Holding

The 13 December 2001 circular is a valid, enforceable state policy authorising the allotment of 15% developed land to land‑oustees, and the State must comply with it.

Summary

The appellants' land was compulsorily acquired in 1981 for an Indian Army field firing range under the Rajasthan Land Acquisition Act, 1953, and although compensation was awarded, it was never fully paid. The State Government issued a series of policy circulars, culminating in the circular dated 13 December 2001, promising land‑oustees 15% of developed residential land in lieu of cash compensation. Over three decades the Jaipur Development Authority (JDA) failed to allot any developed land, offering only undeveloped plots, prompting the appellants to seek a writ of mandamus. The Court examined whether the 13 December 2001 circular constituted a valid executive decision under Article 166 and the Rajasthan Rules of Business, and whether doctrines of promissory estoppel and legitimate expectation bound the State. It held that the circular was a bona‑fide state policy, the procedural requirements were satisfied, and the State’s delay could not be attributed to the appellants. Consequently, the appeal was allowed and the JDA was directed to allot the appellants their 15% quota of developed land in specified schemes within six weeks, ensuring a transparent process.

Issues considered

The circular dated 13 December 2001 – does it constitute a valid and enforceable state policy/ executive decision under Article 166 of the Constitution?
Did the State comply with the procedural requirements of the Rajasthan Rules of Business, particularly Rule 31, for the circular to be valid?
Are the appellants entitled to 15% developed land in lieu of cash compensation as per the policy?
Can the delay in allotting developed land be attributed to the appellants?
Do the doctrines of promissory estoppel and legitimate expectation apply to bind the State to its policy?
Does the Jaipur Development Authority Act, 1982 require the allotted land to possess the statutory attributes of ‘development’ and ‘amenities’?

Legislation cited

Constitution of Indias. 14, s. 142, s. 166, s. 21, s. 300A
Jaipur Development Authority Act, 1982s. 2(2), s. 2(5), s. 54, s. 83, s. 90
Rajasthan Land Acquisition Act, 1953s. 4, s. 54
Rajasthan Rules of Businesss. 14, s. 15, s. 21, s. 22, s. 31

Subjects

land acquisitioneminent domaindeveloped landcompensationpromissory estoppellegitimate expectationArticle 166Rules of Businesswrit of mandamusArticle 142property rightsadministrative law

Judgment

[2015] 14 S.C.R. 403

LALARAM & OTHERS A
v..
JAIPUR DEVELOPMENT AUTHORITY &ANR.
(Civil Appeal No. 13940 of 2015)
B
DECEMBER 01, 2015
[V. GOPALA G.OWDAAND AMITAVA ROY, JJ.] .
Land Acquisition - Rajasthan Land Acquisition Act,
1953 - Land of appellants had been compulsorily acquired,
in the exercise of the State's power of eminent domain by C
invoking an expropriatory legislation - CompuJsory
acquisition of their lands for the Indian Army for. its "Field
Firing Range" - State Government was to purportedly allot
developed land to the land oustees in lieu of compensation
- However, plots offered to the appellants till now not D
developed - Procrastinated legal tussle spanning over three
decades - Issue pertaining to adequate reparation to the
appellants - Held: The facts demonstrate that the State
Government had taken a pre-meditated decision to allot
developed land to the land oustees in lieu of compensation E
- As per the successive circulars including the one dated
13; 12.2001, it was incumbent on the State Government to
allot developed land with all the essential attributes thereof -
The land had been acquired in the year 1981 and more than
three decades have elapsed-The delay cannot.be attributed F
to the appellants - It would be indefensible and too farfetched .
for the respondents to contend that the circular dated
13.12.2001 cannot be construed to be a policy reflecting the
executive decision as contemplated u!Art. 166 and is not
enforceable, as the subject matter thereof had not been laid G
before the Chief Minister u/r.31 of the Rajasthan Rules of
Business u/Art.166 of the Constitution - The plea of the
respondents, at this belated stage, to take refuge of
· unenforceabi/ity of the circular dated 13, 12. 2001 in isolation, ·
H
403
404 SUPREME COURT REPORTS [2015] 14S.C.R.

A as not being a binding policy, cannot receive judicial
imprimatur - The predominant facts herein, justifiably
demand a fitting relief modelled by law, equity and good
conscience - The value of the acquired land of the
appellants, as on today, cannot' be taken to be an
B unmistakable index to identify the developed land to be
allotted to them - In the singular facts and circumstances of
the case and for the sake of complete justice, the appellants
are entitled to be allotted their quota of 15% developed land
in the terms ofpolicy/circular dated 13. 12.2001 in one or more
c available plots as enumerated by them in their affidavit dated
17.8.2015 - Respondents directed to accommodate them
accordingly - Jaipur Development Authority Act, 1982 -
Constitution of India, 1950 - Art. 166 - Rajasthan Rules of
Business u!Art.166 of the Constitution-r.31.
D Constitution of India, 1950 - Arts.142, 14 and 21 -
Powers under Art. 142 - Nature and extent of the power -
Held: The plenary powers of Supreme Court enshrined in
Art. 142 of the Constitution for achieving complete justice is
only an insignia of empowerment so that the constitutional
E guarantees are not reduced to mere ritualistic incantations -
Supreme Court extra-ordinarily does exercise its power
. under Article 142 as warranted in a given fact situation, for
making order (s) as is felt necessary for doing complete
justice in a case a matter pending before it- There can be
F no straight jacket formula, for its exercise nor there can be
any fetter thereto, it being plenary in nature - The invocation
of this power is to reach injustice and redress the same, if it
is not feasible otherwise to achieve this avowed objective -
In doing so, this Court acts in its equity jurisdiction to balance
G the conflicting interests of the parties and advance the cause
of administration of even handed justice - The purport and
purpose of this power being justice oriented and guided by
equitable principles, it chiefly aims at the enforcement of a
public duty, if not forthcoming on legitimate justification
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 405

ensuing in oppressive injustice, militating against the A
constitutional ordainment of equality before law and equal
protection of laws enshrined in Art. 14 of the Constitution and
entrenched as are, among others, in the invaluable right to
. life envisioned in Art. 21 of the Constitution.
Constitution oflndia, 1950-Art. 166- Executive power 8
of the State - Scheme of executive functioning- Conduct of
business of the Government of a State - Valid executive
decision in terms of the Rules of Business - Held: The
essentials ofArt. 166 are a valid executive decision in terms
of the Rules of Business framed under clause (3), expressed C
in the name of Governor and authentication of the resultant
orders and instruments in the manner specified in the rules
to be made by the Governor- Clause (1) stipulates the mode
of expression of an executive action taken in conformity
therewith and clause (2) ordains the manner of authentication D
of the consequential orders and instruments - The
enjoinment of clauses (1) and (2) ofArt. 166, is not mandatory
so much so, that any non compliance therewith, ipso facto
would renderthe executive action/decision, if otherwise validly
taken in terms of the Rules of Business framed u!Art. 166(3), E
invalid - Any decision however, to be construed as an
executive decision as contemplated u/Art.166, would
essentially has to be in accordance with the Rules of Business
- The Rules depending upon the scheme thereof, may or
may not, accord an inbuilt.flexibility in its provisions in the F
matter of compliance - Contingent on the varying
imperatives, some provisions may warrant compulsory
exaction of compliance therewith- The mandatory nature of
any provision of any Rule of Business would be conditioned
by the construction and the purpose thereof to be adjudged G
in the context of the scheme as a whole - The interpretation
of the Rules, necessarily, would be guided by the framework
thereof and the contents and purport of its provisions, and
the status and tenability of an order/instrument, represented
H
406 SUPREME COURT REPORTS [2015] 14S.C.R.

A as an executive decision would have to be judged in the
conspectus of the attendant facts and circumstances - No
straight jacket formula can, thus be ordained, divorced from
the Rules applicable and the factual setting accompanying
the order/decision under scrutiny.
B Constitution of India, 1950 - Writ jurisdiction - Writ of
mandamus - Features of- Held: The writ of mandamus is
an extraordinary remedy and is intended to supply
deficiencies in law and is thus discretionary in nature -The
issuance of writ of mandamus pre-supposes a clear right of ·
C the applicant and unjustifiable failure of a duty imposed on
an authority otherwise obliged in law to imperatively
discharge the same.
Administrative Law-Administrative discretion - Held:
0 Administrative discretion can never be unregulated,
omnipotent and fanciful-A public authority vested with power
has to essentially exerdse its discretion, if conferred,
conditioned by the dictates of duty as envisaged, to effectuate
the exercise of the prerogative to achieve the objective
E therefor- The central and cardinal canon of administrative
governance, enjoins a framework of controlled use of
discretion coupled with duty.
Allowing the appeals, the Court
HELD: 1. Having regard to the progression of
F events pertaining to the decision of allotment of.
developed land and the conscious initiatives taken by
the State Government in furtherance thereof, it is
impossible as well as impermissible to conclude, that it
had remained unaware thereof. The facts demonstrate
G · that the State Government had taken a pre-meditated
decision to allot developed land to the land oustees in
lieu of compensation. As per the successive circulars
including the one dated 13.12.2001, it was incumbent on
the State Government to allot developed land with all the
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 407 ..

essential attributes thereof. As is apparent from the order A
d11ted 7.5.2015 of this Court, the plots offered to the
appellants till now are not developed. The land had been
acquired in the year 1981 and more than three decades
have elapsed. The delay cannot be attributed to the
appellants for the obvious failure of the State B
Government to allot developed land in lieu of
compensation as represented. [Para 111][483-E-H; 484-
A-B]
2. It is amply clear that all State functionaries
including the Chief Minister of the State were aware of C
the process undertaken in terms of the circular/policy
dated 13.12.2001 and had affirmatively associated
themselves therewith. It would be indefensible and too
farfetched for the respondents to contend that the
circular dated 13.12.2001 cannot be construed to be a D
policy reflecting the executive decision as contemplated ·~.

under Article 166 and is not enforceable, as the subject
matter thereof had not been laid before the Chief Minister
under Rule 31 of the Rajasthan Rules of Business. The
non-acceptability of the land at Lalchandpura and E
Anantpura by the appellants, being undeveloped, does
not detract from these conclusions. [Para 113][484-G-H;
485-A-B]
3. It is the burden of the State Government, in view F
of the belated attempt on its part to wriggle out of its
commitment und.er the circular/policy dated 13.12.2001
to demonstrate on the basis of contemporaneous
records that it was never intended to be acknowledged
. as its policy. As the file pertaining to the circular/policy G
dated 13.12.2001 is not traceable, the State Government
has failed to discharge its burden in this regard. The
appellants understandably have no access either to the
official records of the Government or control over the
manner of discharge of the role of the functionaries
H
408 SUPREME COURT REPORTS [2015] 14 S.C.R.

A under the Rules. In this view of the matter, in the face of
the predominant facts testifying the reflective and
consistent decision of the State Government in the
matter of allotment of developed land in lieu of
compensation, spanning over a decade from the year
B 1992 to 2005, the endeavour on its part to disown the
policy/circular dated 13.12.2001, betrays its truant
disposition, cavalier indifference and impervious display
of superior bargaining power which is constitutionally
impermissible. [Para 114)(485-C·F)
c 4. On a concatenation of the stream of events,
traced from the acquisition of the land involved, it is clear
that the circular dated 13.12.2001 is indeed a policy
decision of the State Government regarding the
allotment of developed land in lieu of compensation to
D the persons referred to therein and is thus enforceable
against it. [Para 115](485·G·H]
5. Even otherwise, having regard to the
consistency in approach of the State Government in the
E matter of allotment of developed land in lieu of
compensation as is evident from the series of circulars
commencing from 22.4.1992 to 27.10.2005 in continuum,
motivated by the objective of early culmination of the
process of acquisition of land on the spirit of mutual
F settlement, the same irrefutably present an inviolable
scheme of proclaimed State action for compliance,
thereby making it invocable against the respondents,
more particularly as the same had been acted upon over
the years. The plea of the respohdents, at this belated
G stage, to take refuge of unenforceability of the circular
dated 13.12.2001 in isolation, as not being a binding
policy, cannot receive judicial imprimatur. [Para 116)(486·
A·D]
6. The process leading to the allotment of land at
H Lalchandpura and Anantpura villages, as the records
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 409

produced discloses, did originate from the circular dated A
13.12.2001, and received the approval of the Chief
Minister at an appropriate stage.· It would thus be
conspicuously patent, that all concerned State
functionaries were not only aware of the relevance and
the obligatory bearing of the said circular, but also had B
participated in the exercise, contemplated by it for
allotment of developed land in lieu of compensation. The
respondents, in the totality of the existent facts and
circumstances are thus estopped from questioning the
status and efficacy of the said circular in vesting a right c
in the appellants to claim their due in law there under.
[Para 117][486-D-F]
7. As by the time, the allotment was contemplated,
the Jaipur Development Authority Act, 1982 had been
brought into force, the concept of developed land was D
clearly traceable to one informed with the concept of
"development" and "amenities" defined thereunder. Any
land to be allotted in lieu of compensation, thus, was
required to mandatorily comply with the requisites of
'development' and 'amenities' as envisaged .under the E
Jaipur Development Authority Act, 1982. As only a certain
percentage of land acquired was offered by way of
allotment and understandably as the same was in lieu
of compensation i.e. the market value along with the
incidentals, it was expectedly assessed to be F
proportionate thereto in value/worth. 15% developed
land was, thus construed to be equivalent to the amount
of compensation then payable for the land acquired.
However, for the purpose of identification of developed
land as on today, equivalence of the value thereof with G
that of the land acquired as on date after three decades
would not be a correct measure. The appellants were
entitled to 15% developed land in the year 2001, the point
• time when the value thereof was comparable to the
H
410 SUPREME COURT REPORTS [2015] 14S.C.R.

A compensation then payable for the acquisition of their
land. Had the developed land, as conceived of, been
allotted to them, then the value thereof over the years,
as on date, would have been much higher than their land
so acquired. Though the development of a plot of land
B depends upon various factors e.g. location, potential,
facilities, use etc., it is a matter of common experience
that the pace of enhancement of the value of an already
developed land would be increasingly higher in
comparison to the one not developed. The value of the
c acquired land of the appellants, thus, as on today, cannot
be taken to be an unmistakable index to identify the
developed land to be allotted to them. [Para
119][487-0-H; 488-A·B]
8. Be that as it may, the land offered to the.appellants
D at Lalchandpura and Anantpura as well as at Boytawala
and Mansarampura have been held by this Court, as
recently on 7.5.2015, to be not fully developed and more
importantly conceded to be so by the JOA as recorded
in the said order. According to the JOA, it would require
E further two years to develop the land thereat. The land
of the appellants, as acquired, was situated at Boytawala
which, thus has not yet been fully developed as on date.
Thus, in any view of the matter, the market value of the
land at Boytawala cannot be an acceptable yardstick to
F identify the developed land to which they are entitled.
This is more so, as for the last thirty years and above,
the respondents have failed to allot 15% developed land
as envisaged by the policy to the appellants. Admittedly,
two of the land oustees had been allotted developed land
G at Vidyadhar Nagar and as the letter dated 16.10.2007
referred to hereinabove would reveal, till then, land at
the same site was available. As a matter of fact, allotment
of land at Lalchandpura, Anantpura, Boytawala and
Mansarampura, which admittedly had not been fatly
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 411

developed, was in breach of the promise engrafted in A
the policy dated 13.12.2001. The approach of the
respondents, when viewed in the backdrop of
compuls·ory acquisition of land in the exercise of the
State's power of eminent domain and its persistent
failure to act on this policy, only demonstrates a highly B
insensitive and evasive orientation at the cost of its
citizenry by a show of dominant bargaining· power. The
policy, though was to allot developed land in lieu of
compensation to. ensure quick and unhindered
completion of the process of acquisition, the C
respondents have remained apathetically inert, having
obtained the land, without living up to their commitments.
To gloss over this inexplicable default, would signify
effacement of decades of indifference and mute inaction
of the respondents, more particularly the State, inspite D
of a binding policy decision, to the suffering detriment
and prejudic;e to the appellants without their fault. In this
overwhelming conspectus of facts, the respondents
cannot be permitted to dictate terms to the appellants in
the matter of allotment of land inter alia on the E_
consideration of equivalence of the value of their land
as acquired with the one offered to them as developed
Jand as on date. [Para 120)[488-C-H; 489·A·C]
9. The right to property having been elevated to
the status of human rights, it is inherent in every F
individual, and thus has to be venerably acknowledged
and can, by no means, be belittled or trivialized by
adopting an unconcerned and nonchalant disposition
by anyone, far less the State, after compulsorily
acquiring his land by invoking an expropriatory G
legislative mechanism.' The judicial mandate of human
rights dimension, thus, makes it incumbent on the State
to solemnly respond to its constitutional obligation to ·
guarantee that a land looser is adequately compensated.
H
412 SUPREME COURT REPORTS [2015] 14 S.C.R.

A The proposition does not admit of any compromise or
laxity. Added to this, is the promissory estoppel
perspective, the State being the promisor. A parallel
doctrine founded on the doctrine of fairness and natural
justice baptised as "legitimate expectation" has grown
B as well in the firmament of administrative law to ensure
the predication of fairness in State action. (Paras 127,
128 and 133](491-A-C; 493-E-F]
10. It appears that the sites at Boytawala,
Lalchandpura, Anantpura and Mansarampura are
C located within a range of 14.70 K.M. to 39 K.M, from the
central point Jaipur, the nearest being at Boytawala. All
these lands have been recorded by this Court, as.
admitted by the JOA, to be not fully developed. The plots
offered by the respondents at Rohini Phase I, Anupam
D Vihar, Pitambara Scheme including Rajbhawan Yojana ,
Rohini Phase II, Abhinav Vihar Vis tar and Harit Vihar are
situated within a distance of25.40 K.M. to 36.80 K.M. from
the central point, Jaipur. The appellants, in categorical
terms, have asserted that the plots at these places are
E not developed inasmuch as they are bereft of the
essential facilities like water, electricity, communication/
connectivity, sewerage, drainage etc. and have sought
to substantiate their plea on the basis of recent
photographs along with sworn pleadings. On the other
F hand, they have suggested plots at Vidyadhar Nagar,
Gokul Nagar, Truck Terminal and Vaishali Nagar, located
within a distance of5 K.M. to 15.6 K.M. from the central
point Jaipur for allotment. That these plots of land are
developed has been unreservedly admitted by the
G respondents, their plea being that, the appellants are not
entitled thereto, judged by the factor of equivalence of
the value of the acquired land. At this distant point of
time, this Court is disinclined to sustain this demur of
the respondents. As the facts have unfolded, the
H appellants cannot be held accountable for the delay in
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 413

between, the respondents having failed to offer A
developed land as contemplated in the policy. This
stands fortified,, amongst others, by the order dated
7.5.2015 vis-a-vis the land at Boytawala, Lal Chandpura,
Anantpura and Man sarampura. The other plots offered
by the respondents, also having regard to the attributes B
of developed land as envisioned by the Rajasthan Act
do not accord with the letter and spirit of the policy.
[Paras 136,137and138][495-D-H; 496-A·D]
11. In the overall perspectives, the respondents
have utterly failed to abide by a public policy upon which, C
the appellant had altered their position and had suffered
immense prejudice. The persistent denial to the
appellants of their right to the developed land in lieu of·
compensation and that too without any legally
acceptable justification, has ensued in manifest injustice D
to the appellants over the years. Neither have they been
paid just compensation for the land acquired nor have
they been provided with the developed land in place
thereof, as assured. They are thus predominantly entitled
for the remedial intervention of this court to ensure fair, E
just, efficacious, tangible and consummate relief in
realistic terms. If fairness is an indispensable and innate
constituent of natural justice, this imperative indubitably
has to inform as well the judicial remedy comprehended.
In the overwhelming factual scenario, as obtains in the F
instant case, refusal to grant the relief to which they are
entitled, would amount to perpetuation of gross illegality,
unjustness and unfairness meted out to them. The textual
facts demand an appropriate respon"se of the judicial
process to effectuate the guarantee of justice, engrafted G
in the preamble of the Constitution reinforced by the
canons of equity. The remedy indeed has to be
commensurate to the cause and the prejudice suffered.
The invocable judicial tools, predominantly in the form
of a writ of mandamus, and the plentitude of the powers H
414 SUPREME COURT REPORTS [2015] 14 S.C.R.

