Court affirms HMC's statutory authority to dispose of property despite absence of procedural rules; retrospective application of Land Allotment Policy of 2012 deemed impermissible.
In a landmark judgment, the Calcutta High Court has directed the Howrah Municipal Corporation (HMC) to execute the Deed(s) of Sale in favor of the petitioner, Overseas Scrap Trading Corporation, within a stipulated timeframe, irrespective of the State Government's approval. The judgment, delivered by Justice Shampa Sarkar, emphasizes the statutory authority of the HMC under Section 223 of the Howrah Municipal Corporation Act, 1980, to dispose of immovable property. The Court clarified that the absence of procedural rules does not impede the HMC's power to conduct auctions and finalize sales, provided the process is carried out reasonably and fairly.
The case stemmed from a writ petition filed by Overseas Scrap Trading Corporation, which was declared the highest bidder in an auction conducted by HMC in 2010. However, the execution of the sale deeds was stalled due to the lack of approval from the State Government, which cited the Land Allotment Policy of 2012 as a basis for withholding consent. The Court ruled that the policy, being implemented after the auction, cannot be applied retrospectively to invalidate the auction process.
The judgment further addressed the State's objection regarding the classification of the land as thika property. It was established that the land in question, leased to Bibhuty Bhusan Lahary in 1953, was not a thika property, as it contained pucca structures, and therefore, the amended definitions of thika tenancy could not be retrospectively applied.
Justice Sarkar emphasized that the decision of the Cabinet, which suggested obtaining State approval for such transactions, cannot override the statutory provisions granting HMC the authority to dispose of its properties. The Court ordered the State Government to grant the necessary approval within eight weeks, failing which HMC is empowered to proceed with the execution of the deeds independently.
This judgment is pivotal in reinforcing the autonomous powers of municipal bodies and clarifying the limitations of retrospective policy applications in property transactions.
Bottom line:-
Howrah Municipal Corporation's statutory authority to dispose of immovable property under Section 223 of the Howrah Municipal Corporation Act, 1980 is not contingent upon framing of rules by the State, and retrospective application of the Land Allotment Policy of 2012 is impermissible.
Statutory provision(s): Howrah Municipal Corporation Act, 1980 - Section 223
