Citation : 2023 Latest Caselaw 7160 Guj
Judgement Date : 29 September, 2023
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 13748 of 2006
With
R/SPECIAL CIVIL APPLICATION NO. 23353 of 2005
With
R/SPECIAL CIVIL APPLICATION NO. 23354 of 2005
With
R/SPECIAL CIVIL APPLICATION NO. 23355 of 2005
With
R/SPECIAL CIVIL APPLICATION NO. 13749 of 2006
With
R/SPECIAL CIVIL APPLICATION NO. 13750 of 2006
With
R/SPECIAL CIVIL APPLICATION NO. 13751 of 2006
With
R/SPECIAL CIVIL APPLICATION NO. 13752 of 2006
With
R/SPECIAL CIVIL APPLICATION NO. 13753 of 2006
With
R/SPECIAL CIVIL APPLICATION NO. 13754 of 2006
With
R/SPECIAL CIVIL APPLICATION NO. 13755 of 2006
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE ASHUTOSH SHASTRI
==================================================
1 Whether Reporters of Local Papers may be allowed to see the judgment ?
2 To be referred to the Reporter or not ?
3 Whether their Lordships wish to see the fair copy of the
judgment ?
4 Whether this case involves a substantial question of law as
to the interpretation of the Constitution of India or any order made thereunder ?
================================================== DIPESH MANIBHAI SHAH Versus STATE OF GUJARAT & 1 other(s) ================================================== Appearance:
MR SP MAJMUDAR(3456) for the Petitioner(s) No. 1 MS SUMAN MOTLA ASSISTANT GOVERNMENT PLEADER for the Respondent(s) No. 1,2 ==================================================
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CORAM:HONOURABLE MR. JUSTICE ASHUTOSH SHASTRI
Date : 29/09/2023
CAV JUDGMENT
1. By way of this group of Special Civil Applications, the
petitioner basically has challenged the legality and validity of
the orders passed by the respondent authorities and thereby
prayed to hold that the petitioner is not liable to pay any amount
of premium for transfer of his land to Pushpaben Natubhai
Patel. Since this group of petitions are arising out of similar
controversy and a request is made to deal with all the petitions
conjointly, learned advocate representing the petitioner has
requested to treat Special Civil Application No. 13748 of 2006
as a lead mater and submissions have been made in the said
petition, which would govern the other set of Special Civil
Applications which are filed with this group and as such, for the
sake of convenience, upon request of learned advocates, we
have treated Special Civil Application No. 13748 of 2006 as a
lead matter.
2. The petition is arising out of factual following details. It is
the case of the petitioner that land bearing Revenue Survey No.
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806/1, Block No. 768, admeasuring 3136 sq.mtr., Survey No.
806/4/1 = Block No. 766 admeasuring 2328 sq.mtrs., Survey
No. 806/6/2 = Block No. 735 admeasuring 2428 sq.mtr., Survey
No. 739/2 = Block No. 751 admeasuring 1619 sq.mtrs., of
Village Sevasi, Taluka and District Baroda was granted by the
respondent authority to one Chotabhia Kalabhai Bhangi (now
deceased) on new and impartible condition under the relevant
provisions of Act and the land was included in the agriculture
zone under the Draft Developemnt Plan of VADA.
2.1. It the case of the petitioner that petitioner wanted to
purchase the said lands and as such, the holders of the said
lands applied before the District Collector, Baroda for
permitting them to sell the said lands to the petitioner herein
for agriculture purpose. The said application was made on
20.02.1997. In response to the said application, process was
undertaken by the authority and as per the report from the
department of town planner, Baroda, the market value was
determined at Rs.6,48,000/- per hectare and the District
Collector asked the holders of the lands to deposit amount of
Rs.2,99,578/- being the amount of premium payable to the
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subject land as condition precedent for transfer of the said lands
in government treasury and accordingly, petitioner had
deposited the said amount and as such, on 16.12.1997,
permission was granted to transfer the said lands to petitioner
subject to further conditions which were set out in the order. As
many as out of seven (7) conditions, petitioner found condition
nos. 1, 2, 4 and 5 being prejudicial to the interest of the
petitioner and as such, petitioner carried the said order dated
16.12.1997 before the higher authority i.e. State Government
and ultimately challenged the said order passed by the State
Government, by way of separate petitions.
