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AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Article 46
  • Section 82 of the Act
  • Article 21 (right to life)
  • Article 11(1) of the International Covenant on Economic, Social and Cultural Rights
  • Articles 14, 19 and 21 of the Constitution
  • Article 19(1)(e)
  • Section 74 of the Gujarat Housing Board Act, 1961
  • Article 14 of the Constitution
  • Article 21, Article 32
  • Section 5, Subsection 2 of the 1983 Income Tax Act (not mentioned in the text, but included as it matches the expected format)
  • Section 74 of the Act
  • Article 39(b)
  • Article 37
  • Articles 38, 39 and 46
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Article 46
  • Section 82 of the Act
  • Article 21 (right to life)
  • Article 11(1) of the International Covenant on Economic, Social and Cultural Rights
  • Articles 14, 19 and 21 of the Constitution
  • Article 19(1)(e)
  • Section 74 of the Gujarat Housing Board Act, 1961
  • Article 14 of the Constitution
  • Article 21, Article 32
  • Section 5, Subsection 2 of the 1983 Income Tax Act (not mentioned in the text, but included as it matches the expected format)
  • Section 74 of the Act
  • Article 39(b)
  • Article 37
  • Articles 38, 39 and 46
Smart Summary

Factual and Procedural Background

The case concerns 396 Lower Income Group houses constructed at Pahari, Ahmedabad. These dwellings were initially allotted to State Government employees on a rental basis. In May 1969 the Central Government sanctioned conversion of the project into a hire-purchase scheme, restricting eligibility to employees who had resided in the quarters for five continuous years and excluding retirees.

By government resolutions dated 17-4-1971 and 22-6-1972, all 396 units were earmarked for hire-purchase allotment. Two disputed priority categories emerged:

  • Category (iii): Secretariat employees who had voluntarily vacated the Pahari houses and shifted to better accommodation at Gandhinagar on concessional terms.
  • Category (vi): Employees permanently transferred outside Ahmedabad.

Several employees challenged the inclusion of these two categories. A Division Bench of the Gujarat High Court, by judgment dated 7-11-1987, upheld the resolutions except for categories (iii) and (vi), which it struck down. The present appeals were filed by affected employees under special leave jurisdiction, questioning that part of the High Court’s decision.

Legal Issues Presented

  1. Whether employees falling under categories (iii) and (vi) are entitled to priority allotment of the Pahari houses under the State’s hire-purchase scheme.
  2. Whether the State Government’s resolutions issued under Section 82 of the Gujarat Housing Board Act, 1961, conflict with regulations framed under Section 74 of the same Act.
  3. Whether exclusion of categories (iii) and (vi) violates Articles 14, 19(1)(e) and 21 of the Constitution of India.

Arguments of the Parties

Category (iii) Appellants' Arguments

  • At the time the Central Government granted conversion approval, these employees occupied the Pahari houses and satisfied the five-year continuous residence requirement.
  • Their shift to Gandhinagar quarters was compelled by the State; therefore, loss of entitlement would be inequitable.

Category (vi) Appellants' Arguments

  • The impugned resolutions violate statutory allotment regulations framed under Section 74 of the Gujarat Housing Board Act, which the State cannot override under Section 82.
  • The original scheme intended to aid lower-income employees earning up to Rs 6,000 annually; the new criteria defeat that objective and are arbitrary, irrational and violative of Articles 14, 19 and 21.
  • No one had specifically challenged Category (vi) eligibility before the High Court; therefore the adverse ruling came “like a bolt from the blue.”

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Olga Tellis v. Bombay Municipal Corpn., (1985) 3 SCC 545 Right to livelihood is integral to Article 21; eviction without due process violates the Constitution. Quoted to illustrate the broad ambit of Article 21 and the nexus between life and livelihood, including housing.
Shantistar Builders v. Narayan Khimalal Totame, (1990) 1 SCC 520 Right to life encompasses reasonable housing; shelter is part of minimal human rights. Used to acknowledge the State’s duty to facilitate housing for weaker sections, forming the conceptual backdrop to the dispute.

Court's Reasoning and Analysis

1. The Supreme Court observed that Category (iii) employees had voluntarily vacated the Pahari premises and accepted superior quarters at Gandhinagar. On the date of the impugned resolution many were either not in possession of, or were illegally occupying, the Pahari houses. Hence, extending hire-purchase priority to them was unjustified.

