Gujarat High Court
Viatrix Engineering And Plastics Llp vs State Of Gujarat on 22 August, 2025
NEUTRAL CITATION
C/SCA/10770/2025 JUDGMENT DATED: 22/08/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 10770 of 2025
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE ANIRUDDHA P. MAYEE Sd/-
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Approved for Reporting Yes No
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VIATRIX ENGINEERING AND PLASTICS LLP
Versus
STATE OF GUJARAT & ANR.
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Appearance:
PRATEEK S BHATIA(8629) for the Petitioner(s) No. 1
MR JAY BAROT AGP for the Respondent(s) No. 1,2
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CORAM:HONOURABLE MR. JUSTICE ANIRUDDHA P. MAYEE
Date : 22/08/2025
ORAL JUDGMENT
1. RULE. Rule returnable forthwith. Mr. Jay Barot, learned AGP waives service of rule for the respondents.
2. With the consent of the learned counsels for the parties, the matter is taken up for final hearing and disposal.
3. The present Special Civil Application has been filed seeking below mentioned reliefs:-
"(A) Your Lordships may be pleased to issue a writ of certiorari or writ in the nature of certiorari or any other appropriate writ, order or direction, to quash and set aside the orders dated 08.08.2022 and 15.07.2025 in Application having its number as 21911202201001 and 21911202503566 passed by Collector, Vadodara (Annexure-A);
(B) Your lordships may be pleased to issue a writ of mandamus or any Page 1 of 10 Uploaded by KAUSHIK D. CHAUHAN(HC00197) on Thu Sep 11 2025 Downloaded on : Sat Sep 13 00:00:11 IST 2025 NEUTRAL CITATION C/SCA/10770/2025 JUDGMENT DATED: 22/08/2025 undefined other writ of appropriate nature, order or direction, directing the Respondent No.2 to grant Certificate under Section 63AA of the Gujarat Tenancy and Agricultural Lands Act, 1948 for land situated at Revenue Survey No.62, Village-Manglej Taluka- Karjan, Vadodara in the interest of justice;
(C) Grant such other and further relief(s) as may be deemed fit in the interest of justice and equity."
4. The brief facts leading to the filing of the present writ petition are that the petitioner purchased the subject land situated at Revenue Survey No.62, Village Manglej, Taluka Karjan, District Vadodara [for short "the subject land"] for industrial purposes under the provisions of Section 63AA of the Gujarat Tenancy and Agricultural Lands Act, 1948 ["Act" for short]. The subject land originally belonged to Parmar Lilaben Bharatsinh and Parmar Rekhaben Bharatsinh, from whom the petitioner purchased the land by way of registered sale deed dated 13.12.2021. The said transactions came to be duly reflected in the revenue records by mutation entries bearing Nos. 2438 and 2439.
4.1 Pursuant thereto, the petitioner preferred an online application dated 26.02.2022 being Application No. 21911202201001 seeking permission under Section 63AA of the Act for use of the subject land for bona fide industrial purposes. The Collector, Vadodara, by order dated 08.08.2022 (Order No. 1404/19/11/010/2022), rejected the said application on the basis of an opinion dated 07.04.2022 issued by the District Inspector of Land Records, Vadodara, recording a negative opinion regarding measurement.
Page 2 of 10 Uploaded by KAUSHIK D. CHAUHAN(HC00197) on Thu Sep 11 2025 Downloaded on : Sat Sep 13 00:00:11 IST 2025NEUTRAL CITATION C/SCA/10770/2025 JUDGMENT DATED: 22/08/2025 undefined 4.2 That the petitioner thereafter submitted a fresh online application dated 17.05.2025 being Application No. 21911202503566 again seeking permission under Section 63AA of the Act for bona fide industrial purposes. However, the Collector, Vadodara, by order dated 15.07.2025 (Order No. 2366/19/11/010/2025) rejected the said application on the ground that the earlier rejection order dated 08.08.2022 had not been challenged before the appellate authority and therefore, cannot be reconsidered.
4.3 Learned advocate Mr. Bhatia for the petitioner has submitted that the impugned orders dated 08.08.2022 and 15.07.2025 are wholly arbitrary, mala fide, and passed without due application of mind, and therefore, deserve to be quashed and set aside. It is submitted that both the orders are unreasonable and suffer from lack of cogent reasons. That the respondent No.2 has erroneously relied upon the opinion dated 07.04.2022 of the District Inspector of Land Records, Vadodara, which recorded a negative opinion regarding measurement, and on such basis proceeded to reject the applications. It is further contended that the respondent authority has travelled beyond the jurisdiction conferred under Section 63AA of the Act and therefore, the impugned orders are without authority of law.