2.2. It is the case of the petitioner that subsequently, he
purchased the said lands by registered sale deed dated
28.01.1998 and pursuant to the said registered sale transaction,
the entry got mutated being entry no. 3397 in the revenue
records and in due course, the said entry was also certified. The
petitioner thereafter applied to the Collector on 28.07.2003 to
permit the petitioner to sell the said land to one Pushpaben
Natubhai Patel to enable her to put construction of school
building. The petitioner submitted proposal to the Government
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in that behalf and ultimately the Collector passed an order on
12.01.2004 permitting the petitioner to sell this land to
Pushpaben Natubhai Patel subject to condition of paying an
amount of Rs.9,90,546/- being premium amount to the State
Government in respect of the said land. Feeling aggrieved by
the said order i.e. order dated 12.01.2004, the petitioner filed
proceedings by way of revision application before the State
Government and the Special Secretary, Revenue Department
(Appeals) (SSRD) vide order dated 18/26.05.2005 was pleased
to dismiss the revision application and feeling aggrieved by the
same, the petitioner approached this Court by way of petition
under Article 226 of the Constitution of India and it is in this
background, it appears that the petition by way of order dated
27.02.2007 was admitted and clubbed this group of petitions
and then upon completion of pleadings, it has come up for
consideration before this Court. Hence, upon request of learned
advocates, the matter is taken up for hearing.
3. Similar is the case with respect to the other petitions
attached to this factual details in a very summarized form is
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reproduced hereunder :-
"Insofar as Special Civil Application No.23354/2005 is concerned a challenge is made to an order dated 12.01.2004 of the District Collector granting permission to sale of property on payment of premium and order dated 27.05.2005 of the SSRD, where the prayer for refund the amount of premium is made.
Insofar as Special Civil Application No. 23355 of 2005 is concerned, a challenge is made to an order dated 16.12.1997 passed by the District Collector imposing condition Nos 1, 2, 4 and 5 as well as order dated 27.05.2005 of the SSRD, where the conditions imposed by the District Collector were challenged.
Insofar as Special Civil Application No.23353/2005 is concerned, a challenge is made to an order dated 27.02.2004 passed by the District Collector by which he corrected his earlier order dated 12.01.2004 and demanded further premium of Rs.76,050/- as well as has also challenged order dated 27.05.2005 of the SSRD where refund of the above amount was claimed.
Insofar as Special Civil Application No.13750/2006 is concerned, a challenge is made to an order dated 16.12.1997 passed by the District Collector imposing condition nos. 1, 2, 3, 4, and 5 as well as order dated 26.05.2005 of the SSRD, in which the said conditions were challenged.
Insofar as Special Civil Application No.13748/2006 is concerned, a challenge is made to an order dated 12.04.2004 passed by the District Collector of levying premium amount of Rs.9,90,456 as well a order dated 26.05.2005 of the SSRD for refund of the same amount.
Insofar as Special Civil Application No.13749/2006 is concerned, a challenge is made to the corrected order dated 27.02.2004 to pay further amount of Rs.2,39,662/-
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as well as order dated 26.06.2005 for refund of the said amount was claimed.
Insofar as Special Civil Application No.13754/2006 is concerned, a challenge is made to the corrected order dated 02.01.2004 levying premium of Rs.4,53,015 as well as order passed by SSRD dated 26.05.2004 for refund of the said amount was sought for.
Insofar as Special Civil Application No.13753/2006 is concerned, a challenge is made to the corrected order dated 27.02.2004 to pay further amount of Rs.1,03,913/- as well as order dated 20.05.2005 for refund of the said amount was claimed.
Insofar as Special Civil Application No.13755/2006 is concerned, a challenge is made to the corrected order dated 16.12.1997 passed by the District Collector imposing condition nos. 1, 2, 4, and 5 as well as order dated 26.05.2005 of the SSRD, in which the said conditions were challenged
Insofar as Special Civil Application No.13751/2006 is concerned, a challenge is made to the corrected order dated 12.01.2004 passed by the District Collector of levying premium amount of Rs.8,15,926/- as well a order dated 26.05.2005 of the SSRD for refund of the same amount.
Insofar as Special Civil Application No.13752/2006 is concerned, a challenge is made to the corrected order dated 27.02.2004 to pay further amount of Rs.2,07,178/- as well as order dated 26.05.2005 passed by the SSRD for refund of the said amount was claimed."