A of constitutional courts, and more particularly, this c::ourt
under Article 142 of the Constitution are assuredly the
potential redressal aids in fact situatiol')s akin to the one
in hand. [Paras 141, 142][499-A·F]
12. The predominant facts herei·n, justifiably
B demand a fitting relief modelled by law, equity and good
conscienc~. In the overall view of the matter, in the
singular facts and circumstances of the case and for the
sake of complete justice, the appellants are entitled to
be allotted their quota of 15% developed land in the terms
C of policy/circular dated 13.12.2001 in one or more
available plots at Vidyadhar Nagar, Gokul Nagar, Truck
Terminal and Vaishali Nagar as enumerated by them in
their affidavit dated 17.8.2015. The respondents are
hereby directed to accommodate them accordingly. The
D respondents would allot the developed land as per
policy decision dated 13.12.2001 to the appellants atthe .
places indicated hereinabove without fail and within a
period of six weeks herefrom. To secure a permanent
resolution to the lingering lis, the respondents would
E ensure that a transparent and fair process is undertaken,
if necessary, to be overseen by an appropriate authority
to obviate any disparity in treatment in t~e matter of
allotment as ordered. [Paras 152, 153 and 154][503-H;
504-A·E]
F Jaipur Development Authority and Others v. Vijay
Kumar Data &Another (2011) 12 SCC 94 : 2011
(7) SCR 242; State of Bihar v. Kripalu Shankar
(1987) 3 SCC 34 : 1987 (3) SCR 1; Dattatreya
Moreshwar Pangarkar v. The State of Bombay &
G Ors. 1952 SCR 612;. R. Chitralekha v. State of
Mysore & Ors. AIR 1964 SC 1823: 1964 SCR
368; Hari Ram and Anr. v. State of Haryana &Ors.
(2010) 3 SCC 621 : 2010 (2) SCR 756; Census
Commissioner and others v. R. Krishnamurthy
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 415

(2015) 2 sec 796 : 2014 (11) SCR 463; Goa A
Glass Fibre ·Ltd. v. State of Goa & Anr. (2010) 6.
sec 499 : 2010 (5) SCR 970; MRF Ltd. v.
Manohar Parikar & Ors. (2010) 11 SCC 374 :
201 O (5) SCR 1081; Rajasthan Housing Board
v. New Pink City Nirman Sahkari Samiti Limited B.
and Anr. (2015) 7 sec 601 : 2015 (5) SCR 365;
Chairman, Indore Vikas Pradhikaran v. Pure
Industrial Coke & Chemicals Ltd. and others
(2007) 8 sec 105 : 2001 (6) SCR 799; steel
Authority of India Limited v. Sutni Sangam and c
others (2009) 16 SCC 1 : 2009 (12) SCR 929; .
Dev Sharan and Others v. State of Uttar Pradesh
and others (2014) 4 SCC 769 : 2014 (3) SCR 84;
State of Haryana v. Mukesh Kumar and others
(2011) 10 sec 404: 2011 (14) SCR 211; Union D
of India v. Anglo Afghan Agencies (1968) 2 SCR
366; Motila/ Padampat Sugar Mills Co. Ltd. v.
State of U.P. (1979) 2 sec ~09: 1979 (2) SCR
641; State of Punjab v. Nestle India Limited and
another (2004) 6 SCC 465 : 2004 (2) Suppl. E
SCR 135; Monnet /spat and Energy Limited v.
Union of/ndia and others (2012) 11 SCC 1 : 2012
(7) SCR 644; S. V.A. Steel Re-Rolling Mills
Limited and Others v. State of Kera/a and.others
(2014) 4 sec 186 : 2014 (2) SCR 336; Food F
Corporation of India v. Mis. Kamdhenu Cattle
Feed lndustries(1993) 1SCC71 : 1992 (2) Suppl. ·
SCR 322; State of Bombay v. PuNshottam Jog
Naik 1952 SCR 674; Ghaio Mall and Sons v. State
of Deihi 1959 SCR 1424; Goa Glass Fibre Limited G
v. State of Goa and another (201 O) 6 sec 499 :
2010 (5) SCR 970; Haridwar Singh v. Bagun
Sumbrui & others (1973) 3 SCC 889; Jaipur
Development Authority v. Radhey Shyam (1994)
4 sec 370 : 1994 (2) SCR 1; Jaipur
H
416 SUPREME COURT REPORTS [2015] 14 S.C.R.

A Development Authority v. Dau/at Mal Jain (1997)
1 sec 35 : 1996 (6) Suppl. SCR 584; Delhi
International Airport Ltd. v. International Lease
Finance Corporation and others 2015 (8) SCC
446 : 2015 (2) SCR 1040; Central London
B Property Trust Ltd. v. High Trees House Ltd (1947)
1 KB 130; Naida Entrepreneurs Association v.
Naida and others (2011) 6 SCC 508 : 2011 (8)
SCR 25; C. Chenga Reddy and Others v. State
ofA.P. (1996) 10sec193: 1996 (3) Suppl. SCR
c 479; Manohar Lal Sharma v. Principal Secretary
and Others (2014) 2 SCC 532 - referred to.

Maxwell on Interpretation of Statutes 11•h Edition,
Page 369; Halsbury's Laws of England, 4th Edn.
D Reissue, Vol. 44(1) at para 1238; Halsbury"s
Laws of England, Fourth Edition, Volume 1(1)
151; Administrative Law, 1o•h Edition by H.W.R.
Wade and C.F. Forsyth at Page 286 - referred
to.
E
Case Law Reference
2011 (7) SCR ~42 referred to Para 18
1987 (3) SCR 1 referred to Para18

F 1952 SCR 612 referred to Para 39
1964 SCR368 referred to Para 39
2010 (2) SCR 756 referred to Para 39
2014 (11) SCR 463 referred to Para 41
G 2010 (5) SCR 970 referred to Para 41
2010 (5) SCR 1081 referred to Para 41
2015 (5) SCR 365 referred to Para 41
2007 (6) SCR 799 referred to Para 42
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 417

2009 (12) SCR 929 referred to Para 42 A
2014 (3) SCR 84 referred to Para 42
2011 (14) SCR 211 referred to Para42
(1968) 2 SCR 366 referred to Para 42
B
1979 (2) SCR 641 referred to Para 42
2004 (2) Suppl. SCR 135 referred to Para 42
2012 (7) SCR 644 referred to Para 42
2014 (2) SCR 336 referred to Para 42 c
1992 (2) Suppl. SCR 322 referred to Para 42
1952 SCR 674 referred to Para 72

.
1959 SCR 1424 referred to Para 72
2010 (5) SCR 970 referred to Para 73 D
(1973) 3 sec 889 referred to Para 76
1994 (2) SCR 1 referred to Para 87
1996 (6) Suppl. SCR 584 referred to Para 87
E
2015 (2) SCR 1040 referred to Para 91
(1947) 1 KB 130 referred to Para 128
2011 (8) SCR 25 referred to Para 140
1996 (3) Suppl. SCR 479 referred to Para 150 F
(2014) 2 sec 532 referred to Para 151
CIVIL APPELLATE JURISDICTION: Civil Appeal No.
13940 of 2015.
From the Judgment and Order dated 12.08.2011 of the G
High Court of Judicature for Rajasthan at Jaipur Bench, Jaipur, .
in D. B. Civil Special Appeal (Writ) No. 276 of 2010 .
•
WITH
C. A. Nos. 13941, 13942, 13943 and 13944 of 2015. H
418 SUPREME COURT REPORTS [2015] 14 S.C.R.

A Rajiv Dhavan, Dhruv Mehta, Sr. Advs., Shobha,
Ms. Akanksha Kaushik, Bhoomik Choudhary, Kabir Ghosh,
Ms. Bina Madhavan, S. Udaya Kumar Sagar, Ms. Akanksha
Mehra, (For M/s. Lawyer S Knit & Co.), Pravir Choudhary,
P. D. Sharma, Advs. fortheAppellants.
B S. S. Shamshery, AAG, C. A. Sundaram, Sr. Adv.,
Ms. Rohini Musa, Zafar I., Ajay Choudhary, Adarsh Upadhyay,
Amit Sharma, lshu Prayash, S.S. Reddy, Ms. Ruchi Kohli,Advs·.
for the Respondents.

c The Judgment of the Court was delivered by
AMITAVA ROY, J. 1. Leave granted.
2. A procrastinated legal tussle spanning over three
decades has spiralled up the judicial tiers to this Court seeking
a quietus to the issue of adequate reparation of the appellants,
0
consequent upon the compulsory acquisition of their lands for
the Indian Army for its "Field Firing Range" in the year 1981.
3. The debate centres around the grant of 15% developed
residential land in lieu of compensation which, as perceived
E by the oustees, had been promised by the Urban Development
Department of the State Government by its proclaimed policy
dated 13.12.2001. The State of Rajasthan (for short,
hereinafter to be referred to as "the State/State Government")
and the Jaipur Development Authority (for short, hereinafter to
F be referred to as "JOA") have taken turf together to successfully
laciniate the appellants' identification of such land, thus
impelling them to impeach the impugned judgment and order
dated 12.8.2011 rendered by the High Court of Judicature for
Rajasthan upholding the refutation. Since the verdict assailed
G is common in all the appeals, the instant adjudication would
suffice for the analogous disposal thereof.
4. We have heard Dr. Rajeev Dhawan and Mr. Dhruv
Mehta, learned senior counsel for the appellants in Civil
Appeals arising out of S.L.P.(C) Nos. 28415 of 2011 and
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 419
[AMITAVAROY, J.]

29515 of 201.1, Ms. Bina. Madhavan, learned counsel forthe A
appellants in Civil Appeals arising out of S.L.P. (C) Nos. 36111
and 36179 of 2011, Mr. Sakal Bhushan, learned counsel for
the appellants in Civil Appeal arising out of S.L.P. (C) No.
36175 of 2012, Mr. C.A. Sundaram, learned senior counsel ·
for the. respondent No. 1 and Mr. S.S. Shamshery, learned B
counsel for the respondent No. 2.
5. Filtering out the unnecessary details, the
. indispensable facts are that the lands df the appellants situated
at Village Boytawala, District Jaipur was acquired by the State
. under the Rajasthan Land Acquisition Act, 1953 (for short, C
hereinafter to be referred to as "Rajasthan Act") and the
Notification under Section 4 thereof to this effect was issued
on 8.5.1981. To reiterate, the land was acquired for the
purpose bf the Army for its "Field Filing Range". The award
under the Rajasthan Act was passed by the Land Acquisition D
Officer on 26.3.1983 and the possession of the land was taken
over on 26.3.1983. Though the compensation was awarded
by the Land Acquisition Officer@ Rs. 1500 per bigha, on
reference being made under the aforementioned statute, the
Reference Court enhanced the same to Rs. 15000/- per bigha E
by its decision dated 11.4.1994. The determination of market
value of the lands made by the Reference. Court was
unsuccessfully challenged by the Authority and its appeals were
dismissed by the High Court on 30.8.2000. The compensation
awarded at Rs. 15000/- per bigha, thus attained finality. F
Compensation, the above notwithstanding, was deposited in
the court concerned @Rs. 1500 per bigha on 11.10.2001.
Thus, the amount of compensation deposited was not at the
enhanced rate fixed by the Reference Court and affirmed by
the High Court. G
6. Meanwhile, by circular No. F.6(19)UDH/3/89, Jaipur
dated 21.9.1999 issued by the Government of Rajasthan,
Urban Development and Housing Department, it was notified
by the State Government that it had taken a decision with
. H
420 SUPREME COURT REPORTS [2015] 14 S.C.R.

A reference to the earlier circulars, as mentioned therein, that
developed land equivalent to 15% of the area required, may
be given to the khatedars/land owners in lieu of the land being
acquired/held under acquisition/surrendered, as the case may
be, in land acquisition cases for commercial purposes. A
B meeting, thereafter of a High Powered Body under the
chairmanship of the Minister of the Department of Urban
Development, Rajasthan was held on 18.10.2001 in which it
was discussed that in several cases of land acquisition, though
award had been passed, the compensation had not been paid
C to the land owners. It was decided that, in cases where
compensation amount awarded had not been paid, though
award had been passed, one more opportunity to the
khatedars to opt for developed land ought to be afforded and
on the basis of the merit of such claims, 15% developed land
D be allotted to them. The option was made valid till 31.3.2001
and it was resolved that the allotment of land would be made
through the allotment committee of the concerned organization.
As the minutes of the said meeting would reveal, it was
resolved as well that the developed land in lieu of the acquired
E land would be usually allotted only in the scheme area and at
the place where the land acquired was situated and if it was
not possible to develop the scheme within the fixed period of
five months or if it was not possible to give the land in the
same area, only then the land would be allotted in some other
F area. It was however underlined, that the concerned committee
would as far as possible make an endeavour to allot such land
to the land losers near the scheme area.
7. The circular No. F6(19)/UDD/89, Jaipur dated
13.12.2001 occupying the centre stage of the debate was
G thereafter issued by the Under Secretary to the Department of
Urban Development with reference to the circular/notification
No. F.6(9)/UDH/89 dated 21.9.1999, adverted to hereinabove.
The said circular took note of the pendency of land acquisition
matters in which, though award had been passed but
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 421
[AMITAVAROY, J.]

compensation could not be paid to the land owners. It noted A
as well, that said land owners in the past could not submit their
options within the time prescribed due to lack of information
about the provision of allotment of developed land in lieu of
cash compensation. The circular recorded the decision of
the State, to the effect that in old cases in which award had B
been passed but compensation could not be made to the
khatedars, one more opportunity ought to be granted to them.
As a corollary, thereby the khatedars/land owners were left at
liberty to exercise their option till 28.2.2002 to be allotted 15%
developed land in the scheme area by the allotment committee C
of the concerned organization, afterthe approval from the State.
The composition of the Committee in the eventualities as
mentioned therein was also delineated. The conditions for
allotment required, inter alia, thatthe land to be allotted was to
be developed residential land located "normally in the same o
scheme area and at the very place from where the land had
been acquired" and not a commercial land.
8. Admittedly, the appellants exercised their options and
submitted their applications within the time allowed for being
allotted 15% developed· land in lieu of the compensation E
payable to them. They did so in writing on 15.1.2002 whereby
in the applications addressed to the concerned authority, they
recorded their request for 15% developed land in Vidyadhar
Nagar Scheme.
9. While the matter rested at that, the JDA on 17.5.2003 F
issued an auction notice for sale of Group Housing plots in
Vidyadhar Nagar Scheme. This was challenged before the
Appellate Tribunal, Jaipur Development Authority Jaipur (for
short, hereinafter to be referred to as "the Tribunal") under
Section 83(8)(a) of the Jaipur Development Authority Act, 1982 G
(hereinafter, in short to be referred to as "JDAAct"), inter alia,
alleging discrimination on the ground that persons similarly
situated like the appellants, had been allotted developed lands
in Vidyadhar Nagar Scheme, while they were sought to be
H
422 SUPREME COURT REPORTS [2015] 14 S.C.R.

A deprived by the assailed initiative to auction the land within
the said scheme. The Tribunal, by its ruling dated 18.8.2003,
annulled the auction notice and held that the JDA would not
sell or auction the plots mentioned therein, till the appellants
were allotted 15% developed land in the Vidyadhar Nagar
B Scheme. The Writ Petition filed by the JDA before the High
Court impugning the above decision of the Tribunal was
dismissed on 4.1.2005.
10. Subsequent. thereto, on 1.7.2005, the Deputy
Secretary to the Government of Rajasthan, Nagariye Vibhag,
C addressed a letter to the Commissioner, JDA, Jaipur offering
allotment of land in terms of the Circular dated 13.12.2001 to
the concerned khatedars/beneficiaries, at Villages
Lalchandpura and Anantpura to be allotted through lottery.
Being aggrieved by the said decision and also the follow up
D process in connection therewith, the appellants approached
the Tribunal afresh. By the judgment and order dated
18.10.2005, the Tribunal returned a finding that appellants were
entitled to be allotted 15% developed land in Vidyadhar Nagar
Scheme, as plots were available thereat. Thereby the
E respondent J.D.A was directed that the appellants be allotted
developed land at Vidyadhar Nagar in lieu of their acquired
land and also restrained it from allotting or selling such land to
others. In arriving at this conclusion, as the narration in the
.decision would reveal, the Tribunal.took cognizance of the fact
F that the land of the appellants situated in Village Boytawala
was acquired for Field Firing Range, in exchange whereof,
the Ministry of Defence had handed over to the JDA, land at
Vidyadhar Nagar. It also recorded the fact that the JDA had
admitted in its reply that the price of the offered land in
G Lalchandpura and Anantpura Villages was negligible in
comparison to that of Vidyadhar Nagar. It, thus held the view,
that the proposal for allotment of land at Lalchandpura and
Anantpura Villages to the appellants, by distinguishing them
from others to whom 15% developed land in lieu of
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 423
[AMITAVA ROY, J.]

compensation had been allotted in Vidyadhar Nagar, was A
inappropriate.
11. Time rolled by without making any endeavour on the
part of the JOA, to comply with the determination of the Tribunal.
It was, at this juncture, that the JOA, after two years addressed
a letter dated 16.10.2007 to the Deputy Secretary (P), Chief B
Minister Office, Rajasthan Government reciting summarily the
above facts. While admitting that out of the khatedars, alike
the appellants, whose land at Boytawala village had been
acquired, two namely; S/Sh. Sedu and Nathu had been allotted
15% developed land in the Vidyadhar Nagar Scheme, it C
disclosed that at that point of time as well, larid measuring
1, 10,500 sq. meters was available in the Vidyadhar Nagar
Scheme .
.12. Situated thus and appalled by the inaction on the part 0
of JOA, the appellants approached the High Court with S.B.
Civil Writ Petition 9908 of 2008, complaining of non-
coi;npliance of the operative directions contained in the
judgment and order dated 18.10.2005 of the Tribuna[ By order
dated 23.10.2008, the learned Single Judge required the JOA E
to comply with the aforesaid directions. within a period of two
months. It was recorded that the JOA had not questioned the
verdict dated 18.10.2005 of the Tribunal. Being aggrieved,
the JOA filed D. B. Civil Special Appeal No. 1879 of 2008
which also came to be dismissed on 17.11.2008. The JOA, F
undaunted by the reverses, approached this Court with Special
leave Petition (C) No. 2901 of 2009 which was disposed on
20. 7.2009, as in the interregnum, the judgment and order dated
18.10.2005 of the Tribunal came to be assailed by the JOA in
S. B. (Civil) W.P. No. 539 of 2009 before the High Court. By
the order dated 20.7.2009, this Court, however, did observe, G
without expressing any opinion on the merits of the dispute,
that the judgment and order dated 17 .11.2008 of Division
Bench of the High Court in challenge before it, would be subject
to any order, that would be passed in the writ petition.
H
424 SUPREME COURT REPORTS [2015] 14 S.C.R.

A 13. The Writ Petition No. 539 of 2009 was dismissed by
the High Court on 11.1.2010 where after the JOA preferred
D.B. Civil Special Appeal No. 276 of2010 against the same.
The decision impugned in the present batch of appeals arises
from the said verdict.
B 14. As the judgment under scrutiny herein would
demonstrate, whereas the appellants asserted that in terms
of circulars, which they perceived to be in the form of state
policy, they were entitled to 15% developed land at Vidyadhar
Nagar, as the land therein was given by the Army in exchange
C of the one at Boytawala, acquired for the Field Firing Range,
the JOA emphatically countered the said claim pleading that
not only land at Vidyadhar Nagar was unavailable for allotment,
being reserved for various purposes under the Group Housing
Scheme, the Tribunal lacked jurisdiction to entertain such a
D prayer and in particular in issuing a direction to allot such land
at Vidyadhar Nagar to the appellants. In response to the
appellants' contention that in lieu of the compensation not paid
to them, they were entitled to 15% developed land at Vidyadhar
Nagar as an adequate substitute thereof in terms of the
E Government circular/policy dated 13.12.2001 and that the
denial of the benefit of the policy was apparently discriminatory,
the JOA, amongst others, sought to substantiate that the land
at Vidyadhar Nagar was much more valuable compared to
the acquired land at Boytawala and the price of the land at
F Lalchandpura and Anantpura Villages was adequately
commensurate to the land acquired. While alleging that the
awarded amount had been deposited in the concerned Court
but not withdrawn by the appellants, the JOA, however,
admitted that the area of the 15% developed land to be allotted
G was 6539 sq. meters but maintained that a plot of this extent
was not available at Vidyadhar Nagar.
15. The State in turn pleaded, that the policy decision
had been taken under the chairmanship of the Minister of
Department of Urban Development on 18.10.2001, whereafler
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY . 425
[AMITAVAROY, J.]

consequential notifications had been issued from time to time. A
It however urged as well, that in compliance of the award
passed by the Land Acquisition officer, cheques for the amount
of compensation had been issued and deposited in favour of
khatedars, which however remained uncollected from this
Reference Court in which it is deposited. B
16. The Division Bench, in course of the adjudication
noticed, that the Reference Court had enhanced the amount
of compensation from Rs. 1500 per bigha accorded by the
Land Acquisition Officer to Rs. 15000/- per bigha in the year
1994 and that the appeals preferred by the JOA against the C
same had been dismissed. It also recounted the fact, that the
land of the appellants situated in village Boytawala had been ·
acquired for establishing a Field Firing Range for which the
land at Vidyadhar Nagar earlier earmarked for the said
purpose had been released in favour of JOA for Group Housing D
Scheme. It recorded as well the fact, that after the enhancement
. of compensation made by the Reference Court, the State had
issued the circular dated 13.12.2001, pursuant to a meeting
of a sub-committee under the chairmanship of the Minister of
Dei;iartmentofUrban Development on 18.10.2001, resolving E
to allot 15% developed land in cases where compensation
had not been accepted by the claimants. That in response to
the option called for from such willing land losers pursuant to
the circular dated 13.12.2001, the same had been submitted
in time, was noted as well. F
17. The Division Bench, however, on a survey of the
Sections 83 and 90 of the JDA Act held, in the prevailing
conspectus of facts, that the decision impugned before the
Tribunal was beyond the purview of its jurisdiction aad that it G
was not open for it to direct the respondents for allotment of
land at Vidyadhar Nagar. This finding of fact rendered by the
High Court was premised on a deduction that the circular dated
13.12.2001 had not been issued in the name of the Governor
of the State as required under Article 166(1) of the Constitution
H
426 SUPREME COURT REPORTS [2015] 14 S.C.R.

