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[Cites 6, Cited by 1]

Gujarat High Court

State Of Gujarat vs Valimohmad Pirmohd Shaikh on 10 May, 2018

Bench: Harsha Devani, A.S. Supehia

C/LPA/1664/2004                                      JUDGMENT



         IN THE HIGH COURT OF GUJARAT AT AHMEDABAD


       R/LETTERS PATENT APPEAL NO.1664 of 2004
     In SPECIAL CIVIL APPLICATION NO.769 of 1989
                        With 
     R/SPECIAL CIVIL APPLICATION NO.3340 of 1989
                         With
     R/SPECIAL CIVIL APPLICATION NO.3346 of 2001
                         With
       R/LETTERS PATENT APPEAL NO.1665 of 2004
      In SPECIAL CIVIL APPLICATION NO.9037 of 1992
                         With
       R/LETTERS PATENT APPEAL NO.1666 of 2004
      In SPECIAL CIVIL APPLICATION NO.9038 of 1992
                         With
       R/LETTERS PATENT APPEAL NO.1667 of 2004
      In SPECIAL CIVIL APPLICATION NO.9039 of 1992
                         With
       R/LETTERS PATENT APPEAL NO.1668 of 2004
      In SPECIAL CIVIL APPLICATION NO.9040 of 1992

FOR APPROVAL AND SIGNATURE:  
HONOURABLE MS.JUSTICE HARSHA DEVANI           Sd/­

and
HONOURABLE MR.JUSTICE A.S. SUPEHIA            Sd/­

===================================================
1  Whether Reporters of Local Papers may 
   be allowed to see the judgment ?          NO
2  To be referred to the Reporter or not 
   ?                                                 NO
3  Whether   their   Lordships   wish   to   see 
   the fair copy of the judgment ?                   NO
4  Whether   this   case   involves   a 
   substantial question of law as to the 
   interpretation of the Constitution of             NO
   India or any order made thereunder ?




                          Page 1 of 28
 C/LPA/1664/2004                                 JUDGMENT



===================================================
                  STATE OF GUJARAT
                       Versus
             VALIMOHMAD PIRMOHD SHAIKH
===================================================
Appearance:

LPA NO.1664/2004 TO 1668 2004

MR PRANAV TRIVEDI, AGP for the APPELLANTS

MR SHIRISH SANJANWALA, SENIOR ADVOCATE, with 
MR DILIP L. KANOJIYA for RESPONDENT No.1

MR BB NAIK, SENIOR ADVOCATE, WITH MS KJ BRAHMBHATT, 
ADVOCATE for respondent No.3­6 (in LPA No.1664/04)

MR BB NAIK, SENIOR ADVOCATE, WITH MS KJ BRAHMBHATT, 
ADVOCATE for respondent No.3­4 (in LPAs No.1665/04, 
1666/04 and 1668/04)

MR BB NAIK, SENIOR ADVOCATE, WITH MS KJ BRAHMBHATT, 
ADVOCATE for respondent No.3­4 & 6­9) (in LPA 
No.1667/04)


SCA NO.3340/1989 and 3346/2001
MR BB NAIK, SENIOR ADVOCATE, WITH MS KJ BRAHMBHATT, 
ADVOCATE FOR THE PETITIONER

MR PRANAV TRIVEDI, AGP for the respondent State 
MR SHIRISH SANJANWALA, SENIOR ADVOCATE, with 
MR DHAVAL SHAH AND MR MANAV MEHTA, ADVOCATES for 
RESPONDENTS NO.2.1 to 2.8 (in SCA NO.3340/1989) AND 
for RESPONDENTS NO.2.1 to 2.4 (in SCA NO.3346/2001) 
===================================================
CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI
                        and
       HONOURABLE MR.JUSTICE A.S. SUPEHIA

                     Date : 10/05/2018
                   COMMON ORAL JUDGMENT

(PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) Page 2 of 28 C/LPA/1664/2004 JUDGMENT

1. This   batch   of   petitions   and   letters   patent  appeals   relate   to   the   same   lands   and   are  intrinsically   connected   with   each   other   and   the  parties   are   also   common   and,   therefore,   were  ordered to be heard together and were accordingly  taken up for hearing together and decided by this  common judgment.

2. In   all,   four   petitions   came   to   be   filed   by  Valimohmad Pirmohmad Shaikh, being  Special  Civil  Applications No.9037, 9038, 9039 and 9040 of 1992  challenging the cancellation of the auction sales  in   which   he   had   purchased   the   lands   which   are  subject   matter   of   these  writ   petitions   and  letters   patent   appeals,   whereas   one   petition,  being  Special  Civil   Application   No.769   of   1989  had   been   filed   by   him   challenging   the  cancellation   of   the   mutation   entries   made  pursuant to the auction sales. 