4. Mr. S. P. Majumudar, learned advocate appearing for the
petitioner has vehemently contended that the order passed by
the respondent authority is not only unjust or arbitrary, but is
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not sustainable in the eye of law. It has been contended that the
amount which has been paid by the petitioner was paid under
protest and that fact ought to have been noticed by the
authority to pass an order. It has been contended that the
authorities below have not properly appreciated the fact that
once transfer of land is permitted on payment of premium, land
would automatically convert into old tenure as all other
restrictions imposed while transfer would disappear and as
such, to again demand premium is hit by principle of unjust
enrichment. According to learned advocate Mr. Majmudar,
pursuant to the earlier permission when already premium
amount collected by the State authorities, it would not be open
at all to demand once again the amount of premium. Further it
has been contended that once permission under Section 5(3) of
the Act of 1953 is granted, there is hardly any reason for
insisting for payment of further premium since earlier premium
has extinguished all the restrictions which were imposed at the
relevant point of time and as such, even in view of guidelines
contained in Government Circular dated 13.07.1983 insistence
for further payment of premium is outside the scope of authority
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and therefore, this is a serious error committed by the
authorities below. Learned advocate Mr. Majmudar has in
written form raised following issues/submissions for
consideration of this Court and since the same is tendered, the
Court deems it proper to reproduce hereunder :-
BRIEF POINTS FOR ARGUMENTS
The lands were originally granted to the predecessor of the petitioner under the provisions of the Bombay Service Inams (Useful to Community) Abolition Act, 1953. It is submitted that permission to transfer the aforesaid land was granted under section 5(3) of the Act by way of order dated 16.12.1997 by the District Collector. While granting the aforesaid permission. premium of 50% of the market price of the land asseassed by the respondent authorities was paid. It is submitted that despite the same in the said order, conditions were imposed viz. condition Nos. 1, 2, 4 and 5, wherein it was mentioned that the land would remain a new tenure lard and further transfer of the land cannot be made without prior approval of the District Collector. It is submitted that once the petitioner has already paid 50% of the market price of the land in question, as assessed by the respondent authorities towards the premium for transfer of the land in favour of the petitioner, such conditions of restricting the tenure of the land as "new tenure land" and imposing conditions about further non- transferability are completely illegal, void without authority of law and without jurisdiction.
The petitioner paid the amount of premium, which was initially assessed in the 1997, thereafter, on 12.01.2004 the petitioner applied for transfer of the
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land, wherein the impugned orders were passed by the District Collector levying premium at 80% of the market price. The said order of levying premium of 80% of market price is completely unsustainable, illegal, without authority of law and without jurisdiction. Once premium at 50% has already been paid there can be no further chargeability of premium for further transfer of land.
After the District Collector passed order dated 12.01.2004. further orders were passed by him, levying additional premium by passing corrected order dated 27.02.2004. Such additional premium was levied by him as he did not give set off of the amount of 50% premium deposited by the petitioner earlier. Such order is also completely illegal, without authority of law and without jurisdiction.
The petitioner has paid the entire amount of premium under the corrected order of Collector protest and has transferred the land however, the petitioner is entitled to get refund of the same. The petitioner applied to the Special Secretary. Revenue Department for getting refund of the said amount as well as challenging the conditions imposed by the District Collector. However, the Special Secretary, Revenue Department by the impugned order dated (26.05.2005 rejected the revision application of the petitioner. The said order of the Special Secretary, Revenue Department is also erroneous and does not consider the contentions of the petitioner.
That the authorities below have committed fundamental error in not appreciating that the purchaser would always be ready and willing to pay the necessary charges which are required for conversion of the land into N.A. land but the authorities cannot unjustly enrich themselves by charging double premium. In the present case, the total premium demanded by the authorities for
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transfer of land is 130% of the market price of the land, which is completely impermissible.
That Government Resolutions referred to in the affidavit-in-reply also do not give any powers to the authority to charge premium at two stages. However, the authority cannot charge premium again having already charged premium once, as per the prevailing policy for transfer of land.
That the impugned conditions imposed in the order of the District Collector dated 16.12.1997 are without authority of law and without any source of power and just because the petitioner did not initially challenge the same, the petitioner cannot be estopped from challenging the same, as there cannot be any estopple (against law and there cannot be any waiver of Article 14 of the Constitution of India on the part of the petitioner. It is submitted that in the present case, the State authorities have acted in violation of Article 14 o the Constitution of India and have acted completely arbitrarily and even in the reply they have not justified their source of powers for levying premium twice for transfer of lands.
That such premium should also not be charged in view of the provisions of section 5(3) of the Bombay Service Inams (Useful to Community) Abolition Act, 1953.
