THE MUNICIPAL COMMITTEE, BARWALA, DISTRICT HISAR, HARYANA THROUGH ITS SECRETARY/PRESIDENTversusJAI NARAYAN AND COMPANY & ANR

                         [2022] 16 S.C.R. 897                           897


   THE MUNICIPAL COMMITTEE, BARWALA, DISTRICT                           A
HISAR, HARYANA THROUGH ITS SECRETARY/PRESIDENT
                                 v.
            JAI NARAYAN AND COMPANY & ANR.
                  (Civil Appeal No. 2222 of 2022)                       B
                         MARCH 29, 2022
  [HEMANT GUPTA AND V. RAMASUBRAMANIAN, JJ.]
       Haryana Municipal Common Lands (Regulation) Act, 1974:
s. 5 read with s. 10(2)(e) 2 - Haryana Municipalities Management
                                                                        C
of Municipal Properties and State Properties Rules, 1976 – r. 2(3),
2(4) – Auction sale – Inter-departmental communication and/or the
notings on the file – Relevance of – Respondent filed suit for
mandatory injunction to execute a sale deed on the ground that he
is a bonafide purchaser on basis of the auction and is in possession
as owner of the suit land – Case of the Municipal Committee that it     D
is unable to execute the sale deed without proper sanction of the
competent authority-State Government – Trial court decreed in favor
of the respondent – Said order upheld in the first and second appeal
– In appeal before this Court, case of the Municipal Council that
the auction conducted in which the respondent was the highest bidder
                                                                        E
was not approved by the State Government, and that till such time
the auction is confirmed, it would not confer any equitable and
legal right to the respondent; and it would be only after the
confirmation of sale and the letter accepting the bid is issued –
Held: Sub-rule (ii) of r. 2(3) contemplates that no sale by auction
would be valid until it has been confirmed by the Deputy                F
Commissioner – Communication referred to by the respondent is
not the communication by the Deputy Commissioner to the
Municipality or to the respondent that the sale stands confirmed –
It is an inter-departmental communication with no endorsement of
the copy of the said communication to the respondent – Inter-
                                                                        G
departmental communication and/or the notings on the file are not
the decisions of the State – Thus, the letter seeking approval of the
State Government by the Deputy Commissioner is not the approval
granted by him, which could be enforced by the plaintiff in the
court of law – Suit was not maintainable since there was no vested
                                                                        H
                                897
898            SUPREME COURT REPORTS                    [2022] 16 S.C.R.


A     right with the respondent to claim such a decree merely on the basis
      of participation in the public auction; and even if the respondent
      had any right on the basis of an auction, he could at best sue for
      specific performance of the so-called agreement – Respondent was
      granted decree for mandatory injunction not only beyond the period
      of limitation but also in contravention of the statute and the rules
B
      framed thereunder – Judgment and decree passed by the courts
      below are set aside – Respondent is in possession, which is found
      to be illegal and without the authority of law – Municipality would
      take possession forthwith – Auction amount would stand forfeited
      towards the damages for the illegal occupation of the land for more
C     than 20 years since the date of auction in contravention of law.
            Allowing the appeal, the Court
            HELD: 1.1 The Haryana Municipalities Management of
      Municipal Properties and State Properties Rules, 1976
      contemplates two acts to be completed by the Deputy
D     Commissioner, one of which is approval of conduct of sale which
      was granted on 25.10.1995. Thus, there is compliance as far as
      clause (i) of Rule 2(3) of the 1976 Rules is concerned. The other
      important provision is sub-rule (ii) of Rule 2(3) of the 1976 Rules
      which contemplates that no sale by auction shall be valid until it
E     has been confirmed by the Deputy Commissioner. The
      communication dated 10.1.2007 (Ex P-34) referred to by the
      plaintiff is not the communication by the Deputy Commissioner
      to the Municipality or to the plaintiff that the sale stands
      confirmed. In fact, it is an inter-departmental communication with
      no endorsement of the copy of the said communication to the
F     plaintiff. Thus, the reliance of the plaintiff on the communication
      dated 10.1.2007 (Ex.P/34) is not helpful to the argument raised
      by him as it is the inter-departmental communication from the
      Deputy Commissioner to the Director, Urban Local Body
      Department to seek approval but in the absence of any approval
G     granted, no right would accrue. [Para 10][903-C-F
            1.2 The letter seeking approval of the State Government
      by the Deputy Commissioner is not the approval granted by him,
      which could be enforced by the plaintiff in the court of law. [Para
      17][908-C-D]
H
 MUNICIPAL COMMITTEE, BARWALA, DIST. HISAR, HARYANA THR.                 899
   ITS SECRETARY/PRESIDENT v. JAI NARAYAN AND COMPANY


