M/S SSPA REALTY PRIVATE LIMITED vs THE STATE OF GUJARAT
- Court
- Gujarat High Court
C/SCA/9167/2026 JUDGMENT DATED: 09/07/2026
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 9167 of 2026
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE ANIRUDDHA P. MAYEE
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Approved for Reporting Yes No
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M/S SSPA REALTY PRIVATE LIMITED
Versus
THE STATE OF GUJARAT & ANR.
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Appearance:
PRATEEK S BHATIA(8629) for the Petitioner(s) No. 1
MR MITUL GAUTAM, AGP for the Respondent(s) No. 1,2
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CORAM: HONOURABLE MR. JUSTICE ANIRUDDHA P. MAYEE
Date : 09/07/2026
ORAL JUDGMENT
1. RULE. Rule returnable forthwith. Mr. Mitul Gautam,
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:-
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“(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 order dated 22.10.2021 in
Application No. 21902202101570 (Annexure-A);
(B) Your Lordships may be pleased to issue a writ of mandamus or
any 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.64, Village- Untiya (Kajapur), Taluka- Vadodara,
District - 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.64, Village – Untiya (Kajapur),
Taluka & 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 Patel
Taraben Bhailalbhai, Patel Dilipbhai Bhailalbhai, Patel
Urmilaben Bhailalbhai and Patel Bhailalbhai Shankarbhai,
from whom the petitioner purchased the land by way of
registered sale deed dated 12.03.2021. The said transactions
came to be duly reflected in the revenue records by
mutation entry bearing No. 1259.
4.1 Pursuant thereto, the petitioner preferred an online
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application dated 06.04.2021 being Application No.
21902202101570 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
22.10.2021 has rejected the said application.
4.2 That the petitioner thereafter submitted a fresh
application dated 05.06.2026 again seeking permission under
Section 63AA of the Act for bona fide industrial purposes.
However, the Collector, Vadodara, by order dated
08.06.2026 allowed the said application and it was ordered
that by the said order the prohibitory nature of the land is
changed.
4.3 Learned advocate Mr. Bhatia for the petitioner has
submitted that the impugned order dated 22.10.2021 is
wholly arbitrary, mala fide, and passed without due
application of mind, and therefore, deserves to be quashed
and set aside. It is submitted that the order is unreasonable
and suffers from lack of cogent reasons. That the
respondent No.2 has erroneously relied upon the negative
opinion of the Mamlatdar & ALT, Vadodara Rural and on the
ground that the audit reports of last 3 years has not been
submitted. It is further contended that the respondent
authority has travelled beyond the jurisdiction conferred
under Section 63AA of the Act and therefore, the impugned
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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 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 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 order is thus, unsustainable in law and liable
to be quashed and set aside.
5. Per contra, learned AGP Mr. Mitul Gautam for the
respondents submits that the Collector was bound by the
statutory provisions and no error has been committed by the
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Collector, while rejecting the application. 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.
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
application of the present petitioner having been rejected, it
was incumbent upon the petitioner to have preferred an
appeal before the Special Secretary, Revenue Department.
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.
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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 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
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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 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
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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;
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(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) 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,-
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(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 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
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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
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
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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 application preferred by the petitioner without being
influenced by the reasons stated in the order dated
22.10.2021 not having been challenged by the petitioner.
11.2 The application 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.
(ANIRUDDHA P. MAYEE, J.)
SALIM/
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