Statute Law
There is a certain inbuilt wisdom in the statute which is the mandate of the legislature which represents the people -
Ministers are not expected to act contrary to the statute and fail to respect the same,
Dipak Babaria v. State of Gujarat, (2014) 3 SCC 502
Gujarat Tenancy and Agricultural Lands (Vidarbha Region and Kutch Area) Act, 1958 (Bom Act 99 of 1958)
Ss. 89 and 89-A - Agricultural land permitted to be sold for industrial purpose - Vests in State on failure to commence
industrial activity - Mandatoriness of, provisions for - Powers of Collector of enquiry and resumption of the land - Proper
exercise of - Exercise of power by Collector on directions of Minister concerned strongly deprecated - Collector, the
statutory authority, instead of acting in accordance with the statutory mandate granting permission to R-4 to sell
agricultural land earlier purchased by R-4 for industrial purpose, in favour of R-5 for non-agricultural user - Collector
treating it as a special case, and directing that the same not to be treated as a precedent, only because a direction was
given by the Minister concerned - Impermissibility of - Held, if the law requires that a particular thing should be done in a
particular manner it must be done in that way and none other - Government cannot ignore the policy intent and
procedure contemplated by the statute - An enquiry was required to be conducted by the Collector who is the statutory
authority - Dictating the Collector to act in a particular manner by the Minister is a breach of the mandate of the statute
framed by the legislature - It is clearly a case of dereliction of duties by the Collector and dictation by the Minister,
showing nothing but arrogance of power - Direction of State Government and consequent order of Collector, is arbitrary,
and bad in law for being in violation of the scheme and provisions of Ss. 89 and 89-A - Direct sale of land by R-4 to R-5 is
also held to be bad in law, and inoperative - There is no need for Collector to hold an enquiry, in view of the letter of R-4
wherein it is clearly stated it was no more interested in putting up any industrial project on said land - Consequently, land
shall vest in the State Government free from all encumbrances - Also, there is no need of payment of appropriate
compensation to the purchaser determined by the Collector as R-4 has received Rs 1.20 crores from R-5 (whereas land
was originally bought by R-4 for Rs 70 lakhs), which shall be treated as full payment towards the compensation payable
by the State - Further, as the land is to be disposed off by State Government, if R-5 is interested in setting up the
proposed project, it shall pay an amount of Rs 3.15 crores to Government of Gujarat (the difference between the
government rate of Rs 4.35 crores less Rs 1.20 crores paid to R-4), on basis of commitment made to R-5 by Gujarat
Government in Vibrant Gujarat Summit upon which R-5 had acted, and in furtherance of industrial development policy of
the State - Although action of State Government is not approved and was clearly arbitrary and untenable, aforesaid order
will be appropriate to do complete justice in the matter,
Gujarat Tenancy and Agricultural Lands (Vidarbha Region and Kutch Area) Act, 1958 (Bom Act 99 of 1958)
Ss. 89 and 89-A - Scheme of provisions, discussed - Exception to bar of transfer of agricultural lands, only for bona fide
industrial purpose under S. 89-A - Scope - Exercise of power by Collector under the provision - Procedure prescribed
therefor - Purchaser has to see that industrial activity starts in three years from the date of certificate of purchase issued
by Collector, and production of goods and services must also commence within five years thereof - In the event
purchaser fails to commence such industrial activity, the Collector has to make an enquiry, and thereafter pass an
appropriate order of resumption of the land on determining the compensation - Entire authority in this behalf is with the
Collector and none other and it is not permissible for Collector to act on directions of Government/Minister and bypass
the statutory scheme, as in present case,
Gujarat Tenancy and Agricultural Lands (Vidarbha Region and Kutch Area) Act, 1958 (Bom Act 99 of 1958)
Ss. 89-A and 126 - Relative scope and applicability - Powers of State Government and Collector - Relative scope -
Government is only the appellate authority where the Collector does not grant a certificate for purchase of agricultural
land for bona fide industrial purpose - Statutory authority under S. 89 lies with the Collector and appellate power is with
State Government under S. 89(3) - Hence, when first purchaser of agricultural land defaults in setting up the industry,
State Government cannot give a direction to the Collector, that permission be granted for further transfer of agricultural
land from one industrial purchaser to any third party, once again, for industrial purpose - Further, State Government's
overall control under S. 126 cannot be used in the instant case where the power is with the Collector and appellate
power is with the State Government - Power under S. 126 can be utilised for giving general guidelines, but not for
interference or giving directions in individual cases,
Art. 14 - Allocation/Dispensation/Alienation of natural resources by State - Norms for - Auction is normal method for
disposal of natural resources which are national assets - Hence, where Collector permitted the sale of agricultural land
inter se parties instead, dehors S. 89-A, Gujarat Tenancy and Agricultural Lands (Vidarbha Region and Kutch Area) Act,
1958 the State exchequer positively suffered,
Administrative Law
Judicial Review
Reasons and bona fide exercise of power are essential at the time of exercise thereof - Government must defend its