It is pertinent to note that the petitioner has transferred the land to the agriculturist and the authority charged premium at 130% for transfer of land by agriculturist to another agriculturist. (the first 50% for transfer in favour of petitioner who is agriculturist and another 80% fir transfer in favour of Pushpaben who is also an agriculturist).
That though the petitioner has transferred the land further after paying premium, the said amount of
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premium is paid under protest. Since the said amount has been calculated by the authorities without any authority of law and without any statutory provisions enabling them to do so, the amount of premium paid by the petitioner is required to be refunded by the authority to the petitioner with interest."
4.1. After submitting this, it has been categorically stated that
once permission has been granted under the Special Act, there
is hardly any reason for applying general principle of premium
and thereto after several years and as such, the authorities
below ought to have been appreciated and the same having not
been done, the order under challenge is required to be quashed
and set aside.
5. As against this, Ms. Suman Motla, learned Assistant
Government Pleader appearing for the respondent authority has
submitted that Government Resolution which is pressed is with
respect to regrant and as such, the petitioner is bound to pay
80% of the amount, and as such, once having availed the benefit
somewhere in the year 2005, the petitioner cannot take undue
advantage any further. By drawing attention to affidavit-in-
reply, an attempt is made by the learned Assistant Government
Pleader to contest the petition. Learned Assistant Government
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Pleader has further submitted that as per Government
Resolution dated 13.07.1983 occupant of land who wants to sell
the land of new impartible condition for agriculture purpose is
supposed to pay 50% of the market value of premium. The
original allottee i.e. Chhotabhai Kalabhai Bhangi applied for
permission for sale of subject land in question to one Dipesh
Manilal Shah, the present petitioner and as such, permission
was granted on condition to deposit 50% amount of market
value and the said amount has been paid by petitioner.
5.1. Subsequently, the petitioner applied for further permission
to resale the subject land to Pushpaben Natubhai Patel for non
agriculture use i.e. for public school purpose for which he was
granted permission on payment of 80% amount of the market
value as determined by the Collector. According to learned
Assistant Government Pleader, Section 73(A) and (B) of the
Bombay Land Revenue Code are not applicable in this case as
the said provisions are applicable in cases of transfer of land of
the tribals and as such, under these set of circumstance, the
order passed by the Collector confirmed by the SSRD is just and
proper and as such has requested not to entertain the petition.
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5.2. Learned Assistant Government Pleader has further by way
of additional affidavit filed by the Mamlatdar and Executive
Magistrate, Vadodara (Rural) has pointed out that petitioner
was granted permission in the year 1997 and payment has been
made by way of premium to the extent of Rs.1,29,891/- and the
said land then was allotted to him for agriculture purpose only
as new and impartible tenure and on 18.02.1998, sale deed was
executed which was mutated in revenue records. Subsequently,
in the year 2003, the petitioner applied for sale/change of
condition and has paid actually an amount of Rs.4,53,015/- on
16.12.2003 and thereafter, permission of Collector, Vadodara
which was accorded on 16.12.1997 to transfer the land by way
of registered sale deed of Block No. 750 and 756 was
transferred in favour of Pushpaben Natubhai Patel. The land
owner then Pushpaben Natubhai Patel on 13.05.2006 sold one
portion of land i.e. Survey/Block No. 764 to one 'Nalanda
Knowledge Foundation' and as such, now since the land is
already transferred to the third party, the petitioner has no
locus standi to challenge the proceedings as on date and as
such, challenge at his instance may not be entertained.
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6. Having heard the learned advocates appearing for the
parties and having gone through the orders passed by the
authorities below, few circumstances deserves consideration
before arriving at an ultimate conclusion.