A of India and was not authenticated by the Governor as well as
mandated under Article 166(2). It also mentioned that the
circular dated 13.12.2001 was bereft of any reference to the
JDAAct, and thus the decision contained therein could not be ·
construed to be one under the said statute. Though it did notice
B that the decision was taken at the level of departmental minister ·
and did relate to the land acquired under the Rajasthan Act, it
was of the view that it could not be said to have been taken
under any provision of the JDAAct. Therefore, it has held that
the circular dated 13.12.2001 did not have any statutory force.
c 18. Referring to the decision of this Court in particular in
Jaipur Development Authority and Others vs. Vijay Kumar
Data & Another (2011) 12 SCC 94 and in State of Bihar
Vs. Kripalu Shankar(1987) 3 SCC 34, the Division Bench
entered a finding on ·the above aspect that the decision .
D contained in the circular dated 13.12.2001 being not in
conformity with the precept of Article 166 of the Constitution of
India, it was therefore not enforceable in law. It held the view
that, even if, it could be construed to be a policy decision
enforceable in law, it was not open for the Tribunal to direct
E allotment of land at Vidyadhar Nagar as the value of the land
was highly disproportionate to the one acquired from the
appellants. It recorded the finding that apart from the fact that
land at Vidyadhar Nagar was not available, the plea of
discrimination urged by the appellants on the ground that two
F of the similarly situated khatedars/beneficiaries had been
offered land at Vidyadhar Nagar was untenable. It recorded
that the land at Vidyadhar Nagar had been released to the
State for 'Group Housing Scheme of the JDAand that allotment
of 15% developed land thereat to the appellants would amount
G to dissipation of valuable property for unjust enrichment of a
chosen few.· The appellants were left at liberty to receive the
amount of compensation as awarded @ Rs. 15000 per bigha.
19. Before adverting to the rival contentions advanced,
it would be expedient to complete the narration of facts pleaded
H
LALARAM'v. JAIPUR DEVELOPMENT AUTHORITY 427
[AMITAVAROY, J.]

before this Court and having a significant bearing on the course A
of adjudication.
20. By order dated 15.01.2013 this Court formulated the
· following queries requiring the respondent State and the JOA
to respond thereto by filing an additional affidavit.
B
"Query No.1. Did the State Government/Jaipur
Development Authority ever formulate any policy
providing for allotment of "land in lieu of land" acquired
by the State Government/Jaipur Development Authority.
lfso, when was the policy formulated and by whom? c
Query No.2. If the policy in question was formulated by
and under the orders of the Minister In-charge of the
Department concerned, Government of Rajasthan, was .
the matter relating to the formulation of the said policy
submitted to the Chief Minister in terms of Rule 31, sub- D
rule (2) of the Rajasthan Rules of Business? In case, the
matter was submitted, what were the orders passed by
the Chief Minister on the said matter of the proposed
policy? .
Query No.3. Was the land for land policy given effect to E
in relation to acquisitions made for Boyatwala Field
Firing Range. If so, how much land was allotted and in
whose favour and under whose orders?
Query No.4. Was any !'IPPlication made for allotment by F
Madan Lal &Others, petitioners in Special Leave Petition
No.36175 of 2011, as legal representatives of the
deceased Ananda - original Khatedar for allotment of·
any land, under the policy mentioned above? If so, was·
the application ever considered and/or any orders on the G
same passed? Copies of the order dealing with the
request for allotment of land be also placed on record.
Query No.5. Do the appellants before this Court qualify
for allotment of land in lieu of acquired land in terms of
the policy? If so, is the State Government/Jaipur H
428 SUPREME COURT REPORTS [2015] 14 S.C.R.

A Development Authority ready and willing to make suitable
allotment of land in accordance with the policy in their
favour?
·Query No.6. Is the land offered to petitioners in Special
Leave Petition No.28415 of 2011 in Anantpura/
B Lalchandpura on the outskirts of City Jaipur still available
for allotment in their favour?
Query No7. Whether land referred to in Circular dated
16.10.2007, found at page 157 of Special Leave Petition
c No.28415 of 2011, issued by the Jaipur Development
Authority is available with the Jaipur Development
Authority? In case, it is available, has the area been
reserved for any specific purpose?".
21. To be exact in the portrayal, it would be apt to extract
D ad verbatim the averments in the affidavit filed on 22.01.2013
on behalf of the Urban Development Department of Rajasthan
Government. Precise answers to the queries No.1, 2 and 7
have been quoted hereinbelow:
"Response to Query No.1. - It is respectfully submitted
E that the State of Rajasthan has issued some Policy
circulars of giving land in lieu of compensation. The
details of such circulars dated 21.09.1999, 31.12.2001,
22.04.1992 and 27.10.2005 are as follows:
F (a) Policy Circular dated 22.04.1992: Allotment of 12%
developed land in lieu of cash compensation for the
acquired land was provided for in this circular. This
circular was issued with the approval of Minister-in-
Charge of the Department.
G (b) Policy Circular dated 21.09.1999: This policy
Circular provides for 15% ijeveloped land in lieu of
cash compensation for the acquired land, provided
that the award was not passed earlier an.d
compensation had not been paid till then. This circular
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 429
[AMITAVA ROY, J.]

was issued. with the approval of Minister-in-Charge of A
the Department.
(c) Circular dated 13.12.2001: This circular provided
for time extension for exercising option to the land
holders for 15% developed land in lieu of the acquired
land. In this circular, tpe date of submitting options B
was fixed as 28.02.2002.
(d) Policy Circular dated 27 .10.2005: In this circular
provision for 25% developed land, instead of 15%
earlierwas made. This policy was given effect forthe c
land acquisition cases after this date. This circular
was issued with the approval of Hon'ble Chief Minister.
Response to Query No.2
a. It is respectfully submitted that there are Rajasthan
Rules of Business under Article 166 of the Constitution D
of India. All the cases referred to in the second
schedule shall be brought before Council of Ministers
or a constituted sub-committee in accordance with
Part Ill of the Rules.
E
b. Rule 31 (1 )(ii) provides the cases which have to be
referred to Chief Minister before issuance of orders
and the cases raising question of policy and all the
cases of administrative importance not already
covered by second schedule. F
c. It is also respectfully submitted that each Department
is headed by Minister in Charge and all the respective
functions are enumerated in allocation of concerned
department. For example, the Urban Development
Department work is enumerated at item no. Xl-D G
(Urban Development & Housing Department) and
which includes acquisition of land for JDA/UIT Scheme
and Housing Board.

H
430 SUPREME COURT REPORTS (2015] 14 S.C.R.

A d. There are also standing orders under Rule 21 which
are issued for purposes of governing the concerned
Department with the Minister-in-Charge as Head. It
would be relevant to mention that the standing orders
issued under Rule 21, at Item 106 it was clearly
B mentioned that the Minister-in-Charge was competent
authority in matters ,relating to land acquisition and also
for releasing the land under acquisition. The
competent authority in relation to land acquisition/
release of land under acquisition shall be the Minister
C in Charge. However, by notification dated 08.07 .2004,
the rules of Business Allocation have been amended
and now the land under acquisition/release of land
from acquisition has been brought within the ambit of
second schedule, and by virtue of Rule 8 read in
o conjunction with Rule 31, the file has to be approved
by Hon'ble Chief Minister.
e. Since the matter of land in lieu of compensation is
considered as matter relating to acquisition or for
releasing the land under acquisition, it is within the
E ambit of Rule 21 and therefore the Minister-in-Charge
was capable of said decision. It is relevant to mention
that as far as the circular dated 27.10.2005 is
concerned, it has been duly approved by the Hon'ble
Chief Minister and therefore the Circular of 27.10.2005
F does not suffer from legal infirmity that the Rules of
Business were not followed.
Response to Query No.7
The land mentioned in the letter dated 16.10.2007 is still
G vacant arid there are plots of different categories like
individual residential plots, group housing, commercial,
institutional and reserved for other uses. Some of the
land is simply marked as 'reserved'. The word 'reserved'
denotes no specific land use but it could be used for
H schools, hospital, parks, public amenities etc."
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 431
[AMITAVAROY, J.]

22. In substance, the State Government in its reply A
affidavit did admit that it had issued the policy circulars alluded
to, for providing land in lieu of compensation including the one
· dated 13.12.2001, which provided for extension of time for
the exercise of option by the land holders for 15% developed
land in lieu of their acquired land. That prior thereto, provision B
for allotment of 12% developed land in lieu of compensation,
subsequently enhanced to 15% developed land was made by
the policy circulars dated 22.04.1992 and 21.09.1999, issued
with the approval of the Minister-in-Charge of the department,
was averred as well. The additional affidavit disclosed further C
that by a later policy circular dat.ed 27 .10.2005 issued with the
approval of the Hon'ble Chief Minister, the extent of developed
land was further enhanced to 25%.
23. Significantly, it was stated in unambiguous terms with
reference to Rule 31 (2) of the Rules of Business for Rajasthan D
(for short, hereinafter to be referred to as "the Rules"), framed
under Article 166 of the Constitution of India that in terms of
the Standing Order framed under Rule 21, the Minister-in-
Charge of the Department as per the Business allocation under
the Rules was the competent authority in matters relating to E
land acquisition and release of land therefrom. It was, however,
averred that by notification dated 08.07.2004, the Rules of
Business allocation had been amended and the subject of land
under acquisition/release of land from acquisition had been
brought within the ambit of Second Schedule consequent F
whereupon, by virtue of Rule 8 read with Rule 31 of Rules, any
decision with regard thereto was to be approved by the Chief
Minister of the State. The affidavit elaborated that as the issue
of land in lieu of compensation was one relating to acquisition
and/or release of land under acquisition, it was within the ambit G
of Rule 21 of Rules and, therefore, the Minister-in-Charge was
capable of taking a decision in connection therewith. The
pleaded stand of the State on the competence of the Minister-
in-Charge of the Urban Development Department, at the
H
432 SUPREME COURT REPORTS [2015] 14 S.C.R.

A relevant point of time to take a final decision with regard to the
issue of land in lieu of compensation in the context of the policy
circular dated 13.12.2001 thus did not admit of any ambiguity.
24. The affidavit further stated that there was no
developed land in Boytawala and Niwaru range and that out of
8 the 54 land owners affected, 45 including the appellants had
been allotted land at Lalchandpura/Anantpura. That two out of
the affected land owners had been allotted land under such
policy circular at Vidyadhar Nagar was admitted.
c 25. It was disclosed as well that Vidyadharwas located
5 km away from Boytawala range whereas Lalchandpura/
Anantpura were situated 35 kms and 14 kms respectively from
such range. As would be apparent from the reply to query
No.7, the State admitted that the land referred to in letter dated
16.10.2007 issued by the JOA, and located at Vidyadhar
0
Nagar was still vacant. It was, however maintained that the
plots therein were identified for residential, group housing,
commercial and institutional purposes.
26. In course of the hearing of these appeals, this Court
E in its order dated 07.05.2015 recorded the submission
advanced on behalf of the JOA that although sufficient land
was available at Lalchandpura, Boytawala, Anantpura and
Mansarampura, those.were not fully developed and that it would
require another two years to develop the same. The willingness
F of the JOA to offer developed land in other areas in discharge
of its obligation under the policy was recorded. This Court, as
prayed for on behalf of the JOA, granted it four weeks' further
time to enable it to identify and place on record the particulars
of the land representing 15% of the area acquired from the
G appellants in a developed colony. The JOA was required within
the time granted, to file an affidavit indicating the proposed
area for allotment to the appellants. It was observed in no
uncertain terms, that the area(s) offered ought to be in
developed colonies unlike area(s) which had been earlier
H offered but were not fully developed.
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 433
[AMITAVAROY, J.]

27. The JOA in its additional affidavit dated 16.07 .2015 A
in turn offered land(s) in the following schemes for allotment,
as substantial investments had been made to carry out
development works thereat.

S.No. JOA Name of Schemes Total available
B
Zone land for
No. allotment
1 11 Rohini Nagar - I 50598.22 Sq. mfr.
2. 11 Anupam Vihar 50598.22 Sq.mtr.
3. 13 P~ambara 50598.22 Sq. mtr. c
Rajbhawan
4. 14 Abhinav Vihar Vistar 50598.22 Sq. mtr.
5. 14 Ronni Nagar - II 50598.22 Sq. mtr.
D
6. 14 HaritVihar 50598.22 Sq. mtr.

28. The appellants in their reply affidavit dated
17.08.2015 to the affidavit dated 16.7.2015, rejected the lands
so offered emphatically contending that those were not E
developed land and did not offer even minimum essential
facilities of water, electricity, road etc. According to the
appellants, these lands were situated in the rural belt and were
in fact grazing plots, totally undeveloped and shorn of any
attribute of development as contemplated by the policy circular F
dated 13.12.2001 . In addition to the photographs of the plots
offered by the JOA, the appellants in a tabular form also
depicted the relevant features thereof, excerpts of particulars
of which are extracted herein below:
Sr.No. Name of Nature of land Year Amenities G
scheme Available
1 Rohini Pasture 2005 No Road,
Phase I (Cha ragah/grazing) water,
Totally undeveloped electricity,
and in rural belt drainage,
sewerage.
etc. H
434 SUPREME COURT REPORTS [2015) 14 S.C.R.

- --
A --~

f\bt a sirgle-~
I
rouse'fla is
constructed in the
wtnle schare

~
36.ffi~from
Caitra Jaip.Jr
8
- -
2 2000 No R:Jad, wcter,
'""'"'
Vihar Boih """'
PastlJ'e electricity, draina;ie,
(Charagai/gazing) sewerage, etc.
Tctally f\bt a sirgle
undeveloped and in rouse'fla is
c rural oolt constructed in the
Vvtole schare
25.4Kmfran
Caitra Jainor I
3. Pitarrbara Khasra f\b. 2 (Area 2000 No R:Jad, wcter,
. Scherre 139-01 hectares); electricity, drainage,
D Khasra f\b.3 sewerage, etc.
(Barren land; Area f\bt a sirgle
93-06 hectares) rouse'fla is
Khasra f\b.5 constructed in the
(barren lard; Area Vvtole schare '
j 2-01 hectares);
E Khasra f\b. 39-Area 35.CO ~from
I 3-16 hectares Caitra Jai nir
1 Raphavlan PastlJ'e 2000 No R:Jad, wcter,
Yojana (Charagaitgazing) electricity, draina;ie, 1
Tctally se.verage, etc.
F undeveloped and in f\bt a sirgle
rural oolt rouse'fla is
constructed in the
Vvtole schare

35.CO ~from
G Caitra Jaip.Jr
4. Rohini Pastura 2000 Sarre as above-
Alase II (Charagai/gazing) 36.ffi~from
Tctally Caitra Jai p.Jr
undeveloped and in
rural tell i
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 435
[AMITAVAROY, J.]

5. Abhinav Pasture 2014 No Road, water, A
Vihar Vistar (Charagah/grazing) electricity,
Totally undeveloped drainage,
and in rural belt sewerage, etc.
Not a single
house/flat.is
constructed in the
whole scheme B
31.70 Km from ·
Central Jaiour
6. Harit Vihar Pasture 2010 No Road, water,
(Charagah/grazing) electric tty,
Totally undeveloped drainage,
and in rural belt sewerage, etc.
Not a single c
house/flat is
constructed in the
whole scheme

31.70 Km from
Central Jaiour
D
29. The appellants also furnished in their aforementioned
counter-affidavit particulars of the land referred by this Court
in its order dated 17 .05.2015, plots offered by the JDA in its
additional affidavit dated 16.07.2015 and the lands suggested E
by them to be allotted in terms of the policy circular dated
13.12.2001 as depicted in the tables hereunder:

DISTANCE FRCJYI CENTRAL PCINT JAIPlR a=
SCHEIVESNIUAGES EARLIER PRCFOSED BY JAIPUR F
DEVEl..OPIVENT AUTl-fJRTY BY AFADAVllS DATED 17.09.2014
AND ZG.04.2015 AllD WHO-I HAV EBEEN REJECTED BY THS
HGl'BLE COlRT "1DE CJIDER DATED 07.05.2015
Sit. No. ScherreNillage Distance from
Ceriral Point Jaipll" G
1 Lal Ct-andpura 17 Kl'v1
2 l'v'ansararpura (N:Jt a JOA 19.30 Kl'v1
scherre)
3 - ·'a 14.70 Kl'v1
4 Anantpura 39 Kl'v1
H
436 SUPREME COURT REPORTS (2015] 14 S.C.R.

A II
DISTANCE - -----------1
FROM CENTRAL POINT JAIPUR OF
SCHEMESNILLAGES NOW PROPOSED BY JAIPUR
DEVELOPMENT AUTHORITY BY AFFIDAVIT DATED
16.07.2015 PURSUANT TO ORDER OF THIS HON'BLE
8 COURT DATED 07.05.2015. ___ ..,
Sri. No. - - SchemeNillage Distance fro~
Ceritral Po!!Jt Jaipur
1 Rohini Phase I 36.80 KM· - - -
2 Anuoam Vihar 25.40 KM
3 Pitambara & Raibhawan 35.00 KM
c 4 Rohini Phase II 36.80 KM ·--
5 Abhinav Vihar 31.70 KM
6. Harit Vihar 31.70KM

Ill
- - . ---- ---- --- --- ---· ·-~-- -~--

D DISTANCE OF DEVELOPED SCHEMES OF JOA FROM
CENTRAL POINT VILLAGE BOYTAWAWLA WITH
AMPLE LAND AVAILABLE, WHICM CAN BE ALLOTED
TO ALL THE KHATEDARS.
Sri. No. SchemeNillage Distance from
E Central Point Jaipur
1 Vidhyadhar Naqar 5.0KM ---
2 Gokul Nagar 10.5 KM
3 Truck Terminal 15.6 KM
4 Vaishali Naaar 12.8 KM
F
30. The State followed up the chain of pleadings by its
additional affidavit dated 28.09.2015 to state that in addition
to the Lalchandpura, land at Boytawala was also offered to
the appellants and accused them of unreasonably rejecting
G the options of developed land being offered to them from time
to time. Reference to land atAnand Vihar JOA Residential
Developed Scheme situated near Ajmer Road at a distance
of 3-4 kms from main National Highway No.8 was also made
to indicate that the same was available as well. According to
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 437
[AMITAVAROY, J.]

the State, the amount of compensation payable to the A
appellants forthe land acquired as on date, computed on the
basis of the enhanced rate of Rs.15000/- per bigha, would be
Rs. 95,59,044/- and insisted that the market value of the plots
identified by them would be disproportionately higher than the
quantum of compensation to which they are entitled. B
31 .. In between, an additional affidavit was also filed being
sworn by the Deputy Commissioner, Zone - Jaipur
Development Authority on 16.07.2015, bringing on record, the
Rules framed in exercise of powers framed by the Governor
of the State under Clauses (2) & (3) of Article 166 of the C
Constitution of India, including amongst others, the notification
No. F(27)(2)(a) dated 05.03.1999 amending the Rules.
32. In the above imposing mass of contentious pleadings.
and records, it has been assiduously urged by Dr. Dhawan D
that the circular dated 13.12.2001 being a policy decision of
the State, it was obligatory on its part to act in terms therewith
and, therefore, the denial to the appellants of 15% developed
land in lieu of the compensation for the land acquired is grossly
illegal, arbitrarily, unconstitutional, unfair and unjust. According E
to the learned senior counsel, the series of circulars on the
issue of allotment of developed land in lieu of compensation,
commencing from the one dated 22.04.1992 do assuredly
attest a consistent decision of the State to pursue the same
as its solemn policy qua the land oustees responding thereto F
and thus the impugned conduct of the respondents in reneging
therefrom besides being whimsical, arbitrary and highhanded
also tentamounts to a patent infraction of their unassailable
right to property guaranteed under Article 300A of the
Constitution of India.
G
33. The appellants having.been beckoned to believe
that they would stand adequately compensated by accepting
developed land to the extent of 15% of the total area of their
. land in lieu of compensation, they cannot be left high and dry
H
438 SUPREME COURT REPORTS . [2015] 14 S.C.R.

A over three decades and further subject them to a spate of
vexatious litigation, he urged.
34. Dr. Dhawan, insistently asserted with particular
reference to the affidavit filed by the State responding to the
queries of this Court, that the circular issued on 13.12.2001
8 was indeed a policy decision in conformity with the Rules and
that any stand in divagation therefrom ought to be dismissed
in limine. ·
35. While rejecting the endeavour on the part of the
c respondents to plead that in view of the amendment in the Rules
w.e.f. 05.03.1999, the approval of the Chief Minister on the
issue of acquisition and release of land was mandatory and
thus the circular dated 13. 12.2001 being opposed thereto was
non est, the learned senior counsel also urged that the orders/
0 circulars dated 08.07.1994 and 20.07.1998 amongst others
clearly belied the same.
36. While underlining that the State and the JOA are
perceptionally and essentially one in the process, Dr. Dhawan
endeavoured to demonstrate as well that in all the relevant
E circulars starting from the date 22.04.1992 on the issue, a copy
thereof had been marked to the Secretariat of the Chief
Minister of the State. The learned senior counsel referred to
the Rules in details to evince that on the date of issuance of
the circular dated 13.12.2001, the departmental minister was
F exclusively competent to take a decision on the issue of
acquisition and release of land in lieu of compensation and,
thus the respondents were bound thereby. That in the
memorandum of appeal before the High Court, they had
accepted the circular dated 13.12.2001 as the policy decision
G of the State was urged by the learned senior counsel. He
asserted that the impugned judgment was founded only the
premise that the circular dated 13.12.2001 did not conform to
the prescriptions of Article 166(1) & (2) of the Constitution of
India and neither any plea was raised qua the Rules or Article
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 439
[AMITAVA ROY, J.]

166(3) nor there was any occasion to deal with it. Dr. Dhawan A
has thus urged that this belated plea is wholly untenable in law.
37. Adverting to Section 90 of the JDAAct in particular,
the learned senior counsel has argued that as in terms thereof,
the JOA was under an obligation to implement the government
policy, it is impermissible for it to tum around and contend that B
the appeal filed by the appellants before the Tribunal was not
maintainable.
38. According to the learned senior counsel, in this
premise, the finding recorded in the impugned judgment, that c
the appeal filed by the appellants before the Tribunal was
unsustainable is patently erroneous. Further it being no longer
res integra that the prescriptions of Article 166 (1) & (2) of the
Constitution of India are directory in nature, the policy circular
dated 13.12.2001 could not have been rendered non-existent
D
on the ground that the same had not been expressed and
issued in the name of the Governor of the State or had not
been authenticated as required under the said provision, he
maintained. Dr. Dhawan also urged, that as the interpretation
of the policy circular dated 13.12.2001, having regard to the E
theme thereof, has to be purposively liberal and fructuous vis-
a-vis the rights of the land users under Article 300A of the
Constitution of India, the Tribunal was perfectly justified, in the
attending facts, circumstances and conduct of the respondents
to direct them to allot 15% developed land at Vidyadhar Nagar F
to them. Dr. Dhawan argued that, on the one hand, the State
did not deposit the amount of compensation at the enhanced
rate as granted by the Court, and on the other, denied the
appellants their share of developed land at Vidyadhar Nagar
as was due to them. He therefore urged, that it is a fit case in
which direction ought to be issued to the respondents to allot G
15% developed land in the areas, as suggested by the
appellants i.e. Vidyadhar Nagar, Gokul Nagar, Truck Terminal
and Vaishali Nagar.

