July 1, 2024
DU LLBEnvironmental LawSemester 6

Sachidanand Pandey v. State of West Bengal, AIR 1987 SC 1109CHINNAPPA REDDY, J.

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  • 4. In India, as elsewhere in the world, uncontrolled growth
    and the consequent environmental deterioration are fast assuming menacing proportions and
    all Indian cities are afflicted with this problem. The once imperial city of Calcutta is no
    exception. The question raised in the present case is whether the Government of West Bengal
    has shown such lack of awareness of the problem of environment in making an allotment of
    land for the construction of a five star hotel at the expense of the zoological garden that it
    warrants interference by this Court? Obviously, if the government is alive to the various
    considerations requiring thought and deliberation and has arrived at a conscious decision after
    taking them into account, it may not be for this Court to interfere in the absence of mala fides.
    On the other hand, if relevant considerations are not borne in mind and irrelevant
    considerations influence the decision, the court may interfere in order to prevent a likelihood
    of prejudice to the public. Whenever a problem of ecology is brought before the court, the
    court is bound to bear in mind Article 48-A of the Constitution, the Directive Principle which
    enjoins that “the State shall endeavour to protect and improve the environment and to
    safeguard the forests and wild life of the country”, and Article 51-A(g) which proclaims it to
    be the fundamental duty of every citizen of India “to protect and improve the natural
    environment including forests, lakes, rivers and wild life, and to have compassion for living
    creatures”. When the court is called upon to give effect to the Directive Principle and the
    fundamental duty, the court is not to shrug its shoulders and say that priorities are a matter of
    policy and so it is a matter for the policy-making authority. The least that the court may do is
    to examine whether appropriate considerations are borne in mind and irrelevancies excluded.
    In appropriate cases, the court may go further, but how much further must depend on the
    circumstances of the case. The court may always give necessary directions. However the
    court will not attempt to nicely balance relevant considerations. When the question involves
    the nice balancing of relevant considerations, the court may feel justified in resigning itself to
    acceptance of the decision of the concerned authority. We may now proceed to examine the
    facts of the present case. (Emphasis added)
  1. There is in Calcutta a zoological garden located in Alipore, now almost the heart of
    Calcutta, on either side of Belvedere Road, one of Calcutta’s main arterial roads, forty-nine
    acres on one side and eight acres on the other. The main zoo is in the forty-nine acres block of
    land. There are some old buildings and vacant land in the eight acre plot of land. This eight
    acre plot of land is known as the Begumbari land. It is out of these eight acres that the land of
    the extent of four acres has been carved out and given to the Taj Group of Hotels for the
    construction of a Five Star Hotel. It is this giving away of land, that was challenged before the
    High Court and is now challenged in this Court in this appeal by two citizens of Calcutta, one
    of them the Secretary of the union of workmen of the zoological garden and the other a life
    member of the zoo, both of whom claim to be lovers of wild life and well-wishers of the zoo.
  2. In January 1979, the Director General of Tourism, Government of India, addressed a
    letter to the Chief Secretary, Government of West Bengal conveying the resolution of the
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    Tourism Conference which was presided over by the Union Minister of Tourism and attended
    by several State Ministers and requesting that land in good locations may be made available
    for construction of hotels in a drive to encourage tourism. In May 1980 the Taj Group of
    Hotels came forward with a suggestion that they would be able to construct a Five Star Hotel
    if any of three properties on Chowringhee, specified by them, was made available to them.
    The Government found that there was some litigation connected with the Chowringhee
    properties and, therefore, it would not be possible to convey the Chowringhee properties to
    the Taj Group of Hotels. On September 29, 1980 and November 29, 1980, there were two
    notes by the Secretary of the Metropolitan Development Department to the effect that the
    ITDC was interested in a property known as the Hastings House property and that the Taj
    Group of Hotels who considered the Hastings House property unsuitable may be offered four
    acres out of the eight acres of Begumbari land. On the same day the Taj Group of Hotels
    wrote to the Government of West Bengal stating that the proposed land could be seriously
    considered for construction of a hotel. Thereafter the Chief Minister along with the Minister
    of Tourism and the Minister for Metropolitan Development visited the site accompanied by
    the Director of the zoo who apparently knew about the proposal right from the start. A note
    was then prepared by the Secretary, Metropolitan Development Department and put up to the
    Chief Minister for his approval. The note suggested that the Hastings House property may be
    offered to the ITDC and the Begumbari property may be offered to the Taj Group and that at a
    later stage a suitable committee might be appointed to negotiate with the two groups of hotels.
    The Chief Minister approved the proposal and required it be to placed before the Cabinet. On
    January 7, 1981 a memorandum was prepared for the consideration of the Cabinet explaining
    the need for more Five Star Hotels in Calcutta and the benefits flowing out of the construction
    and establishment of such five star hotels. It was suggested that the Hastings House property
    may be leased to the ITDC Group and the Begumbari property to the Taj Group of Hotels. In
    regard to the Begumbari property, it was stated: “From the property of the Zoological
    Gardens on the Belvedere Road it is possible to carve out about four acres of land currently
    used for dumping garbage and also for growing grass for the elephants. It will be necessary
    and in any case advisable to shift the dumping ground, while adequate space can be made
    available for growing grass elsewhere in the same area.” It was stated that the Finance and
    Tourism Departments had agreed to the proposal to lease the properties to the ITDC and the
    Taj Group respectively. It was stated that though the Forest Department had suggested that
    Salt Lake was a better place for establishing a Five Star Hotel, there was no demand for a
    Five Star Hotel in that area and the request for a hotel in Salt Lake was confined to a Three
    Star Hotel. Cabinet approval was sought for the offers to be made to the ITDC and to the Taj
    Group and for the constitution of a suitable committee to undertake negotiations with the two
    groups
  3. On February 12, 1981, the Cabinet took a decision approving the proposal contained in
    the last paragraph of the Cabinet Memorandum, thus clearing the way for negotiations with
    the Taj Group.