3. By a judgment and order dated 24.07.2003, all  the said  writ petitions came to be allowed by a  learned   Single   Judge.   In  Special  Civil  Application   No.769   of   1989,   the   order   of   the  Assistant   Collector   dated   06.01.1986,   the   order  of the  Collector   dated  05.08.1988  and the  order  of the revisional authority dated 23.01.1989 came  to be quashed and set aside and in the other writ  petitions   the   separate   orders   of   the   Collector  Page 3 of 28 C/LPA/1664/2004 JUDGMENT dated   29.11.1988   and   the   Secretary   (Appeals),  Revenue   Department   dated   24.01.1992   came   to   be  quashed   and   set   aside.   Being   aggrieved   by   the  judgment and order dated 24.07.2003 passed by the  learned   Single   Judge,  the   State   of   Gujarat  has  filed   five  letters   patent   appeals   being  Letters  Patent Appeals No.1664, 1665, 1666, 1667 and 1668  of 2004.

4. Special Civil Application No.3340 of 1989 was  filed   by   Shri   Chandulal   Zaverbhai   Patel,   the  original owner of lands bearing survey No.106 and  111 of Village Bhestan, Taluka Choryasi, District  Surat,   challenging   the   order   dated   09.03.1989  passed   by   the   Urban   Land   Tribunal   (hereinafter  referred   to   as   the   "Tribunal"),   confirming   the  order   dated   05.12.1985   passed   by   the   Competent  Authority   and   Deputy   Collector,   Surat  (hereinafter   referred   to   as   the   "Competent  Authority") under sub­section (4) of section 8 of  the Urban Land (Ceiling and Regulation) Act, 1976  (hereinafter   referred   to   as   the   "ULC   Act").   By  the   order   dated   05.12.1985,   the   Competent  Authority   had   declared,   in   all,   35,199   square  metres   of   land   owned   by   the   petitioner   Shri  Chandulal   Zaverbhai   Patel   to   be   excess   vacant  land.

Page 4 of 28

C/LPA/1664/2004 JUDGMENT

5. Special Civil Application No.3346 of 2001 had  been   filed   by   Shri   Chandulal   Zaverbhai   Patel  challenging the mutation entries that came to be  made pursuant to such land being declared to be  excess   vacant.   By   an   order   dated   05.05.1999,  Special Civil Application No.3340 of 1989 as well  as the order impugned therein came to be disposed  of   as   abated.   Special   Civil   Application   No.3346  of   2001   came   to   be   allowed   by   a   judgment   and  order dated 20th  August, 2001 holding that since  the   earlier   petition   namely,   Special   Civil  Application   No.3340   of   1989   was   decided   by   the  learned Single Judge holding that the petitioner  abated,   inasmuch   as,   possession   of   surplus   land  was not  taken  by the  Competent   Authority,  there  was   no   justification   either   in   continuing   the  entry or for making the entry in records in face  of subsisting  interim  order  in the  earlier  writ  petition.   The   order   dated   05.05.1999   passed   in  Special Civil Application No.3340 of 1989 came to  be challenged by the State of Gujarat by filing a  letters patent appeal being Letters Patent Appeal  No.1246   of   2004.   By   a   judgment   and   order   dated  19.08.2004, the letters patent appeal came to be  allowed  by  setting  aside  the  impugned  order  and  restoring   the   petition   to   be   decided   afresh   on  merits. Against the judgment and order dated 20th  August,  2001  passed  by  the learned   Single  Judge  in Special Civil Application No.3346 of 2001, the  Page 5 of 28 C/LPA/1664/2004 JUDGMENT State   of   Gujarat   filed   a   letters   patent   appeal  being Letters Patent Appeal No.628 of 2003, which  came to be allowed by a judgment and order dated  19.08.2004, whereby the matter was remanded for a  fresh   decision.   It   appears   that   pursuant   to   a  request   made   by   the   learned   advocate   for   the  petitioner   in   Special   Civil   Application   No.3340  of 1989, the letters patent appeals and both the  above  writ  petitions   came to  be linked  together  for hearing, that is how both the writ petitions  along  with  the letters   patent  appeals  have  come  up for hearing before this court.

6. A   perusal   of   the   orders   passed   by   the  Collector,   Surat   and   the   Secretary   (Appeals),  Revenue Department, which were subject matter of  challenge   in   the  writ   petitions   being   Special  Civil   Applications   No.9037,   9038,   9039   and   9040  of   1992   filed   by   Valimohmad   Pirmohmad   Shaikh,  shows that  suo motu  powers came to be exercised  by the Collector, Surat under section 211 of the  Bombay   Land   Revenue   Code,   1879   (hereinafter  referred to as the "Code") mainly for the reason  that the auction sales appeared to have been made  with a view to bypass the provisions of the ULC  Act. A perusal of the said orders shows that the  auction   sales   had   been   set   aside   mainly   on   the  ground that the same were made fraudulently with  a   view   to   render   the   provisions   of   the   ULC   Act  Page 6 of 28 C/LPA/1664/2004 JUDGMENT nugatory   as   the   lands   which   were   put   up   for  auction   fell   within   the   urban   agglomeration   and  were   subject   to   the   provisions   of   the   ULC   Act.  Otherwise the subject lands are private lands and  are   owned   by   the   private   individuals,   who   have  not challenged the auction sales of their lands.