4.4 That the power exercised by the Collector under Section 63AA of the Act is administrative in nature and not quasi- judicial. Consequently, the principle of functus officio or bar on filing of a fresh application does not apply. Reliance is placed on the decision of this Court in M/s Rathore Steels v. State of Page 3 of 10 Uploaded by KAUSHIK D. CHAUHAN(HC00197) on Thu Sep 11 2025 Downloaded on : Sat Sep 13 00:00:11 IST 2025 NEUTRAL CITATION C/SCA/10770/2025 JUDGMENT DATED: 22/08/2025 undefined Gujarat [Special Civil Application No. 8844 of 2024 decided on 02.05.2025], wherein it has been held that an application rejected or consigned to file on account of technical defects or procedural lapses does not preclude the applicant from curing such defects and submitting a fresh application, without being mandatorily required to prefer an appeal under Section 63AA(3)
(d) of the Act. That the rejection of the petitioner's second application dated 17.05.2025 solely on the ground that the earlier rejection dated 08.08.2022 was not challenged in appeal is ex-facie erroneous and directly contrary to the law laid down in Rathore Steels (supra). That as per Section 63AA(3)(a) of the Act, upon receipt of notice from the purchaser within 30 days of purchase, the Collector is required to hold an inquiry to satisfy himself that the purchase was made for bonafide industrial purposes and thereafter issue a certificate. Rejection of the application dehors the said provision is, therefore, beyond jurisdiction. The impugned orders are thus, unsustainable in law and liable to be quashed and set aside.
5. Per contra, learned AGP Mr. Jay Barot for the respondents submits that the Collector was bound by the statutory provisions and no error has been committed by the Collector, while rejecting the applications. Learned AGP submits that the scheme of the Act is that upon an applicant making an application for grant of certificate for bonafide industrial purpose, the Collector after making an inquiry has to satisfy himself that the purchaser has validly purchased the land for a bonafide industrial purpose in conformity with the provisions of Act. Thereafter, a certificate to such effect can be issued in the form prescribed.
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6. The learned AGP submitted that if the Collector is not satisfied then after giving an opportunity of being heard, he can refuse certificate to the person in question and the sale of land would be deemed to be in contravention of Section 63AA. Learned AGP relied upon Clause 3d(i) of Section 63AA and submitted that upon refusal to issue a certificate by a Collector, the purchaser may file an appeal to the State Government or such officer as having been authorized by the State Government. Learned AGP would submit that the applications of the present petitioner having been rejected, it was incumbent upon the petitioner to have preferred an appeal before the Special Secretary, Revenue Department and having not preferred an appeal, it was not open for the Collector to have considered the applications preferred by the present petitioner afresh. Thus learned AGP submits that this Court may not to interfere with the impugned order.
7. Heard the learned advocates for the respective parties and perused the documents on record.
8. Section 63AA of the Gujarat Tenancy and Agricultural Lands Act, 1948 reads thus:-
"63AA. (1) Nothing in section 63 shall prohibit the sale or the agreement for the sale of land for which no permission is required under sub-section (1) of section 65B of the Bombay Land Revenue Code, 1879 in favour of any person for use of such land by such person for a bonafide industrial purpose:
Provided that -
(a) the land is not situated within the urban agglomeration as defined in clause (a) of section 2 of the Urban Land (Ceiling and Regulation) Act, 1976,
(b) where the area of the land proposed to be sold exceeds ten hectares Page 5 of 10 Uploaded by KAUSHIK D. CHAUHAN(HC00197) on Thu Sep 11 2025 Downloaded on : Sat Sep 13 00:00:11 IST 2025 NEUTRAL CITATION C/SCA/10770/2025 JUDGMENT DATED: 22/08/2025 undefined the person to whom the land is proposed to be sold in pursuance of this sub-section shall obtain previous permission of the industries Commissioner, Gujarat State or such other officer, as the State Government may by an order in writing, authorise in this behalf,
(c) The area of the land proposed to be sold shall not exceed four times the area on which construction for a bonafiede industrial purpose is proposed to be made by the purchaser:
Provided that any additional land which may be required for pollution control measures or required under any relevant law for the time being in force and certified as such by the relevant authority under that law shall not be taken into account for the purpose of computing four times the area:
[Provided further that where the land is sold to a purchaser which is a company as defined by clause (20) of section 2 of the Companies Act, 2013, it may offer the equity shares of the company, to the person by whom such land is being sold, in lieu of the sale price of such land and if such person is in agreement for accepting such equity shares, either in full or partly, then it shall be incumbent upon such company to allot such equity shares of equivalent amount, either in full or partly, to such person,]
(d) where the land proposed to be sold is owned by a person to belonging to the Scheduled Tribe, the sale shall be subject to the provisions of section 73AA of the Bombay Land Revenue Code, 1870.
