- (1.) THIS appeal is by the defendant Municipal Committee, Raipur.
(2.) THE Municipal Committee, Raipur, in its ordinary general meeting held on 20th June 1958 had passed a resolution granting a lease of certain Municipal nazul lands for a period of three years to Ramanand Lal Gupta. The plaintiff Kanhaiyalal, who is a councillor of the defendant Committee, had opposed the said resolution. The plaintiff, therefore, filed the suit for injunction restraining the Municipal Committee from giving effect to the said resolution. According to the plaintiff, the Municipal Committee could grant the lease only by a public auction and not by private treaty. The plaintiff has, for this contention, relied on the Rules framed by the State Government under section 176 read with section 42 of the C.P. and Berar Municipalities Act, 1922 (hereinafter referred to as 'the Municipalities Act'). The plaintiff claims that the land in question is capable of yielding good income; and if the lease is granted by public auction, substantial premium and annual rent is likely to be fetched. The 'action of the Municipal Committee is calculated to favour an individual at the cost of the interests of the Municipal Committee. The' plaintiff in his capacity as a tax payer, therefore, instituted the suit. The defence is that in view of the proviso to section 42 of the Municipalities Act, the Committee was free to let out in any manner the property vested in it for a term not exceeding three years and that the Rules relied on by the plaintiff do not and cannot restrict that right. It is further urged that the Rules, if they prescribe such restrictions, are ultra vires of the rule making power of the State Government, as they are in violation of the provisions of section 42 of the Municipalities Act.
(3.) THE defendant Committee lost in both the Courts below. In this appeal the Committee has reiterated the same contention.;