7. The   writ   petitions   as   well   as   the   letters  patent   appeals   arise   in   the   backdrop   of   the  following   facts.   Lands   bearing   Survey  No.113/part, 106, 111, 105/1 of Village Bhestan,  Taluka   Choryasi,   District   Surat   came   to   be  purchased   by   Valimohmad   Pirmohmad   Shaikh   on  behalf   of   the   Paramount   Industrial   Co­operative  Society   Limited   in   an   auction   sale   held   on  29.05.1981   by   the   Special   Recovery   Officer,  Surat,   pursuant   to   certificates   issued   under  section 106 of the Gujarat Co­operative Societies  Act,   1961   for   recovery   of   the   amounts   stated  therein   to   be   due   as   arrears.   Pursuant   to   the  auction sale, corresponding mutation entries came  to   be   recorded   in   the   record   of   rights   being  mutation   entry   No.971   in   relation   to   survey  No.113/part, mutation entries No.973 in relation  to   survey   No.106   and   111   and   mutation   entry  No.974 in relation to survey No.105/1. The orders  passed by the Special Recovery Officer came to be  taken   into  suo   motu  revision   by   the   Collector,  Surat in exercise of powers under section 211 of  Page 7 of 28 C/LPA/1664/2004 JUDGMENT the   Code   by   issuing   show   cause   notices   dated  12.10.1988,   which   evidently   were   issued   after   a  period of more than seven years from the date of  auction.   The   Collector,   Surat   vide   orders   dated  29.11.1988 set aside the orders dated 29.05.1981  passed   by   the   Special   Recovery   Officer,Surat  whereby   the   subject   lands   were   sold   to   Shri  Valimohmad   Pirmohmad   Shaikh   by   way   of   a   public  auction. Shri Valimohmad Pirmohmad Shaikh, in his  capacity   as   the   principal   promoter   of   Paramount  Industrial Co­operative Society Limited, filed a  revision application challenging the order passed  by   the   Collector,   Surat   before   the   Additional  Chief   Secretary   (Appeals),   Revenue   Department  (hereinafter   referred   to   as   the   "revisional  authority",   which   came   to   be   dismissed   vide  separate   orders   dated   24.01.1991.   Against   the  said   orders,   Shri   Valimohmad   Pirmohmad   Shaikh  approached   this   court   by   way   of   writ   petitions  being  Special  Civil Applications No.9037 to 9040  of 1992. 

8. Thus, the letters patent appeals arise out of  the   orders   dated   29.11.1988   passed   by   the  Collector,   Surat;   the   orders   dated   24.01.1991  passed   by   the   revisional   authority;   and   the  common judgment and order dated 24.07.2003 passed  by   the   learned   Single   Judge   in   Special   Civil  Application   No.769   of   1989   and   Special   Civil  Page 8 of 28 C/LPA/1664/2004 JUDGMENT Applications No.9037 to 9040 of 1992 which relate  to the auction sale of the subject lands and the  mutation   entries   made   pursuant   thereto.   The  subject   matter   of   challenge   in   Special   Civil  Application   No.3340   of   1989   is   the   order   dated  05.12.1985   passed   by   the   Competent   Authority  under section 8(4) of the ULC Act declaring 35199  square   meters   of   land   held   by   Shri   Chandulal  Zaverbhai   Patel   to   be   excess   vacant   as   well   as  the order dated 09.03.1989 passed by the Tribunal  dismissing the appeal filed by the petitioner and  confirming   the   order   dated   05.12.1985   passed   by  the   Competent   Authority.   The   subject   matter   of  challenge in Special Civil Application No.3346 of  2001 is the mutation entry made pursuant to the  order passed by the Competent Authority. 

9. A   significant   development   has   taken   place  during the pendency of these matters, namely that  the Urban Land (Ceiling and Regulation) Act, 1976  has been repealed by the Urban Land (Ceiling and  Regulation)   Repeal   Act,   1999  (hereinafter  referred to as the "Repeal Act") with effect from  30.03.1999. Section 3 of the Repeal Act which is  relevant for the present purpose reads thus:

3.   Savings.--(1)   The   repeal   of   the   principal   Act shall not affect--
(a)   the   vesting   of   any   vacant   land   under   sub­section   (3)   of   Section   10,   possession   Page 9 of 28 C/LPA/1664/2004 JUDGMENT of which has been taken over by the State   Government   or   any   person   duly   authorised   by the State Government in this behalf or   by the competent authority;
(b)   the   validity   of   any   order   granting   exemption under sub­section (1) of Section   20   or   any   action   taken   thereunder,   notwithstanding   any   judgment   of   any   court   to the contrary;

(c) any payment made to the State Government   as   a   condition   for   granting   exemption   under sub­section (1) of Section 20. (2) Where--

(a) any land is deemed to have vested in the  State  Government   under   sub­section   (3)   of   Section   10   of   the   principal   Act   but   possession   of   which   has   not   been   taken   over by the State Government or any person   duly authorised by the State Government in   this behalf or by the competent authority;   and

(b)   any   amount   has   been   paid   by   the   State   Government with respect to such land, then,   such   land   shall   not   restored   unless   the   amount   paid,   if   any,   has   been   refunded   to   the   State Government.