(2) Nothing in section 63A shall apply to any sale made in pursuance of sub-section (1).
(3) (a) Where the land is sold to a person in pursuance of sub-section (1) (hereinafter referred to as " the purchaser"), he shall within thirty days from the date of the purchase of the land for a bonafide industrial purpose send a notice of such purchase in such a form along with such other particulars as may be prescribed to the Collector and endorse a copy thereof to the Mamlatdar.
(b)Where the purchaser fails to send the notice and other particulars to the Collector Under clause (a) within the period specified therein, be shall be liable to pay in addition to the Non-agricultural assessment leviable under this Act, such fine not exceeding two thousand Rupees as the Collector may, subject to rules made under this Act, direct.
(c) Where on receipt of the notice of the date of purchase for the use of land for a Bonafide industrial purpose and other particulars sent by the purchaser under clause (a), the Collector, after making such inquiry as he deems fit-
(i) Is satisfied that the purchaser of such land has validly purchased the land for A bonafide industrial purpose in conformity with the provisions of sub-section (1), he shall Issue a certificate to that effect to the purchaser in such form and within such time as may be prescribed.
(i) Is not so satisfied, he shall, after giving the purchaser an opportunity of being heard, refuse to issue such certificate Page 6 of 10 Uploaded by KAUSHIK D. CHAUHAN(HC00197) on Thu Sep 11 2025 Downloaded on : Sat Sep 13 00:00:11 IST 2025 NEUTRAL CITATION C/SCA/10770/2025 JUDGMENT DATED: 22/08/2025 undefined and on such refusal, the sale of land to the purchaser shall be deemed to be in contravention of section 63.
(d) (i) The purchaser aggrieved by the refusal to issue a certificate by the Collector under Sub-clause (ii) of clause © may file an appeal to the State Government or such officer as it May, by an order in writing, authorise in this behalf. (iii) The State Government or the authorised officer shall after giving the appellant an opportunity of being heard pass such order on the appeal as it or be deems fit.
(4) (a) The purchaser shall comply with the provisions of any law for the time being in force or any order or directions of the Central Government or State Government or any Corporation owned or controlled by such Government, Government Company, local authority or statutory authority in relation to use of land for industrial purpose before the land is put to use for such purpose.
(b) the purchaser to whom a certificate is issued under sub-clause (i) of clause (c) of Sub-section (3) shall commence production of goods or providing of services within five years from such date provided that the period of five years may on an application made by the purchaser in that behalf be extended by two years by the Collector as he may by an order in writing in such circumstances as may be prescribed:
Provided further that the Collector shall not extend such period for more than a period of one year at a time:
Provided also that such aggregate period of seven years may, on an application made by the purchaser in that behalf, and on the payment of fifty per cent of the prevailing Jantri value, be extended by another three years by the State Government.] [(4A) In case where the purchaser fails to commence the production of goods or providing of services within three years from the date of certificate issued under sub-section (3) or thereafter, the Collector may, after an application is made to him in that behalf, grant permission by an order for sale or transfer of such land:
Provided that such permission shall be granted by the Collector only upon the payment of -
(i) 40 per cent. of the prevailing Jantri value, if the application is made before the completion of a period of five years from the date of certificate;
(ii) 60 per cent. of the prevailing Jantri value, if the application is made after a period of five years but before the completion of a period of seven years from the date of certificate;
(iii) 100 percent. of the prevailing Jantri value, if the application is made thereafter.
