Does the Public Trust Doctrine impose an absolute prohibition on transferring public trust property?
Coram: Surya Kant; Nongmeikapam Kotiswar Singh
No. In the Indian context the Doctrine has evolved to encompass public resources meant for collective benefit, reflecting the constitutional mandate under Article 21. While the Doctrine does not impose an absolute prohibition on transferring public trust property, it subjects such alienation to stringent judicial review to ensure legitimate public purpose and adequate safeguards.
Manual for Marketing and Management of Industrial Areas — Clause 2.15 — Clause 3.04(vii) — Legal notice — Cancellation of allotment — Public Trust Doctrine — Allocation of public resources — Art. 21 — Manual for Marketing and Management of Industrial Areas — Clause 3.04(vii) — Essential elements of a legal notice — Held: A 'legal notice' connotes an unambiguous communication along with legal consequences to a noticee alleged to be in default, conveying the facts, the impending breach and the intention to hold the other party liable. A communication not captioned a legal notice is not thereby disqualified. (¶22, 23) Manual for Marketing and Management of Industrial Areas — Clause 2.15 — Possession only after registration of lease deed — Held further: Where the Manual fixes the date of possession only after registration of the lease deed, registration must precede possession. An allottee who fails to furnish the documents for registration is itself to blame for non-delivery of possession. (¶15, 16) Cancellation of allotment — inherent right of the allotment authority — judicial intervention circumscribed — Held further: Land allotment authorities possess the inherent right to cancel allotments upon violation of stipulated conditions. Judicial intervention in matters concerning land revocation should be circumscribed to ensure adherence to procedural safeguards. (¶20) Public Trust Doctrine — Art. 21 — Allocation of industrial land without a competitive process — Held further: Allocation of a substantial tract of industrial land without a competitive process fundamentally violates the Public Trust Doctrine, which demands proper procedure and substantive accountability in public resource allocation. Cancellation upheld and appeals dismissed; the subsequent allotment annulled and directions issued. (¶33, 36)
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