       1.3 The suit was not maintainable for the reason that there       A
was no vested right with the plaintiff to claim such a decree merely
on the basis of participation in the public auction. Secondly, even
if the plaintiff had any right on the basis of an auction, he could at
best sue for specific performance of the so-called agreement.
[Para 18][908-D-E]
                                                                         B
      1.4 The plaintiff has been granted decree for mandatory
injunction not only beyond the period of limitation but in
contravention of the statute and the rules framed thereunder.
The judgment and decree passed by the courts below are set
aside. The plaintiff is in possession, which is found to be illegal
and without the authority of law. The Municipality shall take            C
possession of land forthwith and furnish compliance report within
three months. The amount of Rs.15,76,150/- shall stand forfeited
towards the damages for the illegal occupation of the land for
more than 20 years since the date of auction in contravention of
law. [Paras 27 and 28][912-D-E]                                          D
      Rajender Parshad & Ors. v. State of Haryana & Ors,
      AIR 1980 P&H 37; State of Punjab & Ors. v. Mehar
      Din, 2022 SCC OnLine SC 250 ; Bachhittar Singh v.
      State of Punjab, AIR 1963 SC 395 : [1962] Suppl.
      SCR 713 ; Union of India v. Avtar Singh (1984) 3 SCC               E
      589 : [1984] 3 SCR 391; State of Orissa and Others v.
      Mesco Steels Limited and Another (2013) 4 SCC 340 :
      [2013] 2 SCR 245; Haryana Urban Development
      Authority & Ors. v. Orchid Infrastructure Developers
      Private Limited (2017) 4 SCC 243: [2017] 1 SCR 847
      -referred to.                                                      F

                       Case Law Reference
[2017] 1 SCR 847                referred to             Para 11
[1962] Suppl. SCR 713           referred to             Para 13
                                                                         G
[1984] 3 SCR 391                referred to             Para 14
[2013] 2 SCR 245                referred to             Para 15



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900                SUPREME COURT REPORTS                      [2022] 16 S.C.R.