action on the basis of the order that it has passed, and it cannot improve its stand by filing subsequent affidavits,
Interpretation of Statutes
Subsidiary Rules
Where the statute provides for a thing to be done in a particular manner, then it has to be done in that manner and in no
other manner - Time-taking nature of procedure cannot be a ground to deviate from legislative scheme,
Tenancy and Land Laws
Gujarat Tenancy and Agricultural Lands (Vidarbha Region and Kutch Area) Act, 1958 (Bom Act 99 of 1958)
Ss. 89-A and 89 - Permission to transfer agricultural land for bona fide industrial purpose - Original permission to
purchase land containing condition permitting Collector to pass an order for a second sale, inter se parties, in case of
failure of a purchaser to set up an industry, held is bad in law, not having any basis in any statutory provision - A sale
inter se parties is neither contemplated nor permitted under S. 89 or S. 89-A - In case of any prospective purchaser to set
up the industry, the statute prescribes a detailed procedure, which alone must be followed,
Administrative Action
Exercise of Power/Discretionary Power - Exercise of power by competent/statutory authority under direction or in
compliance with instructions of some other person or authority - Impermissibility of - Collector, statutory authority under
the 1958 Act acting on instructions of Minister, held, is clearly a case of ultra vires dictation by State Government to the
Collector,
Administrative Action
Exercise of Power/Discretionary Power - Administration/Bureaucracy versus Executive/Politicians - View/opinions of
civil servants - Variance with views of Minister - Need for written reasons - A higher civil servant normally has had varied
experience and Ministers ought not to treat his opinion with scant respect - If the Ministers want to take a different view,
there must be compelling reasons, and the same must be reflected on the record,
Tenancy and Land Laws
Gujarat Tenancy and Agricultural Lands (Vidarbha Region and Kutch Area) Act, 1958 (Bom Act 99 of 1958)
S. 89-A - Permission for conversion of agricultural lands for bona fide industrial purpose - Considerations and guidelines
for - When a decision is to be arrived at whether the application is for a bona fide industrial purpose, Collector has to
examine aspects of bona fide industrial activity, good employment and revenue to the State, causing least pollution and
damage to the environment and adjoining agriculturists,
Statute Law
Generally
There is a certain inbuilt wisdom in the statute which is the mandate of the legislature which represents the people -
Ministers are not expected to act contrary to the statute and fail to respect the same,
Industry, Trade, Development and Business Laws
Generally
Development should not be measured merely in terms of growth of gross domestic product, but it should be in terms of
utility to the community and society in general,
Print Page
There is a certain inbuilt wisdom in the statute which is the mandate of the legislature which represents the people -
Ministers are not expected to act contrary to the statute and fail to respect the same,
Dipak Babaria v. State of Gujarat, (2014) 3 SCC 502
Gujarat Tenancy and Agricultural Lands (Vidarbha Region and Kutch Area) Act, 1958 (Bom Act 99 of 1958)
Ss. 89 and 89-A - Agricultural land permitted to be sold for industrial purpose - Vests in State on failure to commence
industrial activity - Mandatoriness of, provisions for - Powers of Collector of enquiry and resumption of the land - Proper
exercise of - Exercise of power by Collector on directions of Minister concerned strongly deprecated - Collector, the
statutory authority, instead of acting in accordance with the statutory mandate granting permission to R-4 to sell
agricultural land earlier purchased by R-4 for industrial purpose, in favour of R-5 for non-agricultural user - Collector
treating it as a special case, and directing that the same not to be treated as a precedent, only because a direction was
given by the Minister concerned - Impermissibility of - Held, if the law requires that a particular thing should be done in a
particular manner it must be done in that way and none other - Government cannot ignore the policy intent and
procedure contemplated by the statute - An enquiry was required to be conducted by the Collector who is the statutory
authority - Dictating the Collector to act in a particular manner by the Minister is a breach of the mandate of the statute
framed by the legislature - It is clearly a case of dereliction of duties by the Collector and dictation by the Minister,
showing nothing but arrogance of power - Direction of State Government and consequent order of Collector, is arbitrary,
and bad in law for being in violation of the scheme and provisions of Ss. 89 and 89-A - Direct sale of land by R-4 to R-5 is
also held to be bad in law, and inoperative - There is no need for Collector to hold an enquiry, in view of the letter of R-4
wherein it is clearly stated it was no more interested in putting up any industrial project on said land - Consequently, land
shall vest in the State Government free from all encumbrances - Also, there is no need of payment of appropriate
compensation to the purchaser determined by the Collector as R-4 has received Rs 1.20 crores from R-5 (whereas land
was originally bought by R-4 for Rs 70 lakhs), which shall be treated as full payment towards the compensation payable
by the State - Further, as the land is to be disposed off by State Government, if R-5 is interested in setting up the
proposed project, it shall pay an amount of Rs 3.15 crores to Government of Gujarat (the difference between the
government rate of Rs 4.35 crores less Rs 1.20 crores paid to R-4), on basis of commitment made to R-5 by Gujarat
Government in Vibrant Gujarat Summit upon which R-5 had acted, and in furtherance of industrial development policy of