  4. Meanwhile, it appeared that the Public Undertakings Committee appointed by the West
    Bengal Legislative Assembly submitted a report on February 14, 1981 about the zoo in which
    they stated:
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    Originally this zoo was on the outskirts of the city but the city has grown in such
    a fashion that the zoo has virtually become the city centre and there is hardly any
    scope for its expansion. The zoo is situated on the left bank of the Tolly’s Nalla
    divided with two parts on either side of the Alipore Road. The zoo proper is about 40
    acres on the western side, while the eastern part comprises the zoo hospital, audiovisual centre, acquarium, zoo store and staff quarters. The Committee was informed
    that nowadays migratory birds were coming less in number though previously more
    foreign birds used to come here and in the opinion of the Managing Committee, the
    main reason for this was due to air and sound pollution. Breeding potentialities of
    animals and birds have been retarded due to constant stress and strain on the animals
    and also due to atmospheric reasons …. The Committee came to learn that a big hotel
    was proposed to be constructed on the plot of land where fodder for elephant are
    being grown to meet at least a portion of the elephants’ food. Moreover, the staff
    quarters, hospitals for animals and the morgue are also situated near the said plot of
    land. If the proposed hotel is set up, all the existing buildings, viz. hospital, morgue
    etc. would have to be shifted to the main gardens resulting in unhealthy atmosphere
    for the zoo animals and also hampering the beauty of the Zoo Gardens. This would
    also create problems to the staff quarters and aquarium.
    The Committee also referred to a proposal to establish a ‘subsidiary zoo’ some slight
    distance from Calcutta city and the request said to have been made for the allotment of 200
    acres of land for that purpose. It was suggested that the Government may consider
    abandoning the proposal to set up a hotel on the eastern side of the zoo.
  5. The Chief Town Planner also visited the site at the request of the Secretary,
    Metropolitan Development Department. The inspection was made in the presence of the
    Director of the zoo. The Chief Town Planner thought that 2 to 2 1/2 acres of land only might
    be made available for the hotel. He expressed the apprehension that if four acres of land were
    to be given for construction of a hotel, then the entire hospital and the dumping ground would
    have to be removed and the southern boundary of the hotel would come very close to the
    residential block.
  6. On March 19, the Taj Group submitted a proposal to the Government containing
    fairly detailed information about the tourism industry and its needs, the situation in Calcutta,
    the realities of hotel construction, the facts relating to what had been done in other cities, the
    benefits flowing out of the construction of hotels and their own proposals for constructing a
    hotel in the four acres of land in Belvedere Road. Two alternative financial arrangements
    were suggested. The first alternative was the payment of annual rent on the basis of the
    valuation of the land, the second alternative was based on the concept of net sales, net sales
    being defined as sales after deducting all taxes and levies and service charges. The
    Metropolitan Development Department expressed a preference for the second alternative and
    suggested the constitution of a committee. The Finance Department also approved. The Taj
    Group was invited to send the financial projection on the basis of the second alternative.
    Correspondence went on. On June 5, 1981, a Committee of Secretaries was formally
    constituted.
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  7. In the meanwhile, WEBCON, a West Bengal Government Consultancy Undertaking,
    was asked to examine the proposals and to advise the Government. The WEBCON submitted
    its report on July 14, 1981 and on the request of the Committee of Secretaries a further report
    was submitted on July 22, 1981. The report of WEBCON is a comprehensive report on
    various topics connected with the establishment of a Five Star Hotel in Calcutta. Among other
    things the report also suggested various financial alternatives and recommended the second
    alternative based on net sales as the best. It is to be mentioned here that even by February 21,
    1981 the proposal to lease out the Begumbari land to the Taj Group of Hotels had become
    public knowledge and newspapers carried reports on the same.
  8. On June 9, 1981, the Secretary of the Animal Husbandry and Veterinary Services
    Department complained to the Secretary of the Metropolitan Development Department that
    they were not aware of the decision to lease the Begumbari land. The Secretary, Metropolitan
    Development Department made an endorsement on the letter to the effect that the Minister for
    Animal Husbandry and Veterinary Services had himself visited the site. In fact, as we have
    seen, the matter had been considered and approved by the Cabinet itself and all departments
    must necessarily have been appraised of the proposal.
