. Any alteration in this scheme could have been made as
    provided in Sub-Section (4) of Section 19 only if it resulted in improve-
    ment in any part of the scheme. A private Nursing Home could
    neither be considered to be an amenity nor it could be considered
    improvement over necessity like a public park. 1'he exercise of power,
G   therefore, was contrary to the purpose for which it is conferred under
    the statute. [141G-H)

          2.2 The legislative mandate undt.· ';ec. 19(4) enables the Autho-
    rity to alter any scheme. Thus, existei.. " of power is clearly provided
    for. But the legislature took care to cu .. twl the exercise of this power
H   by linking it with improvement in the 'rhcme. What is an improve-
                  MEDICAL TRUST v. B.S. MUDDAPPA                       105

ment or when any change in the scheme can be said to be improve-
                                                                               A
ment is a matter of discretion by the authority empowered to exer-
cise the power. [142C-D]

      2.3 Sub-Section (4) of Section 19 not only defines the scope and
lays down the ambit within which discretion could be exercised bnt it
envisages further the manner in which it could be exercised. Therefore,        B
any action or exercise of discretion to alter the scheme must have been
backed by the substantive rationality flowing from the Section. [142E]

      2.4 The exercise of power is further hedged by use of the ex-
pression if it appears to the Authority. In legal terminology it visua-
lises prior consideration and objective decision. And all this must
have resulted in conclusion that the alteration would have been                c
improvement. [145G-H]

       3.1 When legislature enacted Sub-Section (4), it unequivocally
declared its intention of making any alteration in the scheme by the
Authority, that is, BDA and not the State Government. It further               D
permitted interference with the scheme sanctioned by it only if it
appeared to be improvement. Therefore, the facts that were to be found
by the Authority were that the conversion of public park into private
Nursing Home would be an improvement in the scheme. Neither the
Authority nor the State Government undertook any such exercise.
Power of conversion or alteration in scheme was taken for granted.             E
There is no whisper anywhere if it was ever considered, objectively, by
any authority that the nursing home would amount to an improvement.
Whether the decision would have been correct or not would have given
rise to different consideration. But it was a total absence of any effort to
do so. [J44G-H, 145A, G]
                                                                               F
      3.2 The manner in which power was exercised fell below even the
minimum requirement of taking action on relevant considerations. A
scheme could be altered by the Authority, as defined under Section 3 of
the Act. It is a body corporate consisting of the Chairman and experts
on various aspects. This Authority functions through committees and
meetings as provided under Sections 8 & 9. The purpose of the Autho-           G
rity taking such a decision is their knowledge of local conditions and
what was better for them. That is why participatory exercise is contem-
plated. Yet, without calling any meeting of the authority or any com-
mittee the Chairman sent the letter for converting the site. If any altera-
tion could be done by the Chariman or the Chief Minister, then sub-
section (4) of Section 19 is rendered otoise. [145E, F, 146A-B]                H
    106                   SUPREME COURT REPORTS              I 1991] 3 S.C.R.

           3.3 Financial gain by a local authority at the cost of public
A   welfare has never been considered as legitimate purpose even if the
    objective is laudable. Sadly the law was thrown to winds for a private
    purpose. The extract of the Chief Minister's order quoted in the letter
    of Chairman of the BDA leaves no doubt that the end result having been
    decided by the highest executive in the State, the lower in order of
B   hierarchy only followed with 'ifs' and 'buts' ending finally with resolu-
    tion of BDA which was more or less a formality. In less than ninety
    days, the machinery in BDA and Government moved so swiftly that the
    initiation of the proposal, by the appellant, a rich trust with foreign
    deposits, query on it by the Chief Minister of the State, guidance of way
    out by the Chairman, direction on it by the Chief Minister, orders of
    Govt., resolution by the BDA and allotment were all completed and the
c   site for public park stood converted into site for private nursing home
    without any intimation direct or indirect to those who were being de-
    prived of it. [141A-C]

          3.4 Speedy or quick action in public institutions call for apprecia-
D   tion but our democratic system shuns exercise of individualised discre-
    tion in public matters requiring participatory decision by rules and
    regulations. No one howsoever high can arrogate to himself or assume
    without any authorisation express or implied in law a discretion to
    ignore the rules and deviate from rationality hy adopting a strained or
    distorted interpretation as it renders the action ultra vires and bad 'in
E   law. [141C-D]

          3.5 There is no provision in the Act for alteration in a scheme by
    converting one site to another, except, of course if it appeared to be
    improvement. Bnt even that power vested in the Authority, not the
    Government. The Authority should have applied its mind and must
F   have come to the conclusion that conversion of the site reserved for
    public park into a private nursing home amounted to an improvement;
    then only it could have exercised the power. Instead, the application for
    allot1nent of the site was ac1:epted first and the procedural requirements
  were attempted to he gone through later, and that too, hy the State
  Government, which was not authorised to do so. The only role which
G the State Government could play in a scheme altered by the BDA is
  specified in Sub-Sections (5) and (6) of Section 19 of the Act, viz, the
  State Government could be concerned or involved with an altered
  scheme either because of the financial considerations or when addi-
  tional land was to be acqnired, an exercise which could not be underta-
  ken by the BDA. A development scheme, therefore, sanctioned and published
H in the Gazette could not be altered hy the Government. [146B, G-H, 147A]
                  MEDICAL TRUST v. B.S. MUDDAPPA                     107

      3.6 Not only that the Authority did not apply its mind and take
any decision ifthere was any necessity to alter the Scheme, but even ifit   A
is assumed that the State Govt. could have any role to play, the entire
exercise, instead of proceeding from below, that is, from the BDA to
State Government, proceeded in reverse direction, that is, from the
State Government to the BDA. Every order, namely, converting the site
from public park to private nursing home and even allotment to the          B
applicant was passed by State Government and the BDA, acting like a
true subservient body, obeyed faithfully by adopting and confirming
the directions. It was complete abdication of power by the BDA. [l46D-E]

      3. 7 The Legislature entrusted the responsibility to alter and
approve the Scheme to the BDA, but the BDA in complete breach of
faith reposed in it, preferred to take directions issued on command of      c
the Chief Executive of the State. This resulted not only in error of law,
but much beyond it. [I46F]
              '
      3.8 Under Sub-Section (3) of Section 15, the State Government
has power to direct the Authority to take up any scheme. The main           D
thrust of the Sub-Section is to keep a vigil on the local body. But it
cannot be stretched to entitle the Government to alter any scheme or
convert any site or power specifically reserved in the Statute in the
Anthority which functions as a body. The general power of direction to
take up development scheme cannot be construed as superseding
specific power conferred and provided for under Section 19(4). Absence      E
of power apart, such exercise is fraught with danger of being activated
by extraneous considerations. [l47D-E]

      3.9 An exercise of power which is ultra vires the provisions in ihe
Statute cannot be attempted to be resuscitated on general powers
reserved in a Statute for its proper and effective implementation. F
Section 65 authorises the Government to issue directions to carry out
purposes of the Act and to ensure that the provisions of law are obeyed,
and not to empower itself to proceed contrary to law. What is not
permitted by the Act to be done by the Authority cannot be assumed to
be done by State Governmeni to render it legal. An illegality cannot be
cured only because it was undertaken by the Government, or because it G
is done at the behest of the Chief Executive of the State. No one is above
law. In a democracy what prevails is law and rule and not the height of
the person exercising I.he power. [l47G-H, I48A-B]

     3. IO Amenity was defiped in Section 2(b) of the Act to include
road, street, lighting, drainage, public works and such other con-          H
    108                    SUPREME COL:RT REPORTS             I 1991] 3 S.C.R.

    veniences as the Government may, by notification, specify to be an
A
    amenity for the purpose of this Act and before any other facility could
    be considered amenity, it was necessary for State Government to issue
    a notification. And since no notification was issued including private
    nursing home as amenity, it could not be deemed to be included in it.
    That apart, the definition indicates that the convenience or facility
B   should have had public characteristic. Even if it is assumed that the
    definition of amenity, being inclusive, it should be given a wider mean-
    ing so as to include hospital added in clause 2(bb), as a civic amenity
    with effect from 1984, a private nursing home, unlike a hospital run by
    Govt. or local authority, did not satisfy that characteristic which was
    necessary, in the absence of which it could not be held to be amenity or
    civic amenity. In any case, a private nursing home could not be con-
c   sidered to be an improvement in the scheme and, therefore, the power
    under Section 19(4) could not have been exercised. [I45A-D]

          4.1 Discretion is an effective tool in administration. But wrong
    notions about it result in ill-conceived consequences. In law it provides
D   an option to the authority concerned to adopt one or the other alterna-
    tive. But a better, proper and legal exercise of discretion is one where
    the authority examines the fact, is aware of law and then decides objec-
    tively and rationally what serves the interest better. When a Statute
    either provides guidance or rules or regulations are framed for exercise
    of discretion then the action should be in accordance with it. Even
E   where Statutes are silent and only power is conferred to act in one or the
    other manner, the Authority cannot act whimsically or arbitrarily. It
    should be guided by reasonableness and fairness. The legislature never
    intends its authorities to abuse the law or use it unfairly. [144E-G]

           4.2 The executive or the administrative authority must not be
F   oblivious that in a democratic set up the people or community being
    sovereign, the exercise of discretion must be guided by the inherent
    philosophy that the exerciser of discretion is accountable for his action. It
    is to be tested on anvil of rule of law and fairness or justice particularly
    if competing interests of members of society are involved. [l44C-D I

G         4.3 When the law requires an authority to act or decide, 'if it
    appears to it necessary' or if he is 'of opinion that a particular act
    should be done', then it is implicit that it should be do11e objectively,
    fairly and reasonably. Decisions affecting public interest or the neces-
    sity of doing it in the light of guidance provided by the Act and rules
    may not require intimation to person affected yet the exercise of discre·
H tion is vitiated if the action is bereft of rationality, lacks objective and
                       MEDICAL TRUST v. B.S. MUDDAPPA                      109

     purposive approach. The action or decision must not only be reached
                                                                                  A
     reasonably and intelligibly but it must be related to the purpose for
     which power is exercised. Public interest or general good or social
     betterment have no doubt priority over private or individual interest
     but it must not be a pretext to justify the arbitrary or illegal exercise of
     power. It must withstand scrutiny of the legislative standard provided
     by the Statute itself. The authority exercising discretion must not B
     appear to be, impervious to legislative directions. No doubt, in modern
     State activity, discretion with executive and administrative agency is a
     must for efficient and smooth functioning. But the extent of discretion
     or constraints on its exercise depends on the rules and regulations under
     which it is exercised. [141E-F, 142F, DJ

          5.1 Public park as a place reserved for beauty and recreation .is c
     associated with grawth of the concept of equality and recognition of
     importance of common man. Earlier free and healthy air in beautiful
     surroundings was privilege of few. But now it is a 'gift from people to
     themselves'. Its importance has multiplied with emphasis on environ-
     ment and pollution. In modern planning and development it occupies an D
     important place in social ecology. A private nursing home, on the other
     hand, is essentially a commercial venture, a profit oriented industry.
     Service may be its moto but earning is the objective. Its utility may not
     be undermined but a park is a necessity not a mere amenity. A private
     nursing home cannot be a substitute for a public park. [134A-C]
                                                                                E
            5.2 In 1984, the BD Act itself provided for reservation of not less
     than fifteen per cent of the total area of the lay out in a development
     scheme for public parks and playgrounds, the sale and disposition of
-.   which is prohibited under Sec. 38A of the Act. Absence of open space
     and public p3.rk, in present day when urbanisation is on increase, rural
     exodus is on large scale and congested areas are coming up rapidly, may F
     give rise to health hazard. May be that it may be taken care of by a
     nursing horne. But it is axiomatic that prevention is better than cure.
     What is lost by removal of a park cannot be gained by establishment of
     a nursing home. To say, therefore, that by conversion of a site reserved
     for low lying park into a private nursing ho1ne, social welfare was being
     promoted was being oblivious of true character of the two and their G
     utility. [134D-F)

           6.1 Locus standi to approach by way of writ petition and refusal to
     grant relief in equity jurisdiction are two different aspects, may be with
     the same result. One relates to maintainability of the petition and other
     to exercise of discretion. L'!w on.the former has marched much ahead.        H
    110                    SUPREME COt;i{[' REPORTS           [1991] 3 S.C.F