the State - Although action of State Government is not approved and was clearly arbitrary and untenable, aforesaid order
will be appropriate to do complete justice in the matter,
Gujarat Tenancy and Agricultural Lands (Vidarbha Region and Kutch Area) Act, 1958 (Bom Act 99 of 1958)
Ss. 89 and 89-A - Scheme of provisions, discussed - Exception to bar of transfer of agricultural lands, only for bona fide
industrial purpose under S. 89-A - Scope - Exercise of power by Collector under the provision - Procedure prescribed
therefor - Purchaser has to see that industrial activity starts in three years from the date of certificate of purchase issued
by Collector, and production of goods and services must also commence within five years thereof - In the event
purchaser fails to commence such industrial activity, the Collector has to make an enquiry, and thereafter pass an
appropriate order of resumption of the land on determining the compensation - Entire authority in this behalf is with the
Collector and none other and it is not permissible for Collector to act on directions of Government/Minister and bypass
the statutory scheme, as in present case,
Gujarat Tenancy and Agricultural Lands (Vidarbha Region and Kutch Area) Act, 1958 (Bom Act 99 of 1958)
Ss. 89-A and 126 - Relative scope and applicability - Powers of State Government and Collector - Relative scope -
Government is only the appellate authority where the Collector does not grant a certificate for purchase of agricultural
land for bona fide industrial purpose - Statutory authority under S. 89 lies with the Collector and appellate power is with
State Government under S. 89(3) - Hence, when first purchaser of agricultural land defaults in setting up the industry,
State Government cannot give a direction to the Collector, that permission be granted for further transfer of agricultural
land from one industrial purchaser to any third party, once again, for industrial purpose - Further, State Government's
overall control under S. 126 cannot be used in the instant case where the power is with the Collector and appellate
power is with the State Government - Power under S. 126 can be utilised for giving general guidelines, but not for
interference or giving directions in individual cases,
Art. 14 - Allocation/Dispensation/Alienation of natural resources by State - Norms for - Auction is normal method for
disposal of natural resources which are national assets - Hence, where Collector permitted the sale of agricultural land
inter se parties instead, dehors S. 89-A, Gujarat Tenancy and Agricultural Lands (Vidarbha Region and Kutch Area) Act,
1958 the State exchequer positively suffered,
Administrative Law
Judicial Review
Reasons and bona fide exercise of power are essential at the time of exercise thereof - Government must defend its
action on the basis of the order that it has passed, and it cannot improve its stand by filing subsequent affidavits,
Interpretation of Statutes
Subsidiary Rules
Where the statute provides for a thing to be done in a particular manner, then it has to be done in that manner and in no
other manner - Time-taking nature of procedure cannot be a ground to deviate from legislative scheme,
Tenancy and Land Laws
Gujarat Tenancy and Agricultural Lands (Vidarbha Region and Kutch Area) Act, 1958 (Bom Act 99 of 1958)
Ss. 89-A and 89 - Permission to transfer agricultural land for bona fide industrial purpose - Original permission to
purchase land containing condition permitting Collector to pass an order for a second sale, inter se parties, in case of
failure of a purchaser to set up an industry, held is bad in law, not having any basis in any statutory provision - A sale
inter se parties is neither contemplated nor permitted under S. 89 or S. 89-A - In case of any prospective purchaser to set
up the industry, the statute prescribes a detailed procedure, which alone must be followed,
Administrative Action
Exercise of Power/Discretionary Power - Exercise of power by competent/statutory authority under direction or in
compliance with instructions of some other person or authority - Impermissibility of - Collector, statutory authority under
the 1958 Act acting on instructions of Minister, held, is clearly a case of ultra vires dictation by State Government to the
Collector,
Administrative Action
Exercise of Power/Discretionary Power - Administration/Bureaucracy versus Executive/Politicians - View/opinions of
civil servants - Variance with views of Minister - Need for written reasons - A higher civil servant normally has had varied
experience and Ministers ought not to treat his opinion with scant respect - If the Ministers want to take a different view,
there must be compelling reasons, and the same must be reflected on the record,
Tenancy and Land Laws
Gujarat Tenancy and Agricultural Lands (Vidarbha Region and Kutch Area) Act, 1958 (Bom Act 99 of 1958)
S. 89-A - Permission for conversion of agricultural lands for bona fide industrial purpose - Considerations and guidelines
for - When a decision is to be arrived at whether the application is for a bona fide industrial purpose, Collector has to
examine aspects of bona fide industrial activity, good employment and revenue to the State, causing least pollution and
damage to the environment and adjoining agriculturists,
Statute Law
Generally
There is a certain inbuilt wisdom in the statute which is the mandate of the legislature which represents the people -
Ministers are not expected to act contrary to the statute and fail to respect the same,
Industry, Trade, Development and Business Laws
Generally
Development should not be measured merely in terms of growth of gross domestic product, but it should be in terms of
utility to the community and society in general,
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