  9. While so, the Managing Committee of the Zoo, on June 11, 1981, passed a resolution
    expressing itself against the proposal to construct a hotel on land belonging to the zoo. The
    resolution said:
    The proposal for soil testing of zoo land in the Begumbari Compound for the
    purpose of construction of Five Star Hotel was discussed in the meeting. The
    Committee resolved that construction of a multi-storied building in the near vicinity
    of the zoo will be highly detrimental to the animals of the zoo, its ecological balance
    and adversely affect the bird migration which is one of the greatest attractions of the
    zoo. The area proposed to be taken for hotel construction is already used by the zoo
    for fodder cultivation, burial ground for dead animals, animal hospital, operation
    theatre, quarantine area, segregation wards, post-mortem room and nursery both for
    zoo animals and horticultural section. These essential services cannot be
    accommodated within the campus of the main zoo for risk of spreading of infection
    to other animals of the zoo. Procurement of green fodder for the large number of
    herbivorous animals of the zoo is already a serious problem for the zoo and any
    disturbance to fodder cultivation will aggravate the situation. The Calcutta zoo has
    the smallest area in comparison to other reputed zoo. The Committee is of a opinion
    that no portion of zoo land can be parted with for any other purpose. This being the
    position soil testing will hardly be of any avail as the zoo cannot spare the land. Shri
    Ashoka Basu, MLA, Shri K.P. Banerjee and Shri A.K. Das abstained from
    participation in the proceedings.
    The Minister for Metropolitan Development submitted a note to the Chief Minister on the
    resolution of the Managing Committee of the zoo. He pointed out that even if four acres out
    of the eight acres of Begumbari land was given to the Taj Group, there would still remain
    sufficient land for accommodation of the facilities. He added that the Managing Committee’s
    resolution was not binding on the Government and suggested that the Director of the zoo
    139
    might be asked to allow the Taj Group to undertake soil testing etc. so that work may proceed
    according to the time schedule. The Chief Minister endorsed the following:
    I agree. It is unfortunate that we have not been able to accept the contentions of
    the Managing Committee. If further facilities are necessary for the Zoo, the
    government will provide them.
    On June 25, 1981, the Managing Committee of the zoo met again and passed another
    resolution by which they withdrew their earlier objections. The resolution stated:
    In view of the letter issued to the Zoological Gardens, Alipore and the Cabinet
    decision regarding the land of Begumbari Compound and in consideration of the
    assurance conveyed through Shri Ashoka Bose, Chief Whip and Member that the
    State Government will give to the Garden adjacent lands and matching grants for the
    purposes of shifting of the departments of the zoo within the aid compound, the
    Members do not press their objections as contained in the resolution of the Managing
    Committee held on June 11, 1981.
    This was passed by the majority of the Members present, the President Justice
    Shri R.K. Banerjee dissenting.
  10. Presumably as a consequence of the letter from the Director of the zoo there was a
    note by the Secretary, Animal Husbandry and Veterinary Services Department suggesting the
    postponement of the implementation of the Cabinet decision till the necessary facilities then
    available at Begumbari land were shifted to other land of the same extent within a reasonable
    distance from the Zoological Garden, as those facilities were originally linked with the zoo.
    He pointed out that the Metropolitan Development Department had not consulted the Animal
    Husbandry Department before the Cabinet note was prepared and circulated. So the practical
    problems of the zoo did not receive detailed consideration earlier. The note also pointed out
    that immediate transfer of the four acre plot of land would mean discontinuance of existing
    hospital facilities, research laboratory, operation theatre, segregation wards, quarantine
    facilities etc. A reference was also made to the report of Public Undertakings Committee.
  11. Meanwhile negotiations with Taj Group proceeded apace. The WEBCON submitted
    further reports. Taj Group suggested further modifications. On September 9, 1981 a detailed
    memorandum was prepared for Cabinet discussion. Two alternative financial proposals were
    set out. A reference was made to the Committee of Secretaries who negotiated with the Taj
    Group of Hotels. Note was taken of the suggestion of the Negotiation Committee that the
    overall development plan for the environmental beautification, widening of approach roads,
    landscaping of Tolly’s Nullah were responsibilities of the State Government and estimated to
    cost Rs 2 crores but that it was expected to be of considerable public benefit. Stress was laid
    on the direct and indirect economic activities which would be generated by the establishment
    of a Five Star Hotel. Reference was also made to the report of WEBCON and it was noted
    that the projected profitability of the venture to the Government was expected to be high. It
    was also mentioned that the Ministers in charge of Tourism, Animal Husbandry, Land
    Revenue and Finance had seen the note and had agreed to it. On September 10, 1981 the
    Cabinet took the final decision to grant a ninety-nine years lease of the four acres of
    Begumbari land to the Taj Group of Hotels. On September 28, 1981 the Government of West
    140
    Bengal officially conveyed its acceptance of the proposal of the Taj Group of Hotels for the
    construction of a Five Star Hotel. The terms and conditions of the lease were set out. On
    January 7, 1982, there was a joint meeting of the Establishment and Finance sub-committees
    of the Zoo and it was decided to recommend to the Committee of management that the
    demarcated area of four acres may be relinquished in favour of Animal Husbandry and
    Veterinary Services Department subject to the requirement that the zoo will continue to get
    the services and facilities in the existing structures until they were reconstructed on the
    adjacent land. On January 11, 1982 the Managing Committee endorsed the view of the subcommittees and this was communicated to the Government. On January 15, 1982, the
    Government of West Bengal wrote to the Land Acquisition Officer, with copies to the Taj
    Group of Hotels, directing the Land Acquisition Officer to give possession of the land to the
    Taj Group of Hotels subject to their later executing a proper long-term lease. It was
    mentioned in the letter that the construction of the hotel should not be started till the lease
    deed was executed and registered. It was further expressly stipulated as follows:
    The Alipore Zoological Garden will continue to get the services and facilities
    from the existing essential structures which fall within the demarcated area in the
    annexed sketch map till such time when these essential structures i.e. hospital and
    operation theatre are reconstructed on the adjacent land occupied by the Zoological
    Garden. A copy of the sketch map is enclosed for ready reference. The Indian Hotels
    Co. Ltd. will find out in consultation with and with the concurrence of the Animal
    Husbandry and Veterinary Services Department of this Government and the
    authorities of the Alipore Zoological Garden the period of time required for
    reconstruction of the essential structures standing on the land proposed to be leased
    out to the said Company. It will also let this Department have in consultation with
    and with the concurrence of the Animal Husbandry and Veterinary Services
    Department of this Government and the Alipore Zoological Garden a plan and
    estimate for reconstruction of the aforesaid essential structures on the land adjacent to
    the land proposed to be leased out, so that all these points are incorporated in the
    deed of lease between the said Company and the State Government in this
    department for the said land measuring four acres.