    Many milestones have been covered. The restricted meaning of
A
    aggrieved person and narrow outlook of specific injury has yielded in
    favour of broad and wide construction in the wake of public interest
    litigation. Even in private challenge to executive or administrative           r-
    action having extensive fall out the dividing line between personal
    injury or loss and injury of a public nature is fast vanishing. [133B-C]
B
          6.2 Law has veered round from genuine grievance against order
    affecting prejudicially to sufficient interest in the matter. The rise in
    exercise of power by the executive and comparative decline in power
    and effective administrative guidance is forcing citizens to expose
    challenges with public interest flavour. Therefore, it is too late in the
    day to claim that petition flied by inhabitants of a locality whose park
c   was converted into a nursing home had no cause to invoke equity juris-
    diction of the High Court. In fact, public spirited citizens having faith in
    rule of law are rendering great social and legal service by espousing
    cause of public nature. They cannot be ignored or overlooked on techni-
    cal or conservative yard stick of the rule of locus standi or absence of
D   personal loss or injury. Present day development of this branch of
    jurisprudence is towards free movement both in nature of litigation and
    approach of the courts. Residents of locality seeking protection and
    maintenance of environment of their locality cannot be said to be busy
    bodies or interlopers. Even otherwise physical or personal or economic
    injury may give rise to civil or criminal action but violation of rule of
E   law either by ignoring or affronting individual or action of the" executive
    in disregard of the provisions of law raises substantial issue of accounta-
    bility of those entrusted with responsibility of the administration. It
    furnishes enough, cause of action either for individual or community in
    general to approach by way of writ petition and the authorities cannot
    be permitted to seek shelter under cover of technicalities of locus standi
F   nor they can be beard to plead for restraint in exercise of discretian as
    grave issues of public concern outweigh such considerations. [133C-H]

         S.P. Gupta v. Union of India, [1982] 2 S.C.R. Akhil Bhartiya
    Soshit Karamchari Sangh v. U.O.l., AIR 1981 SC 293 and Fertilizer
    Corporation Kamgar Union v. U. 0.1., AIR 1981 SC 364, referred to.
G
          Per Thommen J. (Concurring) I.I Apart from the fact that the
    scheme has not been validly altered by the Bangalore Development
    Authority, it was not open to the Government in terms of section 65 of
    the Bangalore Development Act, 1976 to give a direction to the BDA to
    defy the very object of the Act. The orders of the Government dated
H   27.5.1976 and 11.6.1976 and the consequent decision of the BDA dated
                  MEDICAL TRUST v. B.S. MUDDAPPA                        111

14. 7.1976 are inconsistent with, and contrary to, the legislative intent to
                                                                               A
safeguard the health, safety and general welfare of the people of the
locality. These orders evidence a colourable exercise of power, and are
opposed to the statutory scheme. [1328-D]

       1.2 The orders in question and the consequent action of the
BDA in allotting to private persons areas reserved for public parks            B
and play grounds and permitting construction of buildings for hospital
thereon are, in the circumstances, declared to be null and void and
of no effect. [132D-E]

      2.1 Under Sub-Section (4) of Section 19 of the Bangalor~
Development Authority Act, 1976 the BDA may, subject to certain
restrictions contained in sub-sections (5) and (6), alter the scheme, but      c
such alteration has to be carried out pursuant to a formal decision duly
recorded in the manner generally followed by a body corporate. The
scheme is a statutory instrument which is administrative legislation
involving a great deal of general law-making of universal application,
and it is not, therefore, addressed to individual cases of persons and         D
places, Alteration of the scheme must be for the purpose of improve-
. ment and better development of the City and adjoining areas and for
general application for the benefit of the public at large. Any alteration
of the scheme with a view to conferring a benefit on a particular person,
and without regard to the general good of the public at large, is not an
improvement contemplated by the Section. [122C-E]                              E

      Shri Sitaram Sugar Company Limited & Anr. etc. v. Union of
India & Ors., [1990] 1SCR909, 937 et. seq. relied on.

       2.2 Under Section 38, the BDA has the power, subject to such
 restrictions, conditions etc., as may be prescribed, to lease, sell or        p
 otherwise transfer any movable or immovable property which belongs
to it, and to appropriate or apply any land vested in it or acquired by it
 for the formation of 'open spaces' or for building purposes or in any other
 manner for the purpose of any development scheme. This implies that
 land once appropriated or applied or earmarked hy formation of 'open
spaces' or for building purposes or other development in accordance            G
 with a duly sanctioned scheme should not be used for any other purpose
unless the scheme itself, which is statutory in character, is formally
altered in the manner that the BDA as a body corporate is competent to
alter. But that power has to be exercised consistently with the appropri-
ation or application of land for formation of 'open spaces' or for build~
ing purposes or any other development scheme sanctioned by the                 H
    112                   SUPREME COURT REPORTS              i1991] 3 S.C.R.

A   Government. Any unauthorised deviation from the duly sanctioned
    scheme by sacrificing the public interest in the preservation and protec-
    tion of the environment by means of open space fo~ parks and play
    grounds and 'ventilation' will be contrary to the legislative intent, and
    an abuse of the statutory power vested in the authorities. Section 38A
B   inserted by Amendment Act 17of1984 clarifies that it shall not be open
    to the BDA to dispose of any area reserved for public parks and
    play grounds and civic amenities. Any such site cannot be diverted
    to any other purpose. Any action in violation of this provision is
    null and void. [123F-H, 124A, D-E]

          2.3 Section 16 treats 'public parks and play grounds' as a diffe-
c   rent and separate amenity or convenience from a 'civic amenity', and
    reserves 15% and 10% respectively for these two purposes. The extent
    of the areas reserved for these two objects are thus separately and
    distinctly stated by the Statute. The implication of the conceptual dis-
    tinction is that land reserved for a public park and play ground cannot
D   be utilised for any 'civic amenity' including a hospital. [121B-C]

           2.4 One of the main objects of public parks or play grounds is the
    promotion of the health of the community by means of ventilation and
    recreation. It is the preservation of the quality of life of the community
    that is sought to be protected by means of these regulations. [121E-F]
E
         2.5 The legislative intent is to preserve a public park or public
    playground in the hands of the general public as represented by the
    BDA or any other public authority and prevent private hands from
    grabbing them for private ends. [126G]

          3.1 The scheme provides for a public park and the land in ques-
F
    tion remains dedicated to the public and reserved for that purpose. It is
    meant for the reasonable accomplishment of the statutory object which is
    to promote the orderly development of the city and adjoining areas and
    to preserve open space by reserving public parks and play grounds with
    a view to protecting the residents from the ill-effects of urbanisation of
    the city in a way that maximum space is provided for the benefit of the
G
    public at large for recreation, enjoyment, 'ventilation' and fresh air.
    This is clear from the Act itself as it originally stood. The amendments
    inserting sections 16(l)(d), 38A and other provisions are clarificatory of
    this object. The legislative intent has always been the promotion and
    enhancement of the quality of life by preservation of the character and
H   desirable aesthetic features of the city. [128F-H, l29A-B]
                  MEDICAL TRUST v. B.S. MUDDAPPA                      113

      3.2 The original scheme, duly sanctioned under'the Act, inclu-
                                                                             A
des a public park and the land in question has been reserved exclusi-
vely for that purpose. Although it is open to the BOA to alter the
scheme, no alteration has been made in the manner contemplated by
section 19(4). [l27F]

       3.3 The letters addressed by the Chairman of the BDA to the           B
Chief Minister and the endorsement made by the Chief Minister on that
letter as well as the orders of the Government sanctioning conversion of
the low level park into a civic amenity site and alloting the same to the
appellant and the resolution adopted by the BDA leave no doubt that
the action of the Government and the BDA resulting in the resolution
have been inspired by individual interests at the costs and to the disad-
vantage of the general public. Public interest does not appear to have
                                                                             c
guided the minds of the persons responsible for diverting the user of the
open space for allotment to the appellant. Conversion of the open space
reserved for a park for the general good of the public into a site for the
construction of a privately owned and managed hospital for private
gains is not an alteration for improvement of the scheme as contemp-         D
lated by Section 19, and the orders in question in that behalf are a
flagrant violation of the legislative intent and a colourable exercise of
power. In the circumstances, no valid decision has been taken to alter
the scheme. [127G-H, 128A, 0-F]

       3.4 The power of the Government to give direCtions to the Au-         E
thority under section 65 is not unrestricted. The object of the directions
must be to carry out the object of the Act and not contrary to it. Only
such directions as are reasonably necessary or expedient for carrying
out the ohJect of the enactment are contemplated by section 65. If a
direction were to be issued by the Government to lease out to private
parties areas reserved in the scheme for public parks and play grounds,      F
such a direction would not have the sanctity of section 65. Any such
diversion of the user of the land would be opposed to the statute as well
as the object in constituting the BDA to promote the healthy develop-
ment of the city and improve the quality of life. Any repository of
power-be it the Government or the BOA-must act reasonably and
rationally and in accordance with law and with due regard to the             G
legislative intent. [1278-0]

     3.5 The BI> Act as enacted in 1976 has undergone several changes
but the definition of 'amenity' in Clause (b) or Sec. 2 remains
unchanged. Amenity includes various conveniences such as "road,
drainage, lighting etc. and such other conveniences" as are notified as      H
    114                   SUPREME COURT REPORTS            I1991] 3 S.C.R.

  such by the Government. The section was amended in 1984, and to add
A
  clause (bb) after clause (b) which distinguished a civic amenity from
  amenity ,and specified as civic amenities, such as dispensaries, mater-
  nity homes, etc. and those amenities which are notified as civic             ,..,   ~
  amenities by the Government. Clause (bb) which was substituted by Act
   II of 1988 defines a civic amenity as, amongst others, a dispensary, a
B hospital, a pathological laboratory, a maternity home and such other
  amenity as the Government may by Notification specify. Thus, Clauses
  (b) and (bb) of Sec. 2 read together show that all those conveniences
  which are enumerated or notified by the Government under Clause (b)
  amenities and those amenities which are enumerated or notified by the .
  Government under clause (bb) are civic amenities. Significantly, a
  hospital is specifically stated to be a civic amenity. However, the con-
                                                                                 ·-
c cept of amenity under clause (b) remains unchanged, though, it is
  not clear from sub-clause (i) of clause (bb) whether a hospital, which
  is not run by the Government or a civic 'Corporation', but by a pri-
  vate body as in the instant case, would qualify as 'civic amenity'.
  But the Act of 1988 was merely clarificatory of what was always the
D position and the hospital has always regarded as an 'amenity', if not
  a 'civic amenity'. [!19C-G, l20A]
                                                                                 ,.
          4.1 Protection of the environment, open spaces for recreation and
    fresh air, play grounds for children promenade for the residents, and
    other conveniences or amenities are matters of great public concern and
E of vital interest to he taken care of in a development scheme. It is that
    public interest which is sought to be promoted by the Act by establish-
    ing the BDA. [129CJ

        4.2 The public interest in the reservation and preservation of
                                                                                J
  open spaces for parks and play grounds cannot be sacrificed by leasing
F or selling such sites to private persons for conversion to some other
  user. Any such act would be contrary to the legislative intent and incon-
  sistent with the statutory requirements. Furthermore, it would be in
    direct conflict with the constitutional mandate to ensure that any State
  action is inspired by the basic values of individual freedom and dignity
  and addressed to the attainment of a quality of life which makes the
G guaranteed rights a reality for all the citizens. [129D-E]

       Kharak Singh v. The State of U.P. & Others, [1964] I SCR 332;             f
  Municipal Council Railam v. Shri Vardhichand & Ors., [1981] I SCR
  97; Francis Coralie Mullin v. 11ze Administrator Union Territory of
  Delhi & Ors., [1981] 2 SCR 516; Olga Jellis & Ors. v. Bombay Munici-
H pal Corporation & Ors., [1985] 3 SCC 545; Srate of Himachal Pradesh
                       MEDICAL TRUST v. B.S. MUDDAPPA                      115

     & Anr. v. Urned Ram Sharma & Ors., AIR 1986 SC 847 and Vikram
                                                                                  A
     Deo Singh Tomarv. State of Bihar., AIR 1988 SC 1782, referred to.