10. Section   4   of   the   Repeal   Act   provides   for  "Abatement   of   legal   proceedings"   and   postulates  that  all proceedings   relating  to  any order  made  or purported to be made under the principal Act  pending   immediately   before   the   commencement   of  the   Act,   before   any   court,   tribunal   or   other  authority   shall   abate.   The   proviso   thereto  provides that the section shall not apply to the  proceedings  relating  to sections  11,  12, 13 and  Page 10 of 28 C/LPA/1664/2004 JUDGMENT 14   of   the   principal   Act   in   so   far   as   such  proceedings are relatable to the land, possession  of   which   has   been   taken   over   by   the   State  Government  or any  person  duly  authorised  by the  State   Government   in   this   behalf   or   by   the  competent authority.

11. Thus,   by   virtue   of   the   provisions   of   the  repeal Act, the taking over of the possession of  the   lands   declared   excess   vacant   assumes  significance,   inasmuch   as,   section   3   of   the  Repeal Act saves the vesting of any vacant land  under   sub­section   (3)   of   section   10   of   the   ULC  Act, possession of which has been taken over by  the   State   Government   or   any   person   duly  authorised by the State Government in this behalf  or by the competent authority. Under section 4 of  the   Repeal   Act   provides   for   abatement   of   all  proceedings   under   the   ULC   Act   except   where  possession of the land declared excess vacant has  been   taken   over   on   behalf   of   the   State  Government. 

12.  In view of the subsequent development, what  is   required   to   be   examined   in   this   case   is  whether Special Civil Application No.3340 of 1989  would abate in view of the repeal of the ULC Act.  For this purpose the court would be required to  ascertain   as   to   whether   the   possession   of   the  Page 11 of 28 C/LPA/1664/2004 JUDGMENT lands declared excess vacant has been taken over  on behalf of the State Government as contemplated  under section 3 of the Repeal Act. If the answer  is   in   the   negative   the   proceedings   would   abate  and   if   the   answer   is   in   the   affirmative   the  petition   would   be   required   to   be   decided   on  merits. In case it is found that the possession  of the lands declared excess vacant has not been  taken over by  the State Government  prior to the  coming into force of the Repeal Act, in view of  the provisions of the Repeal Act, the proceedings  under the ULC Act would abate, and consequently,  the   State   Government  would   no   longer   have   any  right   or   interest   in   the   land   declared   excess  vacant   and   as   a   necessary   corollary,  the   State  Government  would  no longer   have any  interest   in  the   validity   or   otherwise   of   the   auction  proceedings. 

13. Therefore,   before   going   into   the   merits   of  the letters patent appeals relating to the orders  passed   by   the   revisional   authority,   confirming  the orders passed by the Collector, Surat setting  aside   the   auction   sales   in   favour   of   Shri  Valimohmad   Pirmohmad   Shaikh,   it   would   be  necessary   to   examine   as   to   whether   or   not   the  proceedings  under  the  ULC Act  which  are subject  matter of challenge in  Special  Civil Application  No.3340 of 1989 have abated. For this purpose, as  Page 12 of 28 C/LPA/1664/2004 JUDGMENT discussed   hereinabove,   what   is   relevant   is  whether   the   possession   of   the   lands   declared  excess  vacant  had  been  taken  over in  accordance  with   law  prior   to   the   coming   into   force   of   the  Repeal Act, that is, 30.03.1999.

14. In   this   regard,   Mr.   B.   B.   Naik,   learned  Senior Advocate, learned counsel with Ms. Kalpana  J.   Brahmbhatt,   learned   advocate   for   the  petitioners, submitted that the respondent State  authorities claim to have taken possession of the  land bearing survey No.113/part and survey No.106  as   well   as   plot   No.41   owned   by   the   petitioner,  however,   such   possession   is   merely   a   paper  possession   and   the   actual   possession,   as  contemplated   under   the   ULC   Act,   has   never   been  taken over. It was submitted that under the ULC  Act,  a  procedure   has been  prescribed  for  taking  over   possession   of   the   land   declared   excess  vacant   and   any   deviation   therefrom   would   result  in vitiating the proceedings.

14.1 It   was   submitted   that   in   this   case,   notice  under   sub­section   (5)   of   section   10   of   the   ULC  Act has not been served upon the petitioner, and  hence,  without   service  of notice,  the next  step  of   taking   possession   under   sub­section   (6)   of  section   10   of   the   ULC   Act   could   not   have   been  resorted   to. In support  of such  submission,  the  Page 13 of 28 C/LPA/1664/2004 JUDGMENT learned counsel placed reliance upon the decision  of this court in the case of Indrajitsing P. Geel   v.   Competent   Authority   and   Deputy   Collector   &   Anr.,  2006 (3) G.L.H. 487, wherein the court has  held   that   it   is   not   open   for   the   authorities  under the ULC Act to resort to the provisions of  sub­section   (6)   of   section   10   of   the   ULC   Act  without   first   complying   with   the   provisions   of  sub­section (5) thereof.