    As agreed by the said Company during the various meetings its representatives
    had with various departments of this government, the company will either place the
    necessary fund in the hands of Animal Husbandry and Veterinary Services
    Department or the Zoo Garden authorities, as the case may be, for reconstruction of
    the aforesaid essential structures or reconstruct the aforesaid essential structures
    under its own supervision to the satisfaction of the Zoo Garden authorities or Animal
    Husbandry and Veterinary Services Department as the case may be; such funds will
    in either case be advanced or deemed to be advanced by the Company without
    interest to be adjusted against dues of the State Government in accordance with the
    terms and conditions of the lease.
  12. It is to be noted here that though the stipulation was that the cost of new construction
    was to be initially met by Taj Group of Hotels and later to be adjusted against the rent payable
    by Taj Group, the Taj Group later agreed to waive such reimbursement. We are told that a
    141
    total sum of Rs 30 lakhs has now been spent by Taj Group of Hotels in connection with the
    reconstruction. We are also told that an extent of 288 square meters out of the plot given to
    the Taj Group was carved out and given back for accommodating part of the reconstructed
    structures. Pursuant to the letter dated January 15, 1982 possession was given to Taj Group on
    January 16, 1982. Thereafter an Expert Committee was constituted to supervise the
    construction of alternative facilities. At that stage the writ petition out of which the present
    appeal arises was filed on February 26, 1982. Initially the relief sought was primarily to
    restrain the zoo authorities from giving effect to the two resolutions dated January 7, 1982 and
    January 11, 1982 to hand over the four acres to the Animal Husbandry Department of the
    Government. Subsequent to the filing of the writ petition, a lease deed was executed by the
    Taj Group of Hotels in favour of the Government. The writ petition was therefore, amended
    and a prayer for cancellation of the lease deed was added. First a learned Single Judge
    dismissed the writ petition. On appeal, a Division Bench of the High Court confirmed the
    judgment of the learned Single Judge. The original petitioners are now before us having
    obtained special leave under Article 136 of the Constitution.
  13. Before adverting to the submission of the learned counsel, it is necessary, at this
    juncture, to refer to certain correspondence. On April 23, 1982, Late Smt. Indira Gandhi,
    Prime Minister of India wrote to Shri Jyoti Basu, Chief Minister of West Bengal expressing
    the hope that he would not allow the Calcutta Zoo to suffer in any manner and would leave it
    intact. She drew the Chief Minister’s attention to the fact that “apart from reduction in the
    already inadequate space for the Zoological Garden construction of a Five Star multi-storeyed
    building would disturb the inmates and adversely affect bird migration which was a great
    attraction”. She also mentioned that the Expert Committee of the Indian Board for Wild Life
    also unanimously disapproved the idea. She queried whether the hotel could not be located
    elsewhere. For one reason or the other the Prime Minister’s letter did not reach the Chief
    Minister for a considerable time. On August 21, 1982 the Chief Minister sent his reply
    pointing out that the four acres of land were agreed to be relinquished by the Committee of
    Management of the Zoological Garden on condition that alternate arrangements were made
    for shifting the existing structures which were necessary for the zoo from the plot in question
    to the adjacent plot. The Chief Minister also mentioned that there appeared to be some
    misconception that the plot in question was a part of the Zoo Garden. It was not so. It was
    outside the Zoological Garden and separated from it by a 80-100 feet road. The Chief
    Minister assured the Prime Minister that the existing structures would be relocated on the
    adjacent land and until that was done the zoo would continue to get their services and
    facilities from the existing structures. The Chief Minister further drew the attention of the
    Prime Minister to the fact that the hotel was likely to be a six storeyed one and would not be
    the only tall building near the zoo. There were already a large number of highrise residential
    buildings around the zoo. No one had raised any objection when those buildings were
    constituted. Another multi-storeyed building which was going to be the largest in the locality
    was under construction near the zoo for the Post and Telegraph Department. There was no
    report that the existing multi-storeyed buildings had any adverse effect on the migratory birds
    or the animals. The Chief Minister also pointed out that the lessee and their experts on wild
    life had assured them that in any case adequate precaution would be taken in regard to
    illumination of the hotel and the lay out of the surroundings so that no disturbance would be
    142
    caused to the flight path of the birds or animals. On August 30, 1982, Shri J.R.D. Tata wrote
    to the Prime Minister pointing out that their hotel management had discussed the matter at
    length with representatives of the Wild Life Fund who were satisfied that the proposed hotel
    would cause no disturbance to the birds. He had again gone thoroughly into the project with
    special reference to its possible impact on the birds or environment and had also visited
    Calcutta in that connection. He was satisfied that the project could not possibly disturb birds
    using the lake or interfere with their free movement. He gave his reasons as follows:
    The four acre plot assigned to the Hotel Company by the State Government is not
    within the boundaries of the area belonging to the Zoological Gardens but on the
    other side of Belvedere Road, an important thoroughfare parallel to the main
    boundary of the zoo and some 700 feet from the main part of the lake. It forms part of
    an area belonging to the State Government which the zoo authorities have up to now
    been allowed to use to look after sick animals of the zoo and as labour quarters. It
    contains five small structures including a cage and a small veterinary laboratory or
    dispensary. The whole area is in shockingly unkept condition, most of it covered by a
    single or spear grass and other wild growth.
