SHIVSAGAR TIWARI versus UNION OF INDIA AND ORS.

SHIVSAGAR TIWARI versus UNION OF INDIA AND ORS.

The Court held that discretionary allotments made by the Minister, not in accordance with the established policy and tender system but favouring relatives, employees, and friends, constitute arbitrary exercise of power and misfeasance in public office, actionable in tort; all such allotments are to be cancelled and fresh allotments made under a just and fair policy; Minister to show cause why exemplary damages should not be imposed.

Parties
Petitioner: Shivsagar Tiwari; Respondents: Union of India and Ors.
Jurisdiction
India
Judgment Date
11 October 1996
Procedural Posture
Writ Petition (c) No. 585 of 1994 / Disposition of Main Issue; Further Orders Pending
Outcome
Petition disposed of; allotments cancelled; further inquiry for damages
Legal Topics
Misfeasance in Public Office, Arbitrary Exercise of Power, Exemplary Damages, Allotment of Public Property, Ministerial Accountability
Constitutional Law Administrative Law Tort Law Corruption Misfeasance in Public Office Arbitrary Exercise of Power Exemplary Damages Allotment of Public Property +1 more

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Parties

Shivsagar Tiwari

Petitioner

Union of India and Ors.

Respondents

Procedural Posture

Writ Petition (c) No. 585 of 1994 / Disposition of Main Issue; Further Orders Pending

Legal Issues

  1. 1 Whether discretionary allotment of shops/stalls by a Minister, in violation of policy guidelines and favouring relatives/friends, constitutes actionable misuse of power and tortious liability.
  2. 2 Whether allotments should be cancelled and exemplary damages imposed against the Minister.

Ratio Decidendi

The Court held that discretionary allotments made by the Minister, not in accordance with the established policy and tender system but favouring relatives, employees, and friends, constitute arbitrary exercise of power and misfeasance in public office, actionable in tort; all such allotments are to be cancelled and fresh allotments made under a just and fair policy; Minister to show cause why exemplary damages should not be imposed.

Court Disposition

Petition disposed of; allotments cancelled; further inquiry for damages

Orders

  • All illegal allotments cancelled; Government to revise policy and allot afresh as per law within two months.
  • Present allottees allowed to continue until fresh allotment; if not selected afresh, to vacate shop/stall within three months.