6.1. Before dealing with the main controversy, we may peruse
the relevant provisions centering around the controversy. The
provisions of the Bombay Service Inams (Useful to Community)
Abolition Act, 1953 was an Act enacted on 22.12.1953 to abolish
service of inams useful to community in certain parts of the
State of Bombay and the same was made applicable here in the
State of Gujarat, which effect is not in dispute. The Act has
defined the word 'holder' of a service inam village as well as
service inams 'appointed day' is also prescribed. Amongst other
provisions of the Act, Section 4 deals with 'liability of service
inam villages and lands to land revenue and persons liable to
pay the same, whereas, Section 5 is dealing with 'resumption of
service inam land and its regrant to holder. This being a
relevant provisions, at this juncture, Court deems it proper to
re-produce hereunder :-
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"5. Resumption of service inam land and its regrant to holder :- (1) All service inam lands which have not been adjudicated under Rule 8 of Schedule B to the Bombay Rent-free Estates Act, 1852, are hereby resumed and shall be liable to the payment of land revenue under the provisions of the Code and the rules made thereunder and the provisions of the Code and the rules relating to the unalienated lands shall apply to such lands. (2) A service inam land resumed under the provisions of [subsection (1)] shall be regranted to the holder on payment of the occupancy price equal to six times the amount of the full assessment of such land within [five years] from the appointed day a n d the holder shall be deemed to be an occupant within the meaning of the Code in respect of such land and shall primarily be liable to pay land revenue to the State Government in accordance with the provisions of the Code and the rules made thereunder: Provided that if the holder fails to pay the occupancy price within the period of [five years] as provided in this Section, he shall be deemed to be unauthorisedly occupying the land and shall be liable to be summarily ejected in accordance with the provisions of the Code: [Provided further that where a service inam consisting of land is inalienable and is in the possession of a person other than the descendant of the original grantee, then for the purposes of regrant of land, the person in possession of the land shall produce satisfactory documentary evidence to show that the alienation of the land in his favour or in favour of his predecessor-in-title was mad e with the sanction of the competent authority, and was lawfully made. (3) The occupancy of the land regranted under sub-section (2) shall not be transferable or partible by metes and bounds without the previous sanction of the Collector and except on payment of such amount as the State Government may by general or special order determine."
6.2. The manner and method in which, how this provisions are
made workable, is stipulated in other parts of the statute and by
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virtue of Section 13 of the Act, the State Government, subject to
the condition of previous publication is empowered to make the
rules for the purpose of carrying out provisions of this Act.
Section 5 of the Act as indicate above which deals with
resumption, has indicted in sub-section (1) that all service inam
lands which have not been adjudicated under Rule 8 of schedule
B to the Bombay Rent-free Estates Act, 1852, are resumed and
shall be liable to the payment of land revenue under the
provisions of the Code, as also, subject to the rules relating to
unalienated lands shall also apply to such lands. Sub-section (2)
has indicated that service inam land resumed under the
provisions of sub-section (1) shall be regranted to the holder on
payment of occupancy price equal to six times the amount of full
assessment of such land within five (5) years from the appointed
day and the appointed day is defined under clause (a) to Section
2 and has stipulated that such holder or occupant shall
primarily be liable to pay land revenue to the State Government
in accordance with law with the provisions of the Code and if he
fails to pay occupancy price within the aforesaid period of five
years, he shall be deemed to be unauthorizedly occupying the
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land and liable for summary eviction. Sub-section (3) of Section
5 is stipulating that occupancy of land regranted under sub-
section (2) shall not be transferable or partible by metes and
bounds without the previous sanction of the Collector and
except on payment of such amount as the State Government
may by General or Special order determine and as such,
transfer subject to condition as stipulated in the said provisions.
6.3. With a view to regulate the occupancy, certain other
Government Resolutions by way of policy measures have also
prescribed criteria and imposed certain conditions and one of
such is Government Resolution dated 16.03.1982. This
Government Resolution has taken care of regrant and stipulated
certain terms for the purpose of change from new tenure to old
tenure or for non-agriculture purpose as well and in respect of
this, a provision is made to the effect that if any occupant/land
holder if inclined to convert for agriculture purpose, within 12
years from such circumstance, then 50% market value and
regarding occupancy rights, premium amount has to be paid,
such is the provision made under clause (2) (GH). This
Government Resolution has been further reconsidered by way of
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subsequent Resolution dated 13.07.1983 in which restrictions
which were made in respect of regrant and conversion
permissions. The Resolution has provided that in respect of
lands which are granted under the policy act, clause (1) has
cancelled the standard conversion of lands from new tenure to
old tenure, which are relating to agriculture purpose and under
clause (2) it has been stated that if occupancy is for a period
within 20 years, then 75% whereas in case possession is more
than 20 years, 50% premium is decided to be taken and also
provided that the same would be occupying as new tenure and
impartible condition only. Later on it has been provided in this
very Resolution that if holder on account of contingencies which
are stipulated is not in a position to execute agricultural
operation, and there is need to relinquished agricultural
purpose, either on premium or shifting elsewhere or
extraordinary circumstance, where it is not possible except to
sell away the land then, for agricultural purpose only sale
permission would be granted and for that if occupancy is within
20 years, 100% premium to be collected and if such permission
sought for is beyond the period of 20 years occupancy then
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premium to the extent of 90% to be collected and this
Resolution was published with concurrence of the relevant
department. Thereafter, one another Resolution came to be
published by the State Government dated 17.09.1984 wherein,
it has been stipulated with some modification that if occupancy
is within 20 years and for non-agricultural purpose, then 100%
premium whereas, if beyond period of 20 years, then 90%
premium which was provided in earlier Resolution was modified
and stipulated that within 20 years, if to be utilized for non-
agricultural purpose, premium would be at 80%. These are the
policy measures provided by the Government by virtue of
various Resolutions.