~.
           4.3 Reservation of open spaces for parks and play grounds is
 '   universally recognised as a legitimate exercise of statutory power
     rationally related to the protection of the residents of the locality from
     the ill-effects of urbanisation. Crowded urban areas tend to spread          B
     disease, crime and immorality. Il29G, 130G]

           Karnataka Town and Country Planning Act, 1961; Maharashtra
     Regional and Town Planning Act, 1966; Bombay Town Planning Act,
     1954; The Travancore Town and Country Planning Act, 1120; The
     Madras Town Planning Act 1920; and the Rules framed under these
     Statutes; Town & Country Planning Act, 1971 (England & Wales);
                                                                                  c
     Encyclopaedia Americana, Volume 22, page 240; Encyclopaedia of t~e
     Social Sciences, Volume XII at page 161; Town improvement Trusts in
     India, 1945 by Rai Sahib Om Prakash Aggarawala, p. 35; et. seq.;
     Halsbury's Statutes, Fourth Edition, p. 17; et. seq. and Journal of Plan-
     ning & Environment Law, 1973, p. 130 et. seq. Penn Central Transpor-         D
     tation Company v. City of New York, 57 L. Ed. 2d 631 438 US 104 1978;
     Village of Belle Terre v. Bruce Boraas, 39 L. Ed. 2d 797 416 US l 1974
     Village of Euclid v. Ambler Realty Company, 272 US 365 1926
     Halsey v. Essa Petroleum Co. Ltd., [1961] 1 WLR; Thomas J.
     Scboenbaum, Environmental Policy Law 1985 p. 438; et. seq.
     Summary and Comments 1980 10 E.L.R. 10125; et. seq. and Agins v.             E
     City of Triburon, 447 US 255 1980, referred to.

           Samuel Berman v. Andrew Parker, 99 L. Ed. 27 (348 US 26),
     referred to.

           4.4 Any reasonable legislative attempt bearing a rational rela-        F
     tionship to a permissible state objective in economic and social planning
     will be respected by the courts. A duly approved scheme prepared in
     accordance with the provisions of the Act is a legitimate attempt on the
     part of the Government and the statutory authorities to ensure a quiet
     place free of dust and din where children can run about and the aged
     and the infirm can rest, breath fresh air and enjoy the beauty of nature.    G
     These provisions are meant to guarantee a quiet and healthy atmosp-
     here to suit family needs of persons of all stations. Any action which
     tends to defeat that object is invalid. [131D-F]

           Village of Belle Terre v. Bruce Boraas, 39 L. Ed. 2d 797 416 US I;
     Vi/lag~ of Euclid v. Ambler Realty Company, 272 U.S. 365 1926, and           H
    116                     SUPREME COURT REPORTS              [1991] 3 S.C.R.

     T. Damodhar Rao & Ors. v. The Special Officer, Municipal Cor.pora;,.;;..
A
     tion of Hyderabad & Ors., AIR 1987 AP 171, referred to.

            5. The residents of the locality are the persons intimately, vitally
     and adversely affected by any action of the BDA and the Government
    .which is destructive of the environment and which deprives them of
B    facilities reserved for the enjoyment and protection of the health of the
     public at large. Being residents of the locality, the petitioners are natur-
     ally aggrieved by the orders in question, and they have, therefore, the
     necessary locus standi. [13!H, 132A-B]

          CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2750
    of 1991.
c
         From the Judgment and Order dated 13.9.89 of the Karnataka
    High Court in W.A. No. 162 of 1989.

         B.R.L. Iyengar, S.S. Javali, R.V. Narasimhamurthi, E.C.
D   Vidyasagar, G.V. Shantharaju, D.N.N. Reddy, Raju Ramachandran,
    K. Jagan Mohan Rao. M. Veerappa and R.P. Wadhwani for the
    appearing parties.

          The Judgment of the Court was delivered by

E         THOMMEN, J. Leave granted.

          I have had the advantage of reading in draft the judgment of my
    learned Brother Sahai; J. and I am in complete agreement with what
    he has stated. It is in support of his reasoning and conclusion that I add
    the following words.       ·
F
          A site near the Sankey's Tank in Rajmahal Vilas Extension in
    the City of Bangalore was reserved as an open space in an improve-
    ment scheme adopted under the City of Bangalore Improvement Act,
                                                                                        I
    1945. This Act was repealed by section 76 of the Bangalore Develop-                 i
  . ment Authority Act, 1976 (Karnataka Act No. 12 of 1976) (hereinafter
G referred to as the "Act") which received the assent of the Governor on
    2.3.1976 and is deemed to have come into force on 20.12.1975. By a
    notification issued under section 3 of the Act, the Government con-
    stituted the Bangalore Developm.ent Authority (the "BOA") thereby
    attracting sectio_n 76 which, so far as it is material, reads:
                                                                                    '
H               "S. 76. REPEAL AND SA VIN GS ( 1) On the issue of the
                          MEDICAL TRUST v. B.S. MUDDAPPA [THOMMEN, J.I                  117

                            notification under sub-section (1) of section 3 constituting
                                                                                         A
                            the Bangalore Development Authority, the City of Banga-
                            lore Improvement Act, 1945 (Mysore Act 5 of 1945) shall
           ,)               stand repealed.

                             (2) ....................................... ' .........
                                                                                                B
                             (3) ....................................... ' .........



          -
    )                              Provided further that anything done or any action
                             taken (including any appointment. notification. rule, regu-
                             lation, order, scheme or bye-law made or issued, any
           "                 permission granted) under the said Act shall be deemed to
                             have been done or taken under the corresponding provi-
                                                                                                c
                             sions of this Act and shall continue to be in force accord-
                             ingly unless and until superseded by anything done or any
                             action taken under this Act:

                                   Provided also that any reference in any enactment or         D
           _,                in any instrument to any provision of the repealed Act shall
    ,, •                     unless a different intention appears be construed as a refe-
                             rence to the corresponding provision of this Act.

                             (4) ................................................
                                                                (emphasis supplied}             E

                 Accordingly, the scheme prepared under the repealed enactment is

)
           .,.   deemed to have been prepared and duly sanctioned by the Govern-
                 ment in terms of the Act for the development of Rajmahal Vilas
                 Extension. In the scheme so sanctioned the open space in question has
                 been reserved for a public park.                                               F

                        However, pursuant to the orders of the State Government dated
                 27.5.1976 and 11.6.1976 and by its resolution dated 14.7.1976, the



-
                 BDA allotted the open space in favour of the appellant, a medical
                 trust, for the purpose of constructing a hospital. This site is stated to be
        ' ....   the only available space reserved in the scheme for a public park or
                 play ground. This allotment has been challenged by the writ petitio-
                                                                                                G

                 ners (respondents in this appeal) who are residents of the locality on
                 the ground that it is contrary to the provisions of the Act and the
                 scheme sanctioned thereunder, and the legislative intent to protect
                 and preserve the environment by reserving open space for 'ventila-
                 tion', recreation and play grounds and parks for the general public.           H
    118                    SUPREME COURT REPORTS              [1991] 3 S.C.R.

A   The writ petitioners, being aggrieved as members of the general public
    and residents of the locality, have challenged the diversion of the user


                                                                                          -
    and allotment of the site to private persons for construction of a
    hospital.                                                                     -~




         The learned Single Judge who heard the writ petition in the first
B instance found no merit in it and dismissed the same. He held that, a
  hospital being a civic amenity, the allotment of the site by the BOA in
  favour of the present appellant for the purpose of constructing a hospi-
  ta! was valid and in accordance with law. On appeal by the respondents
  (the residents of the locality) the learned Judges of the Division Bench         ~


  held that, the area having been reserved in the sanctioned ;dreme for a
  public park, its diversion from that object and allotment in favour of a          '
c private  body was not permissble under the Act, even if the object of
  the allotment was the construction of a hospital. The learned Judges
  were not impressed by the argument that the proposed hospital beinc a
  civic amenity, the Act did not prohibit the abandonment of a pu~lic
  park for a private hospital. Accordingly, allowing the respondents'
D appeal and without prejudice to a fresh allotment by the BOA of any
  alternative site in favour of the present appellant, according to law, the
  writ petition was allowed and the allotment of the site in question was
  set aside.
                                                                                          ...
           The appellant's counsel submits that the learned Judges of the
E   Division Bench exceeded their jurisdiction in setting aside an allot-
    ment which was purely an administrative action taken by the BOA
    pursuant to a valid direction issued by the Government in that behalf.
    He submits that in the absence of any evidence of ma/a fide the
    impugned decision of the BOA was impeccable and not liable to be              lf
    interfered with in writ jurisdiction. He says that the decision to allot a
F   site for a hospital rather than a park is a matter within the discretion of
    the BOA. The hospital, he says, is not only an amenity, but also a civic
    amenity under the Act, as it now stands, and the diversion of the user
    of the land for that purpose is justified under the Act.

          The respondents, on the other hand, contend that it was impro-
G   per to confer a largesse on a private party at the expense of the general
    public. The special consideration extended to the appellant, they say,        _._   ....
    was not permissible under the Act. To have allotted in favour of the
    appellant an area reserved for a public park, even if it be for the
    purpose of constructing a hospital, was to sacrifice the public interest
    in preserving open spaces for 'ventilation', recreation and protection
H   of the environment.
              MEDICAL TRUST v. B.S. MUDDAPPA [TH.OMMEN. J.]                   119
                                                                                          •
           .The scheme is undoubtedly statutory in character. In view of the fl
      repealing provisions contained in section 76 of the Act, which we have
     .in part set out above, the impugned actions affecting the scheme will
      be examined with reference to ihe Act. The validity of neither the Act
      nor the scheme is doubted. The complaiht of the writ petitioners
      (respondents) is that the scheme has been violated by rearnn of the
      impugned orders. The scheme, they point out, is a legitimate exercise B
      of statutory power for the protection of the residents of the locality
      from the ill effects of urbanisation, and the impugned orders sacrific-
      ing open space reserved for a public park is an invalid and colourable
      exercise of power to suit private interest at the expense of the general
·'    public.

           The Act, as enacted in 1976, has undergone several changes, but
                                                                                      c
     the definition of 'amenity" in clause (b) of section 2 remains
     unchanged. "Amenity' includes various 'conveniences such as road,
     drainage. lighting etc. and such other conveniences as ate notified as
     such by the Government.
                                                                                      D
          Section 2 was amended in 1984 by Karnataka Act No. 17 of 1984
     to add clause (bb), after clause (b), which distinguished a 'civic
     amenity' from ail 'amenity'. Certain amenities were specified as civic
     amenities, such as dispensaries, maternity homes etc. and those
     amenities which are notified as civic amenities by the Government.
                                                                                      E
           By Act 11of1988, clause (bb) of section 2 was, w.e.f. 21.4.1984,
     substituted by the present clause which defines a civic amenity as,
     amongst others, a dispensary, a hospital, a pathologicai laboratory, a
     maternity home and such other amenity as the Government may by
     aotification, specify. Clauses (b) and (bb) of section 2 read together
     show that all ~hose conveniences which ate enumerated, or, notified              F
     by the Government under clause (b), are 'amenities'; and, all those
     amenities which are enumerated, or, notified by the Government
     under clause {bb), are 'civic amenities'.

           Significantly, a hospital is specifically stated to be a 'civic            O
     amenity'. The concept of 'amenity' under clause {b), however.
     remains. unchanged. It is not clear from sub-clause (i) of clause (hb)
     whether a hospital which is hot run by the Government ot a civic
     ·corporation· but, as in the present case. by a private body, Would
     qualify as 'civic amertity". Nor is it clear whether a hospital was either
     ali 'amenity' or a ·civic amenity· Lintii it was specifically stated to be the   H
     latter by the Amendment Act 11 of 1988. The respondents (residents)
        120                    SUPREME COURT REPORTS             [1991] 3 S.C.R.
•   A   contend that a hospital did not have the status of an 'amenity' and
        much less a 'civic amenity' until Act 11 of 1988 so stated. But perhaps
        the appellant rightly contends that Act 11 of 1988 was merely clarifi-
        catory of· what was always the position, and the hospital has always          ....
        been regarded as an 'amenity', if not a 'civic amenity'. However, on
    B   the facts of this case, it is unnecessary to pursue this point further. Nor
        is it necessary to consider whether a privately owned and managed
        hospital, as in the present case, is an 'amenity' for the purpose of the
        Act.