14.2  Next it was submitted that assuming for the  sake   of   argument   that   the   notice   under   sub­ section (5) of section 10 of the ULC Act has been  served upon the petitioner, no notice whatsoever  under   sub­section   (6)   of   section   10   of   the   ULC  Act   has   even   been   issued   by   the   respondents.  Thus, non­service of notice under sub­section (6)  of   section   10   of   the   ULC   Act   would   render   the  possession   if   any,   taken   subsequent   thereto  invalid.   Referring   to   the   panchnama   dated  16.03.1990   at   Annexure­RIV   to   the  affidavit­in­ reply  filed   by   the   Competent   Authority,   it   was  submitted that the same does not disclose as to  which   part   of   the   survey   number   possession   has  been   taken   over   nor   has   any   map   been   produced  along   with   the   panchnama   demarcating   the  boundaries   of   the   lands   of   which   possession   is  alleged to have been taken over. It was submitted  Page 14 of 28 C/LPA/1664/2004 JUDGMENT that in the light of the glaring infirmities in  the   procedure   followed   by   the   respondent  authorities, the so­called possession taken over  on 16.03.1990 is illegal and has no sanctity in  the eye of law and in the absence of possession  having been taken over prior to the coming into  force   of   the   Repeal   Act,   the   proceedings   under  the ULC Act would abate. 

14.3 In   support   of   his   submissions,   the   learned  counsel   placed   reliance   of   the   decision   of   the  Supreme   Court   in   the   case   of  State   of   Uttar  Pradesh v. Hari Ram, (2013) 4 S.C.C. 280, wherein  the court has held thus:

"Peaceful dispossession
34.   Sub­section   (5)   of   Section   10,   for   the   first time, speaks of "possession" which says   that   where   any   land   is   vested   in   the   State   Government   under   sub­section   (1)   of   Section   10, the competent authority may, by notice in   writing,   order   any   person,   who   may   be   in   possession   of   it   to   surrender   or   transfer   possession to the State Government or to any   other   person,   duly   authorised   by   the   State   Government.
35.   xxxxx   Sub­section   (5)   of   Section   10  visualises   a   situation   of   surrendering   and  Page 15 of 28 C/LPA/1664/2004 JUDGMENT delivering   possession,   peacefully   while   sub­ section   (6)   of   Section   10   contemplates   a  situation of forceful dispossession. 
Forceful dispossession 
36. The   Act   provides   for   forceful   dispossession but only when a person refuses   or   fails   to  comply   with  an   order   under   sub­ section (5) of Section 10. Sub­section (6) to   Section 10 again speaks of "possession" which   says,   if   any   person   refuses   or   fails   to   comply with the order made under sub­section   (5),   the   competent   authority   may   take   possession of the vacant land to be given to   the   State   Government   and   for   that   purpose,   force   ­   as   may   be   necessary   ­   can   be   used.  

Sub­section   (6),   therefore,   contemplates   a  situation   of   a   person   refusing   or   fails   to   comply with the order under sub­section (5),   in the event of which the competent authority   may take possession by use of force. Forcible   dispossession   of   the   land,   therefore,   is  being   resorted   only   in   a   situation   which  falls   under   sub­section   (6)   and   not   under   sub­section   (5)   to   Section   10.   Sub­sections   (5) and (6), therefore, take care of both the  situations,   i.e.   taking   possession   by   giving   notice, that is, "peaceful dispossession" and   Page 16 of 28 C/LPA/1664/2004 JUDGMENT on   failure   to   surrender   or   give   delivery   of   possession   under   Section   10(5),   then   "forceful   dispossession"   under   sub­section   (6) of Section 10.

37.   The   requirement   of   giving   notice   under   sub­sections   (5)   and   (6)   of   Section   10   is   mandatory.   Though   the   word   "may"   has   been   used therein, the word "may" in both the sub­ sections   has   to   be   understood   as   "shall"  because   a   court   charged   with   the   task   of   enforcing   the   statute   needs   to   decide   the   consequences that the legislature intended to   follow   from   failure   to   implement   the  requirement.   Effect   of   non­issue   of   notice  under   sub­section   (5)   or   sub­section   (6)   of   Section   11   is   that   it   might   result   in   the  land   holder   being   dispossessed   without   notice,   therefore,   the   word   "may"   has   to   be   read as "shall"."