H
440 SUPREME COURT REPORTS [2015) 14 S.C.R.

A 39. Supplementing the above, Mr. Dhruv Mehta, learned
senior counsel has urged that in the face of clear and
categorical stand of the State, that the circular dated
13.12.2001 did embody its policy on land in lieu of
compensation and that the departmental minister was
B authorized and competent to decide thereon, the belated stand
of the respondents is contrary thereto and ought to be
summarily rejected. The land having been compulsorily
acquired in the year 1981 with no compensation therefor paid
till date, the resistance offered by the respondents it sustained
c would result in their undue enrichment which is impermissible
in law, he urged. Rejecting the land at Lalchandpura and other
sites as offered by the respondents in their counter affidavit
as wholly undeveloped, Mr. Mehta has asserted that insistence
for acceptance of these lands is apparently in the exercise of
o superior bargaining power of the State and ought to be firmly
disapproved. According to him, the appellants have been
wrongly non-suited by the Division Bench of the High Court on
the ground of non-compliance of Article 166 (1) & (2) of the
Constitution of India. Mr. Mehta insisted that in face of the
E rejection of the lands at Anantpura, Lalchandpura,
Mansarampura and Boytawala by this Court, vide its order
dated 07.05.2015, the endeavour on the part of the
respondents to impose the same on the appellants betrays
Jack of bona tides as well. He urged that in any view of the
F matter, the respondents have already acted on the policy
circular dated 13.12.2001 in allotting, amongst others, plots
at Vidyadhar Nagar to some of the persons who are similarly
situated and thus they cannot be permitted to retrace their
steps arbitrarily at the cost of the appellants. The learned senior
G counsel urged as well, that the policy circular in question was
fully in accordance with the Rules and that the endeavour of
the respondents to weigh the amount of compensation payable
to the appellants for their lands with the value of the developed
land, as on date, as a factor for allotment under the policy is
H not only indefensible but also irrational and illogical as well.
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 441
[AMITAVA ROY, J.]

To reinforce his arguments, Mr. Mehta cited the decisions of A
this Court in Dattatreya Moreshwar Pangarkar Vs. The
. State of Bombay & Ors., 1952 SCR 612, R. Chitralekha
Vs. State of Mysore & Ors., AIR 1964 SC 1823, Hari Ram
and Anr. Vs. State of Haryana & Ors., (2010) 3 SCC 621.
40. Per contra Mr. Sunderam has assertively refuted the B
status of the circular dated 13.12.2001 as one conveying' a
policy decision of the State on the issue of land in lieu of
compensation, enforceable in law. He has urged that, as in
view of the amendment to the Rules occasioned on
05.03.1999, prior to the date of the circular in question i.e. C
13.12.2001, the approval of the Chief Minister was an
indispensible pre-condition for the validity thereof, the same
is of no avail to the appellants for all intents and purposes. As
the Rules are mandatory, no deviation there from is allowable
and, thus the circular dated 13.12.2001 does not vest any right D
with the appellants to claim developed land in lieu of
compensation in terms thereof, he maintained. This is
notwithstanding the response of the State in its affidavit in
reply to the Court's queries, he urged. He argued that the
factum of the am~dment by the Notification to that effect had E
been duly brought on record on time to amply authenticate this
contention and there can be no estoppel against law. Profused
reference was made to the provisions of the Rules including
the Second Schedule to endorse this plea. While admitting
the above notwithstanding that the appellants are entitled to F
be allotted 65,000 sq.mtrs. of developed land, the learned •
senior counsel has contended that the land at Vidyadhar Nagar
is being utilized for housing colony is thus not available for
them.
41. Referring to the circular dated 13.12.2001, Mr. G
Sunderam has emphasized that even assuming that this
document espouses the cause of the appellants, in any view
of the matter, they are not competent to dictate their preference
of any land and thus the Court in exercise of its power of judicial
H
442 SUPREME COURT REPORTS (2015] 14 S.C.R.

A review should not permit the same. Apart from contending
that the circular dated 13.12.2001 besides being non complaint ·
with Article 166(2) of the Constitution of India, is even
otherwise not enforceable in law, the learned senior counsel
contended that the same at the best amounts to an offer to
B allot 15% developed land, if available within the scheme area
and if not, in an adjacent locality. Thereby the land oustees
were not clothed with an inviolable right to demand any land of
their choice by laying a counter offer, he maintained. Mr.
Sunderam urged that neither the circular dated 13.12.2001
c does envisage such an indulgence nor this Court ought to direct
the State to abide thereby. That in the instant case, the JDA
had only acted on the decisions of the State, as taken from
time to time, and thus on this ground, the appeal filed by the
appellants before the Tribunal under Section 83 of the JDA
D Act, was rightly held to be not maintainable, was underlined.
Following authorities were cited at the Bar in Census
Commissioner and others vs. R. Krishnamurthy (2015)
2 SCC 796, Goa Glass Fibre Ltd. vs. State of Goa & Anr.,
(2010) 6 SCC 499, MRF Ltd. vs. Manohar Parikar & Ors.,
E (2010) 11 SCC 374, Rajasthan Housing Board vs. New
Pink City Nirman Sahkari Samiti Limited and Anr., (2015)
7 sec 601.
42. In his rejoinder, Dr. Dhawan adverted to the Rules as
well as the notifications/circulars on the issue of land in lieu of
F compensation prior, and subsequent to the one dated
· • 13.12.2001, to assert that the same irrefutably testified an
abiding and conscious decision and the unreserved intention
of the State to allot developed land to the land losers as a
matter of implementable policy and not ex-contractu as is
G sought to be suggested. Reiterating that at no earlier point of
time, the aspect of Article 166(3) had either been pleaded or
urged, the learned senior counsel insisted that even otherwise,
a conjoint reading of the provisions of the Rules would amply
attest that the circular dated 13.12.2001 indeed contained a
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 443
[AMITAVAROY, J.]

coeval state policy of allotment of developed land in favour of A
land losers in lieu of compensation and that it is unquestionably
enforceable in law againstthe respondents i.e. the State and
the JDAacting in tandem. Dr. Dhawan thus urged that, in the
attendant factual and legal premise, an appropriate writ of
mandamus ought to be issued as sought for, by invoking the B
doctrines of promissory estoppel and legitimate expectation
to actualize the constitutional right to the property of the
appellants. The following decisions were relied upon in
endorsement of the above:
a) Chairman, Indore Vikas Pradhikaran vs. Pure C
Industrial Coke & Chemicals Ltd. and others
(2001)8 sec 105;
b) Steel Authority of India Limited vs. Sutni Sangam
and others (2009) 16 sec 1; D
c) Dev Sharan and Others vs. State of Uttar Pradesh
and others (2014) 4 sec 769;
d) State of Haryana vs. Mukesh Kumar and others
(2011) 1o sec 404;
E
e) Union of India vs. Anglo Afghan Agencies ( 1968)
2 SCR366;
f) Motilal Padampat Sugar Mills Co. Ltd. vs. State of
u.P. (1979) 2 sec 409;
g) State of Punjab vs. Nestle India Limited and F
another (2004) 6 sec 465;
h) Monnet /spat and Energy Limited vs. Union of
India and others (2012) 11 SCC 1;
i)S. \I.A. Steel Re-Rolling Mills Limited and Others vs. G
State of Kera/a and others (2014) 4 SCC 186;
j)Food Corporation of India vs. Mis. Kamdhenu
Cattle Feed Industries (1993) 1 SCC 71.
H
444 SUPREME COURT REPORTS · (2015] 14 S.C.R.

A 43. The contentious pleadings and the accompanying
documents along with the competing arguments have received
our in-depth consideration. The fulcrum of the debate, though
is the circular dated 13.12.2001, construed as a communique
of state policy, on acquisition of land and land in lieu of
B compensation, to be awarded in respect of the acquired land,
the appellants herein seem to have been non-suited as well
on the ground that the appeal/reference preferred/laid by them
before the Tribunal under Section 83 of the JDAAct, was not
maintainable, being impermissible. Though this issue need
C not detain us, as the rival assertions have sprawled beyond
such peripheral contours, a passing reference thereto and the
finding thereon would clear the deck forthe ensuing decisive
adjudication.
44. The JOA Act which received the assent of the
D President on 12.10.1982, as the preamble thereof would
evince, is a legislation for forming the Jaipur City and certain
contiguous areas into Jaipur Region, to provide for the
establishment of an Authority for the purpose of planning, co-
ordinating and supervising the proper, orderly and rapid
E development of the Jaipur Region and for executing plans,
projects and schemes for such development and to provide
for matters connected therewith. The expressions "amenities"
and "development" have been defined in Sections 2(2) and
2(5) of JDAAct respectively, as extracted herein under:
F
2(2) "amenities" includes roads. bridges, any other
means of communication. transport. streets. open
spaces. parks, recreational grounds. play grounds,
water. gas and electric supply, and source of energy,
street lighting, sewerage, drainage, conservancy. public
G
works and such other utilities, services and conveniences
as the State Government in consultation with the Authority
may, by notification in the Official Gazette, specify to be
an amenityforthe purpose of this Act.

H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 445
[AMITAVA ROY, J.]

2(5) "development" with its grammatical variations, A
means the carrying out of building. engineering. mining
or other operations in. or over, or under any land (including
land under river. lake or any other water) or the making
of any material change in any building or land or in the
use of any building or land, and includes re-development B
and lay-out, and sub-division of any land and also the
provision of amenities and projects and schemes for
development of agriculture, horticulture, floriculture,
forestry, dairy development, poultry farming, piggery,
cattle breeding, fisheries and other similar activities, and c
'to develop" shall be construed accordingly.
45. In terms of Section 54 of the JDAAct, notwithstanding
anything contained in the Rajasthan Land Revenue Act, 1956,
the land as defined in Section 103 thereof, excluding land
referred to in sub-clause (ii) of clause (a) of the said Section D
and Nazul land placed at the disposal of a local authority under
Section 102-Aof that Act in Jaipur Region, shall immediately
after establishment of the JDA be deemed to have been placed
at the disposal of and vested in it whereupon it would take
over such land for and on behalf of the State Government and E
would use the same for the purposes of the JDA Act and
dispose of the same by way of allotment, regularisation or
auction subject to such conditions and restrictions as the State
Government may, from time to time, lay down and in such
manner, as it may, from time to time, prescribe. Sub-section 2 F
of Section 54 prohibits development of any land except by or
under.the co·ntrol and supervision of the JDA.
46. The constitution of the Tribunal has been provided
for under Section 83 of the JDA Act and sup-section 8(a)
thereof permits any person aggrieved by an order or notice of G
the JDA to file an appeal in the Tribunal within thirty days of the
communication of such order or notice to him. Under
sub-clause 8(b ), any person aggrieved by any threatened act
or injury from the JOA affecting his rights, may refer the dispute
H
446 SUPREME COURT REPORTS [2015] 14S.C.R.

·A to the Tribunal within thirty days of the communication or
knowledge of such threatened act or injury. The provision
mandates that the decision of the Tribunal in such appeal or
reference would be final. Section 90 of the JDAAct predicates,
that the JDA would exercise its powers and perform its duties
B under the Act in accordance with the policy framed and
guidelines laid down, from· time to time by the State for
development of the areas in the Jaipur Region. It obligates
the JDA to be bound to comply with such directions which may
be issued, frorri time to time, by the State for efficient
C administration of the JDAAct.
4 7. On a cumulative reading of the above provisions of
the JDAAct, it is apparent that with the enactment thereof, the
land, as referred to in Section 54 thereof, would stand vested
in JOA, whereupon it is competent, amongst others, to dispose
D of the same by way of allotment, regularisation or auction
subject to such conditions and restrictions as may be
prescribed by the State. The definition of the expressions
"amenities" and "development" also in categorical terms
outlines the imperative features of a developed land, as
E statutorily ordained. The JOA, thus being a creature of the
statute, assuredly cannot deviate from such legislative edict in
identifying a developed land at its disposal for allotment as
and when warranted.
F 48. The immediate cause of action for the appellants to
approach the Tribunal, to recall, was the letter dated 1.7.2005
of Urban Development Department of the State.to the JOA,
conveying its sanction for allotment of land at Lalchandpura
and Anantpura Villages to the land losers in terms of the circular
dated 13.12.2001 and the draw of lots conducted on
G 20. 7.2005 pursuant thereto as well as the allotment of land on
the basis thereof. In view of the functional amalgam of the
State and the JDA as contemplated by the Act, and having
regard to the composition of the entity conducting the lots, we
H are of the view that the appellants ought not to be non-suited
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 44 7
[AMITAVAROY, J.]

on the specious plea that the order impugned by them before A
the Tribunal and the exercise undertaken pursuant thereto was
not one by the JOA. As ·the Authority unmistakably was the
implementing instrumentality of the primary decision of the
allotment conveyed by the letter dated 1.7 .2005, their appeals/
reference before the Tribunal contesting the allotment of land B
at Lalchandpura and Anantpura Villages, in the entire
conspectus of facts, cannot be said to be either unsustainable
or impermissible. Any contrary view, in our comprehension,
would be unwarrantably pedantic and repugnant to the letter
and spirit of the JOA Act, and in particular undermine the c
objective of providing a forum of appeal/reference thereunder.
We, however, limit the determination to the singular facts and
circumstances of the case.
49. Be that as it may, the simmering epicentre of the
dissensus that engaged the serious attention of the contestants D
is located in the Rules. The parties, however, are not so much
in issue, herein over the status and bearing of the enjoinment
of Article 166(1) & (2) of the Constitution of India as qua Article
166(3). To reiterate, the impugned judgment had razed the
circular dated 13.12.2001 only on the ground that it was neither E
expressed in the name of Governor nor was it authenticated
as obligated by Article 166(1) and (2) of the Constitution of
India. Article 166(3) did not surface for any analysis in the
decision. Even the grounds formulated by the JOA in the writ
petition as well as in the writ appeal before the High Court did F
not pose a challenge to the circular dated 13.12.2001 to be
invalid and non-construable as policy, being in derogation of
Rules.
50. The documents laid at the disposal of this Court
being official circulars/communications issued by the G
Government of Rajasthan, Urban Development and Housing
Department would attest that in order to address the issue of
often protracted process of acquisition of land and possession
thereof, in view inter alia of the intervening litigations, a
H

,
448 SUPREME COURT REPORTS [2015] 14 S.C.R.

A pre-meditated decision had been taken by the State to hasten
·the exercise without any hassle and on mutual settlement and
to that effect, circular No F.6(44 )UDH/3/89 dated 1.1.1990
had been issu_ed. As the circular No. F.6 (44) UDH/3/89, Jaipur
dated 22.4.1992 of the same Department would reveal, the
B implementation of the decision had been kept in abeyance for
want of guidelines. However, the State on a re-consideration
of all aspects, did thereafter decide that persons/institutions
surrendering their land free of cost to the Land Urban
Improvement Trust/Jaipur DevelopmentAuthority/Rajasthan
C Housing Board/ Municipal Council/Municipality, would be
allotted developed land equivalent to maximum of 12% of the
surrendered land on the terms and conditions as enumerated
therein. A Settlement Committee was also constituted for
receiving the land surrendered free of cost on mutual settlement.
D 51. This was followed by circular No. F.6(19)UDH/3/89,
Jaipur dated 21.09.1999 in continuation of the one dated
22.4.1992, referred to hereinabove, whereby the decision of
the State to provide developed land equivalent to 15% of the
acquired land to the khatedar/land owner in lieu of land being
E acquired, was communicated. It was clarified, that in case of
allotment of.15% developed plots, no separate compensation
would be payable.
52 .. A meeting under the chairmanship of the
F departmental minister was thereafter convened on 18.10.2001
to formulate a composite policy on various aspects and
procedures in relation to allotment of 15% developed land, in
lieu of the land acquired, in land acquisition cases. It was
discussed, amongst others, that in many land acquisition
cases, compensation had not been paid to the land owners. It
G was eventually decided on the basis of the deliberations, that
in cases where awards had been passed, but cash
compensation could not be paid to the khatedars/land owners,
one more opportunity to them to opt for the developed land,

H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 449
[AMITAVAROY, J.]

be offered. That the option was extended till 31.3.2002 and A
the allotment of the land was resolved to be made through
Allotment Committee of the concerned organisation, was
recorded. lt_was decided in specific terms, that the developed
land in lieu of the acquired land would be generally allotted in
the same area where the land Was acquired and if it was not B
possible to develop the scheme within a period of five months
or it was not possible to offer l_and in the same area, it was
only then that land would be allotted in some other scheme
area. It was underlined that as far as possible, however, the
concerned committee would endeavour to allot such land near c
the scheme area. In terms of the decision, as a corollary, it
was generally and primarily incumbent on the JOA to allot the
developed land within the scheme area and any departure was
contemplated only in the above two eventualities.
53. The circular dated 13.12.2001, the pivot of the lis, is D
really in continuation of the circulars preceding it and is in
reiteration of the otherwise unequivocal and unreserved
decision of the State to offer 15% developed land to the
khatedars/land owners in lieu of compensation for the land
acquired. This is amply testified, amongst others, by the E
reference of the Circular dated 21.9.1999, referred to
hereinabove. The following extract of the circular dated
13.12.2001, in our estimate, is determinatively revealing:
"Hence, the State Government after considering this
matter in detail has taken this decision that in such old F
cases in which award has been passed but the
compensation could not be made to the khatedars till
date, in these matters one more opportunity shall be given
to the khatedars. Hence, now this provision is being G
made that such khatedars/landowners can present their
options till 28.2.2002 and they will be allotted 15%
developed land by the allotment committee of the
concerned organisation after approval from the State

H
450 SUPREME COURT REPORTS [2015] 14 S.C.R.

A Government. If no allotment committee has been
constituted in any organisation, then a Committee other
than Jaipur Development Authority and Rajasthan
Housing Board, shall be constituted of minimum three
officers and a public representative from the Municipal
B Corporations/boards ·or corporations which will give its
report to its organization. The allotment shall be made
with prior approval of the State Government."
54. A prolonged lull followed, where after the letter datep
01.07.2005 was issued, offering lands at Lalchandpura and
C Anantpura Villages to the appellants and other similarly
situated, representing the same to be the 15% developed land
in lieu of compensation as already resolved. The circular dated
27 .10.2005 issued by the Government of Rajasthan, Urban
Development and Housing Department thereafter sought to
D enhance the extent of developed area to be allotted in lieu of
the acquired lands/compensation from 15% to 25% (20%
residential and 5% commercial);· Significantly, none of the
circulars/letters dealing with the issue of allotment of developed
land in lieu of compensation, was issued in the name of
E Governor but a copy thereof had been marked to the Secretary
of the JOA. However those dated 13.12.2001, 1.7.2005 and
27.10.2005 had been forwarded also to the Secretariat of the
Chief Minister of the State for information and necessary
action.
F
55. Before adverting to the Rules, it would be expedient
to take note of the Order Nos. F(18)23 UDH/2/7 Jaipur dated
20 .7 .1998 and F.18(23)UDH/2/7, Jaipur dated 8. 7 .2004 of the
Urban Development Department, Government of Rajasthan
G and the Notification dated 5.3.1999 amending the Rules. In
the Order dated 20.7.1998 issued under Rules21 and 22 of
the Rules, the following arrangement for transaction of the
departmental business pertaining to matters relating to the land
acquisition and deacquisition was mandated as follows:

H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 451
[AMITAVAROY, J.]

A
SN Post Work Work shall State Shall
shall be be Minister presented
examined disposed .before the
bv of by Minister
1 2 . 3 4 5 6
1 to - - - - - B
105
106 Matters Group Dy. - Minister
relating to Officer Secretary/
Land Secretary
acqLisition
& de: c
agiLisifion
107 - - - - -
to
110

56. The notification No. F.27(2)Cab/99, Jaipur dated D
5.3.1999 issued under Article 166 (2) and (3) of the Constitution
of India occa.sioned an amendment, amongst others, to Rule
31 (1) of the Rules including therein, inter alia, the following
clause:
E
"(ii) Cases raising questions of policy and all cases of
administrative importance not already covered by the
Second Schedule."
57. Logically thus, by order dated 8.7.2004 issued as
well under Rules 21 and 22 of the Rules the working F
arrangement for the transaction of the departmental business
on matters relating to deacquisition of land under acquisition
and acquired land was redesigned as hereunder:
SN Post Work shall Work shall Shall be
be examined be disposed presented
by of by before the
G
Minister
1 to 115 - - - -
D. As per rule 31 of the Rules of Business and final disposal of the
matters relating to the Department mentioned in II Schedule under
Rule8 H
452 SUPREME COURT REPORTS [2015] 14 S.C.R.

A ·-·~ - - · ... ·- ·-

116to 117
118 Matters Group Dy. Minister/
relating to Officer Secretary/ I With
de- Secretary/ : a1212roval

8
acquisition of
land under
Pr.·
Secretary
I of Chief
Minister
aggJisition
and agguired
land. ;
119to 121 - - - - -
c
58. A plain comparison of the texts of these two Orders
i.e. 20. 7.1999 and 8. 7.2004 would demonstrate that whereas
by the former, the issue was required to be presented before
the departmental minister, under the latter, the authority on the
D issue was departmental minister with the approval of the Chief
Minister. It is, therefore, the plea of the respondents that
following the amendment of the Rules on 5.3.1999, the circular
dated 13.:12.2001, to assume the status of an enforceable
State policy ought to have been approved by the Chief Minister
E and that in absence thereof, it is wholly ineffectual.
59. Apropos the Rules framed under Section 166(2) &
(3) of the Constitution of India, the expression "Minister-in-
charge" and "Minister of State" are defined in Rule 2 (f) as
hereunder:
F
"'Minister-in-charge' nieans the Minister or Minister of
State, if appointed to hold independent charge as the
case may be, appointed by the Governor to be in-charge
of the department of the Government to which the relevant
case belongs."
G
Explanation: A case shall be deemed to belong to the
department to which under the schedule to these rules,
the subject matter thereof pertains or is mainly related.