              The question really is whether an open space reserved for a park
        or play ground for the general public, in accordance with a formally
    c   approved and published development scheme in terms of the Act, tan
        be allotted to a private person or a body of persons for the. purpose of
        constructing a hospital? Do the members of the public, being residents
        of the locality, have a right to object to such diversion of the user of
        the space and deprivation of a park meant for the general public and
    D   for the protection of the environment? Are they in law aggrieved by
        such diversion and allotment? To ascertain these points, we must first
        look at the relevant provisions of the Act.                                    ,_
                                                                                       ...
               Chapter III of the Act deals with 'development schemes'. The
        BDA is empowered to draw up detailed schemes for the development
        of the Bangalore Metropolitan Area. It may, with the previous
    E
        approval of the Government, undertake from time to time any work
        for such development and incur expenditure therefor. The Govern-
        ment is also empowered to require the BDA to take up any develop-
        ment scheme or work and execute the same, subject to such terms and
        conditions as may be specified by the Government (See section 15).            >
        Section 16 provides that such development schemes must provide for
    F
        various matters, such as acquisition of land, laying and re-laying of
        land, construction and reconstruction of buildings, formation and
        alteration of streets, drainage, water supply and electricity. In 1984
        this section was amended by Act 17 of 1984 by inserting clause (d) so as
        to provide for compulsory reservation of portions of the layout for
        public .parks and play grounds and also for civic amenities. Section
    G
        16( l)(d) provides:

                    "S. 16. PARTICULARS TO BE PROVIDED FOR IN A
                    DEVELOPMENT SCHEME-Every development scheme
                    under section 15: (!) shall, within the limits of the area
    H               comprised in the scheme, provide for:
                  MEDICAL TRUST v. B.S. MUDDAPPA [THOMMEN, J.J                  121

                    (d) the reservation of not less than fifteen per cent of the A
                    total area of the layout for public parks and play grounds
                    and an additional area of not less than ten percent of the
                    total area of the layout for civic amenities."

         This provision thus treats 'public parks and play grounds' as a different B
         and separate amenity or convenience from a 'civic amenity'. 15% and
         10% of the total area of the layout must respectively be reserved for
         (I) public parks and play grounds, and, (2) for civic amenities. The
         extent of the areas reserved for these two objects are thus separately
         and distinctly stated by the statute. The implication of this conceptual
         distinction is that land reserved for a public park and play ground
         cannot be utilised for any 'civic amenity' including a hospital.          C

         Section 16(2) says: .

                     "S. 16(2) may, within the limits aforesaid, provide for-
                                                                                      D
                     (a)

                     (b) forming open spaces for the better ventilation of the
                     area comprised in the scheme or any adjoining area;

                     (c)
                                                                                      E
         The need for open space for 'better ventilatfon' of the area is thus
         emphasised by this provision. One of the main objects of public parks
         or play grounds is the promotion of the health of the community by
    .,   means of 'ventilation· and recreation. It is the preservation of the
         quality of life of the community that is sought to be protected by means     F
         of these regulations.

               Section 17 lays down the procedure to be followed on completion
         of a development scheme. It deals with, amongst other things, the


-
         method of service of notice on affected parties. Section 18 deals with
         the procedure for sanctioning the scheme. The BOA must submit to             G
         the Government the scheme together with the particulars such as
         plans, estimates, details of land to be acquired etc. and also represen-
         tations, if any, received from persons affected by the scheme. On
         consideration of the proposed scheme, the Government is emp<iwered
         under sub-section (3) of section 18 to accord its sanction for the
         scheme.                                                                      H
    122                   SUPREME COURT REPORTS             [1991] 3 S.C.R.

          Section 19 says that when necessary sanction is accorded by the
A
    Government, it should publish in the Official Gazette a declaration as
    to the sanction accorded and the land proposed to be acquired for the
    scheme. Sub-section (4) of section 19 says:

                "19(4) If at any time it appears to the Authority that an
B               improvement can be made in any part of the scheme, the
                Authority may alter the scheme for the said purpose and
                shall subject to the provisions of sub-sections (5) and (6),
                forthwith proceed to execute the scheme as altered."
    This means that the BOA may, subject to certain restrictions con-
    tained in sub-sections (5) and (6), alter the scheme, but such alteration
c   has to be carried out pursuant to a formal decision duly recorded in the
    manner generally followed by a body corporate. The scheme is a
    statutory instrument which is administrative legislation involving a
    great deal of gene ml law-making of universal application, and it is not,
    therefore, addressed to individual cases of persons and places. Altera-
    tion of the scheme must be for the purpose of improvement and better
D   development of the City of Bangalore and adjoining areas and for
    general application for the benefit of the public at large. Any altera-
    tion of the scheme with a view to conferring a benefit on a particular
    pef'on, and without regard to the general good of the public at large,
    is not an improvement contemplated by the section. See the principle
    stated in Shri Sitaram Sugar Company Limited & Anr. etc. v. Union of
E   India & Ors., I 1990] I SCR 909, 937, et. seq.

          Section 30 has not been amended, and, so far as it is material,
    reads:

               "30. STREETS ON COMPLETION TO VEST IN AND
F              BE MAINTAINED BY CORPORATION-
               ( !)
               (2) Any open space including such parks and play grounds
               as may be notified by the Government reserved for ventila-
               tion in any part of the area under the jurisdiction of the
G
               Authority as part of any development scheme sanctioned
               by the Government shall be transferred on completion to
               the Corporation foi maintenance at the expense of the
               Corporation and shall thereupon vest in the Corporation.

               (3)
H
                                                       .(emphasis supplied)
                 MEDICAL TRUST v. B.S. MUDDAPPA [THOMMEN, J.]                 123


        Sub-section (2) of this section thus refers to open space, including
                                                                                     A
        parks and play grounds, notified by the Government as reserved for
        'ventilation'. Section 31 prohibits transfer by sale or otherwise of sites
        for the purpose of construction of buildings until all the improvements
        specified in section 30, including parks and play grounds, have been
        provided for in the estimates. Section 32 prohibits any person from
        forming any extension or layout for the purpose of construction of           B
        buildings without specific sanction of the BOA. Section 33 has
        empowered the Commissioner of the BOA to order alteration or
        demolition of buildings constructed otherwise than in conformity with
        the sanction of the BOA. These provisions have not undergone any
        material change.

           Chapter V of the Act deals with property and finance of the
                                                                                     c
        BOA. Section 38 reads:

                    "38. POWER OF AUTHORITY TO LEASE, SELL OR
                    TRANSFER PROPERTY-Subject to such restrictions,
                    conditions and limitations as may be prescribed, the             D
                    Authority shall have power to lease, sell or otherwise trans-
                    fer any movable or immovable property which belongs to
                    it, and to appropriate or apply any land vested in or
                    acquired by it for the formation of open spaces or for build-
                    ing purposes or in any other manner for the purpose of any
                    development scheme."                                             E
                                                            (emphasis supplied)

        This section also has not undergone any material change. It says that,
;,      subject to such restrictions, conditions etc., as may be prescribed, the
        BOA has the power to lease, sell or otherwise transfer any movable or
        immovable property which belongs, to it, and to appropriate or apply         F
        any land vested in it or acquired by it for the formation of 'open
        spaces' or for building purposes or in any other manner for the purpose
        of any development scheme. This implies that land once appropriated
        or applied or earmarked by formation of 'open spaces' or for building
        purposes or other development in accordance with a duly sanctioned
        scheme should not be used for any other purpose unless the scheme            G
...._   itself, which is statutory in character, is formally altered in the manner
        that the BOA as a body corporate is competent to alter. This section,
        of course, empowers the BOA to lease or sell or otherwise transfer any
        property. But that power has to be exercised consistently with the
        appropriation or application of land for formation of 'open spaces' or
        for building purposes or any other development scheme sanctioned by          H
    124                    SUPREME COURT REPORTS              [1991] 3 S.C.R.

    the Government. Property reserved for open space in a duly sanc-
A
    tioned scheme cannot be leased or sold away unless the scheme itself is
    duly altered. Any unauthorised deviation from the cluly sanctioned
    scheme by sacrificing the public interest in the preservation and pro-
    tection of the environment by means of open space for parks and play
    grounds alld 'ventilation' will be contrary to the legislative intent, and
B   an abuse of the statutory power vested in the authorities. That this is the
    true legislative intent is left in no doubt by the subsequent amendment
    by Act 17'of 1984, inserting section 38A, which reads:

                "38A. PROHIBITION OF THE USE OF AREA RE-
                SERVED FOR PARKS, PLAY GROUNDS AND CIVIC
                AMENITIE~ FOR OTHER PURPOSES-The authority
c               shall not sell or otherwise dispose of any area reserved for
                public parks and play grounds and civic amenities, for any
                other purpose and any disposition so made shall be null and
                void."
                                     (emphasis supplied)
D
  This amendment of 1984, which came into force on 17.4.84, is merely
  clarificatory of what has always been the legislative intent. The new
  provision clarifies that it shall not be open to the BOA to dispose of
  any area reserved for public parks and play grounds and civic
  amenities. Any such site cannot be diverted to any other purpose. Any
E action in violation of this provision is null and void.

          The legislative intent to prevent the diversion of the user of an
    area reserved for a public park or play ground or civic amenity is
    reaffirmed by the Bangalore Development Authority (Amendment)                 . '
    Act, 1991 (Karnataka Act No. 18 of 1991) which came into force w.e.f.
F   16.1.1991, and which substituted a new section 38A in the place of the
    earlier provision inserted by Act 17 of the 1984. Section 2 of the
    Karnataka Act 18 of 1991 reads:

                "S. 2. Substitution of section 38A-For section 38A of the
                Bangalore Development Authority Act, 1976 (Karnataka
G               Act 12 of 1976 (hereinafter referred to as the principal
                Act), the following shall be deemed to have been substi-
                tuted with effect from the twenty first day of April, 1984,
                namely:

                      '38A. Grant of area reserved for civic amenities etc:
H               (1) The Authority shall have the power to lease, sell or
              MEDICAL TRUST v. B.S. MUDDAPPA (THOMMEN, J.J                 125

                 otherwise transfer any area reserved for civic amenities for
                                                                                  A
                 the purpose for which such area is reserved.

                        (2) The Authority shall not sell or otherwise dispose
                 of any area reserved for public parks and playgrounds and
                 civic amenities, for any other purpose and any disposition
                 so made shall be null and void-                                  B

                       Provided that where the allottee commits breach of
                 any of the conditions of allotment, the Authority shall have
                 right to resume such site after affording an opportunity of
                 being heard to such allottee' ."

     This new section 38A, as clarified in the Statement of Objects and
                                                                                  c
     Reasons and in the Explanatory Statement attached to L.A. Bill No. 6
     of 1991, removed the prohibition against lease or sale or any other
     transfer of any area reserved for a civic amenity, provided the transfer
     is for the same purpose for which the area has been reserved. This
     means that once an area has been stamped with the character of a             0
~.
     particular civic amenity by reservation of that area for such purpose, it
     cannot be diverted to any other use even when it is transferred to
     another party. The rationale of this restriction is that the scheme once
     sanctioned by the Government must operate universally and the areas
     allocated for particular objects must not be diverted to other objects.
     This means that a site for a school or hospital or any other civic           E
     amenity must remain reserved for that purpose, although the site itself
     may change hands. This is the purpose of sub-section ( 1) of section
     38A, as now substituted. Sub-section (2) of section 38A, on the other
     hand, emphasises the conceptual distinction between 'public parks and
     play grounds' forming one. category of 'space' and 'civic amenihes'
     forming another category of sites. While public parks and plav grounds       F
     cannot be parted with by the BOA for transfer to private hands by
     reason of their statutory dedication to the general public, other areas
     reserved for- civic amenities may be transferred to private patties for
     the specific purposes for which those areas are reserved. There is no
     prohibition, as such, against transfer of open spaces reserved for
     public parks or play grounds, whether or not for consideration, but the      G
     transfer is limited to public authorities and their user is limited to the
     purposes for which they are reserved' under the scheme. The distinc-
     tion is that while public parks and play grounds are dedicated to the
     public at large for common use, and must therefore remain with the
     State or its instrumentalities, such as the BOA or a Municipal Corpo-
     ration or any other authority, the civic amenities are not so dedicated,     H
    126                   SUPREME COURT REPORTS             [1991] 3 S.C.R.

A   but only reserved for particular or special purposes. This restriction
    against allotment of public parks and play grounds is further
    emphasised by section 3 of the Karnataka Act 18 of 1991 which reads:

               "S.3. Validation of allotment of civic amenity sites-
               Notwithstanding anything contained in any law or judg-
B              ment, decree or order of any court or other authority, any
               allotment of civic amenity site by way of sale, lease or
               otherwise made by the authority after the twenty-first day
               of April, 1984, and before the Seventh day of May, 1988 for
               the purposes specified in clause (bb) of Section 2 of the
               principal Act, shall, if such. site has been made use of for
               the purpose for which it is allotted, be deemed to have been
c              validly made and shall, have effect for all purposes as if it
               had been made under the principal Act, as amended by this
               Act and accordingly:

                    (i) all acts or proceedings, or things done or allot-
D              ment made or action taken by the Authority shall, for all
               purposes be deemed to be and to have always been done or
               taken in accordance with law; and

                     (ii) no suit or other proceedings shall be instituted,
               maintained or continued in any court or before any autho-
E              rity for cancellation of such allotment or. demolition of
               buildings constructed on the sites so allotted after obtaining
               building licences from the Authority onhe (local authority
               concerned or for questioning the validity of any action or)
               things taken or done under section 38A of the principal
               Act, as amended by this Act and no court shall enforce or
F              recognise any decree or order' declaring any such allotment
               made, action taken or things done under the principal Act,
               as invalid."