"42. The mere vesting of the land under sub­ section   (3)   of   Section   10   would   not   confer   any right on the State Government to have de   facto   possession   of   the   vacant   land   unless   there   has   been   a   voluntary   surrender   of  vacant   land   before   18.3.1999.   The   State   has   to establish that there has been a voluntary   surrender   of   vacant   land   or   surrender   and   Page 17 of 28 C/LPA/1664/2004 JUDGMENT delivery   of   peaceful   possession   under   sub­ section   (5)   of   Section   10   or   forceful   dispossession   under   sub­section   (6)   of  Section   10.   On   failure   to   establish   any   of   those   situations,   the   land   owner   or   holder   can   claim   the   benefit   of   Section   3   of   the  Repeal   Act.   The   State   Government   in   this  appeal   could   not   establish   any   of   those  situations and hence the High Court is right   in holding that the respondent is entitled to   get   the   benefit   of   Section   3   of   the   Repeal   Act.
43.   We,   therefore,   find   no   infirmity   in   the   judgment of the High Court and the appeal is,  accordingly   dismissed   so   also   the   other   appeals.   No   documents   have   been   produced   by   the   State   to   show   that   the   respondents   had   been dispossessed before coming into force of   the Repeal Act and hence, the respondents are   entitled   to  get  the  benefit  of   Section   4   of   the Repeal Act." 

14.4 It was submitted that thus, the Supreme Court  has   held   that   the   requirement   of   giving   notice  under sub­sections (5) and (6) of section 10 of  the ULC Act is mandatory. It was contended that  in the facts of the present case, no notice under  sub­section (6) of section 10 of the ULC Act has  Page 18 of 28 C/LPA/1664/2004 JUDGMENT even   been   issued   and   hence,   taking   over   the  possession of the lands declared excess vacant is  not in accordance with law.

14.5 Various   other   submissions   had   also   been  advanced   on   merits   of   the   order   passed   by   the  competent   authority   under   sub­section   (4)   of  section   8   of   the   ULC   Act,   including   the  submission   that   as   the   agricultural   lands   were  exempted under section 20 of the ULC Act from the  provisions of Chapter 3 of the said Act, the same  could not have been declared excess vacant land;  however, for the reasons that follow, it is not  necessary to dilate upon the same.

15. Opposing   the   petition,   Mr.   Pranav   Trivedi,  learned Assistant Government Pleader, invited the  attention of the court to the  affidavit­in­reply  filed  by the  Competent   Authority   to submit  that  notice under sub­section (5) of section 10 of the  ULC   Act   had   been   issued   to   Shri   Chandulal  Zaverbhai   Patel   on   31.08.1989   and   the   same   was  duly served upon him. It was submitted that the  notice under sub­section (5) of section 10 of the  ULC   Act   was   sent   to   the   petitioner   through  Registered Post A.D., the acknowledgment receipt  whereof was available on the record; however, the  concerned Deputy Mamlatdar, Shri Ashok D. Lodhe,  in   the   year   2010,   has   misplaced   the   original  Page 19 of 28 C/LPA/1664/2004 JUDGMENT Registered Post A.D. slip and in respect of the  same, a show cause notice was issued to him and  after   considering   the   reply   submitted   by   him,  punishment   has   also   imposed   upon   him.   It   was  submitted that thus, the original Registered Post  A.D.   slip,   whereby   the   petitioner   has  acknowledged the notice under sub­section (5) of  section   10   of   the   ULC   Act   is   presently   not  available   on   record,   though   earlier   it   was   in  fact available on the record of the case. It was  contended that all the proceedings under the ULC  Act   have   been   duly   followed   by   the   Competent  Authority,  viz.  the order  under  section  8(4)  of  the   ULC   Act   declaring   the   lands   to   be   excess  vacant   came   to   be   passed   by   the   Competent  Authority and was duly served upon the declarant;  the final order came to be made under section 9  of   the   ULC   Act;   notification   under   sub­section  (1) of  section  10 of  the ULC  Act was  issued  on  02.01.1986, notification under sub­section (3) of  section  10  of the ULC  Act came  to be  issued  on  08.01.1987;   and   notice   under   sub­section   (5)   of  section  10  of the ULC  Act came  to be  issued  on  31.08.1989   and   was   duly   served   upon   the  petitioner; however, since the petitioner did not  hand   over   peaceful   possession   of   such   lands  within a period of thirty days from such notice,  on   16.03.1990,   the   possession   of   the   said   land  was taken over in the presence of panchas under  Page 20 of 28

C/LPA/1664/2004 JUDGMENT sub­section (6) of section 10 of the ULC Act. It  was   submitted   that   after   taking   over   possession  of   the   subject   lands,   corresponding   mutation  entry has also been made in the record of rights  being   mutation   entry   No.1322.   It   was   submitted  that   the   necessary   proceedings   having   been  undertaken   before   taking   over   the   possession   of  the lands, and possession having been taken over  in accordance with law prior to the coming into  force   of   the   Repeal   Act,   the   proceedings   under  the ULC Act would not abate.
16. This   court   has   also   heard   Mr.   S.H.  Sanjanwala, Senior Advocate, learned counsel with  Mr.   Dhaval   Shah   and   Mr.   Manav   Mehta,   learned  advocates   for   the   respondents   No.2.1   to   2.8   in  Special Civil Application No.3340 of 1989 and for  the   respondents   in   the   letters   patent   appeals,  who   has   supported   the   petitions   and   reiterated  the submissions advanced by Mr. Naik. 
17. Since   the   question   as   to   whether   the  proceedings   under   the   ULC   Act   would   abate,  depends solely on the question as to whether the  possession   was   taken   over   prior   to   the   coming  into force of the Repeal Act, this court by way  of   abundant   caution   had   called   for   the   learned  Assistant   Government   Pleader   to   produce   the  original record of the case before this court for  its perusal.
Page 21 of 28
C/LPA/1664/2004 JUDGMENT
18. A perusal of the record of the case reveals  that there is no acknowledgment receipt regarding  service   of   notice   under   sub­section   (5)   of  section   10   of   the   ULC   Act   on   the   original  petitioner   ­   Shri   Chandulal   Zaverbhai   Patel. 