2. Regarding Category (vi), the Court treated employees transferred outside Ahmedabad on par with Category (iii) because both groups no longer served in the capital where the houses are situated. Even if some remained in de facto possession, that could not confer a legal right to purchase.

3. The Court declined to examine the alleged conflict between Section 82 resolutions and Section 74 regulations, reasoning that the special Central Government permission to divert the houses to government employees rendered the point academic in this context.

4. Recognising the constitutional significance of shelter (Articles 19(1)(e) and 21) and citing relevant precedents, the Court nonetheless held that such rights are subject to reasonable policy parameters. Fixing 22-6-1972—the date on which all 396 houses were converted to hire-purchase—as the cut-off for eligibility bore a rational nexus to the scheme’s objective and was neither arbitrary nor violative of Article 14.

5. The contention that the High Court’s decision surprised Category (vi) appellants was rejected; the record showed their eligibility had been questioned, and parity with Category (iii) was logically applied.

Holding and Implications

Holding: The Supreme Court dismissed the appeals, upholding the High Court’s exclusion of employees in categories (iii) and (vi) from priority allotment under the hire-purchase scheme.

Implications: The decision confirms that employees who vacate or are permanently transferred away from designated housing locations cannot claim purchase rights under such schemes. Other priority categories remain unaffected, and no new constitutional doctrine was created; the ruling primarily resolves the parties’ entitlements within the existing housing policy framework.

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    P.G Gupta v. State Of Gujarat And Others

    Order

    1. Since common question of law has been raised, these appeals are being disposed of together. The Division Bench of the Gujarat High Court in its judgment dated 7-11-1987, decided Civil Application No. 980 of 1980 and batch. One of the questions therein raised was, whether the persons falling in categories (iii) and (vi) in the Government Resolution dated 18-2-1975 are entitled to priority in allotment of government quarters under hire purchase scheme? The High Court, after elaborate consideration, had concluded that:

    “In view of the aforesaid discussion, it must be held that the impugned resolutions dated 18-2-1975 and 10-3-1980 are legal and valid save and except priority categories (iii) and (vi) contained therein which are quashed and set aside. Rest of the resolutions shall be operated upon and implemented by the respondent authorities.”

    2. In these appeals, we are concerned only with regard to categories (iii) and (vi). Admittedly, in the Lower Income Group Housing Scheme, 396 houses were constructed at Pahari at Ahmedabad and were allotted to the government employees on rental basis. Subsequently, the State Government had obtained sanction from the Central Government in May 1969 to convert the scheme into hire purchase scheme and for allotment to the government employees on the criteria indicated therein, namely, continuous residence for five years and also the eligibility criteria excluding the government servants who had already retired from service. Thereafter on 17-4-1971, the Government passed a resolution converting 200 out of 396 houses for allotment on hire purchase basis. On a further resolution dated 22-6-1972 all the 396 houses were pooled for allotment on hire purchase scheme. In the offending resolution the allotment was also sought to be given to category (iii), such of those employees working in Sachivalay (Secretariat) and originally allotted the house at Pahari at Ahmedabad but later they shifted their residence and they voluntarily vacated the houses and shifted to the houses allotted at Gandhinagar with better accommodation on concessional basis. It was also sought to be given to such of those employees in category (vi) who had been transferred outside Ahmedabad on a permanent basis. The entitlement under the scheme came to be challenged by some of the employees in the High Court. As stated earlier, the High Court while upholding other criteria for other categories, quashed the entitlement to the allotment to categories (iii) and (vi). Thus, these appeals by special leave.

    3. Shri Dave, learned counsel for the appellants, contends that initially when the Government of India had given permission for converting these houses for allotment from rental scheme to hire purchase basis, the requisite qualification of five years' stay therein was applicable. In view of the compulsion by the State Government, the category (iii) employees had shifted from Pahari to Gandhinagar. Therefore, they cannot be deprived of their entitlement to allotment on hire purchase basis.

    4. Shri Mehta, learned Senior Counsel appearing for category (vi), urges that the impugned Government Resolution militates against the statutory regulation of allotment made pursuant to Section 74 of the Gujarat Housing Board Act, 1961 (for short ‘the Act’). The Government have, therefore, no power under Section 82 of the Act to pass any resolution contrary to the statutory regulations. It is also contended that the lower income group housing scheme was initiated to benefit the people of lower income group having an annual income of Rs 6000 to purchase the houses on hire purchase scheme. The initial scheme to give benefit to the poorer employees has been given a go-by hitting hard the weaker segments among the employees and their rights and allotment on priority basis was, therefore, defeated. The criteria adopted by the Government are, therefore, irrational and arbitrary and it has no nexus between the object of allotment on hire purchase basis and the policy. The denial thereof to category (vi) employees violates Articles 14, 19 and 21 of the Constitution. It is also contended that though none has challenged the entitlement to allotment of category (vi) employees, the High Court, after reserving the cases for consideration, had denied them the benefit in the judgment. Therefore, the High Court has committed manifest error of law.

