The Apex Court in the case of Barium Chemicals Ltd. and
another Vs. Company Law Board and others reported in AIR
1967 Supreme Court 295(1) held in no uncertain terms that
the Court even in such situation may quash an order passed with
a dishonest intention and held thus :-
The Apex Court in the case of Bhikhubhai Vithlabhai Patel
and others Vs. State of Gujarat and another reported in
(2008) 4 Supreme Court Cases 144 declared the decision of
the State Government as ultra vires. In the said case, the
appellants were deprived of their right to use the land for
residential purposes for over a period of more than a quarter
century. The authority included the land in the residential zone
but the State Government reserved the land for the purpose of
South Gujarat University. Hence, the land was de-reserved. The
move of the State Government to designate the land for the
educational use was declared ultra vires and void and the
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controversy was put to an end by enabling the appellants to utilise
the land for residential purposes. The move of the State was set
aside by holding that the Government had formed an opinion
without applying its mind to the aspect of necessity and without
forming an honest opinion on the question. While setting aside
the action of the Government, the basic principle laid down in the
Administrative Law (9th Edn.) by Prof. Sir Willian Wade was
referred as under :-