    The evil that was sought to be remedied by the validation provision is
    in regard to allotment of "civic amenity sites", and not public parks or
G   play grounds (see also the Explanatory Statement attached to the
    Bill). All these provisions unmistakably point to the legislative intent
    to preserve· a public park or public play ground in the hands of the
    general public, as represented by the BOA or any other public aumo-
    rity, and thus prevent pnvate hands from grabbing them for private
    ends. It must also be stated here that the validation clause relates to
H   the period between 21.4.1984 and 7 .5,1988 which was long after the
    impugned allotment.
              MEDICAL TRUST v. B.S. MUDDAPPA [THOMMEN, J.l                  127

           Section 65 empowers the Government to give such directions to
                                                                                   A
     the BDA as are, in its opinion, necessary or expedient for carrying out
     the purposes of the Act. It is the duty of the BDA to comply with such
     directions. It is contended that the BDA is bound by all directions of
     the Government, irrespective of the nature or purpose of the direc-
     tions. We do not agree that the power of the Government under
     section 65 is unrestricted. The object of the directions must be to carry     B
     out the object of the Act and not contrary to it. Only such directions as
     arc reasonably necessary or expedient for carrying out the object of
     the enactment are contemplated by section 65. If a direction were to be
     issued by the Government to lease out to private parties areas reserved
     in the scheme for public parks and play grounds, such a direction
     would not have the sanctity of section 65. Any such diversion of the
     user of the land would be opposed to the statute as well as the object in
                                                                                   c
     constituting the BDA to promote the healthy development of the city
     and improve the quality of life. Any repository of power-be it the
     Government or the BDA must act reasonably and rationally and in
     accordance with law and with due regard to the legislative intent.
                                                                               D
            It is contended on behalf of the appellant that section 38A pro-
     hibiting sale or any other disposal of land reserved for 'public parks or
\.
     play grounds', and section 16(l)(d) requiring that 15 per cent of the
     total area of the layout be reserved for public parks and play grounds,
     and an additional area of not less than ten per cent of the total area of
     the layout for civic amenities, were enacted subsequent to the relevant E
     orders of the Government dated 27.5.1976 and 11.6.1976 and the
     resolution of the BOA dated 14.7.76 resulting in the allotment of the
     site in favour of the appellant. Counsel says that at the material time
     when the Government made these orders and the BDA acted upon ·
     them there was no restriction on the diversion of the user of land
     reserved for a public park or play ground to any other purpose.           F

           Significantly, the original scheme, duly sanctioned under the
     Act, includes a public park and the land in question has been reserved
     exclusively for that purpose. Although it is open to the BDA to alter
     the scheme, no alteration has been made in the manner contemplated
     by section .19( 4 ). It is, however, true that certain steps had been taken   G
     by the Government and the BOA to allot the open space in question to
     the appellant. My learned brother Sahai, J. has referred to the letter
     dated 21st April, 1976 addressed by the Chairman of the BDA to the
     Chief Minister and the endorsement made by the Chief Minister on
     that letter as well as the Orders of the Government dated 27th May,
      1976 and I Ith June, 1976 sanctioning conversion of the low .level park      H
    128                    SUPREME COURT REPORTS            I1991] 3 S.C.R.

A
    into a civic amenity site and allotting the same to the appellant. These
    orders were followed by a resolution adopted by the BOA on 14th
    July, 1976 reading as follows:

               "393. Allotment of C.A. Site to Bangalore Medical Trust
               for construction of Hospital in Rajmahal vilas Extension.
B
                     It was resolved-

                     The Government Order No. HMA 249 MNG 76
               Bangalore dt. 17.6.1976 regarding allotment of C.A. site
               situated next to the land allotted to H.K.E. Society in
               Rajmahal vilas Extension, Bangalore, in favour of Banga-
c              lore Medical Trust for construction of Hospital to read and
               recorded with confirmation for further action in the
               matter'."

    These documents leave no doubt that the action of the Government
D   and the BOA resulting in the resolution dated 14th July, 1976 have
    been inspired by individual interests at the costs and to the disad-
    vantage of the general public. Public interest does not appear to have
    guided the minds of the persons responsible for diverting the user of
    the open space for allotment to the appellant. Conversion of the open
    space reserved for a park for the general good of the public into a site
E   for the construction of a privately owned and managed hospital for
    private gains is not an alteration for improvement of the scheme as
    contemplated by section 19, and the impugned orders in that behalf
    are a flagrant violation of the legislative intent and a colourable exer-
    cise of power. In the circumstances, it has to be.concluded that no
    valid decision has been taken to alter the scheme. The schem·e pro-
F   vi des for a public park and the land in question remains dedicated to
    the public and reserved for that purpose. It is not disputed that the
    only available space which can be utilised as a public park or play
    ground and which has been reserved for that purpose is the space
    under consideration.

G         The scheme is meant for the reasonable accomplishment of the
    statutory object which is to promote the orderly development of the         .......
    City of Bangalore and adjoining areas and to preserve open spaces by
    reserving public parks and play grounds with a view to protecting the
    residents from the ill-effects of urbanisation. It is meant for the
    development of the city in a way that maximum space is provided forthe
H   benefit of the public at large for recreation, enjoyment, 'ventilation'
                     MEDICAL TRUST v. B.S. MUDDAPPA (TIIOMMEN, J.]                 129

           and fresh air. This is clear from the Act itself as it originally stood. The
                                                                                          A
           amendments inserting sections 16(1)(d), 38A and other provisions are
     .,,   clarificatory of this object. The very purpose of the BOA, as a statu-
           tory authority, is to promote the Jiealthy growth and development of
           the City of Bangalore and the area adjacent thereto. The legislative
           intent has always been the promotion and enhancement of the quality
           of life by preservation of the character and desirable aesthetic features      B
           of the city. The subsequent amendments are not a deviation from or
           alteration of the original legislative intent, but only an elucidation or
           affirmation of the same.
'   ·~,



                 Protection of the environment, open spaces for recreation and
           fresh air, play grounds for children, promenade for the residents, and
           other conveniences or amenities are matters of great public concern
                                                                                          c
           and of vital interest to be taken care of in a development scheme. It is
           that public interest which is sought to be promoted by the Act by
           establishing the BOA. The public interest in the reservation and
           preservation of open spaces for parks and play grounds cannot be
           sacrificed by leasing or selling such sites to private persons for conver-     D
    .,.    sion to some other user. Any such act would be contrary to the legisla-
           tive intent and inconsistent with the statutory requirements. Further-
     •     more, it would be in direct conflict with the constitutional mandate to
           ensure that any State action is inspired by the basic values of individual
           freedom and dignity and addressed to the attainment of a quali_ty of
           life which makes the guaranteed rights a reality for all the citizens.         E
           See Kharak Singh v. The State of U.P. & Others, [19641 1 SCR 332;
           Municipal Council, Ratlam v. Shri Vardhichand & Ors., [19811 1 SCR
           97; Francis Coralie Mullin v. The Administrator, Union Territory of
    ·{,
           Delhi & Ors., [198112 SCR 516; Olga Tellis & Ors. v. Bombay Munici-
           pal Corporation & Ors., [1985] 3 SCC 545; State of Himachal Pradesh
           & Anr. v. Urned Ram Sharma & Ors., AIR 1986 SC 847 and Vikram                  F
           Deo Singh Tomar v. State of Bihar, AIR 1988 SC 1782.

                 Reservation of open spaces for parks and play grounds is univer-
           sally recognised as a legitimate exercise of statutory_power rationally
           related to the protection of the residents of the locaiity from the ill-
           effects of urbanisation. See for e.g: Karnataka Town and Country G
    -~     Planning Act, 1961; Maharashtra Regional and Town Planning Act,
           1966; Dombay Town Planning Act, 1954; The Travancore Town and·
           Country Planning Act, 1120; The Madras Town Planning Act, 1920;
           and the Rules framed under these Statutes; Town & Country Planning
           Act, 1971 (England & Wales); Encyclopaedia Americana, Volume 22,
           page 240; Encyclopaedia of the Social Sciences, Volume XII at page H
    130                   SUPREME COURT REPORTS              [1991] 3 S.C.R.

    161; Town lmporvement Trusts 111 India. 1945 by Rai Sahib Orn
A
    Prakash Aggarawala, p. 35; et. seq.: Hu/sbury"s Statutes, Fourth
    Edition, p. 17 et. seq. and Journal of Planning & Environment Law,
    1973, p. 130 et. seq. See also: Penn Central Transportation Company v.
    City of New York, 57 L.Ed. 2d 631 [438 US 104 (1978) ]; Village of Belle
    Terre v. Bruce Boraas, 39 L.Ed. 2d 797 [416 US I (1974)]; Village of
B   Euclid v. Ambler Realty Company, 272 US 365 (1926) and Halsey v.
    Essa Petroleum Co. Ltd., [1961] l WLR 683.

           In Agins v. City of Tiburon, 447 US 255 ( 1980), the Supreme Court
    of the United States upheld a zoning ordinance which provided· ... it
    is in the public interest to avoid unnecessary conversion of open space
    land to strictly urban uses, thereby protecting against the resultant
c   impacts, such as ...... pollution, .... destruction of scenic beauty,
    disturbance of the ecology and the environment, hazards refated to
    geology, fire and flood. and other demonstrated consequences of
    urban sprawl". Upholding the ordinance. the Court said:

D               " .... The .State of California has determined that the
                development of local open-space plans will discourage the
                "premature and unnecessary conversion of open-space
                land to urban uses". The specific zoning regulations at
                issue are exercises of the city "s police power to protect the
                residents of Tiburor. from the ill-effects of urbanization.
E               Such governmentai purposes long have been recognized as
                legitimate.

                      The zoning ordinances benefit the appellants as well
                public by serving the city's interest in assuring careful and    .\
                orderly development of residential property with provision
F               for open-space areas .... See comments on this decision
                by Thomas J. Sehoenbaum, Environmental Policy Law,
                1985 p. 438 et. seq. See also Summary and Comments,
                [ 1980] JO E.L.R. 10125 et. seq."

          l'he statutes in force in India and abroad reserving open ~paces
G   for parks and play grounds are the legislati-;e attempt to eliminate the
    misery of disreputable housing condition caused by urbanisation.             .J..

    Crowded urban areas tend to spread disease, crime and immorality.
    As stated by the U.S. Supreme Court in Samuel Berman v. Andrew
    Parker, 99 L. Ed. 27 348 US 26:

               " .... They may also suffocate the spirit by reducing the
                                                •
               MEDICAL TRUST v. B.S. MUDDAPPA (THOMMEN, J.l               131

                 people who live there to the status of cattle. They may
                                                                                 A
                 indeed make living an almost insufferable burden. They
                 may also be an ugly sore, a blight on the community which
                 robs it of charm, which makes it a place from which men
                 turn. The misery of housing may despoil a community as an
                 open sewer may ruin a river.
                                                                                 B
                        ..... The concept of the public welfare is broad and
                 inclusive .... The values it represents are spiritual as well
                 as physical, aesthetic as well as monetary. It is within the
                 power of the legislature to determine that the community
                 should be beautiful as well' as healthy, spacious as well ·as
                 clean, well-balanced as well as carefully patrolled. Jn the
                 present case, the Congress and its authorized agencies have
                                                                                 c
                 made determinations that take into account a wide variety
                 of v1lues ..... " ..
                 (Per Douglas, J.).