A           CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2222
      of 2022.
            From the Judgment and Order dated 01.05.2018 of the High Court
      of Punjab and Haryana at Chandigarh in R.S.A. No.1213 of 2018.
             Parveen Kumar Aggarwal, Abhishek Grover, Sanjay Jain, Advs.
B     for the Appellants.
            Sanchar Anand, Anant Kumar Vatsya, Shiv Kumar, Devendra
      Singh, Advs. for the Respondents.
               The Judgment of the Court was delivered by
C              HEMANT GUPTA, J.
             1. The Municipal Committee, Barwala1 is in appeal against the
      judgment dated 1.5.2018, whereby its second appeal was dismissed arising
      out of a suit for mandatory injunction to execute a sale deed in respect
      of land measuring 55 kanals 5 marlas sought by the respondent-plaintiff.
D
             2. The respondent-plaintiff claimed title and possession on the
      basis of an open auction conducted by the Sub-Divisional Officer, Hisar
      on 23.3.1999 @ Rs.2,32,000/- per acre after sanction was granted for
      auction of the land in question on 25.10.1995. The total sale consideration
      comes out to be Rs.15,76,150/- which was deposited with the Municipal
E     Committee. The plaintiff thus claimed that he is a bonafide purchaser
      and is in possession as owner of the suit land. He deposited the remaining
      consideration after adjusting an amount of Rs.4,10,000/- which was
      already deposited with the Municipal Committee.
              3. The plaintiff asserts that the Municipal Committee had passed
F     a resolution on 1.5.2002 to get the sale deed executed and registered.
      Since the sale deed was not executed, the plaintiff had allegedly served
      a registered notice dated 14.8.2006 which was made the cause of action
      to file the civil suit for mandatory injunction on 13.6.2011.
             4. In the written statement filed by the Municipal Committee, it
G     has been admitted that the property was put to auction after obtaining
      permission from the Deputy Commissioner. However, the possession
      of the plaintiff was said to be illegal possession. It was pleaded that the
      Municipal Committee is unable to execute the sale deed without proper
      sanction of the competent authority i.e., Government of Haryana.
      1
H         For short, the “Municipal Committee”
 MUNICIPAL COMMITTEE, BARWALA, DIST. HISAR, HARYANA THR.                         901
   ITS SECRETARY/PRESIDENT v. JAI NARAYAN AND COMPANY
                    [HEMANT GUPTA, J.]
      5. The learned trial court decreed the suit vide judgment and decree       A
dated 9.3.2016 after giving findings on the following issues framed in
view of the pleadings of the parties:
       “1. Whether the plaintiff is entitled to a decree for mandatory
       injunction as prayed for?
       2. Whether the suit is not maintainable due to non-joinder of             B
       necessary parties?
       3. Whether the plaintiff has not come to the Court with clean
       hand and suppressed the material facts?
       4. Whether the plaintiff has no locus standi to file the present          C
       suit?
       5. Relief.”
      6. Aggrieved against the judgment and decree of the trial court,
the Municipal Committee filed the first appeal which was dismissed on
5.9.2016. The second appeal was also dismissed vide impugned judgment            D
dated 1.5.2018.
       7. Before this Court, learned counsel for the appellant argued that
the auction conducted in which the plaintiff was the highest bidder was
not approved by the State Government. The Ex.P/34 is a communication
addressed by the Deputy Commissioner to the Director Local Bodies to             E
seek approval of the property put to auction. However, there was no
approval by the State Government of the auction once conducted in
favor of the plaintiff. It was contended that till such time the auction is
confirmed, mere fact that the plaintiff was the highest bidder would not
confer any equitable and legal right to him. It is only after the confirmation
                                                                                 F
of sale and the letter accepting the bid is issued, the plaintiff could claim
any enforceable right. It was thus contended that the plaintiff is in
unauthorized and illegal possession of the property. It was contended
that the approval of sale of the property by public auction itself does not
amount to confirmation of the auction, therefore, in the absence of
confirmation of sale by the State Government, the plaintiff would not get        G
any right over the property. It was also argued that the plaintiff in his
counter affidavit before this Court relied upon Section 5 read with Section
10(2)(e) of the Haryana Municipal Common Lands (Regulation) Act,


                                                                                 H
902              SUPREME COURT REPORTS                        [2022] 16 S.C.R.