However, a dispute has been raised in the further  affidavit   filed   by   the   respondents   stating   that  though such acknowledgment receipt was on record  it   was   subsequently   misplaced   by   the   concerned  Deputy Mamlatdar. Nonetheless, as rightly pointed  out   by   the   learned   counsel   for   the   petitioner,  the   ULC   Act   contemplates   not   only   issuance   and  service   of   notice   under   sub­section   (5)   of  section 10 of the Act but also under sub­section  (6)   of   section   10   of   the   ULC   Act,   if   after  service   of   notice   under   sub­section   (5)   of  section   10   of   the   ULC   Act,   possession   is   not  surrendered or delivered peacefully. A perusal of  the record of the case reveals that no notice has  been   issued   to   the   petitioner   under   sub­section  (6)   of   section   10   of   the   ULC   Act.   At   this  juncture reference may be made to the decision of  the Supreme Court in the case of  State of Uttar   Pradesh   v.   Hari   Ram   (supra),   on   which   strong  reliance   has been  placed  by the  learned  counsel  for the  petitioner.  The  court,  in the  decision,  has   held   that   the   requirement   of   giving   notice  under sub­sections (5) and (6) of section 10 of  the ULC Act is mandatory. It has been held that  Page 22 of 28 C/LPA/1664/2004 JUDGMENT the   ULC   Act   provides   for   forceful   dispossession  but only when a person refuses or fails to comply  with an order under sub­section (5) of section 10  of the ULC Act. Sub­section (6) of section 10 of  the ULC  Act again  speaks   of "possession",  which  says,   if   any   person   refuses   or   fails   to   comply  with   the   order   made   under   sub­section   (5),   the  competent   authority   may   take   possession   of   the  vacant land to be given to  the State Government  and for that purpose, force - as may be necessary  ­   can   be   used.   The   court   has   held   that   sub­ section (6), therefore, contemplates a situation  of   a   person   refusing   or   failing   to   comply   with  the order under sub­section (5) of section 10 of  the ULC Act, in the event of which the competent  authority   may   take   possession   by   use   of   force.  Forcible dispossession of the land, therefore, is  being resorted to only in a situation which falls  under   sub­section   (6)   of   section   10   of   the   ULC  Act and not under sub­section (5) of section 10  of   the   ULC   Act.   Sub­sections   (5)   and   (6)   of  section 10 of the ULC Act, therefore, take care  of   both   the   situations,   that   is,   taking  possession   by   giving   notice   that   is,   "peaceful  dispossession"   and   on   failure   to   surrender   or  give   delivery   of   possession   under   section   10(5)  of   the   ULC   Act,   then   "forceful   dispossession" 

under   sub­section   (6)   of   section   10   of   the   ULC  Act.   The   court   has   held   that   the   State   has   to  Page 23 of 28 C/LPA/1664/2004 JUDGMENT establish   that   there   has   been   a   voluntary  surrender   of   vacant   land   or   surrender   and  delivery of peaceful possession under sub­section  (5)   of   section   10   of   the   ULC   Act   or   forceful  dispossession under sub­section (6) of section 10  of   the   ULC   Act.   On   failure   to   establish   any   of  these two situations, the landowner or holder can  claim the benefit of section 4 of the Repeal Act. 

19. In the facts of the present case, insofar as  notice under sub­section (5) of section 10 of the  ULC   Act   is   concerned,   the   original   record   does  not contain the acknowledgment receipt evidencing  the fact regarding the petitioner having received  the same. As regards service of notice under sub­ section   (6)   of   section   10   of   the   ULC   Act,   from  the record of the case it is evident that no such  notice   has   been   issued   leave   alone   served   upon  the petitioner. Clearly, therefore, the mandatory  provisions of sub­sections (5) and (6) of section  10 of the ULC Act have not been satisfied in the  facts of the present case. 

20. Under the circumstances, in the light of the  principles enunciated by the Supreme Court in the  case   of  State   of   Uttar   Pradesh   v.   Hari   Ram   (supra), on failure of the State to establish any  situation of either voluntary surrender of vacant  land,   or   surrender   and   delivery   of   peaceful  Page 24 of 28 C/LPA/1664/2004 JUDGMENT possession   under   sub­section   (5)   of   section   10,  or   forceful   dispossession   under   sub­section   (6)  of   section   10   of   the   ULC   Act,   the   landowner   or  holder can claim the benefit of section 4 of the  Repeal Act, the petitioner herein is, therefore,  entitled   to   the   benefit   of   section   4   of   the  Repeal Act. 