H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 453 .
[AMITAVAROY, J.]

'"Minister of State' means a Minister of State appointed A
by the Governor to hold independent charge of a
department or to assist a Minister in the discharge of his
responsibilities or both."
60. Part I of the Rules deals with the allocation and
disposal of business where under in terms of Rule 4, the 8
business of the Government is to be transacted in the
Secretariat Departments specified in the First Schedule and
is to be classified and distributed between those departments
as laid down therein. Rule 5 provides that the Governor shall,
on the advice of the Chief Minister, allot among the Ministers C
or Ministers of State the business of Government, by assigning
one or more departments to the charge of a Minister. Rule 6
which prescribes the constitution of the departments of the
Secretariat, enjoins that it would ordinarily consist of a Secretary
to the Government who shall be the official head of that D
department and of such other officers and servants
subordinate to him as the Government may determine.
61. As per Rule 8, subject to the orders of the Chief
Minister under Rule 14, all cases referred to in the Second E
Schedule to the Rules would be brought before the Council or
a Sub-committee thereof in accordance with the provisions of
the Rules contained in Part Ill. The restriction in matters in
which finance department is required to be consulted under
Rule 10 is carved out in the proviso to Rule 8. Rule 9 in F
categorical terms underlines that the Minister-in-charge or the
Minister of State-in-charge of a department shall be primarily
responsible for the disposal of the business pertaining to that
department. While Rule 11 enjoins that all orders or instruments
made or executed by or on behalf of the Government of
Rajasthan shall be expressly made or executed in the name of G
the Governor, Rule 12 requires that every order or instrument
of the Government shall be signed by a Secretary, a Special
Secretary, an Additional Secretary, a Joint Secretary etc. as
enumerated therein so much so that such signature shall be
H
454 SUPREME COURT REPORTS [2015] 14 S.C.R.

A deemed to be a proper authentication of such order or
instrument.
62. Part Ill of the Rules dwells upon the procedure of the
Council of Ministers. In terms of Rule 14, all cases referred to
in the Second Schedule shall be submitted to the Chief Minister,
B through the Secretary to the Council after consideration by the
Minister-in-charge or the Minister of State-in-charge, as the
case may be, with a view to obtain his orders for circulation of
the case under Rule 15 or for bringing it up for consideration
at a meeting of the Council or Sub-Committee thereof. Such
C laying would not be necessary if a case falls within the purview
of a Sub-Committee of the Cabinet constituted under Cabinet
Secretariat Order No. F.3(3)/Cab/81, dated 30.9.1981.
63. The manner of departmental disposal of business is
elucidated under Part-IV. Rule 21 predicates that except
0
otherwise provided by any other rule, disposal of business
relating to items common to all departments shall be made in
the manner specified in Appendix 'B' and for the disposal of
business relating to other items, the Minister-in-Charge or the
E Minister of State-in-Charge, as the case may be, by means of
standing orders, give such directions as he thinks fit. Under·
Rule 22, the standing orders referred to in Rule 21 shall be
sent by the Minister-in-charge or the Minister of State-in-
Charge, as the case may be, to the Governor and the Chief
F Minister. Rule 31 lists the cases to be submitted to the Chief
Minister before issuance of any order.
64. Incidentally, the extracted clause of the notification
dated 5.3.1999 appears at serial No. (iii) under Rule 31.
Significantly, clause (xii) also mentions "cases raising question
G of policy". As is evident from clause (xix), it would be competent
for the Chief Minister to call forthe relevant papers/file(s), report
and pass orders in any case involving a question of policy or a
matter of urgent public importance, relating to any department
when he considers it necessary or expedient so to do, or when
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 455
[AMITAVAROY, J.]

the case is referred to him by the Minister-in-Charge or the A
Chief Secretary. Reverting to the Order dated 20.7 .1998 which
patently replicated the standing order contemplated undeP
Rules 21 and 22 of the Rules and was in force on the date on
which the circular dated 13.12.2001 was issued, it authorised
the departmental minister exclusively to deal with and take a 8
decision on matters relating to land acquisition and
deacquisition. Our attention has not been drawn to any other
order under the Rules after the amendment on 5.3.1999,
superseding the same. The earliest in point of time as
available is one dated 8.7.2004, whereby the departmental C
minister with the approval of the Chief Minister had been
authorised to take decision on matters relating to deacquisition
of land under acquisition and acquired land. Apart from the •
fact that both these Orders are evidently under the hand of the
departmental minister/state minister (independent charge), the D
unmistakable inference is that these had been issued with the
sentient awareness of the prescripts of the Rules.
65. To reiterate, the State in its additional affidavit dated
22.3.2013 in response to a categorical query of this Court as
to whether the circular dated 31.12.2001 did convey a policy E
decision on the issue of allotment of land in lieu of land averred
in clause (b) in answer to query No. 1 as hereunder:
"Policy Circular dated 21.9.1999: This policy Circular
provides for 15% developed land in lieu of cash F
compensation for the acquired land. provided that the
award was not passed earlier and compensation had
not been paid till then. This circular was issued with the
approval of Minister In-charge of the Department."
66. Rule 31 (1 )(ii) of Rules, to reiterate, after the G
amendment on 05.03.1999 did provide that the cases raising
question of policy and all the cases of administrative
im.portance not already covered by Second Schedule would
have to be laid before the Chief Minister before any order is
issued. H
456 SUPREME COURT REPORTS [2015] 14 S.C.R.

A 67. With this preface, the State did, however, in
unqualified terms aver in its affidavit dated 22.3.2013 that in
terms of the Standing Orders under Rule 21 at item No. 106,
the Minister-in-Charge was the competent authority in matters
relating to land acquisition and also for releasing the land under
B acquisition. It was clarified, that the competent authority in
relation to land acquisition/release of land used to be the
Minister-in-Charge and that subsequent to the notification
dated 8.7.2004, the Rules of Business allocation had been
amended whereafter, the matters relating to land under
c acquisition/release of land from acquisition, had been brought
within the ambit of Second Schedule and thus by virtue of Rule
8 read with 31, the file had to be approved by the Chief Minister
of the State. Further, it was stated as well that since the matter
of land in lieu of compensation was considered as a matter
D relating to acquisition or for releasing the land under acquisition,
it was within the ambit of Rule 21 and, therefore, the Minister-
in-Charge was capable of taking the decision as required.
68. In the face of above overwhelming and unambiguous
verified averments made on behalf of the State as well as the
E sequence of the orders/circulars.on the issue involved, we are
of the unhesitant opinion that at the relevant point of time i.e.
13.12.2001, the departmental minister was in exclusive charge
and was competent to take a final decision on the issue of ·
acquisition of land, release thereof from acquisition and
F allotment of land in lieu of compensation and thus the said ·
circular indeed does represent an enforceable State policy. In
any view of the matter, the State Government had acted on the
circular in allotting developed land to others and, thus under
the shield of repugnance of the Rules, it cannot be permitted
G to resile from its policy intended to be invoked.
69. The authorities cited at the Bar now need be traversed
to test the conclusions made. The propositions contained
therein, being dominantly structured on the textual facts,
reference thereof in bare minimum is unavoidable.
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 457
[AMITAVAROY, J.]

70. In Dattatreya Moreshwar (supra), before a A
Constitution Bench of this· Court, in challenge was the order of
confirmation of the detention of the petitioner under the
Preventive Detention Act, 1950, amongst other, on the ground
that it was with a confidential letter of the Secretary to the
Government of Bombay, Home Department and the same not B
being expressed/made in the name of Governor, as required
by Article 166( 1) of the Constitution of India, was not in proper
legal form. It was urged with reference to the said constitutional
provision, that all executive actions of the Government of State
have to be expressed and authenticated in the manner as C
provided therein. This Court, while observing that every
executive action need not be formally expressed, more
particularly so when one superior officer directs his subordinate
to act or forbear from acting in a particular way, ruled that when
an executive decision affects an outsider or is required to be D
officially notified or to be communicated, it should normally be
expressed in the form mentioned in Article 166( 1) of the
Constitution of India i.e. in the name of Governor. The plea
that an omission to make and authenticate an executive
decision in the form mentioned in Article 166 does not per se E
make the decision itself illegal was, however sustained. It was
underlined, that generally speaking the provisions of a statute
creating public duties are directory and those conferring private
rights are imperative. It was propounded that when the
provisions of a statute relate to the performance of a public F
duty and the case is such that to hold null and void acts done
in neglect of this duty would work serious general inconvenience
or injustice to persons who have no control over those entrusted
with the duty and at the same time would not promote the main
object of the legislature, it had been the practice of the Courts G
to hold such provisions to be directory only, the neglect thereof
not affecting the validity of the acts done. Elaborating on this
deduction, it was held, that strict compliance with the
requirements of Article 166 would give an immunity to the order
so much so, that it cannot be challenged on the ground that it H
458 SUPREME COURT REPORTS [2015] 14 S.C.R.

A is not an order made by the Governor and th us in case of non-
compliance of the said provision, such an immunity cannot be
claimed by the State. It was, however, observed that such a
failure would not vitiate the order itself. Jn clear terms, it was
expanded that though Article 166 of the Constitution of India
B directs all executive action to be expressed and authenticated
in the manner laid down therein, an omission to comply
therewith does not render the executive action a nullity.
71. Concurring with the majority view as above, Hon'ble
Mukherjee, J. observed that Article 166(1) did not lay down
C how an executive action of the Government of a State is to be
performed; it only prescribed the mode in which such an act is
to be expressed. It was emphasised that the manner of
expression is ordinarily a matter of form but whether a rigid
compliance with a form is essential to the validity of an act or
D not, depends upon the intention of the legislature. It was
enunciated that Article 166 of the Constitution of India has to
be read as a whole whereunder as per clause (3), the Governor
is to make rules for the more convenient transaction of the
business of the Government of a State and for allocation thereof
E among the ministers, insofar as that did not relate to matters
with regard to which the Governor was required to act. in his
disc.retion. It was reiterated that any executive action as
contemplated therein, is to be taken by way of an order or
instrument, to be expressed in the name of Governor, in whom
F the executive power of the State is vested and further to be
authenticated in the manner specified in the Rules framed
under Article 166(3). That compliance of Article 166(1) & (2)
would render such an order or instrument immune from-
challenge in a court of Jaw on the ground that it had not been
G made or executed by the Governor of the State, was reaffirmed.
While concluding that even if clause (1) of Article 166 is taken
to be an independent provision unconnected with clause (2), it
was highlighted that the prescription of the former would only
be directory and not imperative and was indeed a formality for
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 459
[AMITAVAROY, J.]

doing a public act. Following extract from the Maxwell on A
lnterpretatio1;1 of Statutes, 11th Edition, page 369 was adverted
to:
"Where the prescriptions of a statute relate to the
performance of a public duty, and where the invalidation
of acts done in neglect of them would work serious B
general inconvenience or injustice to persons who have
no control over those entrusted with the duty, yet not
promote the essential aims of the legislature, such
prescriptions seem to be generally understood as mere
instructions for the guidance and government of those C
on whom the duty is imposed, or, in other words, as
directory only."
72. A letter issued by the Under Secretary to the
Government of Mysore, Education Department conveying the D
decision of the Government to award 25% marks in the
interview for admission to Engineering Colleges and Technical
Institutions suffered the assailment of being non-compliant with
the requirements of Article 166 of the Constitution of India as it
had neither been expressed in the name of Governor nor E
implemented in the manner as enjoined in R. Chitralekha
(supra). A Constitution Bench of this Court, while expressing
its view in ~ajority in essence recounted. the proposition
enunciated in Dattatraya Moreshwar(supra) and also State
of Bombay vs. PurvshottamJog Naik(1952 SCR674)and F
Ghaio Mall and Sons vs. State of Delhi (1959 SCR 1424)
to the effect that the essentials of Article 166(1) and (2) if not
complied with, the order in question would be defective in form.
It reiterated that the enjoinments are not mandatory but directory
and if not adhered to would only deny the claim of immunity
thereof from challenge as to whether the decision in fact had G
been of the State Government or the Governor and would not
per se render the same a nullity. In such an eventuality, it would
be necessary to be established as a question of fact that the
decision or the order involved was in fact validly taken by the
H
460 SUPREME COURT REPORTS [2015] 14 S.C.R.

A State Government or the Governor. That however in any case,
there has to exist a decision or order of the Governor as per
the Rules of Business framed un.der Article 166(3) and that it
would be the burden upon the Government to establish the
same was emphasised upon by Hon'ble Mudholkar, J. in
B supplementation of the majority view.
73. The vires and constitutional validity of the Goa
(Prohibition of Further Payment and Recovery of Rebate
Benefits) Act, 2002 was impeached in Goa Glass Fibre
Limited vs. State of Goa and another (2010) 6 SCC 499,
C amongst others, on the ground that the said legislation was
founded on a decision of the High Court of Bombay, Panji
Bench rendered on 19.4.2001/24.4.2001 to the effect that
Notifications dated 15.5.1996 and 1.8.1996 had been issued
without compliance with the requirements of Article 166(3),
D though the said verdict was subjudice in appeal before this
Court. Resisting the challenge, the State of Goa, not only
endorsed the validity of the Statute but also insisted that the
notifications involved were illegal, unauthorised and that the
legislation had been made to prohibit any further payment there
E under in order to save the public exchequer from getting
denuded of its coffers. It was urged as well, that the decision
of the State Government to issue notifications mentioned
above was not authorised by law inasmuch as t~e Council of
Ministers had rescinded the same. But despite this, the Power
F Minister himself had issued a notification at his own level
without making a reference to either the Chief Minister or the
Council of Ministers or consulting the Finance Department as
mandatorily required under the Rules of business. It was
asserted as well that the decision of the then Minister of Power
G to issue the notifications was wholly unauthorised as he had
no authority in law to issue them at his level and the subject
matter was required to be placed before the Cabinet in view
of the huge financial implication involved therein and further
that the Cabinet had earlier rescinded the notifications offering
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 461
[AMITAVAROY, J.]

rebate. It was underlined too, that for any modification or A
variation of such decision, it was required to be placed before
the Council of Ministers in view of the business Rules framed
under Article .166(3) of the Constitution of India. The State
maintained further that the two notifications had imposed a
heavy burden on the state exchequer and that the concurrence B
of the Finance Department of the State Government was
mandatory. That not only such concurrence was absent, the
note in the concerned file of the Power Minister that he had
consulted the Chief Minister was found to be false as per the
police investigation conducted. The State pleaded too that C
despite no budgetary allocation or any provision for making
payment, finance was sought to be diverted to the private
industrialists by virtue of the two notifications, as a result
whereof, an amount of Rs. 16 crores had already been lost
and further sum of Rs. 50 crores of public money was in the D
CQurse of being siphoned off.
74. This Court in the above overwhelming factual
backdrop, supported by the official records, did take note of
the amply demonstrated grounds, justifying the legislation and
did sustain the validity thereof. In essence, this Court did E
accept on the face of contemporaneous records that the
notifications had already been rescinded by the Council of ...,
Ministers and though under the Rules of Business, the Finance V
Department was to be mandatorily consulted due to huge
financial implication, the then Minister of Power on his own F
had issued the same resulting in heavy and unwarranted
financial burden on the State Exchequer in absence of any
budgetary sanction therefor.
75. In M.R.F. Limited (supra), this Court was in seisin of
a challenge to the said two notifications dated 15.5.1996 and G
1.8.1996 granting rebaie of 25% in tariff in respect of power
supply to certain categories of industrial consumers, inter alia,
on the ground that those were null and void for want of
compliance with the concerned Rules of Business of the State
H
462 SUPREME COURT REPORTS [2015] 14S.C.R.

A Government framed under Artide 166(3) of the Constitution of
India. Skipping over the otherwise chequered background of
these notifications, suffice it to state that the challenge thereto
was also lai.d on the ground of non-compliance of the mandate
of Articles 154 and 166 of the Constitution of India and instead
B being the yields of the Minister of Power. It was contended
that the said notifications could not be termed as those issued
by the State Government on account of non-compliance with
the Rules of Business and, therefore, were non est and void
·ab initio and resultantly the consequential actions based
c thereon were a nullity. The same issue did arise principally for
. the scrutiny of this Court in the appeals preferred by the
industrial consumers involved. The State Government in its
counter-affidavit in the appeals in support of the judgment
impugned, pleaded that the notifications did not embody the
. D Government decision inasmuch as the matter was neither
placed before the State Cabinet in terms of the business Rules
nor was the mandatory concurrence of the Finance Department
there under obtained. It was contended as well that in view of
the notifications, the State had already paid an amount of Rs.
E 16 crores as rebate and that it could not.afford to pay further
on account of the financial crunch faced by it. It was urged
,._ further that the Notifications, if upheld, would result in loss of
• Rs: 50 crores to the State Exchequer. The pleadings of the
' State, as noticed by this Court, reflected that there was neither
F the financial sanction nor the budgetary provision, nor a cabinet
approval as was mandatorily required under the Rules and
that there was clear breach of the mandatory provisions thereof.
76. In the course of adjudication, the plea of estoppel
against the State Government in repudiating the notifications
G was negated on the ground that the issue of validity thereof,
being repugnant to the mandatory prqvisions of the Rules of
busiriess·had not arisen in the earlier round of litigation. The
contention that it was impermissible for the State Government
to take contradictory stand in the pleadings was rejected. The
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 463
[AMITAVAROY, J.]

conclusion of the High Court that in a democratic set-up, the A
validity of the decisions of the Government, that decides the
destiny of the people should be decided not only on the basis
of the affidavits filed by the officers of the Governments or on
incomplete or inadequate information made available by them,
but on the basis of constitutional provisions and the Business B
Rules framed there under was sustained. Adverting to the
directory or mandatory character of the constituents of Article
166 of the Constitution of India, this Court, amongst other,
quoted with approval the following excerpts from its earlier
decision in Haridwar Singh vs. Sagun Sumbrui & others C
(1973) 3 sec 889:
"13. Several tests have been propounded in decided
cases for determining the question whether a provision
in a statute, or a rule is mandatory or directory. No
universal rule can be laid down on this matter. In each D
case one must look to the subject-matter and consider
the importance of the provision disregarded and the
relation of that provision to the general object intended
to be secuted. Prohibitive or negative words can rarely
be directory and are indicative of the intent that the E
provisi_on is to be mandatory...
14. Where a prescription relates to performance of a
public duty and to invalidate acts done in neglect of them
would work serious general inconvenience or injustice F
to persons who have no control over those entrusted with
the duty. such prescription is generally understood as
mere instruction for the guidance of those upon whom
the duty is imposed."
77. The cavil of estoppel against the State on the plea G
that it did not agitate against the legality or validity of the
notifications in the earlier round of litigation, was dismissed in
view of the illegality thereof, being repugnant to the mandatory
provisions of the Rules. It was held that mere omission on the
H
464 SUPREME COURT REPORTS (2015] 14 S.C.R.

A part of the State Government to assail the validity of the
notifications on the ground of non-compliance of the Rules,
would neither debar or disentitle itfrom raising such a plea.
78. Apart from noting the extract from the erudite work,
Maxwell on Statutes, referred to hereinabove, this Court did
B refer as well to the following quote from the Halsbury"s Laws
of England, 4'h Edn. Reissue, Vol. 44(1) at para 1238: ·
"Mandatory and directory enactments.-The distinction
between mandatory and directory enactments concerns
c statutory requirements and may have to be drawn where
the consequence of ailing to implement the requirement
is not spelt out in the legislation. The requirement may
arise in one of two ways. A duty to implement it may be
imposed directly on a persor:i; or legislation may govern
the doing of an act or the carrying on of an activity, and
D
compel the person doing the act or carrying on the activity
to implement the requirement as part of a specified
procedure. The requirement may be imposed merely by
implication.
E To remedy the deficiency of the legislature in failing to
specify the intended legal consequence of non-
compliance with such a requirement, it has been
necessary for the courts to devise rules. These lay down
that it must be decided from the wording ofthe relevant
F enactment whether .the requirement is intended to be
mandatory or merely directory. The same requirement
may be mandatory as to some aspects and directory as
to the rest. The court will be more willing to hold that a
statutory requirement is merely directory if any breach of
G the requirement is necessarily followed by an opportunity
to exercise some judicial or official discretion in a way
which can adequately compensate for that breach.
Provisions relating to the steps to be taken by the parties
to legal proceedings (using the term in the widest sense)
H are often construed as mandatory. Where, however, a
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 465
[AMITAVAROY, J.]

requirement, even if in mandatory terms, is purely A
procedural and is imposed for the benefit of one party
alone, that party can waive the requirement. Provisions
requiring a public authority to comply with formalities in
orderto render a private individual liable to a levy have
generally been hE/ld to be mandatory. B
Requirements are construed as directory if they relate to
the performance of a public duty, and the case is such
that to hold void acts done in neglect of them would work
serious general inconvenience or injustice to persons
who have no control over those entrusted with the duty, C
without at the same time promoting the main object of
the legislature. This is illustrated by many decisions
relating to the performance of public fun,etions out ofJime,
and by many relating to the failure of public officers to
comply with formal requirements. On the other hand. the D
view that provisions conferring private rights have been
generally treated as mandatory is less easy to support:
the decisions on provisions of this type appear. in fact.
to show no really marked leaning either way."
E
79. The assertion on behalf of the respondents that there
can be no universal rule with regard to violation of Rules of
Business and that each case must be decided on the facts
and further that prohibitive or negative words in the provision
thereof, in matters concerning revenue or finance, exclusive F
competence of the Cabinet to take a decision on an issue,
prior consultation of the Finance Department and the like do
indicate mandatory feature thereof, was taken note of. It was
held that the Rules of Business in those contingencies, if not
complied with, the decision/communication could not be G
termed as a Government decision and that an individual
functionary cannot bypass the Rules of Business.
80. This Court took cognizance, amongst other, of the·
decision of this Court in Kripalu Shankar (supra) which
proclaimed that a noting by an official in the departmental file H
466 SUPREME COURT REPORTS [2015) 14 S.C.R.