A     19742 read with Rule 2(4) of the Haryana Municipalities Management
      of Municipal Properties and State Properties Rules, 1976 3, though the
      1974 Act has been declared unconstitutional by the Full Bench of Punjab
      & Haryana High Court in Rajender Parshad & Ors. v. State of Haryana
      & Ors.4. Even the First Appellate Court and Second Appellate Court
      have referred to the 1974 Act while dismissing the appeals filed by the
B
      Municipal Committee.
              8. When the appeal came up for hearing before this Court on
      14.3.2022, attention of the counsel for the plaintiff was drawn to the Full
      Bench judgment of Punjab & Haryana High Court in Rajender Parshad
      declaring the 1974 Act as illegal. Therefore, vesting of land to shamilat
C     deh on the strength of the aforesaid statute itself was not tenable.
      However, Mr. Sanchar Anand, learned counsel for the plaintiff submitted
      that it is not the case that the property vested with the Municipality on
      the strength of the 1974 Act. It was argued that the property was put to
      auction after previous approval of the Deputy Commissioner and later
D     vide Ex.P/34, the sale stands confirmed. Therefore, once the plaintiff
      has been found to be the highest bidder and sale has been confirmed by
      the Deputy Commissioner, the plaintiff has been rightly granted decree
      for mandatory injunction.
            9. We have heard learned counsel for the parties and find that the
E     decree passed by the three courts below, to say the least, is a perverse
      reading of the provisions of law as well as the factual position. Rule 2 of
      the 1976 Rules has to be referred to appreciate the present dispute. It
      reads as thus:
             “2. Procedure for alienation. – (1) A municipal committee proposing
F            to alienate permanently or for a term exceeding ten years any
             land or other immovable property of which it is the owner shall
             apply to the Deputy Commissioner for sanction.
             (2) An application under sub-rule (1) shall be accompanied by a
             plan of the proposed property to be alienated together with a
G            statement in Form A appended to these rules.
             (3) The Deputy Commissioner shall record an order on the
             application, -
      2
        For short, the “1974 Act”
      3
        For short, the “1976 Rules”
      4
H       AIR 1980 P&H 37
 MUNICIPAL COMMITTEE, BARWALA, DIST. HISAR, HARYANA THR.                      903
   ITS SECRETARY/PRESIDENT v. JAI NARAYAN AND COMPANY
                    [HEMANT GUPTA, J.]
      (i) sanctioning it (subject to such conditions, if any, as he thinks    A
      fit); or
      (ii) refusing to sanction it; provided that no sale by auction shall
      be valid, until it has been confirmed by the Deputy Commissioner.
      (4) When the Deputy Commissioner has accorded sanction to a
      sale by auction, the Form A aforesaid shall in due course be re-        B
      submitted to him with the details regarding the auction shown in
      Form B. The Deputy Commissioner shall thereon either confirm
      the sale or refuse to confirm it. If the Deputy Commissioner
      refuses to confirm the sale, the same shall be void.”
       10. The 1976 Rules contemplates two acts to be completed by            C
the Deputy Commissioner, one of which is approval of conduct of sale
which was granted on 25.10.1995. Thus, there is compliance as far as
clause (i) of Rule 2(3) of the 1976 Rules is concerned. The other important
provision is sub-rule (ii) of Rule 2(3) of the 1976 Rules which
contemplates that no sale by auction shall be valid until it has been         D
confirmed by the Deputy Commissioner. The communication dated
10.1.2007 (Ex P-34) referred to by the plaintiff is not the communication
by the Deputy Commissioner to the Municipality or to the plaintiff that
the sale stands confirmed. In fact, it is an inter-departmental
communication with no endorsement of the copy of the said
communication to the plaintiff. Thus, the reliance of the plaintiff on the    E
communication dated 10.1.2007 (Ex.P/34) is not helpful to the argument
raised by him as it is the inter-departmental communication from the
Deputy Commissioner to the Director, Urban Local Body Department
to seek approval but in the absence of any approval granted, no right
would accrue. The communication is inter alia to the following effect:        F
      “3. Hence while confirming sale of Municipal Committee land
      measuring 54 Kanal & 7 Marla comprised in Khasra No. 517 and
      518, conducted on 23.03.1999 by open auction/bid to the maximum
      successful bidder of this land @ Rs.2,32,000/- (Rupees Two Lacs
      Thirty Two Thousand) per acre, which has been accepted by Sub           G
      Divisional Office and Head Municipal Committee Barwala, you
      are requested to please issue Ex-post facto approval so that the
      sale deed of the land in the name of the purchaser M/s Jai Narain
      & Company may be got done by the Municipal Corporation
      Barwala.”
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904               SUPREME COURT REPORTS                           [2022] 16 S.C.R.