            Any reason~ legislative attempt bearing a rational relation-         D
      ship to a permissible state objective in economic and social planning
      will be respected by the courts. A duly approved scheme prepared in
      accordance with the provisions of the Act is a legitimate atten1pt on
      the part of the Government and the statutory authorities to ensure a
      quiet place free of dust and din where children can run about and the
      aged and the infirm can rest, breath fresh air and enjoy the beauty of     E
      nature. These provisions are meant to guarantee a quiet and healthy
      atmosphere to >uit family needs of persons of all stations. Any action
      which tends to defeat that object is invalid. As stated by the U.S.
-r.   Supreme Court in Village of Belle Terre v. Bruce Boraas, 39 L. Ed. 2d
      797 416 us 1:
                                                                                 F
                 " .... The police power is not confined to elimination of
                 filth, stench, and unhealthy places. It is ample to lay out
                 zones where family values, youth values, and the blessings
                 of quiet seclusion and clean air make the area a sanctuary
                 ior people".
                                                                                 G
      See also Village of Euclid v. Ambler Realty Company, 272 U.S. 365
      1926. See the decision of the Andhra Pradesh High Court in T. Damo-
      dhar Rao & Ors. v. The Special Officer, Municipal CorporatiOn of
      Hyderabad & Ors., AIR 1987 AP 171.

           The residents of the locality are the persons intimately, vitally     H
    132                    SUPREME COURT REPORTS               ( 1991] 3 S.C.R.

A   and adversely affected by any action of the BOA and the Government
    which is destructive of the environment and which deprives them of
    facilities reserved for the enjoyment and protection of the health of the
    public at large. The residents of the locality, such as the writ petitio-
    ners. are naturally aggrieved by the impugned orders and they have,
    therefore, the necessary locus standi.
B
          Jn the circumstances, we are of the view that, apdrt from the fact
    that the scheme has not been validly altered by the BDA, it was not
    open to the Government in terms of section 65 to give a direction to
    the BDA to defy the very object of the Act.

c           The impugned orders of the Government dated 27 .5.1976 and
     l l.6.1976 and the consequent decision of the BOA dated 14.7.1976 are
    inconsistent with, and contrary to, the legislative intent to safeguard
    the health, safety and general welfare of the people of the locality.
    These orders evidence a colourable exercise of power, and are
    opposed to the statutory scheme.
D
           The impugned orders and the consequent action of the BOA in
    allotting to private persons areas reserved for public parks and play
    grounds and permitting construction of buildings for hospital thereon
    are, in the circumstances, declared to be null and void and of no effect.

E         R.M. SAHAI, J. Public park or private nursing home which
    serves public interest, better, is itself an interesting issue in this appeal
    directed against order of the Karnataka High Court, apart, from if the
    conversion of the site from park to hospital was in accordance with law
    and whether a private hospital was an amenity or civic amenity under
    the Bangalore Development Authority Act (Act 12 of 1976) (in brief
F   the Act) and in any case could it be considered as an improvement,
    under Section 19( 4) of the Act, if so whether the authorities while
    doing so acted within the constraints of law.

          Factual martix is quite simple and plain. But before narrating it
    or entering into merits of variQus issue~ -~t is imperative to sort out at
G   the threshold if a private nursing home with modern facilities and
    sophisticated instruments is more conducive to the public interest than
    a park as it was stressed that even if the conversion of the site suffered
                                                                                    ....
    from any infirmity procedural or substantive the High Court should
    have refrained from exercising its extraordinary jurisdiction and that
    also in favour of those residents many of whom did not have their
H   houses around the park and thus could not be placed in the category of
                 . MEDICAL TRUST v. B.S. MUI'DAPPA .(SAHA!, J.l           133

      persons aggrieved. It was also emphasised that the hospital with
                                                                                 A
      research centre and even free service being more important from
      social angle the inhabitants of th~ locality could not be said to suffer
      any injury much less substantial injury.

             Locus standi to approach by way of writ petition and refusal to
       grant relief in equity jurisdiction are two different aspects, may be with B
       same result. One relates to maintainability of the petition and other to
       exercise of discretion. Law on the former has marched much ahead.
       Many milestones have been covered. The restricted meaning of
       aggrieved person and narrow outlook of specific in jury has yielded in
       favour of broad and wide construction in wake of public interest litiga-
     . tion. Even in private challenge to executive or administrative action
       having extensive fall out the dividing line between personal injury or
                                                                                  c
       loss and injury of a public nature is fast vanishing. Law has veered
       round from genuine grievance against order affecting prejudicially to
       sufficient interest in the matter. The rise in exercise of power by the
       executive and comparative decline in proper and effective administra-
       tive guidance is forcing citizens to espouse challenges with public D
       interest flavour. It is too late in the day, therefore, to claim that
       petition filed by inhabitants of a locality whose park was converted
,.     into a nursing home had no cause to invoke equity jurisdiction of the
       High Court. In fact public spirited citizens having faith in rule of law
       are rendering great social and legal service by espousing cause of
       public nature. They cannot be ignored or overlooked on technical or E
       conservative yardstick of the rule of locus standi or absence of
       personal loss or injury. Present day development of this branch of
       jurisprudence is towards freer movement both in nature of litigation
       and approach of the courts. Residents of locality seeking protection
       and maintenance of environment of their locality cannot be said to be
       busy bodies or interlopers S.P. Gupta v. Union of India, [1982] 2 SCR F
       985=AIR 1982 SC 149; Akhil Bhartiya Soshit Karamchari Sangh v.
       U.O.I., [1981] 1 SCC 246=AIR 1981 SC 293 and Fertilizer Corpora-
       tion Kamgar Union v. U.O.I., AIR 1981 SC 364. Even otherwise
       physical or personal or economic injury may give rise to civil or crimi-
       nal action but violation of rule of law either by ignonng or affronting
       individual or action of the executive in disregard of the provisions of G
       law raises substantial issue of accountability of those entrusted with
       responsibility of the administration. It furnishes enough cause 'Of
       action either for individual or community in general to approach by
       way of writ petition and the authorities cannot be permitted to seek
       shelter under cover of technicalities of locus standi nor they can be
       heard to plead for restraint in exercise of discretion as grave issues of H
    134                   SUPREME COURT REPORTS            [1991] 3 S.C.R.

    public concern outweigh such considerations.
A
         Public park as a place reserved for beauty and recreation was
  developed in 19th and 20th Century and is associated with growth of
  the concept of equality and recognition of importance of common
  m. n. Earlier it was a prerogative of the aristocracy and the affluent
B either as a result of royal grant or as a place reserved for private
  pleasure. Free and healthy air in beautiful surroundings was privilege
  of few. But now it is a, 'gift from people to themselves'. Its importance
  has multiplied with emphasis on environment and pollution. Jn
  modern planning and development it occupies an important place in
  social ecology. A private nursing home on the other hand is essentia-
c lity a commercial venture, a profit oriented industry. Service may be
  its moto but earning is the objective. Its utility may not be undermined
  but a park is a necessity not a mere amenity. A private nursing home
  cannot be a substitute for a public park. No town planner would pre-
  pare a blue print without reserving space for it. Emphasis on open air
  and greenery has multiplied and the city or town planning or develop-
D ment acts of different States require even private house-owners to
  leave open space in front and back for lawn and fresh air. In 1984 the
  BD Act itself provided for reservation of not less than fifteen per cent
  of the total area of the lay out in a development scheme for public
  parks and playgrounds the sale and disposition of which is prohibited
  under Section 38A of the Act. Absence of open space and public park,
E in present day when urbanisation is on increase, rural exodus is on
  large scale and congested areas are coming up rapidly, may given rise
  to health hazard. May be that it may be taken care of by a nursing
  home. But it is axiomatic that prevention is better than cure. What is
  lost by removal of a park cannot be gained by establishment of a               \
  nursing home. To say, therefore, that by conversion of a site reserved
F for low lying into a private nursing home social welfare was being
  promoted was being oblivious of true character of the two and their
  utility.

          Merits, too, raise issues of far reaching importance. One of them
    being the efficacy of exercise of individualised discretion where law or
G   the rules contemplate participatory objective decision or conclusion.
    Another is the requirement of substantive fairness in dealings by          1'-·
    government or local bodies or public institutions with people of any
    strata of society uniformly and equally. To begin with the factual set-
    ting in which the controversy arose it is undisputed that the City
    Improvement Board constituted under City of Bangalore Improve-
H   ment Act, 1945, prepared the development scheme for bringing into
                 MEDICAL TRUST v. B.S. MUDDAPPA [SAHA!, J.)              135

       existence an extension of the City of Bangalore which came to be
                                                                                A
       known as the Palace Upper Orchards/Sadashiv Nagar, later came to be
       known as Raj Mahal Vilas Extension. Jn this an area facing, the
      Sankey tank, was earmarked for being developed as a low level park.
       Jn 1976 the Improvement Act was repealed and replaced by Act 12 of
       1976 which came into force with effect from December, 1975. Section
       76 of the Act while repealing Improvement Act by Section .76 saved the   8
       scheme by proviso Second to Sub-Section (3) of the Section and pro-



,      vided that it shall be deemed to have been done under corresponding
      provisions of the Act. The Act received the assent in March 1976. And
      in the same month the Chairman of the Bangalore Development
      Authority received a communication from the Chief Minister of the
      State that the Bangalore Medical Trust, the appellant (referred as
       BMT) was keen to have the plot reserved for park as nursing home .       c
      .On it the Chairman, without any meeting of any Co!llmittee or the
      Development Authority, wrote a le.tier to the Chief Minister on 21st
       April, 1976, the contents of which are extracted below:

                 "No. PS. 56/76-77                                              D
"f               Encl . .One 131ue Print.

 r               Respected sir,

                       Re: Grant ,of land to Bangalore Medical Trust for
                 ,construction of a n'ursing home.                              E

                                            .......
~i:
                       The Bangalore Medical Trust have applied to your
                 goodself on 30.3.1976 for grant of vacant land situated next
                 to that given to H.K.E. Society, Rajmahal Vilas Exten-         F
                 sion, on which you have passed orders "Chairman, BDA-A
                 suitable site for ·!he proposed ·hospital building may be
                 given.

                         l herewith enclose a blue-print showing the location
                 ·of !he ;;aid !)lot, which they have requested. In the blue G
-~               ·print approved by the erstwhile City Improvement Trust
                  Board, Bangalore, this site is marked as a Low Level Park,
                  which measures approximately 13,485 sq. yds. This is a low
                  level .area when compared to the surrounding -ground level.
                  The sponsors of Bangalore Medical Trust are very keen to
                  secur~ this land for their use to construct a nursing home H
    136                  SUPREME COURT REPORTS             (1991) 3 S.C.R.

               with eminent specialists to cater meoical relief to the needy
A
               public.

                     In the first instance, it has to be approved by the
               Government to convert this low level park as a civic
               amenity site. Secondly Government has to approve the
B              allotment of the said land to the Bangalore Medical Trust
               as a Civ.ic Amenity Site. Therefore, I seek your kind orders
               in the matter,.how I should act.

                     With warm regards,

                                     Yours sincerely.
c                                        sd//-."

         On it the Chief Minister made an endorsement is his ciwn hand
    which reads as under:

D              "This area which was allowed to be kept for laying a park
               may be converted into C.A. Site. Another simiiar bit kept
               for the same purpose has been given away for Education
               Society some years back. And this remaining area is said to
               be not suitable for park."

E          In consequence of the direction by the Chief Minister the
    Government on 27th May, 1976 converted the s.ite from public park to
    a civic amenity. Copy of the order is extracted below:

               "Subject: Grant of land to Bangalore Medical Trust for          \
               construction of a Nursing Home.
F


                  ORDER NO. HMA249MNG76DATEDBANGA-
               LORE THE 27TH MAY 1976.

G                  READ; Letter No. PS 56/7-0-77 dated 21.4.1976 from
               the Chairman, Bangalore Developinent Authority,
               Bangalore.

               PREAMBLE;

H                    The Chairman, Bangalore Development Authority
               MEDICAL TRUST v. B.S. MUDDAPPA (SAHA!, J.]               137

               has requested for sanction of Government to the conver-
               sion of the low level park, next to the land allotted to the    A
               HKE Society, in Rajmahal Vilas Extension as a C.A. Site
               and to the allotment of the said site to the Bangalore Me<li-
               cal Trust for the construction of a Nursing Home.

                                        ORDER                                  B

                     Sanction is accorded to the conversion of the Low
               Level Park, situated next to the land allotted to the H.K.E.



r
               Society in Rajmahal Vilas Extension, Bangalore as a civic
               amenity site.

                                           By order and in the name of the     c
                                                    Governor of Karnataka
                                                                      sd/-
                                            . (S.R. Shankaranarayana Rao
                                      I/c. Under Secretary to Government
                                      Health & Municipal Admn. Deptt."         D

          It was followed by another order dated 17th June, 1976, sanc-
    tioning the lease to the BMT. The order reads as under:

               "Subject: Allotment of a C.A. site to Bangalore Medical
               Trust for Construction of a hospital.                           E


               ORDER NO. HMA 249 MNG 76, BANGALORE
               DATED THE 17THJUNE, 1976 .
           •
                                                                               F
                     READ; (1) Govt. Order No. PLM 18 MNG 64
                           dated 17th March, 1964.

