Gujarat High Court

Rejection of Section 63AA application for technical deficiencies does not preclude filing of a fresh application.

M/S SSPA REALTY PRIVATE LIMITED vs THE STATE OF GUJARAT

Gujarat High CourtJUDGMENT: July 09, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Petitioner purchased agricultural land at Revenue Survey No. 64, Village Untiya (Kajapur), Vadodara, via a registered sale deed dated 12.03.2021 for industrial purposes under Section 63AA of the Gujarat Tenancy and Agricultural Lands Act, 1948

Source reference: p. 2

The Petitioner filed an online application on 06.04.2021 seeking a bona fide industrial use certificate.

Source reference: p. 3

The Collector, Vadodara, rejected the application on 22.10.2021, citing a negative opinion from the Mamlatdar and the non-submission of three years of audit reports

Source reference: p. 3

Although a subsequent application was purportedly allowed in 2026, the Petitioner challenged the initial rejection as arbitrary and beyond the Collector's jurisdiction

Source reference: p. 3

The State contended that the Petitioner ought to have filed a statutory appeal under Section 63AA(3)(d) instead of a writ petition

Source reference: p. 5
02

Issues

1. Whether the power exercised by the Collector under Section 63AA of the Act is administrative or quasi-judicial in nature

Source reference: p. 3-4

2. Whether the rejection of an application due to technical defects or procedural lapses precludes the applicant from filing a fresh application or necessitates a mandatory statutory appeal

Source reference: p. 4
03

Law Applied

Section 63AA of the Gujarat Tenancy and Agricultural Lands Act, 1948, which permits the sale of agricultural land for bona fide industrial purposes provided specific conditions regarding land area and location are met

Source reference: p. 6-10

Precedent set in M/s Rathore Steels v. State of Gujarat (SCA No. 8844 of 2024), which establishes that applications rejected for technical reasons do not bar fresh applications.

Source reference: p. 4

The Collector’s function under Section 63AA is administrative, focused on satisfaction of statutory parameters rather than adjudication

Source reference: p. 11
04

Reasoning

The Court reasoned that Section 63AA confers administrative power upon the Collector to verify if a land purchase aligns with industrial growth policies

Source reference: p. 10-11

Because the function is administrative, the principles of functus officio or the absolute bar of res judicata do not apply to the filing of subsequent applications

Source reference: p. 4

The Court observed that the 2021 rejection was based on "deficiencies" (such as missing audit reports) rather than a substantive finding on the merits of the "bona fide industrial purpose"

Source reference: p. 11-12

Procedurally, the Court found that requiring an appeal for a technical rejection would be contrary to the legislative intent of Section 63AA. Thus, an applicant remains entitled to cure technical defects and re-apply without being forced into litigation before the State Government

Source reference: p. 11-12
05

Holding

The Court set aside the impugned order dated 22.10.2021

The Collector exercises an administrative function under Section 63AA, and a rejection on technical grounds does not prevent a fresh application

Source reference: p. 11

The Court directed the Collector, Vadodara, to consider and decide the Petitioner’s fresh application on its merits, strictly in accordance with the law and within the prescribed statutory period, without being influenced by the previous rejection. The writ petition was allowed with no order as to costs

Source reference: p. 12
Gujarat High Court

Original Court PDF

M/S SSPA REALTY PRIVATE LIMITEDvsTHE STATE OF GUJARAT

Gujarat High Court · July 09, 2026

Click to open original judgment

Original judgment, available to read, download and summarize on LawLens.in

Click to open original judgment