Bombay High Court Allows Writ Petition Quashing Government Decision to Hand Over Petitioner's Premises Without Hearing. The court held that principles of natural justice require that the petitioner be heard before any decision affecting its property rights is taken, even if the petitioner is a government-controlled cooperative society.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The petitioner, Maharashtra State Co-operative Consumers Federation Ltd., a society registered under the Maharashtra Cooperative Societies Act, 1960, filed a writ petition under Article 226 of the Constitution of India challenging a decision dated 5/10/2015 of the State Government. The petitioner claimed that the Government had substantial control over its affairs as the State held most of its share capital. The background of the case involved a Public Interest Litigation (PIL No.3427/2000) before the Nagpur Bench of the Bombay High Court concerning the supply of medicines to patients in public hospitals. The court had appointed a Bhagwati Committee, and based on its recommendations, the Government decided on 2/3/2009 that the petitioner's premises or shops should be handed over to another agency. The petitioner contended that this decision was taken without giving it any opportunity of being heard, violating principles of natural justice. The respondents argued that the petitioner was a government-controlled entity and the decision was in public interest. The court analyzed the issue and held that even if the petitioner was under government control, it had a right to be heard before any adverse decision affecting its property rights. The court quashed the decision dated 5/10/2015 and directed the respondents to hear the petitioner before taking any further action. The petition was allowed with no order as to costs.

Headnote

A) Constitutional Law - Natural Justice - Right to be Heard - Article 226 of the Constitution of India - The State Government's decision to hand over the petitioner's premises to another agency without giving the petitioner an opportunity of hearing was held to be violative of principles of natural justice. The court quashed the decision and directed the respondents to hear the petitioner before taking any further action. (Paras 1-10)

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Issue of Consideration

Whether the State Government's decision to hand over the petitioner's premises to another agency without affording the petitioner an opportunity of hearing is violative of principles of natural justice.

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Final Decision

The court quashed the decision dated 5/10/2015 and directed the respondents to hear the petitioner before taking any further action. Rule made absolute. No order as to costs.

Law Points

  • Natural justice
  • Right to be heard
  • Writ of mandamus
  • Article 226
  • Maharashtra Cooperative Societies Act
  • 1960
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Case Details

2017 LawText (BOM) (06) 78

WRIT PETITION NO.10288/2015

2017-06-07

S.C. Dharmadhikari, Mangesh S. Patil

Mr. Ajeet B. Kale for petitioner, Mr. S.G. Karlekar, AGP for respondents

Maharashtra State Co-operative Consumers Federation Ltd. Mumbai

The State of Maharashtra, The Director of Medical Education and Research

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Nature of Litigation

Writ petition under Article 226 seeking mandamus to quash government decision.

Remedy Sought

Petitioner sought writ of mandamus directing respondents to quash or not act upon decision dated 5/10/2015.

Filing Reason

Government decision to hand over petitioner's premises to another agency without hearing petitioner.

Previous Decisions

In PIL No.3427/2000, court appointed Bhagwati Committee; based on its report, Government decided on 2/3/2009 to hand over petitioner's premises.

Issues

Whether the decision dated 5/10/2015 was taken without affording the petitioner an opportunity of hearing, violating principles of natural justice.

Submissions/Arguments

Petitioner argued that the decision was taken without giving it any hearing, violating natural justice. Respondents argued that the petitioner is a government-controlled entity and the decision was in public interest.

Ratio Decidendi

Even if a cooperative society is under government control, it has a right to be heard before any decision affecting its property rights is taken. Principles of natural justice require that the affected party be given an opportunity of hearing.

Judgment Excerpts

By this petition under Article 226 of the Constitution of India, the petitioner is seeking writ of mandamus or any other writ, order or directions thereof directing the respondents to quash or not to act upon a decision dated 5/10/2015 copy of which is at Annexture 'J' to the petition.

Procedural History

PIL No.3427/2000 filed before Nagpur Bench; Bhagwati Committee appointed; Government decision on 2/3/2009; impugned decision on 5/10/2015; writ petition filed on 2015; heard and decided on 07/06/2017.

Acts & Sections

  • Constitution of India: Article 226
  • Maharashtra Cooperative Societies Act, 1960:
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