Case Note & Summary
The dispute arose from the cancellation of licences granted to certain developers for group housing projects in Gurgaon, Haryana. The appellants, Anant Raj Ltd. and others, challenged the High Court's decision which deemed the First Come First Serve policy for granting licences as unfair and not transparent. The High Court's judgment was based on the Haryana Development and Regulation of Urban Areas Act, 1975, which did not support such a policy. The original petitioners, who were denied licences, argued that the process was arbitrary and sought a fairer method. The appellants contended that their applications were in accordance with the guidelines and that the policy had been a long-standing practice. The Supreme Court analyzed the legality of the First Come First Serve principle, emphasizing that it lacked a statutory basis and was inconsistent with the principles of fairness and transparency required under Article 14 of the Constitution. The Court found that the policy led to an unholy race among applicants and was not in the public interest. Consequently, the Court upheld the High Court's decision to cancel the licences and directed the State to formulate a new, transparent policy for granting licences. The appeals were dismissed, and the Court noted that all pending applications would be considered under the new policy established in 2017.
Headnote
A) Administrative Law - Licensing Policy - Fairness and Transparency - Haryana Development and Regulation of Urban Areas Act, 1975 - The High Court held that the First Come First Serve policy for granting licences was not fair or transparent, leading to its cancellation and a directive for a new policy. Held that the existing policy violated public interest and Article 14 (Paras 3, 18, 40).
Issue of Consideration
Whether the methodology adopted by the State of Haryana for grant of licence on a First Come First Serve basis is just, proper, and legally tenable.
Final Decision
The Supreme Court dismissed the appeals, upholding the High Court's decision to cancel the licences and directed the State to formulate a new policy for granting licences.
Law Points
- First Come First Serve principle
- fair and transparent policy
- public interest
- Article 14 of the Constitution
- Haryana Development and Regulation of Urban Areas Act
- 1975