A would not amount to an executive decision within the meaning
of Article 166 of the Constitution of India. It noted the
observation as well that while clauses (1) and (2) of Article
166 did relate to the mode of expression of the order and the
authentication thereof, clause (3) pertained to the making of
B the rules by the Governor for more convenient transaction of
the business of the Government. Referring to Rules 3, 6 and
7 of the Business Rules of the Government of Goa as involved
and judging the same on the touchstone of the above judicially
evolved formulations, this Court concluded that any proposal
C likely to be converted into a decision of the State Government
involving expenditure or abandonment of revenue for which
there was no provision made in the Appropriation Act or an
issue which involved concession or otherwise having a
financial implicatton on the State, was required to be processed
D only after the concurrence of the Finance Department and
could not be finalised merely at the level of the Minster-in-
charge. It was ruled that after the concurrence of the Finance
Department, the proposal had to be placed before the Council
of Ministers and/or the Chief Minister and only after a decision
E was taken in that regard, the same would result in a decision
of the State Government. It was held that Rules 3, 6, 7 and 9
were mandatory in nature so much so that any decision taken
by any individual minister in violation thereof could not be
termed as a decision of the State Government.
F 81. In arriving at this "conclusion, this Court did
acknowledge the decision of the Constitution Bench in R.
Chitralekha (supra) which propounded that the provisions,
Article 166 (1) &(2)were directory in nature and not mandatory,
but observed that the same could not be relied upon to uphold
G the contention that Business Rules made under Clause (3)
were directory as well.
82. Dwelling on this aspect, this Court elucidated that
under Article 154 of the Constitution of India, the Governor was
vested with the executive power of the State, to be exercised
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 467
[AMITAVAROY, J.]

either directly or through the officers subordinate to him in A
accordance· with the provisions of the Constitution. It was set
down that the Governor was advised by the Council of Ministers
~ith the Chief Minister as its head in exercise of his functions
· except those specifically stated to be in the discharge of his
discretion as the Head of the State. It was reiterated that the B
Rules of Business framed under Article 166(3) of the
Constitution were for convenient transaction of the business
of the Government and for allocation of the business among
the Ministers who collectively in the Council were responsible
to the Legislative Assembly of the State. !twas emphasised c
that any decision taken by the State Government, therefore,
reflected the collei;:tive responsibility of the Council of Ministers
and their participation in the decision making process and thus
the Rules of Business framed under Article 166(3) of the
Constitution are framed in order to fulfil the constitutional o
mandate embodied in Chapter II of Part VI of the Constitution
ma'king it obligatory for the decision ·of the State Government
to be in accord therewith. The following excerpt from the
decision in Haridwar Singh (supra) was also referred to:
15. Where however. a power of authority is conferred E
with a direction that certain regulation or formality shwl
be complied with. it seems neither unjust nor incorrect to
exact a rigorous observance of it as essential to the
acquisition of the right or authority." ...
83. It was, thus, concluded that the Business Rules F
framed under the provisions of Article 166(3) are mandatory
and must be strictly adhered to so much so that any decision
of the Government in breach thereof would be a nullity in the
eye of the law.
G
84. In the facts of the above reported case, this Court, on
a consultation of the official records and being convinced that
the notifications concerned had·been issued in non-compliance
· of the Rules, sustained the verdict of the High Court proclaimed
as above. H
468 SUPREME COURT REPORTS [2015] 14S.C.R.

A 85.Allusion to Article 166 as a whole, figured in a different
context before this Court in Jaipur Development Authority
(supra), to assay the attributes of the letter dated 6.12.2001
iss\,Jed by the Deputy Secretary (Administration), Urban
Development and Housing Department to the Secretary, Jaipur
B Development Authority, Jaipur in the matter of allotment of plots
in addition to the compensation paid to the awardees in
connection with the acquisition of land involved. For the
construction of new building of the .Legislative Assembly,
educational institutions, stadium complex, district shopping
C centre, MLA quarter~ etc., under the project "Lal Kathi
Scheme", notification under Section 4 and declaration under
Section 6 of the Rajasthan Act were issued on 13.5.1960 and
11.5.1961 respectively whereafter, notice was issued to the
land owners/khatedars under Sections 9 (1) and (3) of the
D Rajasthan Act. The claimants for compensation, included
persons who had purchased portions of the acquired land.
Initially, 65 khatedars filed claims for compensation, but this
figure rose to more than 137 because those who purchased
land from the khatedars after publication of the notification
E issued under Section 4 and their nominees/sub-nominees,
also filed claims for compensation.
86. The Land Acquisition Officer, Jaipur by his award
dated 9.1.1964 not only determined the amount of
compensation payable to the land owners and the
F beneficiaries of transfers which were illegal being made after
the notification under Section 4 of the Rajasthan Act, but also
directed allotment ·of plots measuring varying areas to the
owners/their transferees and nominees/sub-nominees out of
the acquired land. Initially, neitherthe State Government nor
G the Urban Improvement Trust, Jaipur, the architect of the project,
did challenge the direction contained in the award of the Land
Acquisition Officer. However, as the execution applications
by the beneficiaries mounted with time, they did so. While the
litigation was pending, the functionaries of the State, in their
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 469
[AMITAVAROY, J.]

bid to confer legitimacy on the illegal transactions involving A
purchases of the acquired land after the .notification under
Section 4, caused a Committee to bf'! constituted at the
instance of the then Minister of Urban Development and
Housing, who was also the Chairman of the Trust for
suggesfing the methodology for allotment of land in terms of B
the directions given by the Land Acquisition Officer. The
Committee, accordingly, recommended that the land be
allotted to the beneficiaries of illegal transactions at the rate
fixed-by it and a circular representing to be a policy decision,
was issued in 1978 to that effect. The draw of lots was held c
thereafter for allotment of plots to the awardees and the
_beneficiaries of illegal transfers of the acquired land. Those
unsuccessful in the process, approached the High Court which
held that the directions given by the Land Acquisition Officer
and the Minister for allotment of plots were ex facie illegal and o
had the effect of defeating the public purpose for which the
land was acquired. The recorded facts revealed, that an inquiry
was made into the episode by the Lokayukta of the State, who
returned a finding, that the persons named therein including
the then departmental minister had misused their official E
position to favour a few influential and highly placed individuals
and had also thereby caused wrongful gain to them and
wrongful loss to the JOA (successor of Jaipur Improvement
Trust) and the public at large.
87. This Court recalled its adjudication in Jaipur . F
Development Authority vs. Radhey Shyam (1994) 4 SCC
370 to the effect that the Land Acquisition Officer did not have
any jurisdiction, power or authority to direct allotment of land
to the claimants und"EH the Rajasthan Act in lieu of
compensation. It was also noted that as held in Jaipur G
Development Authority vs. Dau/at Mal Jain (1997) 1 SCC
35 that there was no policy laid by the Government to this effect
.and that it could not have. been so, being contrary to the
Rajasthan Improvement Trust (Disposal of Urban Land) Rules,
H
470 SUPREME COl:JRT REPORTS [2015] 14 S.C.R.

A 1974 and that no such power was given to the individual
minister by executive action to that effect.· This Court also
recalled its observation that the decision taken by the Minister
and the actions of the bureaucrats were meant to benefit only
those who had illegally secured transfer of land after the
B publication of the notification issued under Section 4 and that
the so-called policy was an artifice to feed corruption and to
deflect the public purpose.
88. The facts divulged that the purchasers involved
initially challenged the notice dated 19.12.1996 issued by
C the JOA for auction of their plots before the Tribunal and being
unsuccessful in view of the pronouncement in Radhey Shyam
Case (supra) and Dau/at Mal Jain (supra), challenged the
determination made by the Tribunal before the learned Single
judge of the High Court which met the same fate. The Division
D Bench of the High Court however, though did uphold the finding
of the learned Single Judge that the dispute relating to title of
the property could not be decided under Article 226 of the
Constitution, sustained the plea of the purchasers that in terms
of the policy decision taken by. the State Government,
E expressed in the letter dated 6.12.2001 and the order dated
9.1 .2002 passed by another Division Bench, they were entitled
to regularisation of the plots in question.
89. In the contextual facts, this Court noticed that the
F vendors of the purchasers had no valid title, they having
purchased the land involved from the khatedars, after the
publication of the notification under Section 4 and that thus the
intervening transactions did not convey any title. It recorded
that till the disposal of the writ petitipn by the learned Single
Judge, the letter dated 6.12.2001, sought to be passed off as
G a policy decision, was not in existence and that a Committee
of Ministers was formed vide order 30.10.2001 to suggest a
solution of the problem in the regularisation of illegal
constructions/encroachments of land under the Lal Kothi and

H
LALARAM v~ JAIPUR DEVELOPMENT AUTHORITY 471
[AMITAVAROY, J.]

Prithviraj Nagar Schemes in relation to which several cases A
were pending in differenf courts.· It was observed that the
recommendations made by the Committee were given the
colour of Governme11t decision, though no material had been
produced to establish that the same were accepted by the
State Government. That such a lacuna was discernible from· B
the letter dated 6.12.2001 was also observed. Apart from
holding that the Division Bench of the High Court had erred in
entertaining a new case without the essential pleadings, the
reliance on the said policy decision which was in flagrant
violation of the judgments of this Court in Radhey Shyam C
(supra) and Dau/at Mal Jain (supra) was strongly
disapproved. Holding that the letter dated 6.12.2001, by no
means, could be construed to be a policy decision ofthe State
Government, this Court ruled that the High Court had
impermissibly sought to legitimise the illegal transactions in D
violation of the dictum of this Court in Radhey Shyam (supra)
and Dau/at Mal Jain (supra).
90. It is in this context that the prescriptions of Articles 77
.& 166 of the Constitution of India were adverted to, with special
reference to the decision of this Court in Kripalu Shankar E
(supra) to the eff~ct that a noting by an official in the
departmental file could not be construed to be an executive
decision. It was thus concluded, that unless an order is
expressed in the name of President or the Governor and is
authenticated in the manner prescribed by the Rules of F
Business, the same cannot be treated as an order made on
behalf of the Government. The letter dated 6.12.2001 in the
opinion of this Court, having failed to meet this prescript, it
was discarded as a policy decision of the Government within
the meaning of Article 166 of the Constitution. It was held as G
well, that in any case, even if this letter dated 6.12.2001 could
be treated to be a policy decision, it being contrary to the
determinations made in Radhey Shyam (supra) and Dau/at
Mal Jain (supra), it was non est.
H
472 SUPREME COURT REPORTS [2015] 14S.C.R.

A 91. This Court had an occ;:asion to dilate on the
prescriptions of Articles 166 and 77 of Constitution of India in
Delhi International Airport Ltd. vs. International Lease
Finance Corporation and others 2015 (8) SCC 446. While
testing the validity of the minutes of the meeting of the
B Committee, comprised amongst others of the representatives
of Ministry of Civil Aviation, Airport Authority of India (AAI),
Delhi International Airport Pvt. Ltd. (DIAL) and Central Board
of Excise and Customs (CBEC), regarding release of aircrafts
of the respondent Kingfisher Airlines (KAL) by Delhi
c International Airport Ltd., the issue that surfaced was whether
the minutes of the meeting could override theAirportAuthority
of India (Management of Airports) Regulations, 2003 (for short,
hereinafter referred to as "Regulations"). Under Regulation
10 of Regulations, the competent authority, as defined in
D Regulation 3(8) only was empowered to detain or stop the
departure of an aircraft unless otherwise provided by the Airport
Authority of India Act, 1994 or by general or speaking order in
writing of the Central Government. Responding to the plea of
the appellant that the minutes of the meeting dated 26.3.2013.
E permitting release of aircrafts, as mentioned therein, being
not a general or speaking order passed by the Central
Government, it could not override the powers oftheAAI under
Regulation 10, this court referring to Articles 77 and 166 of the
Constitution of India held that in terms of Rule 3 of the concerned
F Rules of business, the decision taken in the meeting dated
26.3.2013 should have been sanctioned by/under the general
or special directions of the Minister-in-Charge and further as
stakes of different departments headed by different ministries
were concerned, the decision should have been taken by the
G concerned Committee of the Cabinet. The concurrence of the
Finance Depar:tment due to the financial bearing, was also
necessary. It was held that the minutes of the meeting
purportedly stated to be an order in writing by Central
Government and later communicated to all concerned, were
H not disposed of in pursuance of Rule 4 of the Rules i.e. neither
·~
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 473
[AMITAVAROY, J.]

the decision was sanctified by the Cabinet nor the concurrence A
of Finance Department was taken. This Court held the view
that from a combined reading of Rules 3,4 and 4(2), the minutes
of the meeting were required to be proceeded only after the
concurrence of the Finance Department and could not have
been finalised at the level of officers(representatives of Civil B
Aviation, Central Board of Excise and Customs etc.
Additionally, after the concurrence of the Finance Ministry, the
minutes of the meeting ought to have been placed before the
concerned Minister as per the Rules of Business. It was held
that sanctification by the concerned ministry and the c
concurrence of the Finance Department was a mandatory
requirement in order to construe the minutes of the meeting to
be a general or special order in writing by the Central
Government. That there was nothing on record to prove that
the minutes of the rieeting had the concurrence of the Finance D
Department or had either been confirmed or approved by the
concerned Minister or such directions had been issued
pursuant to any decision taken by a competent authority in terms
of Rules of Business framed under Article 77 of the Constitution
of India, was noted. The intervention of this Court was, thus on E
a clear and demonstrable infraction of Rules of Business
framed under Article 77 of the Constitution of India enjoining
peremptory compliance of the requirements for fructification
of the minutes of the meeting to be a general or special order
in writing by the Central Government, as contemplated by the F
Rules.
92. In Rajasthan Housing Board (supra), land was
acquired for the purpose of housing scheme of the Board and
a notification under Section 4 of the Rajasthan Act was issued
on 12.1.1982. The possession was handed over to the Board G
on 22.5.1982. The .award was passed in four cases on
30.11.1982 and in remaining cases on 2.1.1989 by the Land
Acquisition Officer in favour ofthe khatedars. The respondent
society applied for reference under Section 18 of the
H
474 SUPREME COURT REPORTS [2015] 14S.C.R.

A Rajasthan Act and the Reference Court determined the
compensation at Rs. 260 per square yard. The High Court, in
appeal, reduced the compensation to Rs. 100 per square yard.
The Division Bench of the High Court, however, in addition
directed consideration for allotment of 25% of the developed
B land in view of the circular dated 27.10.2005.
93. According to the respondent society, it had entered
into an agreement of sale with the khatedars on various dates
prior to the notification dated 12.1.1982 and that it also
obtained a decree in a suit on the basis of compromise. That
C it had developed the land by making a huge investment, was
also asserted. The claim of the respondent society for
compensation was resisted by the State Government and the
Rajasthan Housing Board contending that the transactions,
on the basis of which it claimed the same, were ab intio void
D being in contravention of provisions of Section 42 of the
Rajasthan Tenancy Act. It was contended as well that the
circulars dated 13.11.2001and27.10.2005 relied upon by
the Society, were not applicable to the facts of the case and
were not enforceable as well. The direction for allotment of
E developed land was, thus, seriously assailed.
94. Referring to Section 42 of the Rajasthan Tenancy Act,
1955, this Court upheld the objection of nullity of the
v transactions for sale as claimed by the respondent-society as
F it prohibited sale, gift or bequest by a member ofa Scheduled
Caste in favour of a person who is not a member of the
Scheduled Caste, or by a member of a Scheduled Tribe in
favour of a person who is not a member of the Scheduled Tribe.
It was recorded that the cast of the original khatedars was
G "Bairwa" which was a Scheduled Caste.
95. Reverting to the circular dated 27 .10.2005, this Court
marked that the applicability thereof depended on the land
surrendered by the khatedars without compensation, thus
entitling them to obtain 25% of the developed residential area
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 475
[AMITAVA ROY, J.]

in lieu thereof. It was held that as it was not a case of surrender A
of land, the said circular was inapplicable which, in fact, was
in the form of guidelines for future acquisition, conditionally on
the surrender of the land by the khatedars. The ratio of the
decisions of this Cour:t in Radhey Shyam(supra), Dau/at Mal
Jain (supra) and VijayKumar Data (supra) was reiterated. B
96. In the context of the circular dated 27.10.2005,
reference was again made to the decision of this Court in
Kripalu Shankar(supra) involving the noting in a file, which
as held, did not amount to an executive decision by itself. The
mandate of Article 166 with regard to mode of expression of C
the decision of the Government, the manner of authentication
thereof and making of the rules by the Governor for more
convenient transaction of the business of the Government was
revisited. In the contextual facts, the circular dated 27.10.2005
was held to be inapplicable besides being beneficial to the D
purchasers, who claimed to have acquired right in the land,
after issuance of the notifica.tion Linder Section 4 and in
violation of the mandate of Section 42 of the Rajasthan Tenancy
Act. The direction of the High Court to allot land on the basis
of the circular dated 27 .10.2005 was, thus, interfered with. E
97. The decision of this Court in Hari Ram (supra)
pertains to the grievance of discrimination in the matter of
release of acquired lands. Following the commencement of
the initiative for acquisition of land under the Land Acquisition F
Act 1894, writ petitions were filed in the High Court of Punjab
· & Haryana challenging the notifications under Section 4 and 6
of the said Act on various grounds, The writ petitioners al:;o
prayed for release of their respective lands. During the
pendency of writ petitions, a ·committee was constituted to
inspect the site and make recommendations as to whether G
the land of the writ petitioners could be released or not. The
Committee submitted its report whereby, however, it did not
recommend release of land of the appellants before this Court.
The High Court, acting on the report; though ordered release H
476 SUPREME COURT REPORTS [2015] 14S.C.R.

A· of land in favour of some of the writ petitioners, dismissed the
claim of others including the appellants. During the pendency
of appeal before this Court, the appellants were granted liberty
to make representations before the State Government for
release of their land. The representations filed were, however,
B rejected on the basis of policy dated 26.10.2007.
98. In the facts of that case, this Court noticed that prior
to 26.10.2007, the State of Haryana did not have any uniform
policy governing the release of land from acquisition, though a
letter dated 26.6.1991 pertaining to review the progress of
C various schemes of Haryana Urban DevelopmentAuthority was
sought to be pressed into service in that regard. The same,
however, was not of any decisive significance. This Court held,
that neither the letter dated 26.6.1991 nor any other policy had
ever been followed by the State Government while releasing
D the land of various land owners acquired in the same
acquisition proceedings. That the policy dated 26.10.2007 had
not been applied to any of the land owners whose land had
been acquired along with the appellants' land was also noted.
It was noticed that lands of more than 40 land owners out of
E the same acquisition proceedings had been released by the
State Government which also included those, who had not even
challenged the acquisition proceedings and whose cases had
not been recommended by the Committee for withdrawal from
acquisition. Concluding thus, that no firm policy had been
F applied for release of lands from the acquisition proceedings
involved, this Court entered a finding that it was unfair on the
part of State Government in not considering the representations
of the appellants by applying the same standards. A direction
was made to the State to issue appropriate order(s) concerning
G the appellants' land on the same terms and in the same manner
as done qua the others similarly situated. In adopting this
course, this Court observed in no uncertain terms that the land
owners who were similarly situated have a right of similar
treatment by the State Government as equality of citizens' right
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 477
[AMITAVAROY, J.]

was one of the fundamental pillars on which the edifice of the A
rule of law rested.
99. The postulations judicially adumbrated vis-a-vis
Article 166 of the Constitution of India, as can be gleaned
from the above referred decisions, verily convey the
quintessence of the content and expanse thereof. Needless it B
is thus to burden this adjudication by referring to other
pronouncements on the issue.
100. Article 154 of the Constitution of India vests the
executive power of the State in· the Governor to be exercised c
by him either dir~ctly or through officers subordinates to him in
accordance with the Constitution. As per Article 163, there
would be a Council of Ministers with the Chief Minister as the
head to aid and advise the Governor in the exercise of his
functions, except insofar as he is by or under the Constitution 0
required to exercise his functions or any of them in his
discretion. It is in this presiding premise that the conduct of
Government business is designed under Article 166 which for
ready reference is extracted herein under: ·
166. Conduct of business of the Government of a State - E
il}All executive action of the Government of a State shall
be expressed to be taken in the name of the Governor..
ill Orders and other instruments made and executed in
the name of the Governor shall be authenticated in such F
manner as may be specified in rules to be made by the
Governor, and the validity of an order or instrument which
is so authenticated shall not be called in question on the
ground that it is not an order or instrument made or
executed by the Governor.
G
@.)The Governor shall make. rules for the more convenient
transaction of the business of the Government of the
State, and for the allocation among Ministers of the said
business in so far as it is not business with respect to
H
4·1a SUPREME COURT REPORTS [2015] 14 S.C.R.