                              2) Govt. Order No. HMA 249 MNG 76
                              dated 27th May, 1976.
                                                                               G
                              3) Letter No. PS 132/76-77 dated 1st June,
                              1976 from the Chairman, Bangalore Deve-
                              lopment Authority, Bangalore.

               PREAMBLE;
                                                                               H
    138                     SUPREME COURT REPORTS          [1991] 3 S.C.R.

A                    Sanction was accorded to convert a low level park
               situated next to the land allotted to H.K.E. Society in
               Rajmahal Vilas Extension, Bangalore vide Govt. Order
               read at (ii) above.

                     Now the Chairman, Bangalore Developrr.wt
B              Authority requests for lease of the aforesaid Civic Amenity
               Site to the Bangalore Medical Trust, Bangalore.

               ORDER

                     Sanction is accorded to the lease of Civic Amenity
               Site situated next to the land allotted to HKE Society in
c              Rajmahal Vilas Extension Bangalore to the Bangalore
               Medical Trust for construction of hospital with conditions
               of lease as detailed in the Govt. Order No. PLM 18 MNG
               64, dated 17th March, 1964.

b                    The trust should strictly adhere to the condition no. 7
               of the lease and should complete the building well within 3
               years.

                                               By Order and in the name of
                                                   Governor of Karnataka
E                                                                       sd-
                                      (K.G. Rajanna)
                              Under Secretary to Government
                             Health & Municipal Admn. Deptt."

          On 14th July the Bangalore Development Authority (hheinafter
F   referred as BOA) completed the formality by passing the resolution
    and allotting the site to the BMT. The resolution reads as under:

               "The Government Order No. HMA 249 MNG 76 Banga-
               lore dated the 17th June 1976 regarding allotment of C.A.
               Site situated next to the land allotted to H.K.E. Society in
G              Rajmahal Vilas Extension, Bangalore in favour of Banga-
               lore Medical Trust for construction of hospital be read and
               recorded with confirmation for further action in the
               matter .."

          On coming to know of the allotment in 1981, when some con-
H   struction activity was noticed by the residents, they approached the
           MEDICAL TRUST v. B.S. MUDDAPPA (SAHA!, J.l             139

High Court by way of writ petition on which the learned single Judge
                                                                               -
                                                                         A
framed two issues:

           "( 1) Whether the land had become the property of the
           Corporation and therefore the allotment of land by the
           BO A· in favour of the fourth respondent was illegal and
           invalid?                                                      B

           (2) Even assuming that the ownership of the land had not
           been transferred to the Corporation, whether the action of
           the BOA in allotting the land, originally earmarked for a
           park, for construction of a nursing home and a hospital, io
           the fourth respondent is illegal and invalid?
                                                                         c
       Both the issues were answered in the negative. On the first it was
held that even though building and street etc. were transferred to the
Corporation by the State Govt. by a notification issued under Section
23( 1) of the Act no such notification under Sub-Section (2) of Section
23 was issued in respect of open space etc. therefore the site reserved D
for public park did not vest in the Corporation and it continued with
the BOA which could deal with it. The finding was affirmed by the
Division Bench as well. Its correctness was not assailed by the respon-
dents, in this Court. As regards the second question the learned Judge
while agreeing with the Division Bench in Holy Saint Education
Society v. Venkataamana, !LR 1982 1 Karnataka P. l. that 'a site E
reserved for children's playground under the scheme prepared under
the City Improvement Act when came to be vested in the Corporation,
it was under a duty to retain it as such and it had no authority to divert
it for any other use or grant it to a private person or organisation; held
that the ratio was not helpful as, 'both under the provisions of the City
Improvement Act and the BOA Act, the CIT or the BOA, as the case F
may be, had the authority to improve the scheme by making alteration
in the scheme and in exercise of the said power, the purpose for which
any space was reserved, could be changed and after such change is
effected the land could be disposed of for the purpose for which it is
earmarked after such change.' The Judge held that since the site
reserved for public park was converted under order of the Govern- G
mcnt it was not possible to hold that the land in que3tion was reserved
for a park. It was further held, that, 'since only notification allotting
the site was challenged and not the conversion of site from public park
to private nursing home and once the scheme was altered and the area
rese~·ved for park was converted to be an area reserved for civic
amenity the contention of the petitioners that the BOA had allotted      i-1
-       140                   SUPREME COURT REPORTS             [1991) 3 S.C.13'.

    A   the site for a purpose other than to which the land was reserved, had
        no basis at all for the fact that after alteration brought about by
        Government under order dated 27th March, 1976, the site in question
        was only reserved for a civic amenity generally and not for a part          .-..
        specially.'

    B          Two other subsidiary submissions which in fact are now the
        principal issues, "that the BDA had no power to alter the scheme', and
        in any event a site reserved for a civic amenity could not have been
        allotted for construction of a hospital" also did not find favour as the
        scheme could be altered under Section 19(4) of the Act and it was done
        with approval of State Govt. In appeal the Division Bench after
        examining inclusive definition of civic amenity in Section 2(bb), added
    c   in 1984, amended with retrospective effect in 1983 held that a hospital
        could not be considered to be an amenity in 1976 as, "public amenity
        civic or otherwise to be a public convenience for purposes of the BDA
        Act, the Government has to notify. If it does not specify whatever may
        otherwise be a public convenience will not be a civic amenity or
    D   amenity under clauses (bb) and (b) of Section 2 respectively for
        purposes of the BD Act. "The Bench further held that in allowing the
        site to the BMT largess was conferred on it in utter violation of law and
        rules.

               Did the Division Bench commit any error of law? Was the con-
    E   version of site in accordance with law? Were any of the authorities
        aware or apprised of the provisions under which they could convert a
        site reserved for public park into a nursing home? Did the authorities
        care to ascertain the provisions of law or rules under which they could
        act? Was any precaution taken by the Chief Executive of the State to
        adhere to legislative requirement of. altering any scheme. Not in the
    F   least. The direction of the Chief Minister, the apex public functio-
        nary of the State, was in breach of public trust, more like a person
        dealing with his private property than discharging his obligation as
        head of the State administration in accordance with !aw and rules.
        The Govt. record depicted even more distressing picture. The role of
        the administration was highly disappointing. In their noting even a
    G   show of awareness of law and fact was missing. This culture of public
        functionary, adorning highest office in the State of being law to himself
        and the administration acting on dictate, for whatever reason disturbs
        the balance of rule of law. What is more shocking is that this happened
        in 1976 and not even one out of various departments from which the
        papers were routed through raised any objection. And the statutory
    H   body like BDA with impressive members too succumbed under the
        pressure without, even, a murmur.
                                              __
                                              ,
                  MEDICAL TRUST v. B.S. MUDDAPPA [SAHA!, J.l                 141

              Financial gain by a local authority at the cost of public welfare
                                                                                         .-
                                                                                     A
       has never been considered as legitimate purpose even if the objective
       is laudable. Sadly the law was thrown to winds for a private purpose.
       the extract of the Chief Minister's order quoted in the letter of
  ~
       Chairman of the BD A leaves no doubt that the end result having been
       decided by the highest executive in the State the lower in order of
       hierarchy only followed with 'ifs' and 'buts' ending finally with resolu-     B
       ti on of BD A which was more or less a formality. Between 21st April
       and 14th July, 1976, that is less than ninety days, the machinery in
       BDA and Government moved so swiftly that the initiation of the pro-
       posal, by the appellant a rich trust with 90,000 dollars in foreign



r       deposits, query on it by the Chief Minister of the State, guidance of
       way out by the Chairman, direction on it by the Chief Minister, orders
       of Govt. resolution by the BDA and allotment were all completed and
       the site for public park stood converted into site for private nursing
        home without any intimation direct or indirect to those who were
        being deprived of it. Speedy or quick action in public institutions cal~
                                                                                     c


       for appreciation but our democratic system shuns exercis~ of individua-
       lised discretion in public matters requiring participatory decision. by       D
        rules and regulations. No one howsoever high can arrogate to himself
 ~
        or assume without any authorisation express or implied in law a discre-
  ~.    tion to ignore the rules and deviate from rationality by adopting a
        strained or distorted interpretation as it renders the action ultra vires
        and bad in law. When the law requires an authority to act or decide, 'if
        it appears to it necessary" or if he is 'of opinion that a particular act    E
        should be done' then it is implicit that it should be done objectively,
        fairly and reasonably. Decisions affecting public interest or the neces-
        sity of doing it in the light of guidance provided by the Act and rules
··./    may not require intimation to person affected yet the exercise of dis-
        cretion is vitiated if the action is bereft of rationality lacks objective
        and purposive approach. The action or decision must not only be              F
        reached reasonably and intelligibly but it must be related to the
        purpose for which power is exercised. The purpose for which the Act
        was enacted is spelt out from the Preamble itself which provides for
        establishment of the Authority for development of the city of Banga-
        lore and areas adjacent thereto. To carry out this purpose the develop-
        ment scheme framed by the Improvement Trust was adopted by the               G
,)_     Development Authority. Any alteration in this scheme could have
        been made as.provided in Sub-Section (4) of Section 19 only if it
        resulted in improvement in any part of the scheme. As stated earlier a
        private Nursing Home could neither be considered to be an amenity
        nor it could be considered improvement over necessity like a public
        park. The exercise of power, therefore, was contrary to the purpose          H
..        142                     SUPREME COURT REPORTS

          for which it is conferred under the statute.
                                                                 (1991) 3 S.C.R.


     A
                Was the exercise of discretion under Sub-Section (4)-0f Section
          19 in violation or in accordance with the norm provided in law. For
                                                                                      ~
          proper appreciation the Sub-Section is extracted below:

     B                "(4) If at any time it appears to the Authority that an
                      improvement can be made in any part of the scheme, the
                      Authority may alter the scheme· for the said purpose and
                      shall subject to the provisions of sub-section (5) and (6)
                      forthwith proceed to execute the scheme as altered."

     c This legislative mandate enables the Authority to alter any scheme.
       Existence of power is thus clearly provided for. What is the nature of
          this power and the manner of its exercise? It is obviously statutory in
          character. The legislature took care to control the exercise of this
          power by linking it with improvement in the scheme. What is an
          improvement or when any change in the scheme can be said to be
     D    improvement is a matter of discretion by the authority empowered to
          exercise the power. In modern State activity discretion with executive
                                                                                       ~
          and administrative agency is a must for efficient and smooth function-
          ing. But the extent of discretion.or constraints on its exercise depen~s·   .i
          on the rules and regulations under which it is exercised. Sub-Section
          (4) of Section 19 not only defines the scope and lays down the ambit
     E    within which the discretion could be exercised but it envisages further-
          the manner in which it could be exercised. Therefore, any action or
          exercise of discretion to alter the scheme must habe been backed by
          substantive rationality flowing from the. Section. Public interest or
          general good or social betterment have no doubt priority over private       )-'
          or individual interest but it must not be a preiext to justify the
     f    arbitrary or illegal exercise of power. It must withstand scrutiny of the
          legislative standard provided by the Statute itself. The authority exer-
          cising discretion must not appear to be, impervious to legislative direc-
          tions. From the extracts of correspondence between the Chairman and
          the Chief Minister it is apparent that neither of them cared to look into
          the provisions of law. It was left to the learned Advocate General to
     G    defend it, as a matter of law, in the High Court. There is no whisper
          anywhere if it was ever considered, objectively, by any authority that
          the nursing home would amount to an improvement. Whether the
          decision would have been 'correct or not would have given rise to
          different consicleraiion. But.here it was total absence of any effect to
          do so. Even in the reply filed on behalf of BDA in the High Court
     tt   which appears more a Iega_~juggI:ry than stateme~t of facts bristling
                                                                   ~




                              '
                                        lt
           MEDICAL TRUST v. B.S. MUDDAPPA [SAHAI, J.]                143

with factual inaccuracies there is no mention of it. The extent of mis-
leading averments for purpose of creating erroneous impressions on
the Court shall be clear from the statement contained in paragraph 1 of
the affidavit relevant portion of which is extracted below:

           "The fourth respondent had made an application for grant
           of land for purpose of constructing a Nursing Home. This
           application was made also to this Respondent. Considering
           the fact that the medical facilities available in Bangalore
           were meagre and were required to be supplemented by
           charitable medical institutions, this authority was required
           to ascertain whether a suitable site could be given for the
           hospital building of the fourth ·respondent. Upon scrutiny
           of the Rajmahal Vilas Extension, as early as in 1976, the
                                                                          c
           area in question which had been marked as a low level park
           measuring 13485 sq. yards was found suitable to ·cater to
           the medical relief to the needy public. However, since the
           said area had been marked as a low level park, it was neces-
           sary to convert the said low level park as civic amenity site. D
           Furthermore, it is essential that the Government had to
           approve allotment of the site to the fourth respondent as a
           civic amenity site. There are proceedings before the first
           respondent in relation to allotment of site to public institu-
           tions. Under the recommendations which has been made, it
           was decided that plots could be allotted to public institu-. J:l
           tions subject to certain conditions."