A           11. Therefore, no concluded contract ever came into force.
      Reference may be made to the judgment of this Court reported as
      Haryana Urban Development Authority & Ors. v. Orchid
      Infrastructure Developers Private Limited5, wherein this Court held
      as under:
B              “13. Firstly, we examine the question whether there being no
               concluded contract in the absence of acceptance of bid and
               issuance of allotment letter, the suit could be said to be maintainable
               for the declaratory relief and mandatory injunction sought by the
               plaintiff. The plaintiff has prayed for a declaration that rejection
               of the bid was illegal. Merely by that, plaintiff could not have
C              become entitled for consequential mandatory injunction for issuance
               of formal letter of allotment. Court while exercising judicial review
               could not have accepted the bid. The bid had never been accepted
               by concerned authorities. It was not a case of cancellation of bid
               after being accepted. Thus even assuming as per plaintiff’s case
D              that the Administrator was not equipped with the power and the
               Chief Administrator had the power to accept or refuse the bid,
               there had been no decision by the Chief Administrator. Thus,
               merely by declaration that rejection of the bid by the Administrator
               was illegal, the plaintiff could not have become entitled to
               consequential relief of issuance of allotment letter. Thus the suit,
E              in the form it was filed, was not maintainable for relief sought in
               view of the fact that there was no concluded contract in the
               absence of allotment letter being issued to the plaintiff, which
               was a sine qua non for filing the civil suit.
               14. It is a settled law that the highest bidder has no vested right to
F              have the auction concluded in his favour. The Government or its
               authority could validly retain power to accept or reject the highest
               bid in the interest of public revenue. We are of the considered
               opinion that there was no right acquired and no vested right
               accrued in favour of the plaintiff merely because his bid amount
G              was highest and had deposited 10% of the bid amount. As per
               Regulation 6(2) of the Regulations of 1978, allotment letter has to
               be issued on acceptance of the bid by the Chief Administrator
               and within 30 days thereof, the successful bidder has to deposit
               another 15% of the bid amount. In the instant case allotment letter
      5
          (2017) 4 SCC 243
H
    MUNICIPAL COMMITTEE, BARWALA, DIST. HISAR, HARYANA THR.                           905
      ITS SECRETARY/PRESIDENT v. JAI NARAYAN AND COMPANY
                       [HEMANT GUPTA, J.]
         has never been issued to the petitioner as per Regulation 6(2) in            A
         view of non-acceptance of the bid. Thus there was no concluded
         contract....”
       12. In State of Punjab & Ors. v. Mehar Din6 this Court observed
that State or authority which can be held to be State within the meaning
of Article 12 of the Constitution is not bound to accept the highest tender           B
of bid. It was held as under:
         “18. This Court has examined right of the highest bidder at public
         auctions in umpteen number of cases and it was repeatedly pointed
         out that the State or authority which can be held to be State within
         the meaning of Article 12 of the Constitution, is not bound to accept        C
         the highest tender of bid. The acceptance of the highest bid or
         highest bidder is always subject to conditions of holding public
         auction and the right of the highest bidder is always provisional to
         be examined in the context in different conditions in which the
         auction has been held. In the present case, no right had accrued
         to the respondent even on the basis of statutory provisions as               D
         being contemplated under Rule 8(1)(h) of Chapter III of the
         Scheme of Rules, 1976 and in terms of the conditions of auction
         notice notified for public auction.”
       13. This Court has also considered that the inter-departmental
communication and/or the notings on the file are not the decisions of the             E
State. It has been held by the Constitution Bench in a judgment reported
as Bachhittar Singh v. State of Punjab7 that merely writing something
on the file does not amount to an order. It was held as under:
         “10. The business of State is a complicated one and has necessarily
         to be conducted through the agency of a large number of officials            F
         and authorities. The Constitution, therefore, requires and so did
         the Rules of Business framed by the Rajpramukh of PEPSU
         provide, that the action must be taken by the authority concerned
         in the name of the Rajpramukh. It is not till this formality is observed
         that the action can be regarded as that of the State or here, by the         G
         Rajpramukh. ................. Indeed, it is possible that after expressing
         one opinion about a particular matter at a particular stage a Minister
         or the Council of Ministers may express quite a different opinion,
6
    2022 SCC OnLine SC 250
7
    AIR 1963 SC 395                                                                   H
906               SUPREME COURT REPORTS                         [2022] 16 S.C.R.


A              one which may be completely opposed to the earlier opinion. Which
               of them can be regarded as the “order” of the State Government?
               Therefore, to make the opinion amount to a decision of the
               Government it must be communicated to the person concerned.
               In this connection we may quote the following from the judgment
               of this Court in the State of Punjab v. Sodhi Sukhdev Singh (AIR
B
               1961 SC 493 at page 512] :
               xxx                  xxx                        xxx
               11. We are, therefore, of the opinion that the remarks or the order
               of the Revenue Minister, PEPSU are of no avail to the appellant.”
C           14. Furthermore, this Court in a judgment reported as Union of
      India v. Avtar Singh8 held that letter does not records the decision of
      the Central Government under Section 33 of the Displaced Persons
      (Compensation and Rehabilitation) Act 1954, so as to be a decision by
      the Central Government. It was observed as under:
D              “19. .…..Therefore the High Court was clearly in error in treating
               the letter of Shri Dube dated May 31, 1963 as a decision of the
               Central Government in exercise of the power conferred by Section
               33. There was no reason for decision nor any occasion for the
               Central Government to exercise power under Section 33 and
E              therefore, it is not possible to agree with the High Court that the
               letter records the decision of the Central Government under Section
               33. If the letter of Shri Dube is not a decision of the Central
               Government under Section 33 of the Act, as a necessary corollary,
               the impugned decision must be treated as one rendered for the
               first time in exercise of the revisional power under Section 33 and
F              therefore, it cannot be said to be one without jurisdiction. In this
               view of the matter, the appeal will have to be allowed.”
             15. In a judgment reported as State of Orissa and Others v.
      Mesco Steels Limited and Another9, this Court held that the High Court
      was in error in proceeding on an assumption that a final decision had
G     been taken and in quashing what was no more than an inter-departmental
      communication constituting at best a step in the process of taking a final
      decision by the Government. It was held as under:

      8
          (1984) 3 SCC 589
      9
          (2013) 4 SCC 340
H
     MUNICIPAL COMMITTEE, BARWALA, DIST. HISAR, HARYANA THR.                     907
       ITS SECRETARY/PRESIDENT v. JAI NARAYAN AND COMPANY
                        [HEMANT GUPTA, J.]
         “20. On the contrary, the issue of the show cause notice setting        A
         out the reasons that impelled the Government to claim resumption
         of a part of the proposed lease area from the respondent-company
         clearly suggested that the entire process leading up to the issue of
         the show cause notice was tentative and no final decision on the
         subject had been taken at any level. It is only after the Government
                                                                                 B
         provisionally decided to resume the area in part or full that a show
         cause notice could have been issued. To put the matter beyond
         any pale of controversy, Mr. Lalit made an unequivocal statement
         at the bar on behalf of the State Government that no final decision
         regarding resumption of any part of the lease area has been taken
         by the State Government so far and all that had transpired till date    C
         must necessarily be taken as provisional. Such being the case
         the High Court was in error in proceeding on an assumption
         that a final decision had been taken and in quashing what
         was no more than an inter-departmental communication
         constituting at best a step in the process of taking a final
                                                                                 D
         decision by the Government. The writ petition in that view
         was pre-mature and ought to have been disposed of as such.
         Our answer to question No. 1 is accordingly in the affirmative.”
       16. This Court in a judgment reported as State of Uttaranchal v.
Sunil Kumar Vaish10 held that a noting recorded in the file is merely a
noting simpliciter and nothing more. It merely represents expression of          E
opinion by the particular individual. By no stretch of imagination, such
noting can be treated as a decision of the Government. It was held as
under:
         “24. A noting recorded in the file is merely a noting simpliciter and
         nothing more. It merely represents expression of opinion by the         F
         particular individual. By no stretch of imagination, such noting
         can be treated as a decision of the Government. Even if the
         competent authority records its opinion in the file on the merits of
         the matter under consideration, the same cannot be termed as a
         decision of the Government unless it is sanctified and acted upon       G
         by issuing an order in accordance with Articles 77(1) and (2) or
         Articles 166(1) and (2). The noting in the file or even a decision
         gets culminated into an order affecting right of the parties only

10
     (2011) 8 SCC 670                                                            H
908             SUPREME COURT REPORTS                            [2022] 16 S.C.R.