A which the Governor is by or under this Constitution
required to act in his discretion.
101. Whereas under Clause (1 ), all executive action of
the Government of a State is enjoined to be expressed to be
taken in the name of Governor, as predicated by clause (2),
B orders and other instruments made and executed in the name
of Governor have to be authenticated in such manner as may
be specified in rules to be made by the Governor and if so
done, the V§lidity of an order or instrument, which is so
authenticated, shall not be called in question on the ground
C that it is not an order or instrument made or executed by the
Governor. Clause (3) makes it incumbent on the Governor to
frame rules for the more convenient transaction of the business
of the Government of the State and for the allocation among
the Ministers of the said business, insofar as it is not one with
D respect to which, the Governor is by or under the Constitution
required to act in his discretion.
102.Acombined reading of these provisions, thus would
evince that the executive power of the State is vested in the
E Governor and is to be exercised by him either directly or through
the officers subordinate to him, however, in accordance with
the Constitution and except insofar as he is required to
exercise his functions or any of them in his discretion, there
would be a Council of Ministers with the Chief Minister as the
F head to act and advise him in the discharge of his other
functions. The Rules of Business as contemplated in clause
(3) of Article 166 unmistakably relate to the transactions to be
undertaken by the Governor with the aid and advise of the
Council of Ministers headed by the Chief Minister, subject
G however to the allocation of business in terms thereof.
103. The essentials of Article 166, as a corollary, are a
valid executive decision in terms of the Rules of Business
framed under clause (3), expressed in the name of Governor
and authentication of the resultant orders and instruments in
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 479
[AMITAVAROY, J.]

the manner specified in the rules to be made by the Governor. A
Thtts, Article 166(3) mandates the making of the Rules of
Business for more convenient transactions of the affairs of the
Government. Clause (1) stipulates the mode of expression of
an executive action taken in conformity therewith and clause
(2) ordains the manner of authentication of the consequential B
orders and instruments. Having regard to the role assigned to
the Council of Ministers with the Chief Minister at the summit,
the Rules of Business framed under Article 166(3) meant for
convenient transaction of the affairs of the Government, by
allocation thereof among the Ministers, secures their collective c
participation in the administration of the governance of the
State. This scheme of executive functioning, assuredly thus,
is in assonance with the constitutional edict with regard thereto,
_modelling the steel frame of the State machinery.
104. It is no longer res integra that the enjoinment of D
clauses ( 1) and (2) of Article 166, is not mandatory so much
so, that any non compliance therewith, ipso facto would render
the executive action/decision, if otherwise validly taken in-terms
of the Rules of Business framed under Article 166(3), invalid.
Any decision however, to be construed as an executive E
decision as contemplated under Article 166, would essentially
has to be in accordance with the Rules of Business. _The Rules
depending upon the scheme thereof, may or may not, accord
an inbuilt flexibility in its provisions in the matter of compliance.
It is possible that the provisions of the Rules en bloc may not F
be relentlessly rigid, obligatory or peremptory proscribing even
a minimal departure ensuing in incurable vitiations. Contingent
on the varying imperatives, some provisions may warrarit
compulsory exaction of compliance therewith e.g. negative/
prohibitive expression/clauses, matters involving revenue or G_
finance,. prior approval/concurrence of the Finance
Department, consultation/approval/ concurrence of the Finance
and Revenue departments in connection therewith and issues
not admitting of any laxity so as to upset, dislodge or mutilate
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480 SUPREME COURT REPORTS [2015] 14 S.C.R.

· A the prescribed essentiality of collective participation,
involvement and contribution of the Council of Minist~rs,
headed by the Chief Minister in aid of the Governor in
transacting the affairs of the Stat13 to effectuate the imperatives
·of federal democratic governance as contemplated by the
B Constitution.
105. As noticed hereinabove, it is affirmatively
acknowledged as well that where provisions of a statute relate
to the performance of a public duty and where the invalidation
of acts done in neglect of these have the potential of resulting
C in serious general inconvenience or injustice· to persons who
have no control over those entrusted with the duty and at the
same time wo1:1ld not promote the main object of the legislature,
such prescriptions are gener;illy understood as mere
instructions for the guidance of those on whom the duty is
D imposed and are regarded as directory. It has been the
practice to hold such provisions to be directory only, neglect of
those, though punishable, would not however affect the validity
of the acts done. At the same time where however, a power or
authority is conferred with a direction that certain regulation or
E formality shall be complied with, it would neither be unjust nor
incorrect to exact a rigorous observan'ce of it as essential to
the acquisition of the right of authority.
106. Obviously, thus the mandatory nature of any provision
F of any Rule of Business would be. conditioned by the
construction and the purpose thereof to be adjudged in the
context of the scheme as a whole. Th~ interpretation of the
Rules, necessarily, would be guided by the framework thereof
and the contents and purport of its provisions, and the status
and tenability of an order/instrument, represented as an
G executive decision would have to be judged in the conspectus
. of the attendant facts and circumstances. No straight jacket
formula can, thus be ordained, divorced from the Rules
applicable and the factual setting accompar:iying the order/
H decision under scrutiny.
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 481
[AMITAVAROY, J.]

107. Viewed in this precedential backdrop, the A
annulment of the circular dated 13.12.2001 only on the ground
of its non conformance with the mandate of Article 166 (1) and
(2) of the Constitution of India, without any reference to Rules
of business under Article 166(3), in our comprehension does
riot commend for acceptance. Admittedly and as the B
impugned judgment would unmistakably attest, no plea was
either raised or examined, based on its repugnance with the
Rules of Business framed under Article 166(3). The facts as
obtained in the decisions cited at the Bar are distinctly different
from those in the case in hand. Having regard . to the C
overwhelming judicial exposition of the purport and purp9se
of Article 166 of the Constitution, the status of the circular dated
13.12.2001 and the bearing thereof would have to be adjudged
in the prevailing facts and circumstances attendant there on.
108. It has not been argued before us that non- D
compliance of Article 166 (1) and (2) per se did vitiate the
circular dated 13.12.2001. The gravamen of the impugnment
thereof is founded on the non-observance of the Rule 31 of the
Ru.les followi.ng its amendment on 5.3.1999, namely failure to
lay the issue with regard to the allotment of developed land E
before the Chief Minister of the State. The march of events
qua the decision to allot the developed land in lieu of·
compensation, in order to speed up the completion of the
acquisition process and to secure timely delivery of possession
of the land, by curtailing the impeding litigations, is traceable F
as herein before referred, to the circulars from 22.4.1992 and
did continue with variation in the percentage of land to be
allotted even after the circular dated 13.12.2001.
109. Noticeably, no plea has been raised emphasising
·on the obligatory requirement of concurrence of the Finance G
Department, as a condition precedent or disapproval of the
decision of the departmental minister and the Committee
constituted by him for the purpose either by the Chief Minister
of the State or the other Ministers of the Council. To reiterate,
H
482 SUPREME COURT REPORTS [2015] 14S.C.R.

A the State Government in its affidavit in reply to the queries of
this Court made with order dated 15.1.2013, in unmistakable
terms did vouch the competence and authority of the
departmental minister to exclusively take a decision on this
issue. As the text of the said affidavit would clearly
B demonstrate, the State Government was then fully aware of
the amendment to the Rules on 5.3.1999. Our attention has
not been drawn to any circular/notification superseding the
Order dated 20. 7.1998 whereby the departmental minister in
terms of the Standing Orders under Rules 21 and 22 of the
C Rules was entrusted with the duty and jurisdiction of dealing
with the matters relating to land acquisition and deacquisition.
It was only with the Order dated 8.7.2004, that as per Rule 31
of the Rules, matters re,lating to deacquistion of land under
acquisition and acquired land were to be presented before
o the departmental minister with the approval of the Chief
Minister. Nothing has come forth in the interregnum as to the
working arrangement for the transaction of business in this
regard under the Rules contrary to the one envisaged by the
Order dated 20.07.1998. We have not been led to any
E provision in the Rules incorporating any determinative
mandate prohibiting in absolute terms, the continuance of the
arrangement under the Standing Order as conveyed by Order
dated 20.7 .1998 permitting transaction of the matters relating
to land acquisition and deacquisiton solely by the departmental
F minister. This assumes importance as well in view of Rule 21
requiring disposal of business by means of Standing Orders
as envisaged therein.
110. Rule 31 as well, though required submission of the
enumerated cases before the Chief Minister prior to the
G issuance of the orders, there is nothing to suggest exclusion
of the departmental minister from taking a decision on any
issue if otherwise authorised by the Standing Order. Rule 14
of the Rules, on the other hand, prescribes that all cases
referred to in the 2"d Schedule shall be ~ubmitted to the Chief
H Minister through the Secretary to the Council after consideration
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 483
[AMITAVAROY, J.]

by the Minister-in-charge or the Minister of State-in-charge, A
as the case may be; with a view to obtain his orders for ·
circulation of the case under Rule 15 or for bringing it up for
consideration at a meeting of the Council or Sub-Committee
thereof. Significantly, the Second Schedule mentions, amongst
others, any proposal which would affect the finances of the B
State which does not have the consent of the Finance Minister,
or a proposal in\(olving any important change of policy or
practice or cases required by the Chief Minister to be brought
before the Council. Equally significant is the residuary power
of the Chief Minister, reserved under Rule 31 (2)(xix) whereby C
he/she would be competent to call for the relevant papers/file(s),
report and pass orders in any case involving a policy or a matter
of urgent public importance relating to any department, when
he considers it necessary or expedient so to do or when the
case is referred to him by the Minister-in-Charge or the Chief D .
Secretary. The suo moto intervention of the Chief Minister in ..
these contingencies thus is also conceptualized.
111. Having regard to the progression of events
pertaining to the decision of allotment of developed land and
the conscious initiatives taken by the State Government in E
furtherance thereof, it is impossible as well as impermissible
to conclude, that it had remained unaware thereof. The laruJ
of the appellants had been compulsorily acquired, in the
exercise of the State's power of eminent domain by invoking
an expropriatory legislation. Admittedly as well, the F
compensation as guaranteed by the Reference Court for the
land has not been paid to them. To reiterate, the facts
demonstrate that the State Government had taken a pre-
meditated decision to allot developed land to the land oustees
in lieu of compensation. As per the successive circulars G
including the one dated 13.12.2001, it was incumbent on the
State Government to allot developed land with all the essential
attributes thereof. As is apparent from the order dated 7.5.2015
of this Court, the plots offered to the appellants till now are not
developed. The land had been acquired in the year 1981 and H
484 SUPREME COURT REPORTS [2015] 14 S.C.R.

A more than three decades have elapsed. In our view, the delay
cannot be attributed to the appellants for the obvious failure of
the State Government to allot developed land in lieu of
compensation as represented.
112. The records produced pertain to the decision dated
B 1.7.2005 taken at the level of Ministerial Sub-Committee to
allot 15% developed land to the awardees of acquisition for
Field Firing Range including the appellants, at JDA Scheme
Lalchandpura and Anantpura. It reveals that the process was
initiated at the level of the Director of Land Records on the
C basis of the circular/policy dated 13.12.2001 and was routed
through the Chief Minister for placing the approval of the
proposal of developed land elsewhere due to non-availability
of land at Vidyadhar Nagar, before the Ministerial Sub-
committee. On the approval of the Chief Minister, the matter
D was laid before the Ministerial Sub-Committee and eventually
on 1.7.2005, the Sub-Committee resolved that 15% developed
land be allotted at JDAscheme Lalchandpura and Anantpura.
113. The note accompanying the original file No. F6()/
E UDH/2004, however, discloses that the file regarding the policy
dated 13.12.2001 and maintained by the Urban Development
and Housing Department, Government of Rajasthan is not
traceable. The revelation from the file thus produced,
authenticates that the process for allotment of land at
F Lalchandpura andAnanatpura, as resolved by the Ministerial
Sub-Committee was initiated on the basis of the circular/policy
dated 13.12.2001 and was steered through the Chief Minister
of the State. It is, thus, amply clear that all State functionaries
including the Chief Minister of the State were aware of the
G process undertaken in terms of the circular/policy dated
13.12."2001 and had affirmatively associated themselves
therewith. Significantly, even at that stage, the circular dated
13.12.2001 was neither discarded as non est being not the
repository of a state policy nor a decision repugnant to the

H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 485
[AMITAVA ROY, J.]

Rules. It would thus be indefensible and too farfetched forthe A
respondents to contend that the circular dated 13.12.2001
cannot be construed to be a policy reflecting the executive
decision as contemplated under Article 166 and is not
enforceable, as the subject matter thereof had not been laid
before the Chief Minister under Rule 31 of the Rules. The non- B
acceptability of the land at Lalchandpura and Anantpura by
the appellants, being undeveloped, does not detract from these
conclusions.
. 114. In our comprehension, it is the burden of the State
Government, in view of the belated attempt on its part to wriggle C
out of its commitment. under the circular/policy dated
13.12.2001 to demonstrate on the basis of contemporaneous
records that it was never intended to be acknowledged as its
policy. As the file pertaining to the circular/policy dated
13.12.2001 is not traceable, in our unhesitant opinion, the State D
Government has failed to discharge its burden in this regard.
The appellants understandably have no access either to the
official records of the Government or control over the manner
of discharge of the role of the functionaries under the Rules. In
this view of the matter, in the face of the predominant facts E
testifying the reflective and consistent decision of the State
Government in the matter of allotment of developed land in
lieu of compensation,-spanning over a decade from the year
1992 to 2005, the endeavour on its part to disown the policy/
circular dated 13.12.2001, in our estimate, betrays its truant F
disposition, cavalier indifference and impervious display of
superior bargaining power which is constitutionally
impermissible.
115. On a concatenation of the stream of events, traced
from the acquisition of the land involved, we are thus of the G
view that the circular dated 13.12.2001 is indeed a policy
decision of the State Government regarding the allotment of
developed land in lieu of compensation to the persons referred
to therein and is thus enforceable against it.
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486 SUPREME COURT REPORTS [2015] 14 S.C.R.

A 116. Even otherwise, having regard to the consistency
in approach of the State Government in the matter of allotment
of developed land in lieu of compensation as is evident from
the series of circulars commencing from 22.4.1992 to
27.10.2005 in continuum, motivated by the objective of early
B culmination of the process of acquisition of land on the spirit
of mutual settlement, the same irrefutably present an inviolable
scheme of proclaimed State action for compliance, thereby
making it invocable against the respondents, more particularly
as the same had been acted upon over the years. The plea of
c the respondents, at this belated stage, to take refuge of
unenforceability of the circular dated 13.12.2001 in isolation,
as not being a binding policy, cannot receive judicial
imprimatur.
117. The process leading to the allotment of !and at
D Lalchandpura and Anantpura villages, as the records produced
discloses, did originate from the circular dated 13.12.2001,
and received the approval of the Chief Minister at an
appropriate stage. It would thus be conspicuously patent, that
all concerned State functionaries were not only aware of the
E relevance and the obligatory bearing of the said circular, but
also had participated in the exercise, contemplated by it for
allotment of developed land in lieu of compensation. The
respondents, in the totality of the existent facts and
circumstances are thus estopped from questioning the status
F and efficacy of the said circular in vesting a right in the
appellants to claim their due in law there under.
118. To recall, not only in the meeting dated 18.10.2001
under the chairmanship of the departmental minister, which
G indeed, as the minutes thereof would disclose, was called to
formulate a composite policy on various aspects and
procedures in relation to allotment of 15% developed land in
lieu of compensation, but also in the resultant circular dated
13.12.2001, it had been resolved in clear terms that the
developed land would normally be allotted in the scheme area
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 487
[AMITAVA ROY, J.]

and at the place where the land had been acquired and that, if A
it was not possible to develop the scheme within a fixed period
of five months or it was not possible to give land in the same
area, it was only then that land would be allotted in some other
area. In that eventuality as well, a sincere endeavour was to
be made to allot land nearthe scheme area. Developed status B
of the land to be allotted and its proximity to the site from where
the land had been acquired for a scheme, were thus the two ,.
imperatives to identify the land to be allotted. It was only if the
developed land within the scheme area was not available for
allotment, that a plot near the scheme area was to be made C
available. In any case, the requirement of developed character
of the land could not be undermined, disregarded or waived.
119. As by the time, the allotment was contemplated, the
JDAAct had been brought into force, the concept of developed
land was clearly traceable to one informed with the concept of D
"development" and "amenities" defined thereunder. Any land
to be allotted in lieu of compensation, thus, was required to
mandatorily comply with the requisites of 'development' and
'amenities' as envisaged under the JOA Act. As only a certain
percentage of land acquired was offered by way of allotment E
and understandably as the same was in lieu of compensation
i.e. the market value along with the incidentals, it was
expectedly assessed to be proportionate thereto in value/
worth. 15% developed land was, thus construed to be
equivalent to the amount of compensation then payable for F
the land acquired. However, for the purpose of identification
of developed land as on today, equivalence of the value thereof
with that of the land acquired as on date after three decades
would not be a correct measure. The appellants were entitled
to 15% developed land in the year 2001, the point of time when G
the value thereof was comparable to the compensation then
payable for the acquisition of their land. Had the developed
land, as conceived of, been allotted to them, then the value
thereof over the years, as on date, would have been much
H
488 SUPREME COURT REPORTS [2015] 14 S.C.R.

A higher than their land so acquired. Though the development
of a plot of land depends upon various factors e.g. location,
potential, facilities, use etc., it. is a matter of common
experience that the pace of enhancement of the value of an
already developed land would be increasingly higher in
B comparison to the one not developed. The value of the
acquired land of the appellants, thus, as on today, cannot be
taken to be an unmistakable index to identify the developed
land to be allotted to them.
120. Be that as it may, the land offered to the appellants
C at Lalchandpura and Anantpura as well as at Boytawala and
Mansarampura have been held by this Court, as recently on
7.5.2015, to be not fully developed and more importantly
·conceded to be so by the JOA as recorded in the said order.
According to the JOA, it would require further two years to
0 develop the land thereat. The land of the appellants, as
acquired, was situated at Boytawala which, thus.has not yet
been fully developed as on date. Thus, in any view of the matter,
the market value of the land at Boytawala cannot be an
acceptable yardstick to identify the developed land to which
E they are entitled. This is more so, as for the last thirty years
and above, the respondents have failed to allot 15% developed
land as envisaged by the policy to the appellants. Admittedly,
two of the land oustees had been allotted developed land at
Vidyadhar Nagar and as the letter dated 16.10.2007 referred
F to hereinabove would reveal, till then, land at the same site
was available. As a matter of fact, allotment of land at
Lalchandpura, Anantpura, Boytawala and Mansarampura,
which admittedly had not been fully developed, was in breach
of the promise engrafted in the policy dated 13.12.2001. The
G approach of the respondents, when viewed in the backdrop of
compulsory acquisition of land in the exercise of the State's
power of eminent domain and its persistent failure to act on
this policy, only demonstrates a highly insensitive and evasive
orientation at the cost of its citizenry by a show of dominant
.H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 489
[AMITAVAROY, J.]

bargaining power. The policy, though was to allot developed A
land in lieu of compensation to ensure quick and unhindered
completion of the process of acquisition, the respondents have
remained apathetically inert, having obtained the land, without
living up to their commitments. To gloss over this inexplicable
default, would signify effacement of decades of indifference B
and mute inaction of the respondents, more particularly.the
State, inspite of a binding policy decision, to the suffering
detriment and preiudice to the appellants without their fault. In
this overwhelming conspectus of facts, the respondents cannot
be permitted to dictate terms to the appellants in the matter of C
allotment of land inter alia on the consideration of equivalence·
of the value of their land as acquired with the one offered to
them as developed land as on date.
121. The assertions founded on the right to property and
the doctrines of promissory estoppel and legitimate D
expectation assumes significance at this juncture.
122. The rightto property though no longer a fundamental
right is otherwise a zealous possession of which one cannot
be divested save by the authority of law as is enjoined by Article E
300A of the Constitution of India. Any callous inaction or apathy
of the State and its instrumentalities, in securing just
compensation would amount to dereliction of a constitutional
duty, justifying issuance of writ of mandamus for appropriate
remedial directions.
F
123. This Court in Indore Vikas Pradhikaran (supra)
had an occasion to refer to the Declaration of the Rights of
Man and the Citizen (dated 26.8.1789) to expound that though
earlier, human rights existed to the claim of individuals' right to
health, livelihood, shelter and· employment etc., these have G
started gaining a multifaceted approach, so much so that
property rights have become integrated within the definition of
human rights.
124. The right of the owner of a land to receive just
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490 SUPREME COURT REPORTS [2015] 14 S.C.R.

A compensation, in the context of his claim to access to justice
as declared by the International Covenant on Economic, Social
and Cultural Rights, had been underlined by this Court in Steel
Authority of India Limited (supra).
125. While recognising the power of the State to acquire
B the land of its citizens, it has been proclaimed in Dev Sharan
(supra) that even though the right to property is no longer a
fundamental right and was never a natural right, it has to be
accepted that without the right to property, other rights become
illusory.
c
126. In a catena of decisions of this court, this prize
privilege has also been equated to human right. Jn Mukesh
Kumar (supra), this Court has succinctly propounded this
proposition in the following terms:
D "The right to property is now considered to be not only a
constitutional or statutorv right but also a human right.
Human rights have already been considered in the realm
of individual rights such as the right to health, right to
livelihood, right to shelter and employment etc. But now
E human rights are gaining a multifaceted dimension. Right
to property is also considered very much a part of the
new dimension. Therefore, even the claim of adverse·
possession has to be read in that context.
The changing attitude of the English courts is quite visible
F from the judgment of Beaulane Properties Ltd. vs. Palmer
(2005)4All ER 461. The Court here tried to read the
human rights position in the context of adverse
possession. But what is commendable is that the
dimensions of human rights have widened so much that
G now property dispute issues are also being raised within
the contours of human rights. With the expanding
jurisprudence of the European Courts of Human Rights,
the Court has taken an unkind view to the concept of
adverse possession.
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 491
[AMITAVAROY, J.]