    The hotel is planned to be built away from the frontage of that plot of Belvedere
    Road and to be low rise structure, the highest point of which will not exceed 75 feet.
    Dr B. Biswas, a renowned ornithologist, who recently retired as Professor
    Emeritus of the Zoological Survey of India, whom the Taj Management consulted,
    confirmed that a 75 feet high building on the location would not worry birds landing
    on the lake or climbing out of it. In fact, as the grounds of the zoo between the take
    and Belvedere Road are covered with high trees, the climbing or descent angle which
    the birds have to negotiate to get over the trees is already steeper than it will be
    between the lake and the proposed hotel.
    As regards the objection that arise from the hotel itself from vehicular traffic to
    and from the hotel would disturb the birds, the hotel will be totally airconditioned so
    that no noise will emanate from it, while noise from the heavy traffic on Belvedere
    Road does not seem it have bothered the birds up to now. The occasional additional
    cars plying into and out of the hotel could therefore hardly trouble birds resting on
    the lake some 250 yards away.
    Regarding the fear that lights emanating from the hotel or illuminated signs of the
    hotel would disorient the birds and possibly cause them to hit the building the
    management of the Hotel Company has taken a firm decision that there will be no bright
    lights or neon signs emanating from the hotel.
    Shri Tata further suggested that if necessary the Prime Minister could appoint a small
    advisory committee consisting of Shri Pushpa Kumar, Director of the Hyderabad Zoo
    considered to be the finest zoo in India and one of the best in Asia, Dr Biswas, Mrs Anne
    Wright and the Chairman of the Managing Committee of the Zoological Garden to advise on
    the subject. On September 1, 1982, Smt Indira Gandhi wrote to Mr Tata expressing her
    happiness that the hotel was not going to upset the zoo animals and welcoming his offer to
    help the State Government to improve the zoo’s facilities.
    143
  14. We are unable to agree with the submission of Dr Singhvi, learned counsel for the
    appellants, that the Government of West Bengal decided to grant the lease of the Begumbari
    land to the Taj Group of Hotels without applying their mind to very important relevant
    considerations. Much of the argument on this question was based on the assumption that the
    decision to lease the Begumbari land to the Taj Group of Hotels was taken on February 12,
  15. The decision taken by the Cabinet on February 12, 1981 was merely to enter into
    negotiations with the ITDC and the Taj Group of Hotels in regard to leasing the Hastings
    House property and the Begumbari land. Negotiations with the ITDC did not fructify while
    negotiations with the Taj Group of Hotels fruitioned. It was on September 10, 1981 that the
    Cabinet finally took the decision to lease the Begumbari land to the Taj Group. If there was
    any decision on February 12, 1981 in regard to leasing the Begumbari land it could at best be
    characterised as purely tentative and it could not by any stretch of imagination be called an
    irrevocable or irreversible decision in the sense that the Government was powerless to revoke
    it or that it had created any rights in anyone so as to entitle that person to question any
    reversal of the tentative decision. It was not a decision, if it was one, on which any right could
    be hung. At that stage, the Government of West Bengal appeared to have been on the search
    for two suitable plots of land which could be offered, one to the ITDC and the other to the Taj
    Group of Hotels for the construction of Five Star Hotels. The record shows that these two
    chain hoteliers were the only hoteliers – and, they certainly were leading hoteliers of the
    country – who had come forward to negotiate with the West Bengal Government regarding the
    construction of Five Star Hotels. The city of Calcutta was noticeably lacking in the “Five Star
    Hotel amenity” to attract tourists, local and foreign, and the Government of West Bengal was
    anxious to do its best to promote the tourist industry which it was hoped, would provide direct
    and indirect employment, earn foreign exchange and confer other economic benefits to the
    people of the State. It is immaterial whether the move came first from the Government or
    from the Taj Group. The Government was anxious that more Five Star Hotels should be
    established at Calcutta and the Taj Group was willing to establish one. They wanted a suitable
    plot for its construction. It was the suggestion of the All India Tourism Conference presided
    over by the Union Minister for Tourism that State Governments should make plots in good
    locations available at concessional rates for construction of hotels in order to promote the
    tourist industry. It was in pursuance of this general all-India policy and, in particular, to fulfil
    the felt needs of Calcutta that the Government of West Bengal was looking out for a suitable
    plot in a good location. They were clearly not doing so at the behest of the Taj Group of
    Hotels. It does not require much imagination to say that location is among the most important
    factors to be considered when constructing a Five Star Hotel, particularly if it is to promote
    tourism. Obviously, one place is not as good as another and the place has to be carefully
    chosen. After excluding Salt Lake and after considering some properties in Chowringhee, the
    Government felt that two properties, the Hastings House property and the Begumbari property
    could be thought of as meeting the requirements. Since the Hastings House property was not
