ORDER V.N. Khare, J.
1. Leave granted.
2. There is vacant land measuring two acres within the limits of Gram Panchayat which vests in the Vakalapudi Gram Panchayat. The Gram Panchayat of Vakalapudi on 26.3.84, resolved to use the said two acres of vacant land for purposes of a public park. Subsequently, the Gram Panchayat, by a resolution dated 7.8.84, settled the said land with the Appellant Society for purposes of setting up of a school. By another resolution of the said date, it was resolved that Sarpanch of Gram Panchayat shall be made life member of the Appellant Society and the Society shall allot 10% of the total seats in that school as per direction of the Sarpanch of the Gram Panchayat. The aforesaid two resolutions were challenged by means of a Writ Petition under Article 226 of the Constitution. A learned Single Judge of the High Court was of the view that it was not open to the Gram Panchayat to settle the said land in favour of the Appellant Society in view of restriction placed in the rules against transfer of Gram Panchayat land, and in case the Gram Panchayat intends to settle the said plot of land for purposes of running a school, the same shall be only transferred by a public auction. The District Collector preferred a writ appeal against the aforesaid decision of the learned Single Judge, but the same was dismissed. It is against the said decision the Appellant Society is in appeal before us.
3. Notice issued on Special Leave Petition was confined to the question as to whether public body like the Respondent Panchayat could be permitted to alienate the property in the manner as directed by the High Court.
4. We have heard learned Counsel for the parties and perused the record. It is not disputed that the acquisition and transfer of immovable property which vests in the Gram Panchayat are governed by the rules framed under Gram Panchayat Act. The said Rules do not permit that the land which vests in the State is to be transferred through a public auction. Moreover, any property including any vacant land which vest in Gram Panchayat is meant to be utilised for public purposes and for benefit of general public of the Gram Panchayat. In fact, the public is the only beneficiary of the property that vests in the Gram Panchayat. It is not the object that the property, which vests in the Gram Panchayat, is to be sold through a public auction with a view to raise more money. Even if the land is to be sold, the paramount consideration should be the genera! benefit to the people of the Gram Panchayat. Under such circumstances, we find that the direction issued by the High Court that the property should be sold through a public auction is not warranted under the rules. We, therefore, set aside that part of the order of the High Court. The appeal is allowed. There shall be no order as to costs.