Case Note & Summary
The dispute arose from the cancellation of a resolution by the Collector of Kutch-Bhuj regarding the allotment of tenements constructed for earthquake victims in Anjar. The petitioner, Anjar Municipality, challenged the Collector's order dated 14th August 1984 and the State Government's order dated 2nd April 1985, which were made under Section 250(1) of the Gujarat Municipalities Act, 1961. The tenements were initially constructed in 1956 for earthquake rehabilitation, transferred to the Gujarat Housing Board, and later handed over to the Municipality. The Municipality claimed ownership and the right to manage the tenements, but faced allegations of mismanagement and improper allotment. The court noted that the tenements were occupied by individuals not affected by the earthquake, and the Municipality had attempted to sell them to its employees. The court emphasized the need for the State Government to reassess the situation, considering the long-term occupants and the original purpose of the tenements. The court quashed the Collector's order and directed the State Government to conduct a fresh review within six months, ensuring reasonable pricing and proper management of the tenements. The ruling aimed to protect the interests of the current occupants while addressing the misuse of the tenements.
Headnote
A) Municipal Law - Tenement Allotment - Cancellation of Municipality Resolution - Gujarat Municipalities Act, 1961, Sections 250, 258 - The Collector's cancellation of the Municipality's resolution regarding tenement allotment was challenged as illegal. The court found that the tenements were misused and directed the State Government to reconsider the matter, ensuring the interests of long-term occupants are protected. Held that fresh consideration is necessary (Paras 3-10).
Issue of Consideration
Whether the Collector and State Government acted illegally in cancelling the Municipality's resolution regarding tenement allotment.
Final Decision
The High Court quashed the Collector's order dated 14th August 1984 and directed the State Government to reconsider the matter, ensuring the interests of long-term occupants are protected. The State Government was to decide on reasonable pricing and the status of remaining tenements within six months.
Law Points
- Gujarat Municipalities Act
- 1961
- Section 250
- Section 258
- Article 226 of the Constitution of India
- tenement management
- public interest
- reasonable pricing