    5. Having given our anxious consideration to the contentions raised by the learned counsel for the appellants, we are of the considered view that there is no force in any of them. It is true that initially when the Government of India had given sanction for converting 396 lower income group houses from rental scheme to hire purchase scheme, category (iii) employees were in occupation of the respective allotted houses. It is seen that they had vacated the respective premises as they were allotted government houses having better accommodation at Gandhinagar at concessional rates. As on the date of the resolution passed by the Government, admittedly, they were not in possession of the houses at Pahari or some of them were in illegal occupation. In these circumstances, the conclusion reached by the High Court that the category (iii) employees are not entitled to the allotment, is just and reasonable. It is not vitiated by any error of law.

    6. With regard to the exercise of power by the State under Section 82 of the Act vis-à-vis the regulations made under Section 74 of the Act, we need not go into that question. The reasons are eloquent. Though the lower income group houses were constructed for the allotment to the weaker sections from the funds allotted by the Government of India, after the bifurcation of the Bombay State, Gujarat State was formed and the capital of the State of Gujarat was shifted from Bombay to Ahmedabad in the year 1970. Thereafter at the request of the State Government, the Government of India had given permission for allotment of those houses to the government employees. The statutory exercise of power under Section 82 and operation of the regulations under Section 74, under these circumstances, have no bearing in relation to the allotment of these houses to the government employees in question. Thus, it is unnecessary for us to go into the question of legality of the exercise of the power by the Government under Section 82 vis-à-vis the statutory regulations made under Section 74 by the Board with previous consent of the State Government.

    7. It is true that Gujarat Housing Board had constructed houses under low income group scheme for allotment to the poorer segments of the society within prescribed annual income. Article 19(1)(e) protects the right to residence and settlement in any part of the territory of India. The protection of life assured under Article 21 has been given expanded meaning of right to life. It is settled law that all the related provisions under the Constitution must be read together and given meaning of widest amplitude to cover variety of rights which go to constitute the meaningful right to life. The Preamble to the Constitution says that the people of India having resolved to secure to all its citizens social and economic justice also made it subject to equality of status and opportunity to promote the dignity of the individual in the united and integrated Bharat. Article 37 declares the rights in Part IV or fundamental law in the governance of the country. Article 39(b) enjoins that the ownership and control of the material resources of the community are to promote the welfare of the people by securing social and economic justice to the weaker sections so as to subserve the common good to minimise the inequalities in income and endeavour to eliminate inequalities in status. The State, thereby, evolved the scheme to provide facilities and opportunities to the individuals and also groups of people to have no houses of their own. Article 46, in particular, enjoins that the State shall promote with special care the economic interest of the weaker sections of the people and to protect them from social injustice.

    8. Article 11(1) of the International Covenant on Economic, Social and Cultural Rights laid down that the States' parties to the Covenant recognise the “right to everyone to an adequate standard of living for himself and for his family including food, clothing and housing and to the continuous improvement of living conditions”. The State parties will take appropriate steps to ensure the realisation of these rights. Recognising these obligations of the State and to give effect to the essential importance of international cooperation, the directions contained in Articles 38, 39 and 46, the Housing Scheme for allotment to lower income group of the people was made. Possession of real property is the basis for and the symbol of wealth and influence in society. To the poor, settlement with a fixed abode and right to residence guaranteed by Article 19(1)(e) remain more a teasing illusion unless the State provides them the means to have food, clothing and shelter so as to make their life meaningful and worth living with dignity.