It was this statement which resulted in erroneous finding by the
learned single Judge to the effect. "Therefore, it is clear that though at
the time of preparation of the scheme, formation of a park was con-
sidered in the interest of the general public, nothing prevents the BO A · F ·
from taking. the view that the construction of a hospital to provide
medical facilities to the general·public is necessary and therefore, the
area earmarked for park should be converted into a civic amenity site.
It is in exercise of this power, the BOA decided to convert the area.
reserved for park into a civic amenity site so as to enable its disposal in
favour of the fourth respondent for construction of a hospital. Though G
Section 19(4) does not expressly require the taking of the approval of
the Government for such alteration, the approval was necessary as the
original scheme in which the area was reserved for a park had been.
approved by the Government. Therefore, the BDA considered
appropriate, and in my opinion rightly, to seek the approval of the
Government for making such conversion:· The State. Government !'I




                    ' .
    144                   SUPREME COURT REPORTS             I 1991] 3 S.C.R.

A
    accorded sanction for the conversion. Therefore, the conversion was
    in accordance with law". The averment in the affidavit of the BOA
    that an application was made before it could not be substantiated. Nor
    it could be established that the BOA or any of its committee ever took
    into consideration that medical facilities were meagre in the city of
    Bangalore. Such misleading statements call for serious condemnation.
B   No further comment is needed except that the public institutions
    should be cautious and must not give impression of taking sides. It is
    destructive of fairness. The then Chairman's letter in 1976 extracted
    above was forthright whereas the stand of BOA in 1983 appears to be
    crude effort to support the executive action. No record was produced
    to substantiate· the averments. It was necessary as it was not in
    harmony with the correspondence extracted earlier. The statement by
c   the counsel for the BOA that the records were not traceable was not
    satisfactory. The executive or the administrative authority must not be
    oblivious that in a democratic set up the people or community being
    sovereign the exercise of disceretion must be guided by the inherent
    philosophy that the exercisor of discretion is accountable for his
D   aetion. It is to be tested on anvil of rule of law and fairness or justice
    particularly if competing interest of members of society is involved.
    Was this adhered to by any of the authority? Unfortunately not.

           Much was attempted to be made out of exercise of discretion in
    converting a site reserved for amenity as a civic amenity. Discretion is
E   an effective tool in administration. But wrong notions about it results
    in ill-cmiceived consequences. In law it provides an option to the
    authority concerned to adopt one or the other alternative. But a bet-
    ter, proper and legal exercise of discretion is one where the authority
    examines the fact, is aware of law and then decides objectively and
    rationally what serves the interest better. When a Statute either pro-
F   vides guidance or rules or regulations are framed for exercise of discre-
    tion then the action should be in accordance with it. Even where
    Statutes are silent and only power is conferred to act in one or the
    other manner, the Authority cannot act whimsically or arbitrarily. It
    should be guided by reasonableness and fairness. The legislature never
    intends its authorities to abuse the law or use it unfairly. When legisla-
G   tu re enacted Sub-section (4) it unequivocally declared its intention of
    making any alteration in the scheme by the Authority, that is, BOA
    and not the State yovernment. It further permitted interference with
    the scheme sanctioned by it only if appeared to be improvement. The
    facts, therefore, that were to be found by the Authority were that the
    conversion of public park into private nursing home would be an
H   improvement in the scheme. Neither the Authority nor the State
                 MEDICAL TRUST v. B.S. MUDDAPPA (SAHA!, J.]                 145

     Government undertook any such exercise. Power of conversion or
     alteration in scheme was taken for granted. Amenity was defined in            A
     Section 2(b) of the Act to include road, street, lighting, drainage,
     public works and such other conveniences as the Government may, by
     notification, specify to be an amenity for the purposes of this Act. The
     Division Bench found that before any other facility could be consi-
     dered amenity it was necessary for State Government to issue a notifi-        B
     cation. And since no notification was issued including private nursing
     home as amenity it could not be deemed to be included in it. That
     apart the definition indicates that the convenience or facility should
-~
     have had public characteristic. Even if it is assumed that the definition
     of amenity being inclusive it should,be given a wider meaning so as to
     include hospital added in clause 2(bb) as a civic amenity with effect
     from 1984 a private nursing home unlike a hospital run by Govt. or            c
     local authority did not satisfy that characteristic which ·was necessary in
     the absence of which it could not be held to be amenity or civic
     amenity. In any case a private nursing home could not be considered to
     be an improvement in the scheme and, therefore, the power under
     Section 19(4) could not have been exercised.                                  D

          Manner in which power was exercised fell below1.'. even the
     minimum requirement of taking action on relevant considerations. A
     scheme could be altered by the Authority as defined under Section 3 of
     the Act. It is a body corporate under Section 3 consisting of the
     Chairman and experts on various aspects, namely, a finance member, E
     an engineer, a town planner, an architect, the ex-officio members such
     as Commissioner of Corporation of the City of Bangalore. officer of
     the Secretariat and elected members for instance, two persons of the
     State Legislature, one a woman and other a Scheduled caste and
     Scheduled tribe member, representative of labour, representative of
     water-supply, sewerage board, electricity board, State Road Transport F
     Corporation, two elected counsillors etc. and the Commissioner. This
     authority functions through committees and meetings as provided
     under Sections 8 and 9. There is no Section either in the Act nor any
     rule was placed to demonstrate that the Chairman alone, as such,
     could exercise the power of the Authority. There is no whisper nor
     there is any record to establish that any meeting of the Authority was G
     held regarding alteration of the scheme. In any case the power does
     not vest in the State Government or the Chief Minister of the State.
     The exercise of power is further hedged by use of the expression, if 'it
     appears to the Authority'. In legal terminology it visualises prior con-
     sideration and objective decision. And all this must have resulted in
     conclusion that the alteration would have been improvement. Not H
    146                   SUPREME COURT REPORTS            [1991] 3 S.C.R.

    eYen one was followed. The Chairman could not have acted on his
A
    own. Yet without calling any meeting of the authority or any commit-
    tee he sent the letter for converting the site. How did it appear to him
    that it was necessary, is mentioned in the letter dated 21st April,
    because the Chief Minister desired so. The purpose of the Authority
    taking such a decision is their knowledge of local conditions and what
B   was better for them. That is why participatory exercise is contemlated.
    If any alteration in Scheme couid be done by the Chairman and the
    Chief Minister then Sub-Section (4) of Section 19 is rendered otiose.
    There is Iio provision in the Act for alteration in a scheme by convert-
    ing one site to another, except, of course if it appeared to be improve-
    ment. But even that power vested in the Authority not the Govern-          ,.
    ment. What should have happened was that the Authority should have
C   applied its mind and must have come to the conclusion that conversion
    of the site reserved for public park into a private nursing home
    amounted to an improvement then only it could have exercised the
    power. But what happened in fact was that the application for allot-
    ment of the site was accepted first and the procedural requirements
D   were attempted to be gone through later and that too by the State
    Govt. which was not authorised to do so. Not only that the Authority
    did not apply its mind and take any decision if there was any necessity
    to alter the Scheme but even if it is assumed that the State Govt. could
    have any role to play, the entire exercise instead of proceeding from
    below, that is, from the BOA to State Government proceeded in
E   reverse direction, that, from the State Government to the BOA. Every
    order, namely, convertiPg the site from public park to private nursing
    home and even allotment to BMT was passed by State Government
    and the BOA acting like a true subservient body obeyed faithfully by
    adopting and confirming the directions. It was complete abdication of
    power by the BOA. The Legislature entrusted the responsibility to
F   alter and approve the Scheme to the BOA but the BOA in complete
    breach of faith reposed in it, preferred to take directions issued on
    Command of the Chief Executive of the State. This resulted not only in
    error or law but much beyond it. In fact the only role which the State
     Government could play in a scheme altered by the BOA is specified in
    Sub-Section (5) and (6) of Section 19 of the Act. The former requires
G    previous sanction of the Govt. if the estimated cost of executing the
     altered scheme exceeds by a greater sum than five per ceat of the cost
    of executing the scheme as sanctioned. And later if the 'scheme as
     altered involved the acquisition otherwise than by agreement'. In
     other words the State Government could be concerned or involved
     with an altered scheme either because of financial considerations or
H    when additional land was to be acquired, an exercise which could not
                 MEDiCAL TRUST v. B.S. MUDDAPPA [SAHA!, J.J                 147
                                                                                        ,
      be undertaken by the BOA. A development scheme, therefore, sane-              A
      tioned and published in the Gazette could not be altered by the
      Government.

            Effort was made to justify the exercise of power under Sub-
      Section (3) of Section 15 which reads as under:

                 "(3) Notwithstanding anything in this Act or in any other
                 law for the time being in force, the Government may,
                 whenever it deems it necessary require the Authority to
                 take up any development scheme or work and execute it
...              subject to such terms and conditions as may be specified by
                 the Government."
                                                                                    t
            In Sub-Section (1) the Authority is empowered to draw up
      development scheme with approval of government whereas under
      Sub-Section (2) it is entitled to proceed on its owil provided it has funds
      and resources. Sub-Section (3) is the power of State Government to
      direct it to take up any scheme. The main thrust of the Sub-Section is
      to keep a vigil on the local body. But it cannot be stretched to entitle
      the Government to alter any scheme or convert any site or power
      specifically reserved in the Statute in the Authority. The general
      power of direction to take up development scheme cannot be con-
      strued as superseding specific power conferred and provided for under
      Section 19(4). The Authority under Section 3 functions as a body. The         E
       Act does not contemplate individual action. That is participatory exer-
      cise of powers by different persons representing different interest.
       And rightly as it is the local persons who can properly assess the need
      and necessity for altering a scheme and if any proposal to convert from
      one use to another was an improvement for residents of locality such as
      exercise could not be undertaken by the Government. Absence of
       power apart, such exercise is fraught with danger of being activated by
      extraneous considerations.

            Section 65 the overall power reserved in Government to give
      such directions to the Authority as it considers expedient for carrying
      out any purpose of the Act was another provision relied to support an         G
      order which is otherwise unsupportable. An exercise of power which is
      ultra vires the provisions in the Statute cannot be attempted to be
      resuscitated on general powers reserved in a Statute for its proper and
      effective implementation. The Section authorises the Government to
      issue directions to ensure that the provisions of law are obeyed and not
      to empower it itself to proceed contrary to law. What is not permitted        H
r
        148                    SUPREME COURT REPORTS             [1991] 3 S.C.R.

    A   by the Act to be done by the Authority cannot be assumed to be done
        by State Government to render it legal. An illegality cannot be cured
        only because it was undertaken by the Government. The Section
        authorises the Government to issue directions to carry out purposes of
        the Act. That is the legislative mandate should be carried out. And not
        that the provision of law can be disregarded and ignored because what
    B
        was done was being done by State Government and not the Authority.
        An illegality or any action contrary to law does not become in accor-
        dance with law because it is done at the behest of the Chief Executive
        of the State. No one is above law. In a democracy what prevails is law
        and rule and not the height of the person exercising the power.              ..-

    C         For these reasons the entire proceedings before the State
        Government suffered from absence of jurisdiction. Even the exercise
        of power was vitiated and ultra vires. Therefore the orders of the·
        Government to convert the site reserved for public park to civic ame-
        nity and to allot it for private nursing home to Bangalore Medical
    D   Trust and the resolution of the Bangalore Development Authority in
        compliance of it were null, void and without jurisdiction.

              Leave granted.

                                        ORDER
    E
              In the result this appeal fails, for the reasons stated by us in our
        separate but concurring judgments, and is accordingly dismissed. We
        further direct that the respondents shall be entitled to their cost
        throughout.

        N.P.V.                                                Appeal dismissed.


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