City Montessori School vs State of U.P. 2024 INSC 570 – Grant Of State Largessee

Grant Of State Largessee- Even assuming that the alleged lessee has leasehold rights concerning the plot, the rights of the State as the owner and lessor can be transferred only by adopting a fair and transparent process by which the State fetches the best possible price. In case of the sale of a leasehold plot by the lessor, the rights of the lawful lessees do not get affected, as their tenancy will be attorned to the purchaser in view of Section 109 of the Transfer of Property Act,1882. Therefore, the rights of the State as the lessor can only be sold by a public auction or by any other transparent method by which apart from the lessee, others too get a right to submit their offer. Selling the plot to its alleged lessee at a nominal price will not be a fair and transparent method at all. It will be arbitrary and violative of Article 14 of the Constitution of India. (Para 8-9)

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