    found acceptable by the Taj Group, it was decided to negotiate with them in regard to
    construction of a Five Star Hotel on the Begumbari land. We find it difficult to treat this
    decision to negotiate with the Taj Group in regard to construction of a Five Star Hotel on the
    Begumbari land as a final decision to part with the land. The prominent use to which the land
    was evidently put at that time was as a dumping ground for refuse and rubbish and for
    144
    growing fodder for elephants. This was noticed and mentioned in the note prepared for the
    consideration of the Cabinet and it was suggested that separate provision would have to be
    made for them. Therefore, it is clear that it was not forgotten that if the land was to be allotted
    to the Taj Group, separate provision would have to be made for whatever use the land was
    being put to them. The Government was not unmindful of the interests and requirements of
    the Zoological Garden though at that stage no detailed investigations had apparently been
    made. The decision of the Government was not one of those mysterious decisions taken in the
    shrouded secrecy of Ministerial Chambers. It appears to have been taken openly with no
    attempt at secrecy. The decision, perhaps proposal would be a more appropriate word, was
    known to the Public Undertakings Committee in less than two days. They expressly refer to it
    in their report dated February 14, 1981 made two days after the Cabinet decision. By twentyfirst February it was public knowledge and news of the proposal was published in the daily
    newspapers. We have no evidence of any immediate or subsequent public protest but there
    were certain objections from some circles. Earlier we have extracted the report of Public
    Undertakings Committee. The substance of the objection of the Public Undertakings
    Committee was that the facilities available in the Begumbari land would be left unprovided
    for if the land was given to the proposed hotel. The available facilities were mentioned as
    staff quarters, hospital for animals, burial ground for animals, fodder for elephants etc. It was
    also said that if the hospital and the burial ground were to be shifted to the main garden it
    would result in an unhealthy atmosphere for the animals and the zoo and would detract from
    the beauty of the Zoo Garden. The assumption of the Public Undertakings Committee that the
    hospital and the burial ground were to be shifted to the main garden was baseless, since there
    was never any such proposal. A modern zoo hospital for animals has been constructed in the
    remaining extent of Begumbari land replacing the old hospital which was housed in a semidilapidated building. Surely, there should be no complaint about it. It has also been proposed
    to shift the burial ground elsewhere. That would be most desirable from any point of view.
    Fodder for elephants should not again be considered to be a problem. It would be stretching
    credibility to suggest that it is necessary to grow fodder in the Begumbari land to feed the
    elephants in the zoo. Fodder may be bought and brought from elsewhere. The Chief Town
    Planner who was deputed to visit the site at the request of the Secretary, Metropolitan
    Development Department and who visited the zoo accompanied by the Director of the zoo
    reported that 2 to 2 1/2 acres of land might be made available for the hotel. If four acres of
    land were given, he expressed the apprehension that the hospital and the dumping ground
    would have to be moved elsewhere. The hospital as we have already mentioned has since
    been conveniently and comfortably accommodated in a new building and the proposal is to
    move the dumping ground elsewhere. The Managing Committee of the zoo also initially
    expressed its opposition to the proposal to construe a hotel on land belonging to the zoo. The
    Committee’s objections were twofold: (1) A multi-storied building in the vicinity of the zoo
    will disturb the animals and the ecological balance and will affect the bird migration (2) the
    land was already used for various purposes, that is, fodder cultivation, burial ground for
    animals, hospital, operation theatre, quarantine area, post-mortem room and nursery. It would
    be impossible, according to the Committee to accommodate these essential services within the
    campus of the main zoo. The objections of the Managing Committee were first brought to the
    notice of the Minister for Metropolitan Development who submitted a note to the Chief
    145
    Minister pointing out that even if four acres of land out of the eight acres of Begumbari land
    was given to the Taj Group, there would still remain sufficient land for accommodating the
    existing facilities. The Chief Minister considered the objections and noted that if further
    facilities were necessary for the zoo, Government would provide them. Thereafter the
    Managing Committee reversed its earlier stand and agreed to the proposal on the assurance
    that adjacent land and matching grants would be given to the zoo. We have earlier referred to
    the letter of the Director of the Zoo dated June 29, 1981 addressed to the Secretary, Animal
    Husbandry Department where he expressed his opposition to the proposal on the ground that
    the zoo could not be run for a single day without the essential services which were being
    provided in the four acres of land proposed to be given for the hotel. This again, we notice, is
    based on the assumption that there was going to be no provision for those facilities once the
    hotel was constructed. We have already pointed out that this assumption is wholly incorrect.
