The dispute between City Montessori School and Shri M.M. Batra involves a plot of land (Plot No. 90-A/A-754) in Lucknow. The plot, originally leased to Gursharan Lal Srivastava in 1961, was sold to Batra in 1962. In 1995, an auction for the plot saw the school as the highest bidder, but their bid was later canceled. The plot was converted from leasehold to freehold and sold to Batra at a low price during the pendency of a writ petition filed by the school. The Allahabad High Court set aside this conversion, deeming it illegal. Both parties appealed. The Supreme Court upheld the High Court's decision, leaving the validity of the lease and the possibility of a new auction open for further proceedings.

1. Introduction

• Leave Granted: Appeals arise from a judgment of the Allahabad High Court.
• Parties Involved: Dispute between City Montessori School and Shri M.M. Batra regarding a plot in Lucknow.

2. Factual Aspects

• Lease and Sale History: Plot leased in 1961 to Gursharan Lal Srivastava, sold to Batra in 1962.
• Auction and Bids: 1995 auction saw the school as the highest bidder; bid later canceled and plot sold to Batra's sons.
• Legal Proceedings: School filed a writ petition challenging the bid cancellation; Batra's suit for possession dismissed.

3. Legal Submissions

• School's Arguments: Conversion and sale to Batra were illegal; school should be awarded the plot.
• Batra's Arguments: Conversion was legal; the school's challenge was delayed.

4. Legal Principles

• State Largesse: Emphasis on fair and transparent distribution of state property, avoiding favoritism.

5. Analysis

• Fair Process: Conversion at a nominal price deemed unfair; proper auction required for state-owned plots.
• Pending Writ Petition: Conversion during the pendency of the writ petition seen as improper.

6. Conclusion

• Supreme Court Decision: Upheld High Court's judgment; conversion and sale to Batra set aside.
• Future Proceedings: Validity of the lease and the possibility of a new auction left open; refunds directed for both parties.