21. In   the   light   of   the   above   discussion   it   is  evident   that   though   the   State   authorities   claim  to   have   taken   over   possession   of   the   subject  lands, such possession has not been taken over in  accordance   with   the   provisions   of   sub­sections  (5)   and   (6)   of   section   10   of   the   ULC   Act   and  hence, such possession has no sanctity in the eye  of   law.   Under   the   circumstances,   the   State  authorities   have   failed   to   establish   that   they  have taken possession of the subject lands prior  to   the   coming   into   force   of   the   Repeal   Act   and  consequently,   the   proceedings   under   the   ULC   Act  would, therefore, abate. 

22. In the light of the fact that the proceedings  under   the   ULC   Act   stand   abated,  the   State  Government  would  no longer   have any  interest   in  the   subject   lands   as   they   are   freehold   lands  belonging to private individuals.

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C/LPA/1664/2004 JUDGMENT

23. Insofar  as  the  letters   patent  appeals  filed  by  the  State  challenging   the judgment  and order  dated   24.07.2003   passed   by   the   learned   Single  Judge are concerned, whereby the orders passed by  the   revisional   authority   confirming   the   order  passed by the Collector, Surat, setting aside the  auction sales have been set aside, the State had  interest in such lands because they were governed  by the provisions of the ULC Act. Therefore, due  to the intervening events that took place due to  efflux   of   time,   once   the   provisions   of   the   ULC  Act do not apply to the subject lands, the State  no   longer   has   any   right   or   interest   in   the  subject   lands.   Consequently,   the   State   can   have  no   grievance   regarding   any   infirmity   in   the  conduct   of   the   auction   proceedings   when   the  original   owners   whose   lands   had   been   auctioned  have   raised   no   grievance   against   the   same.  Therefore, apart from the fact that the suo motu  proceedings   had   been   initiated   after   an  inordinate delay of more than seven years, which  ipso facto would vitiate the proceedings, in view  of the lapse of time, the State no longer has any  interest   in   the   subject   lands   inasmuch   as   the  subject   lands   are   no   longer   governed   by   the  provisions  of the  ULC Act.  As recorded  earlier,  the original owners whose lands were sold in the  auction   sales   had   not   challenged   the   auction  proceedings. Even before this court, no grievance  Page 26 of 28 C/LPA/1664/2004 JUDGMENT has   been   raised   in   this   regard.   Under   the  circumstances, since  the State Government  has no  interest in the subject lands and the interested  parties  are  not aggrieved  by  the auction   sales,  there   is   no   warrant   for   interference   with   the  judgment   and order  passed  by  the learned   Single  Judge.

24. In the light of the above discussion, Special  Civil Application No.3340 of 1989 is allowed. It  is   held   that   the   State   Government   could   not  establish   that   possession   of   the   lands   declared  excess vacant was taken over either by voluntary  surrender of vacant land or surrender or delivery  of   peaceful   possession   under   sub­section   (5)   of  section   10   or   forceful   dispossession   under   sub­ section   (6)   of   section   10   of   the   ULC   Act.   The  petitioners   are   therefore,   entitled   to   get   the  benefit   of   section   4   of   the   Repeal   Act.  Accordingly,   it   is   held   that   the   proceedings  under   the   ULC   Act   have   abated   and   hence,   the  orders passed by the competent authority and the  Urban Land Tribunal are rendered non est. Rule is  made   absolute   accordingly   with   no   order   as   to  costs.

25. Since the mutation entries which are subject  matter of challenge in  Special  Civil Application  No.3346   of   2001   have   been   made   pursuant   to   the  Page 27 of 28 C/LPA/1664/2004 JUDGMENT subject land having been declared excess vacant,  in view of the abatement of the proceedings under  the ULC Act, the mutation entries no longer have  any basis and, therefore, are required to be set  aside.   Accordingly,  Special  Civil   Application  No.3346   of   2001   is   hereby   allowed.   The  respondents   are   hereby   directed   to   delete   the  mutation   entry   No.1322   of   1996,   declaring   the  lands   of   the   petitioner   bearing   survey   nos.106  and   111   of   Village   Bhestan,   Taluka   Chorasi,  District Surat as excess vacant and having vested  in the State Government from the record of rights  with  due intimation  to  the petitioners.  RULE  is  made   absolute   accordingly   with   no   order   as   to  costs.

26. For   the   foregoing   reasons,  Letters   Patent  Appeals   No.1664   to   1668   of   2004,   are   hereby  dismissed with no order as to costs.

27. Registry   to   place   a   copy   of   this   order   in  each of the connected matters. 

Sd/­        [HARSHA DEVANI, J] Sd/­        [A. S. SUPEHIA, J] *** Bhavesh­[pps]* Page 28 of 28