A            when it is expressed in the name of the President or the Governor,
             as the case may be, and authenticated in the manner provided in
             Article 77(2) or Article 166(2). A noting or even a decision recorded
             in the file can always be reviewed/reversed/overruled or
             overturned and the court cannot take cognizance of the earlier
             noting or decision for exercise of the power of judicial review.
B
             (See State of Punjab v. Sodhi Sukhdev Singh AIR 1961 SC 493,
             Bachhittar Singh v. State of Punjab AIR 1963 SC 395, State of
             Bihar v. Kripalu Shankar (1987) 3 SCC 34, Rajasthan Housing
             Board v. Shri Kishan (1993) 2 SCC 84, Sethi Auto Service Station
             v. DDA (2009) 1 SCC 180 and Shanti Sports Club v. Union of
C            India (2009) 15 SCC 705).”
            17. Thus, the letter seeking approval of the State Government by
      the Deputy Commissioner is not the approval granted by him, which
      could be enforced by the plaintiff in the court of law.
             18. The suit was not maintainable for the reason that there was
D     no vested right with the plaintiff to claim such a decree merely on the
      basis of a participation in the public auction. Secondly, even if the plaintiff
      had any right on the basis of an auction, he could at best sue for specific
      performance of the so-called agreement. In Orchid, the plaintiff had
      sought decree of declaration and of consequential mandatory injunction.
E     This Court held that such suit was not maintainable as no concluded
      contract came into existence by merely submitting the highest bid. In
      these circumstances, suit for mandatory injunction was not maintainable.
             19. It is to be noted that though the plaintiff had served a notice on
      14.9.2006, but still the suit was filed in the year 2011 in respect of the
F     auction conducted in the year 1999. The suit for mandatory injunction
      was filed on or after 13.6.2011, i.e., more than 12 years after the auction
      was conducted on 23.3.1999. Therefore, even the suit for specific
      performance was barred by limitation as such suit, even if maintainable,
      could be filed within three years of the auction being conducted in terms
      of Article 54 of the Schedule to the Limitation Act, 1963. The suit for
G     injunction was filed beyond the period of limitation and was not properly
      constituted. The courts have not examined such aspect as was expected
      to examine legally.
            20. Section 61 of the 1973 Act deals with vesting of the property
      with the Municipal Committee and how the property can be utilized.
H     Sections 61 and 62 read thus:
MUNICIPAL COMMITTEE, BARWALA, DIST. HISAR, HARYANA THR.                    909
  ITS SECRETARY/PRESIDENT v. JAI NARAYAN AND COMPANY
                   [HEMANT GUPTA, J.]
   “61. Property vested in committee.—(1) Subject to any special           A
   reservation made or to any special conditions imposed by the State
   Government, all property of the nature hereinafter in this section
   specified and situated within the municipality, shall vest in and be
   under the control of the committee, and with all other property
   which has already vested or may here after vest in the committee,
                                                                           B
   shall be held and applied by it for the purposes of this Act, that is
   to say,—
   (a) all public town-walls, gates, markets, stalls, slaughter houses,
   manure and night-soil depots and public buildings of every
   description which have been constructed or are maintained out of
   the municipal fund;                                                     C

   (b) all public streams, springs and works for the supply, storage
   and distribution of water for public purposes, and all bridges,
   buildings, engines, materials and things connected therewith or
   appertaining thereto, and also any adjacent land, not being private
   property appertaining, to any public tank or well;                      D

   (c) all public sewers and drains, and all sewers, drains, culverts
   and water-courses in or under any public street or constructed by
   or for the committee alongside any public Street, and all works,
   materials and things appertaining thereto;
                                                                           E
   (d) all dust, dirt, dung, ashes, refuse, animal matter or filth or
   rubbish of any kind or dead bodies of animals collected by the
   committee from the streets, houses, privies, sewers, cesspools or
   elsewhere or deposited in places fixed by the committee under
   section 152;
                                                                           F
   (e) all public lamps, lamp-posts, and apparatus connected therewith
   or appertaining thereto;
   (f) all land or other property transferred to the committee by the
   State Government or acquired by gift, purchase or otherwise for
   local public purposes;
                                                                           G
   (g) all public streets, not being land owned by the State
   Government, and the payments, stones and other materials thereof,
   and also trees growing on, and erections, materials, implements,
   and things provided for, such streets;
                                                                           H
910            SUPREME COURT REPORTS                          [2022] 16 S.C.R.