(4B) Notwithstanding anything contained in sub-section (4) or sub-section (4A), -
(i) where the land is sold to a person in pursuance of sub-section (1) Page 7 of 10 Uploaded by KAUSHIK D. CHAUHAN(HC00197) on Thu Sep 11 2025 Downloaded on : Sat Sep 13 00:00:11 IST 2025 NEUTRAL CITATION C/SCA/10770/2025 JUDGMENT DATED: 22/08/2025 undefined for the purpose of establishing an industrial park in consonance with the policy and conditions of the State Government in that behalf, the purchaser shall fulfill all the conditions in such manner and within such period as may be prescribed;
(ii) the purchaser shall be required to obtain certificate/certificates from the Industries Commissioner, Gujarat State, in the manner as may be prescribed of having fulfill the conditions as referred to in clause (i);
(iii) in case where the purchaser fails to obtain the certificate/certificates as referred to in clause (ii), the provisions of sub-
section (5), in so far as vesting of such land or part of such land in case where the purchaser has already transferred any portion or portions of such land, in the State Government and disposal of such land are concerned, shall mutatis mutandis apply;
(iv) the purchaser shall be entitled to transfer or sell portion of such land to any person for establishing an industry thereon subject to the provisions of the policy of the State Government with regard to the industrial park;
(v) the transferee under clause (iv) or any person to whom such land may be transferred in any subsequent transaction or transactions shall be entitled to sell or transfer such portion of land to any person for the purpose as provided in clause (iv);
(vi) in case where the purchaser is of the view, after a period of three years from the date of purchaser of such land, that it is not possible for him to fulfill the conditions and obtain the certificate/certificates as referred to in this section, he may make an application to the Collector for grant of permission to sale or transfer of such land and the Collector shall thereupon grant such permission only upon the payment of,-
(a) 40 per cent. of the prevailing Jantri value, if the application is made before the completion of a period of five years from the date of certificate; as referred to in sub-clause (i) of clause (c) of sub-section (3);
(b) 60 per cent. of the prevailing Jantri value, if the application is made after a period of five years, but before the completion of a period of seven years from the date of certificate; as referred to in sub-clause (i) of clause
(c) of sub-section (3);
(c) 100 per cent. of the prevailing Jantri value, if the application is made thereafter:
Provided that such permission for sale of such land shall be granted only for the purpose of use of such land for the bonafide industrial purpose. Explanation:- For the purposes of this section, the expression "bonafide industrial purpose" includes and shall always be deemed to have included the establishment of the industrial park.] [(5) Where the Collector after making such inquiry deems fit and giving the purchaser an opportunity of being heard comes to the conclusion that the purchaser has failed to commence production of goods or providing of Page 8 of 10 Uploaded by KAUSHIK D. CHAUHAN(HC00197) on Thu Sep 11 2025 Downloaded on : Sat Sep 13 00:00:11 IST 2025 NEUTRAL CITATION C/SCA/10770/2025 JUDGMENT DATED: 22/08/2025 undefined services within the period as specified in clause (b) of sub-section (4), or the period extended under the provisos to the clause, the land shall vest in the State Government free from all encumbrances on payment to the purchaser of such compensation as the State Government may determine and such land shall be disposed of by the State Government in the manner as may be prescribed.]]"
9. Section 63AA of the Bombay Tenancy and Agricultural Lands Act does not confer to the Collector any quasi-judicial power but he exercises an administrative function. Section 63AA enables a person to purchase or enter into an agreement for sale of agricultural land, notwithstanding the provisions of sub- section (1) of Section 65B of the Bombay Land Revenue Code, 1879, provided that the land is intended to be used for bona fide industrial purpose. The provision further requires the purchaser to intimate the Collector within 30 days of purchase and furnish relevant particulars, failing which fine can be imposed. Upon receipt of such application the Collector has to satisfy himself that the purchase has been made for bona fide industrial purpose in accordance with the statutory parameters and thereafter, issue a certificate in favor of the purchaser. If the Collector is not satisfied then he can refuse to grant the certificate after affording the purchaser an opportunity of hearing and such a rejection would result in the transaction being treated in contravention of Section 63 of the Act. The statute also provides a right of appeal to the State Government or an officer notified by it, against the Collector's refusal. Therefore, the process under Section 63AA is administrative in nature and does not involve any adjudicatory process or quasi- judicial function.
10. Further, rejection of an application on the ground of Page 9 of 10 Uploaded by KAUSHIK D. CHAUHAN(HC00197) on Thu Sep 11 2025 Downloaded on : Sat Sep 13 00:00:11 IST 2025 NEUTRAL CITATION C/SCA/10770/2025 JUDGMENT DATED: 22/08/2025 undefined deficiency or technical defect cannot be termed as an order on merits under Section 63AA of the Tenancy Act. If the rejection is based purely on technical or procedural deficiency then filing of an appeal before the Appellate Authority for removal of the same would be contrary to the provisions of Section 63AA. Thus, an applicant can file a fresh application after removal of deficiencies/technical objections.
11. In the present case, the impugned order reveals that the appeal of the petitioner has been rejected on the ground which are in the nature of deficiencies. In view of the above discussion and reasoning, the impugned orders are set aside.
11.1 The Collector, Vadodara, shall consider and decide the fresh applications without being influenced by the reasons of orders dated 08.08.2022 and 15.07.2025 not having been challenged by the petitioner.
11.2 The applications shall be considered strictly in accordance with law and shall be finally decided within a statutory period prescribed.
The writ petition is allowed to the aforesaid extent and disposed of accordingly. No order as to costs.
Direct Service is permitted.
Sd/-
(ANIRUDDHA P. MAYEE, J.) KAUSHIK D. CHAUHAN Page 10 of 10 Uploaded by KAUSHIK D. CHAUHAN(HC00197) on Thu Sep 11 2025 Downloaded on : Sat Sep 13 00:00:11 IST 2025