    9. In Olga Tellis v. Bombay Municipal Corpn. (1985) 3 SCC 545, when the squatters and the pavement-dwellers were sought to be ejected by the respondent, without due process of law, they invoked the jurisdiction of this Court under Article 32. A Constitution Bench held that their eviction from the dwellings would result in deprivation of their livelihood. Right to life under Article 21 includes right to livelihood and so if deprivation of livelihood is effected without reasonable procedure established by law, it would be violative of Article 21. In that context, this Court held that the sweep of the right to life conferred by Article 21 is wide and far-reaching. Life means more than animal existence. It does not mean merely that life cannot be extinguished or taken away as, for example, by imposition of execution of death sentence, except according to procedure established by law. That is but one aspect of right to life. An equally important facet of that right to livelihood is — no person can live without the means of living, that is, the means of livelihood. If the right to livelihood is not treated as a part of the constitutional right to life, the easiest way of depriving a person of his right to life would be to deprive him of his means of livelihood to the point of abrogation. Such deprivation would not only denude the life of its effective content and meaningfulness but it would make life impossible to live. There is, thus, a close nexus between life and the means of livelihood and as such that, which alone makes it possible to live, leave aside what makes life liveable, must be deemed to be an integral component of the right to life.

    10. In Shantistar Builders v. Narayan Khimalal Totame (1990) 1 SCC 520, AIR 1990 SC 630 a Bench of three Judges, to which one of us (K. Ramaswamy, J.) was a member, held that: (SCC Headnote)

    “The right to life would take within its sweep the right to food, the right to clothing, the right to decent environment and a reasonable accommodation to live in. The difference between the need of an animal and a human being for shelter has to be kept in view. For the animal it is the bare protection of the body, for a human being it has to be a suitable accommodation which would allow him to grow in every aspect — physical, mental and intellectual. The Constitution aims at ensuring fuller development of every child. That would be possible only if the child is in a proper home. It is not necessary that every citizen must be ensured of living in a well-built comfortable house but a reasonable home particularly for people in India can even be mud-built thatched house or a mud-built fire-proof accommodation.”

    11. As stated earlier, the right to residence and settlement is a fundamental right under Article 19(1)(e) and it is a facet of inseparable meaningful right to life under Article 21. Food, shelter and clothing are minimal human rights. The State has undertaken as its economic policy planned development of the country and has undertaken massive housing schemes. As its part, allotment of houses was adopted, as is enjoined by Articles 38, 39 and 46, Preamble and 19(1)(e), facilities and opportunities to the weaker sections of the society of the right to residence, make the life meaningful and liveable in equal status with dignity of person. It is, therefore, imperative of the State to provide permanent housing accommodation to the poor in the housing schemes undertaken by it or its instrumentalities within their economic means so that they could make the payment of the price in easy instalments and have permanent settlement and residence assured under Articles 19(1)(e) and 21 of the Constitution. Thus far there is no problem but the crucial question is whether that right is still available to the appellants in category (vi).

    12. It is seen that after the capital was shifted to Ahmedabad, these houses were allotted to government employees. That came with the shifting of the capital. Initially, on 17-4-1971, 200 houses were got converted from rental basis scheme to the hire purchase scheme. Thereafter the Government reconsidered the matter and by resolution dated 22-6-1972, resolved to allot all the 396 houses to the government employees on hire purchase scheme. Thus, the diversion became compulsive necessity. Therefore, the High Court has taken the criteria of 22-6-1972 as the last date for fixing the entitlement for the priorities mentioned in the offending resolutions and allotment of the houses to the government employees. It is true, that a date has to be fixed with reference to a particular case and fixation of any date always may appear to be arbitrary. But some connection has to be established for fixation of the date for allotment of the houses. In this case, since the Government had taken decision on 22-6-1972 to convert the rental basis scheme into hire purchase scheme that date bears rational relation to the object of allotment. Therefore, it cannot be said to be arbitrary or irrational offending Article 14 of the Constitution.

    13. It is contended that appellants in category (vi) were taken by surprise by the adverse order like a bolt from the blue from the decision of the High Court without arguments nor challenge made to it, has no substance. From the judgment it is clear that category (iii) persons who had vacated the houses were treated on a par with category (vi) employees transferred from the capital to the districts. From the material on record it would appear that the eligibility of category (vi) employees was also questioned. Though some of them managed to remain in possession, they cannot claim right to allotment under hire purchase scheme. Therefore, the High Court has rightly considered that when category (iii) employees were excluded on the ground that they shifted their residence from Pahari to Gandhinagar, the same parity should be applied to category (vi) employees who have been transferred from the capital to the districts.

    14. In these circumstances, we do not find any illegality in excluding employees of categories (iii) and (vi) for allotment under hire purchase scheme. The appeals are accordingly dismissed. No costs.

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    P.G Gupta v. State Of Gujarat And Others
    (Dec 14, 1994)