    The letter of the Director of the zoo was followed by a note by the Secretary of the Animal
    Husbandry Department suggesting that the practical problems of the zoo should receive
    detailed consideration and that the immediate transfer of the land to the hotel would mean
    discontinuance of the existing facilities. In the face of all this material, we do not see how it
    can be seriously contended that the interests and the requirements of the zoo were totally
    ignored and not kept in mind when the decision was taken to lease the land to the Taj Group
    of Hotels. The Chief Minister’s attention was expressly drawn to the Managing Committee’s
    first resolution expressing its opposition to the proposal to give the land for the construction
    of a hotel and detailing the objections and the Chief Minister had expressly noted that all
    facilities necessary for the zoo would be provided by the Government. The assurance was also
    conveyed to the Managing Committee through the emissaries of the Chief Minister. There
    were inter-departmental notings which we presume must also have been brought to the notice
    of the Chief Minister. We find it impossible to agree with the stricture that the Chief Minister
    turned a blind eye and a deaf ear to the interests and the requirements of the zoo and went
    about the question of allotment of land to the Taj Group of Hotels determined to give the land
    to them and with a mind closed to everything else. We cannot do so in the face of the
    assurance of the Chief Minister that facilities would be provided for the zoo and if, as the
    saying goes, the proof of the pudding is in the eating, the Chief Minister’s assurances are
    found reflected in the lease executed by the Taj Group of Hotels in favour of the Government
    of West Bengal.
    In clause 25 of the lease deed, it is expressly stipulated that the lessee shall reconstruct the
    structures now existing on the demised land (as found in the sketch accompanying the deed)
    on the adjacent plot of land and that the plan, design, lay out, estimates, etc. of the proposed
    new structures should be supplied by the Alipur Zoological Garden to the lessee. The
    reconstructed structures were required to be equal to the existing ones in floor area, but it was
    open to them to increase the floor area by agreement. The amount expended by the lessee
    towards the reconstruction of the structures was to be adjusted without interest against the
    dues of the lessee to the Government. The Alipore Zoological Garden authorities were
    required to vacate the existing structure within a period of six months which was also the
    period stipulated for raising the new constructions. We may add here that the Taj Group of
    Hotels have spent a sum of Rs 30 lakhs towards the cost of the new constructions, but that
    they have waived their right to claim reimbursement from the government. An affidavit to
    146
    that effect was also filed before the trial court. Thus we see that the contention of the
    appellants that the Government of West Bengal had no thought to spare for the facilities
    which were till then being provided in the Begumbari land is unsustainable. The learned
    counsel for the appellants urged that the second cabinet memorandum dated September 9,
    1981 on which date the Government took the final decision to grant the lease made no
    mention of the needs and interests of the zoo or the facilities provided in the Begumbari land
    for the zoo. It is true that there is no reference to these matters in the second cabinet
    memorandum. But that is for the obvious reason that the matter had already been the subjectmatter of inter-departmental discussion and communication. The Managing Committee of the
    zoo which had initially opposed the proposal had also come round and had agreed to the
    proposal. It was, therefore, thought that there was no need to mention the needs and interests
    of the zoo which were already well known and had also received consideration.
  16. It was suggested that the zoo itself required to be expanded and there was, therefore,
    no land which could be spared. The land allotted to the hotel was, as we have seen, not used
    for the main purpose of the zoo and was not in fact part of the main Zoological Garden. The
    Government had already in mind a proposal to start a subsidiary zoo in an extent of about 200
    acres of land in the outskirts of Calcutta. This has been mentioned in the various notings made
    from time to time. We have no doubt that the Government was quite alive to the need for
    expansion of the zoo when they decided to grant four acres of the Begumbari land which was
    not used for the main purpose of the zoo for the construction of a Five Star Hotel.
  17. The next question is whether the Government was alive to the ecological
    considerations, particularly to the question of the migratory birds when they took the decision
    to lease the land to the Taj Group of Hotels. Again sustenance to the argument of the learned
    counsel for the appellants is sought to be drawn from the circumstance that neither of the two
    Cabinet Memoranda dated January 7, 1981 and September 9, 1981 referred to the migratory
    birds. It is wrong to think that everything that is not mentioned in the cabinet memoranda did
    not receive consideration by the government. We must remember that the process of choosing
    and allotting the land to the Taj Group of Hotels took nearly two years, during the course of
    which objections of various kinds were raised from time to time. It was not necessary that
    every one of these objections should have been mentioned and considered in each of the
    cabinet memoranda. The question of the migratory birds was first raised in the resolution of
    the Managing Committee dated June 11, 1981. This resolution was forwarded to the Chief
    Minister and considered by him as evident from the note of the Chief Minister and the
    subsequent reversal of the Managing Committee’s resolution at the instance of the Chief
    Minister and on his assurances. The Chief Minister was certainly aware of the question of the
    migratory birds before it was finally decided to allot the Begumbari land to the Taj Group of
    Hotels. That the Government was aware of the dissension based on the alleged obstruction
    likely to be caused by a multi-storeyed building to the flight of the migratory birds appears
    from the letter of the Chief Minister to the Prime Minister. In this letter, the Chief Minister
    pointed out that there were already in existence a number of multi-storeyed buildings all
    around the Zoological Garden, but there was no report that they had any adverse effect on the
    migratory birds or the animals. He also pointed out that all precautions would be taken in the
    matter of illumination of the hotel and lay out of the surroundings so that no disturbance
    147
    would be caused to the flight path of the birds or animals. Shri J.R.D. Tata, on behalf of the
    Taj Group of Hotels, also wrote to the late Prime Minister assuring her that the hotel
    management had discussed the matter at length with a representative of the Wild Life Fund
    who, after discussion, had been satisfied that the proposed hotel would cause no disturbance
    to the birds. He further assured her that he had himself gone thoroughly into the project with
    special reference to the possible impact on the birds and the environment and had satisfied
    himself that the project would not cause any disturbance to the birds or their free movement.
