In Brief
The State of Uttaranchal challenged a High Court order overturning cancellation of three residential leases granted to a religious organization. The State had cancelled the leases on two grounds: (1) the Subdivisional Magistrate (S.D.M.) lacked authority to grant them, and (2) the lessee breached terms by constructing cowsheds and bathing ghats instead of using the land residentially. The Supreme Court held that the District Magistrate alone was authorized to grant allotments; the S.D.M.'s action was beyond jurisdiction, not merely irregular. The Court rejected arguments based on estoppel and indoor management principles. While the lessee's use for religious pilgrimage facilities was permissible, the appeal was allowed on jurisdiction grounds. The Court recommended that the State consider allowing the lessee to complete the remaining lease period.
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