127. In sum ma, the right to property having been elevated A
to the status of human rights, it is inherent in every individual,
and thus has to be venerably acknowledged and can, by no
means, be belittled or trivialized by adopting an unconcerned
and nonchalant disposition by anyone, far less the State,
after compulsorily acquiring his land by invoking an B
expropriatory legislative mechanism. The judicial mandate
of human rights dimension, thus, makes it incumbent on the
State to solemnly respond to its constitutional obligation to
guarantee that a land looser is adequately compensated. The
proposition does not admit of any compromise or laxity. c
128. Added to this, is the promissory estoppel
perspective, the State being the promisor. Estoppel is a rule
of equity which has entrenched itself with time in the domain
of public life. A new class of estoppel recognised as
"promissory estoppel" has assumed considerable significance D
in the recent years. So far as this Court is concerned, it invoked
the doctrine in Anglo Afghan Agencies (supra) in which it
was enounced that even if a case would not fall within the
purview of Section 115 of the Indian Evidence Act, 1872, it
would still be open to a party, who had acted on a E
representation made by the Government, to claim that it should
be bound to carry out the promise made by it, even though the
promise was not recorded in the form of a formal contract as
required by Article 299 of the Constitution of India. This
principle, evolved by equity, to avoid injustice is trC1ceable as F
well in the leading case on the subject in Central London
Property Trust Ltd. vs. High Trees House Ltd ( 1947) 1 KB
130.
129. In a later decision of this Court in Motila/ Padampat G
Sugar Mills Co. (supra), responding to the plea of the State
Government, inter alia, that there could be no promissory
estoppel against it, so as to inhibit it from formulating and
implementing its policies in public interest, this Court

H
492 SUPREME COURT REPORTS [2015] 14 S.C.R.

A underlined, in reiteration, the well-known preconditions for the
operation of the doctrine as under:
(1) A clear and unequivocal promise, knowing and
intending that it would be acted upon by the promisee;
B (2).0n such acting upon the promise by the promise, it
would be inequitable to allow the promisorto go back
on the promise.
130. This Court in Nestle India Limited (supra), while
referring to the decision of Motilal Padampat Sugar Mills
C (supra) quoted para 24 of that judgment to the effect that the
Government stood on the same footing as a prjvate individual
so far as the obligation in law was concerned and that the
former was equally bound as the latter and it was difficult to
see on what principle, could a Government, committed to the
D rule of law, claim immunity from the doctrine of promissory
. estoppel.
131. This hallowed notion of equitable estoppel has stood
the test of time with peripheral variations to reverberate in the
E following exposition in Monnet /spat (supra) in the following
terms:
182.1. Where one party has by his words or conduct
made to the other a clear and unequivocal promise which
is intended to create legal relations or affect a legal
F relationship to arise in the future. knowing or intending
that it would be acted upon by the other party to whom
the promise is made and it is. in fact. so acted upon by
the other party. the promise would be binding on the party
making it and he would not be entitled to go back upon
G it. if it would be inequitable to allow him to do so having
regard to the dealings which have taken place between
the parties. and this would be so irrespective of whether
there is any pre-existing relationship between the parties
or not.
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 493
[AMITAVA ROY, J.]

182.2 The doctrine of promissorv estoppels may be A
applied against the Government where the interest of
justice. morality and common fairness dictate such a
course. The doctrine is applicable against the State even
in its governmental. public or sovereign capacity where
it is necessary to present fraud or manifest injustice. B
- However, the Government or even a private party under
the doctrine of promissory estoppels cannot be asked
to do an act prohibited in law. The nature and function
which the Government discharges is not very relevant.
The Government is subject to the rule of promissory c
estoppels and if the essential ingredients of this doctrine
are satisfied, the Government can be compelled to carry
out the promise made by it.
132. Adding a caveat to the State Government otherwise
inescapably bound by the doctrine, this Court in S. V.A. Steel D
Re-Rolling Mills (supra) ruled that before extending benefits
to its subjects by laying down any policy, it must ponder over
the pros and cons thereof and its capacity to accord the same,
as it would be unfair and immoral on its part thereafter, not to
act as per its promise. E
133. A parallel doctrine founded .on the doctrine of
fairness and natural justice baptised as "legitimate
expectation" has grown as well in the firmament of
administrative law to ensure the predication of fairness in State F
action. The concept of "legitimate expectation" is elaborated
in Halsbury"s Laws of England, Fourth Edition, Volume.
1( 1) 151 as hereunder:
..
"81. Legitimate expectations.- A person may have a
legitimate expectation of being treated in a certain way G
by an administrative authority even though he has no legal
right in private law to receive such treatment. The ·
expectation may arise either from a representation or
promise made by the authority, including an implied
representation. or from consistent past practice. H
J

494 SUPREME COURT REPORTS (2015] 14 S.C.R.

A The existence of a legitimate expectation may have a
number of different consequences; it may give locus
standi to seek leave to apply for judicial review; it may
mean that the authority ought not to act so as to defeat
the expectation without some overriding reason of public
B policy to justify its doing so: or it may mean that, if the
authority proposes to defeat a person's legitimate
expectation. it must afford him an opportunity to make
representations on the matter: The courts also
distinguish, for example in licensing cases, between
c original applications, applications to renew and
revocations; a party who has been granted a licence may
have a legitimate expectation that it will be renewed
unless there is some good reason not to do so, and may
therefore be entitled to greater procedural protection than
o a mere applicant for a grant."
134. In espousing this equitable notion of exacting
fairness in governmental dealings, this Court in Food
Corporation of India (supra) proclaimed that there was no
unfettered discretion in public law and that a sovereign authority
E possessed powers only to use them for public good. Observing
that the investiture of such power imposes with it, the duty to
act fairly and to adopt a procedure which is 'fair play in action',
it was underlined that it also raises a reasonable or legitimate
expectation in every citizen to be treated fairly in his dealings
F with the State and its instrumentalities.
135. The observance of this obligation as a part of good
administration, is obligated by the requirement of non-
arbitrariness in a state action, which as a corollary, makes it
incumbent on the State to consider and give due weight to the
G reasonable or legitimate expectations of the persons, likely
to be affected by the decision, so much so that any failure to
do so would proclaim unfairness in the exercise of power, thus
vitiating the decision by its abuse or lack of bona fide. The
besieged decision would then be exposed to the challenge
H
. LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 495
[AMITAVAROY, J ..J

on the ground of arbitrariness. It was propounded that mere A
reasonable or legitimate expectation of a citizen, may not by
itself be a di~tinct enforceable right in all circumstances, but·
the failure to consider and give due weight to it, may render
the decision arbitrary. It was thus, set down that the requirement
of due consideration of legitimate expectation formed a part B
of the principle of non-arbitrariness, a necessary concomitant
of the rule of law. In reiteration to the above enunciation, this·
Court in Monnet /spat (supra) did rule as well, that the doctrine
of legitimate expectation is founded on the principle of
reasonableness and fairness and arises out of the principles c
of natural justice and can be invoked as a substantive and
enforceable right.
136. In course of the arguments, as adverted to
hereinabove, host of pleadings have been exchanged
portraying contrary view points on the developed status of the D ·
land sought to be allotted, the summary whereof has been
extracted hereinabove. It appears there from that the sites at
Boytawala, Lalchandpura, Anantpura and Mansarampura are
located within a range of 14.70 K.M. to 39 K.M. from the central
point Jaipur, the nearest being at Boytawala. All these lands E
have been recorded by this Court, as admitted by the JDA, to
be not fully developed. The plots offered by the respondents at
.Rohini Phase I, Anupam Vihar, Pitambara Scheme including
Rajbhawan Yojana , Rohini Phase II, Abhinav Vihar Vistar and
Harit Vihar are situated within a distance of 25.40 K.M. to 36.80 · F
K.M. from the central point, Jaipur.
137. The appellants, in categorical terms, have asserted
that the plots at these places are not developed inasmuch as
they are bereft of the essential facilities like water, electricity, G
communication/connectivity, sewerage, drainage etc. and
. have sought to substantiate their plea on the basis of recent
. photographs along with sworn pleadings. On the other hand, ...
they have suggested plots at Vidyadhar Nagar, Gokul Nagar,
Truck Terminal and Vaishali Nagar, located within a distance
H
496 SUPREME COURT REPORTS (2015] 148.C.R.

A of 5 K.M. to 15.6 K.M. from the central point Jaipur for
allotment. That these plots of land are developed has been
unreservedly admitted by the respondents, their ~lea being
chat, the appellants are not entitled thereto, judged by the factor
Qf equivalence of the value of the acquired land.
B 138. At this distant point of time, we are disinclined to
sustain this demur of the respondents. As the facts have
unfolded, the appellants cannot be held accountable for the
delay in between, the respondents having failed to offer
developed land as contemplated in the policy. This stands
C fortified, amongst others, by the order dated 7 .5.2015 vis-a-
vis the land at Boytawala, Lal Chandpura, Anantpura and Man
sarampura. The other plots offered by the respondents, also
having regard to the attributes of developed land as envisioned
by the Rajasthan Act do not accord with the letter and spirit of
D the policy.
139. Administrative discretion, irrespective of its
ostensible expanse, it is a trite proposition, can never be
unregulated, omnipotent and fanciful. A public authority vested
E with power has to essentially exercise its discretion, if .
conferred, conditioned by the dictates of duty as envisaged,
to effectuate the exercise of the prerogative to achieve the
objective therefor. The central and cardinal canon of
administrative governance, enjoins a framework of controlled
F use of discretion coupled with duty which is inscribed in
felicitous terms in Administrative Law, 10th Edition by H.W.R.
Wade and C.F. Forsyth at Page 286 as quoted:
"The first requirement is the recognition that all power
has legal limits. The next requirement. no less vital. is
G that the courts should draw those limits in a way which
strikes the most suitable balance between executive
efficiency and legal protection of the citizen. Parliament
constantly confers upon public authorities powers which
on their face might seem absolute and arbitrary. But
H arbitrary power and unfettered discretion are what the
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 497
[AMITAVAROY, J.]

courts refuse to countenance. They have woven a network A
of restrictive principles which require statutory powers
to be exercised reasonably and in good faith, for proper
purposes only, and in accordance with the spirit as well
as the letter of the empowering Act."
Vis-a-vis public duties it has been expressed at page B
496.thus: ·
· "As well as illegal action, by excess or abuse of power.
there may be illegal inaction. by neglect of duty. Public
authorities have a great many legal duties. under which c
they have an obligation to act, as opposed to their legal
powers. which give them discretion whether to act or not.
The remedies so far investigated deal with the control of
powers. The remedies for the enforcement of duties are
necessarily different. The most important of them is D
mandamus.
140. Dwelling· upon the constitutional imperative of
fairness in State action in Naida Entrepreneurs Association
vs. Naida and others (2011 )6 SCC 508, this Court revisited
the dynamics of the interplay between administrative power E
and discretion vis-a-vis public duty accompanying the same.
Underlying the essentiality of non-arbitrariness and
transparency in executive functioning as a guarantee of
certitude and probity, it was observed thus:
"39: State actions are required to be non-arbitrary and F
justified on the touchstone of Article 14 of the Constitution.
Action of the State or its instrumentality must be in
conformity with -some principle which meets the test of
· reason and relevance. Functioning of a "democratic form
of Government demands equality and absence of G
arbitrariness and discrimination". The rule of law prohibits
arbitrary action and commands the authority concerned
to act in accordance with law. Every action of the State
or its instrumentalities should neither be suggestive of
H
J

498 SUPREME COURT REPORTS [2015] 14S.C.R.

A discrimination. nor even apparently give an impression
of bias. favouritism and nepotism. If a decision is taken
without any"principle or without any rule, it is unpredictable
and such a decision is antithesis to the decision taken in
accordance with the rule of law.
B 40: The public trust doctrine is a part of the law of the
land. The doctrine has grown from Article 21 of the
Constitution. In essence. the action/order of the State or
State instrumentality would stand vitiated if it lacks bona
tides, as it would only be a case of colourable exercise
c of power. The rule of law is the foundation of a democratic
society. [Vide Erusian Equipment & Chemicals Ltd. v.
State ofW.B., Ramana Dayaram Shettyv. /nternationa/
Airport Authority of India, Haji T.M. Hassan Rawtherv.
Kera/a Financial Corpn, Shrilekha Vidyarthi v. State of
D U.P and M./. Builders (P) Ltd. v. Radhey Shyam Sahu.]
41: Power vested by the State in a public authoritv should
be viewed as a trust coupled with duty to be exercised in
larger public and social interest. Power is to be exercised
strictly adhering to the statutory provisions and fact
E
situation of a case. "Public authorities cannot play fast
and loose with the powers vested in them." A decision
taken in an arbitrarv manner contradicts the principle of
legitimate expectation. An authority is under a legal
obligation to exercise the power reasonably and in good
F
faith to effectuate the purpose for which power stood
conferred. In this context, "in good faith" means "for
legitimate reasons". It must be exercised bona fide for
the purpose and for none other. [Vide Commr. of Police
v. Gordhandas Bhanji, Sirsi Municipalityv. Cecelia Kom
G
Francis Tellis, State of Punjab v. Gurdial Singh,
Collector (District Magistrate) v. Raja Ram Jaiswa/,
DelhiAdmn. v. ManoharLaland N.D. Jaya/v. Union of
India.]

H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 499
[AMITAVAROY, J.]

141. In the over!lll perspectives, in our discernment, the A
respondents have utterly failed to abide by a public policy upon
which, the appellant had altered their position and had suffered
immense prejudice. The persistent denial to the appellants of
their right to the developed land in lieu of compensation and
that too without any legally acceptable justification, has ensued · B
in manifest injustice to the appellants over the years. Neither
have they been paid just compensation for the land acquired
nor have they been provided with the developed land in place
thereof, as assured. They are thus predominantly entitled for
the remedial intervention of this court to ensure fair, just, C
efficacious, tangible and consummate relief in realistic terms.
lffaimess is an indispensable and innate constituent of natural
justice, this imperative indubitably has to inform as well the
judicial remedy comprehended. In the overwhelming factual
scenario, as obtains in the instant case, refusal to gr<mt the o .
relief to which they are entitled, would amount to perpetuation
of gross illegality, unjustness and unfairness meted out to them.
The textual facts demand an appropriate response of the
judicial process to effectu;;ite the guarantee of justice, engrafted
in the preamble of the Constitution reinforced by the canons of E
equity.
142. The remedy indeed has to be commensurate to the
cause and the prejudice suffered. The invocable judicial tools,
predominantly in the form of a writ of mandamus, and the
plentitude of the powers of constitutional courts, and more F
particularly, this court under Article 142 of the Constitution are
assuredly the potential redressal aids in fact situations akin to .
the one in hand.
143. A writ of mandamus is an extraordinary remedy and
is intended to supply deficiencies in law and is thus G
discretionary in nature. The issuance of writ of mandamus
pre-supposes a clear right of the applicant and unjustifiable
failure of a duty imposed on an authority otherwise obliged· in
law to imperatively discharge the same.
H
500 SUPREME COURT REPORTS. [2015) 14 S.C.R.

A 144. The dominant features of a writ of mandamus
authoritatively figures in the following exfract from the Halswbusy
Laws of England, 4'h Edition (page 111 ):
"Nature of mandamus. The order of mandamus is of a
most extensive remedial nature, and is, in from, a
B command issuing from the High Court of Justice, directed
to any person, corporation, or inferior tribunal, requiring
him or them to do some particular thing therein specified
which appertains to his or their office and is in the nature
of a public duty. Its purpose is to remedy defects of
c justice; and accordingly it will issue, to the end that justice
may be done, in all cases where there is a specific legal
right and no specific legal remedy for enforcing that right;
and it may issue in cases where, although there is an
alternative legal remedy, yet that mode of redress is less
D convenient. beneficial and effectual.
145. An insight into the equitable theory in the application
of law was explored by the celebrated jurist Roscoe Pound in
his treatise "An Introduction to the Philosophy of Law'' in the
following excerpts:
E
"To the adherents of this theory the essential thing is a
reasonable and just solution of the individual controversy.
They conceive of the legal precept. whether legislative
or traditional. as a guide to the judge, leading him toward
F the just result. But they insist that within wide limits he
should be free to deal with the individual case so as to
meet the demands of justice between the parties and
accord with the reason and moral sense of ordinary men.
They insist that application of law is not a purely
G mechanical process. They contend that it involves not
logic only but moral judgments as to particular situations
and courses of conduct in view of the special
circumstances which are never exactly alike. They insist
that such judgments involve intuitions based upon
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 501
[AMITAVA ROY, J.]

experience and are not to be expressed in definitely A
formulated rules. They argue that the cause is not to be
·fitted to the rule but the rule to the cause

Equity uses its powers of individualizing to the best 8
advantage in connection with the conduct of those in
whom trust and confidence has been reposed

Philosophically the apportionment of the field between C
rule and discretion which is suggested by the use of rules
and of standards respectively in modern law has its basis
in the respective fields of intelligence and intuition.
Bergson tells us that the former is more adapted to the
inorganic, the latter more to life.
D
The rule. mechanically applied, works by repetition and
precludes individuality in results, which would threaten
the security of acquisitions and ·the security of
transactions. On the other hand. in the hand-made as
distinguished from the machine-made product. the E
specialized skill of the workman gives us something
infinitely more subtle than can be expressed in rules. In
law some situations cal or the product of hands, not of
machines, for they involve not repetition. where the
. general elements are significant. but unique events, in F
which the special circumstances are significant.

Where the call is for individuality in the product of the
legal mill we resort to standards. And the sacrifice of
certainty in so doing is more apparent than actual. For G
the certainty attained by mechanical application of fixed
rules to human conduct has always been illusory."

H
502 SUPREME COURT REPORTS· [2015] 14 S.C.R.

A 146. The above extracts authoritatively underscore the
indispensable essentiality 6f individuality in results in a
persuasive fact situation to obviate mechanical application of
fixed rules, by invoking equity and discretion to secure realistic
remedies tailor-made to the situational demands justifying the
B paramountcy of the rule of law.
147. Our national charter, being a living and organic
document, no provision thereof can remain static or stale and
must be accorded a vibrant import to guarantee the effectuation
of the preambular pledge in its fullest.content. The plenary
C powers of this Court enshrined in Article 142 of the Constitution
of India for achieving complete justice is only an insignia of
empowerment so that the constitutional guarantees are not
reduced to mere ritualistic incantations.
148. This Court extra-ordinarily does exercise its power
0
under Article 142 of the Constitution of India as warranted in
a given fact situation, for making order (s) as is felt necessary
for doing completejustice in a case a matter pending before
it.
E 149. As the nature and extent of the power indicates,
there can be no straight jacket formula, for its exercise nor
there can be any fetter thereto, it being plenary in nature. The
invocation of this power is to reach injustice and redress the
same, if it is not feasible otherwise to achieve this avowed
F objective. In doing so, this Court acts in its equity jurisdiction
to balance the conflicting interests of the parties and advance
the cause of administration of even handed justice. The purport
and purpose of this power being justice oriented and guided
by equitable principles, it chiefly aims at the enforcement of a
G public duty, if not forthcoming on legitimate justification ensuing
in oppressive injustice, militating against the constitutional
ordainment of equality before law and equal protection of laws
enshrined in Article 14 of the Constitution of India and
entrenched as are, among others, in the invaluable right to life
H
LALARAM v. JAIPUR DEVELOPMENT AUTHORITY 503
[AMITAVAROY, J.]

envisioned in Article 21 of the Constitution of India. A
150. The Constitutional Courts are sentinels of justice
and vested with the extra-ordinary power of judicial review to
ensure thatthe rights of the citizens are duly protected. That
the quest for justice is a compulsion of judicial conscience,
found its expression in C. Chenga Reddy and Others vs. B
State of A.P. (1996) 10 SCC 193 in the following extract:
"A court of equity must so act. within the permissible limits
so as to prevent injustice. "Equity is not past the age of
child-bearing" and an effort to do justice between the c
parties is a compulsion of judicial conscience. Courts
can and should strive to evolve an appropriate remedy.
in the facts and circumstances of a given case. so as to
further the cause of justice. within the available range and
forging new tools for the said purpose. if necessarv to
0
chisel hard edges of the law."
151. This underlying thought found erudite elaboration in
Manohar Lal Sharma ~s. Principal Secretary and Others
(2014) 2 sec 532 ..
"The Supreme Court has been conferred very· wide E
powers for proper and effective administration of justice.
The Court has inherent power and jurisdiction for dealing
with any exceptional situation in larger public interest
which builds confidence in the rule of law and strengthens
democracy. The Supreme Court as the sentinel on the F
qui vive, has been invested with the powers which are
elastic and flexible and in certain areas the rigidity in
exercise of such powers is considered inappropriate."
152. Thus failure to discharge an obligatory duty defined G
by public policy without any justification in disregard thereto
viewed in the context of the sacrosanct content of human rights
in Article 300A is an inexcusable failure of t!le state to discharge
its solemn constitutional obligation, the live purpose for its
existence. The predominant facts herein, justifiably demand a H
504 SUPREME COURT REPORTS [2015] 14S.C.R.

A fitting relief modelled by law, equity and good conscience.
Thus, the elaborate preface.
153. In the overall view of the. matter, we are of the
confirmed opinion, that in the singular facts and circumstances
of the case and for the sake of complete justice, the appellants
B are entitled to be allotted their quota of 15% developed land in
the terms of policy/circular dated 13.12.2001 in one or more
available plots at Vidyadhar Nagar, Gokul Nagar, Truck Terminal
and Vaishali Nagar as enumerated by them in their affidavit
dated 17.8.2015. The respondents are hereby directed to
C accommodate them accordingly.
154. In the wake up of above, the appeals are allowed.
The impugned judgment and order is set-aside. The
respondents would allot the developed land as per policy
0 decision dated 13.12.2001 to the appellants at the places
indicated hereinabove without fail and within a period of six
weeks herefrom. To secure a permanent resolution to the
· lingering lis, the respondents would ensure that a transparent
and fair process is undertaken, if necessary, to be overseen
E by an appropriate authority to obviate any disparity in treatment
in the matter of allotment as ordered.
155. We part with the belief and expectation that the
respondents would be alive to their duty cast by law and would
not precipitate any further cause of action necessitating the
F intervention of this Court with stringent initiatives. No costs.

Bibhuti Bhushan Bose Appeals allowed.