    The reasons given by him have already been extracted earlier by us from his letter. He pointed
    out that the four acre plot was not within the main Zoological Garden, but was separated from
    it by the Belvedere Road which was an important thoroughfare in the city. It was about 700
    feet from the main part of the lake. The hotel was proposed to be built away from the frontage
    of the plot in Belvedere Road and was to be a low rise structure, the highest point of which
    would not exceed 75 feet. This was mentioned apparently to indicate that the building would
    not come within the trajectory of the birds. He mentioned that Dr Biswas, a renowned
    ornithologist had also been consulted by the Taj Management and he had also confirmed that
    a 75 feet building would not interfere with the landing or climbing out of the birds from the
    lake. He further mentioned that the grounds of the zoo between the lake and the Belvedere
    Road were covered with tall trees and that the birds negotiating the trees would have to fly at
    a steeper angle than it would be necessary to negotiate the proposed hotel. The vehicular
    traffic on Belvedere Road which was also heavy did not bother the birds and the slight
    increase of the vehicular traffic consequent on the construction of the hotel was also not likely
    to bother them either. It was also pointed out that particular care would be taken in the matter
    of illumination of the hotel so that bright lights or neon signs emanating from the hotel would
    not disturb the birds and animals.
  18. We are satisfied that the question of obstruction which may be caused to migratory
    birds did not go unnoticed by the government before the decision to lease the land was taken
    and we are also satisfied that the building of the proposed hotel is not likely to cause any
    obstruction to the flight path of the migratory birds.
  19. Bearing in mind the proper approach that we have to make when questions of ecology
    and environment are raised, an approach which we have mentioned at the outset, we are
    satisfied that the facts and circumstances brought out by the appellants do not justify an
    inference that the construction of the proposed hotel in the Begumbari land would interfere in
    any manner with the animals in the zoo and the birds arriving at the zoo or otherwise disturb
    the ecology: The proposed hotel is a garden hotel and there is perhaps every chance of the
    ecology and environment improving as a result of planting numerous trees all around the
    proposed hotel and the removal of the burial ground and dumping ground for rubbish.
  20. On a consideration of the relevant cases cited at the Bar the following propositions
    may be taken as well established: State-owned or public-owned property is not to be dealt
    with at the absolute discretion of the executive. Certain precepts and principles have to be
    observed. Public interest is the paramount consideration. One of the methods of securing the
    public interest, when it is considered necessary to dispose of a property, is to sell the property
    by public auction or by inviting tenders. Though that is the ordinary rule, it is not an
    invariable rule. There may be situations where there are compelling reasons necessitating
    148
    departure from the rule but then the reasons for the departure must be rational and should not
    be suggestive of discrimination. Appearance of public justice is as important as doing justice.
    Nothing should be done which gives an appearance of bias, jobbery or nepotism.
  21. Applying these tests, we find it is impossible to hold that the Government of West
    Bengal did not act with probity in not inviting tenders or in not holding a public auction but
    negotiating straightway at arm’s length with the Taj Group of Hotels.
  22. The last and final submission of the learned counsel for the appellants relates to the
    commercial and financial aspects of the lease. According to the learned counsel, the “net
    sales” method of calculating the compensation payable to the Government for the lease of the
    land has totally sacrificed the State’s interests. He submits that if the market value of the land
    had been fairly determined and the rent had been stipulated at a percentage of that value, the
    return to the Government would have been much higher. We do not think that there is any
    basis for any genuine criticism. The “net sales” method appears to be a fairly well known
    method adopted in similar situations. This was what was recommended by WEBCON, the
    consulting agency of the West Bengal Government who submitted a detailed report on the
    subject. This was also the recommendation of the Committee of Secretaries who went into the
    matter in depth. Even to lay persons like us who are no financial experts, it appears that the
    “net sales” method does and the rent-based-on-market-value method does not take into
    account the appreciating value of land, the inflationary tendency of prices and the profit
    orientation. Even on a prima facie view, there appears to be nothing wrong or objectionable in
    the “net sales” method. It is profit-oriented and appears to be in the best interests of the
    Government of West Bengal.
  23. On a consideration of all the facts and circumstances of the case, we are satisfied that
    the Government of West Bengal acted perfectly bona fide in granting the lease of Begumbari
    land to the Taj Group of Hotels for the construction of a Five Star hotel in Calcutta. The
    Government of West Bengal did not fail to take into account any relevant consideration. Its
    action was not against the interests of the Zoological Garden or not in the best interests of the
    animal inmates of the zoo or migrant birds visiting the zoo. The financial interests of the State
    were in no way sacrificed either by not inviting tenders or holding a public auction or by
    adopting the “net sales” method. In the result, the judgments of the learned Single Judge and
    the Division Bench of the Calcutta High Court are affirmed and the appeal is dismissed.

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