A           (h) Shamlat Deh.
            (2) Where any immovable property is transferred otherwise than
            by the sale by the State Government to a committee for public
            purposes, it shall be deemed to be a condition of such transfer,
            unless specially provided to the contrary, that should the property
B           be at any resumed by the State Government the compensation
            payable therefor shall, notwithstanding anything to the contrary in
            the Land Acquisition Act, 1894, in no case exceed the amount, if
            any, paid to the State Government for the transfer together with
            the cost or the present value, whichever shall be less of any
            buildings erected or other works executed on the land by the
C           committee.
            62. Inventory and map of municipal property.—(1) The committee
            shall maintain an inventory and a map of, all immovable property
            of which the committee is proprietor, or which vests in it or which
            it holds in trust for the State Government.
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            (2) The copies of such inventory and map shall be deposited in
            the office of the Deputy Commissioner and such other officer or
            authority as the State Government may direct and all changes,
            made therein shall forth with be communicated to the Deputy
            Commissioner or other officer or authority.”
E
            21. Clause 61(1)(h) of the 1973 Act is the subject matter of
      challenge in another appeal before this Court whereas clauses (a) to (g)
      except clause (f) deal with the public utility services. The clause (f)
      deals with, “the land or other property transferred to the Committee
      by the State Government or acquired by gift, purchase or otherwise
F     can be utilised only for local public purposes.”
             22. In terms of Section 62 of the 1973 Act, the Municipal Committee
      is required to maintain an inventory and map of all immovable property
      of which the Committee is the proprietor or which vests in it or which it
      holds in trust for the State Government. In the absence of nature of land
G     as to whether it is a land owned by the Municipality and is not vested
      with the Municipality in terms of Section 61 of the Act, no direction by
      the courts could have been granted. It has not come on record as to
      whether such land was vesting with the Municipal Committee or that it
      was not mentioned in the list of inventories of the properties of Municipal
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 MUNICIPAL COMMITTEE, BARWALA, DIST. HISAR, HARYANA THR.                      911
   ITS SECRETARY/PRESIDENT v. JAI NARAYAN AND COMPANY
                    [HEMANT GUPTA, J.]
Committee. We find that Municipal Committee was remiss in defending           A
its property as a custodian of public property.
      23. Section 245 of the 1973 Act falling in Chapter XII (Control)
empowers the Deputy Commissioner or any other officer not below the
rank of Assistant Commissioner by a general or special order to carry
out the functions assigned therein. The Deputy Commissioner has a             B
power to suspend any resolution or order of Committee under Section
246. Any action taken by the Deputy Commissioner under Sections
246, 247 or 248 of the 1973 Act is to be reported to the Commissioner.
      24. Section 250 of the 1973 Act confers power with the State
Government to issue directions for carrying out the purposes of the Act.      C
The said provision reads thus:
      “250. Power of State Government to give directions.—The State
      Government may issue directions to any committee for carrying
      out the purposes of this Act and in particular with regard to—
      (a) various uses to which any land within a municipal are may be        D
      put;
      (b) repayment of debts and discharging of obligations;
      (c) collection of taxes;
      (d) observance of rules and bye-laws;                                   E
      (e) adoption of development measures and measures for promotion
      of public safety, health, convenience and welfare;
      (f) sanitation and cleanliness;
      (g) establishment and maintenance of fire-brigade.”                     F
       25. It is in pursuance of the powers conferred on the State
Government, a message was conveyed on 12.9.1994 on behalf of the
Director, Local Bodies, Haryana to all the Deputy Commissioners of the
State of Haryana that no municipal property will be sold without the
prior approval of the Government. The learned trial court has discarded       G
such communication for the reason that such communication has not
been proved as per the provisions of the Indian Evidence Act, 1872. It
may be stated that the State or the Deputy Commissioner was not
impleaded as a party to the civil suit filed. In fact, the objection raised
was that the State has not been impleaded as a party. Such communication
                                                                              H
912             SUPREME COURT REPORTS                          [2022] 16 S.C.R.


A     has been produced by the Municipal Committee when the Committee
      examined Shri Mahavir Singh, Secretary as DW-1 and Shri Sandeep
      Kumar, Building Inspector as DW-2. Such communication has come on
      record from the official source which would carry presumption of
      correctness under Section 114 of the Indian Evidence Act, 1872 that the
      official acts have been regularly performed. The original record was
B
      not necessarily required to be proved by summoning the Government
      officials as such document was produced by the officials of the Municipal
      Committee from the official record.
             26. Thus, since direction issued by the State Government is in
      terms of Section 250 of the 1973 Act, the Deputy Commissioner was
C     bound to seek approval of the State Government. The binding nature of
      such instructions is evident from the fact that the Deputy Commissioner
      has sought approval from the State Government when a communication
      to this effect was addressed on 10.1.2007.
             27. In view of the above, we find that the plaintiff has been granted
D     decree for mandatory injunction not only beyond the period of limitation
      but in contravention of the statute and the rules framed thereunder.
             28. Consequently, the appeal is allowed. The judgment and decree
      passed by the courts below are set aside. The plaintiff is in possession,
      which is found to be illegal and without the authority of law. The
E     Municipality shall take possession of land forthwith and furnish
      compliance report within three months. The amount of Rs.15,76,150/-
      shall stand forfeited towards the damages for the illegal occupation of
      the land for more than 20 years since the date of auction in contravention
      of law.
F
      Nidhi Jain and Amarendra Kumar                                Appeal allowed.




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