K. Kannan, J. - (1.) THE petitioner has challenged the action of the 2nd respondent in according to the petitioner a municipal property on lease on condition that the petitioner shall pay 10% of the market value of the land as lease money from the date of the occupation of the land. It is the contention that the petitioner has taken possession of the property and he has been running a school on a no profit basis. The contention is that the requirement of payment of 10% of the market value as rent is excessive and it violates their own policy spelt out through the Secretary, Local Government Department of 12/19th December, 1977 that in respect of recognized/registered educational and charitable institutions, the Municipal Committee shall be allowed to lease out the land with prior approval of the State Government at the rate of 5% of the market value. This itself ought to be really a ceiling, for, the Municipal Committee had actually passed a resolution that the property shall be leased out to the petitioner for 99 years at the rate of Rs.100 per annum.
(2.) THE above resolution itself records that it was being sent to the Secretary, Local Government, Punjab, through the Deputy Commissioner to the SDO, Ferozepur and the Deputy Director, Ferozepur, for consideration of the Government along with the respective recommendations for lease as per the resolution. In response to the communication sent to the Government, the Government has announced that lease would be granted in favour of the petitioner if they agreed to pay 10% of the market value of the land as lease money from the date of occupation of the property and if the management failed to give such a consent, they would not be allowed to retain the land and the municipality would be free to eject them from the land as under unauthorized occupation. It is this decision of the Government which is in challenge before this Court. The learned senior counsel for the petitioner would contend that the school is being run at the property of panchayat on no profit basis and the assessment of 10% of the value of the land would be grossly inequitable. The contention is that if at all, the lease could have been given only at 5% of the value in terms of the Government policy that allowed for leasing of land of municipality at the rate of 5% of the market value of the land. The policy is spelt out through a communication of the Secretary to Government to all the Deputy Commissioners in the State of Punjab by letter dated 12/19th December, 1977 (Annexure P -5). In my view, the impugned decision brought through the communication (Annexure P -4) is definitely arbitrary to the extent that it does not follow the declared policy of the Government as found expressed in the communication in Annexure P -5, referred to above. The relevant clause in the policy is reproduced: In case of recognized/registered educational and charitable institutions, Municipal Committees are allowed to lease out the land, with prior approval of the State Government, at the rate of 5% of the market value of the land. This will be subject to the stipulation that land so leased out should not be suitable for commercial exploitation.
(3.) EVEN while asserting for the petitioner's entitlement to lease in the manner recommended by the Municipal Committee, the learned senior counsel would contend that at the highest rate, it could never be more than 5% of the market value and the same shall also be for a continuous period of 99 years.;