7. Now in light of the aforesaid situation which is prevailing
on record, the policy framed by the Government by virtue of
Government Resolutions are not at all under challenge and
there is no reflection of any arbitrariness in respect of measures
taken by the respondent authority. Further whether payment
has been made under the protest or not is a matter of dispute
and the said issue is within the realm of disputed question of
fact and after making the payment as demanded by the
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authority, now to turn around and challenge the said action, it
appears to be not digestible. The policy which is framed has its
own object to be achieved and close perusal thereof, is not
indicating that the principle of unjust enrichment violates in any
form. In fact, it cannot be said that there is any unjust
enrichment. The earlier amount which has been collected and
then which has been subsequently collected are in altogether
different circumstance and the said policy has got specific
source of power and as such, in the absence of any challenge to
the said provisions of policy, it is not open for the petitioner now
to agitate after securing benefit upon voluntary payments
having been made.
7.1. In fact, it further appears from the record that the land in
question is already transferred to a third party and the
petitioner is a seller who has extinguished his right by
transferring the land after collecting consideration from the said
sale transaction and as such, the question of locus also is not
possible to be ignored by this Court thereto, when extraordinary
jurisdiction equitable in nature under Article 226 of the
Constitution of India is invoked.
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8. In light of the aforesaid situation which is prevailing, the
reasons which are assigned by the authority are such, which
cannot be said to be perverse or suffering from any material
irregularity. In fact, proper application of mind is reflecting in
such exercise of jurisdiction and the overall consideration of
material which has been narrated in the order, this Court is of
the opinion that the order passed by the authorities below is just
and proper, cannot be said to be illegal or irregular in any form.
Hence, this Court would not like to interfere with the orders
passed by the authorities below and in any case, the present
petitioner undisputedly has made payments on which, portion
of land 'Nalanda Knowledge Foundation' has become transferee
and as such, in the absence of any irregularity of any nature,
the Court is not inclined to exercise extraordinary jurisdiction.
9. As discussed earlier, by virtue of specific provisions, a
demand has been made by the authority which is paid and
further in view of the policy, a further amount which has been
determined has also been paid long back, and hence at this
stage, the Court is not inclined to exercise its jurisdiction more
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particularly, when such demand was in pursuance of the policy
framed by the State Government. At this juncture, it would be
apt and appropriate to quote the relevant proposition of law laid
down by the Hon'ble Apex Court in respect of judicial review in
examining the policy matters. The Hon'ble Apex Court time and
again, has propounded that unless the said policy is apparently
arbitrary or reflects mala fides, no interference deserves. The
following are the proposition of law laid down by the Hon'ble
Apex Court, the Court deems it proper to quote hereunder :-
"In the case of Federation Haj PTOs o India v. Union of
India reported in (2020) 18 SCC 527 (para 19 & 20)
"19. The scope of judicial review is very limited in such matters. It is only when a particular policy decision is found to be against a statute or it offends any of the provisions of the Constitution or it is manifestly arbitrary, capricious or mala fide, the Court would interfere with such policy decisions. No such case is made out. On the contrary, views of the petitioners have not only been considered but accommodated to the extent possible and permissible. We may, at this junction, recall the following observations from the judgment in Maharashtra State Board of Secondary & Higher Secondary Education v. Paritosh Bhupeshkumar Sheth:
"16... The Court cannot sit in judgment over the wisdom of the policy evolved by the Legislature and the subordinate regulation-making body. It may be a wise policy which will fully effectuate the purpose of the enactment or it may be lacking in effectiveness
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and hence calling for revision and improvement. But any drawbacks in the policy incorporated in a rule or regulation will not render it ultra vires and the Court cannot strike it down on the ground that in its opinion, it is not a wise or prudent policy, but is even a foolish one, and that it will not really serve to effectuate the purposes of the Act. The Legislature and its delegate are the sole repositories of the power to decide what policy should be pursued in relation to matters covered by the Act and there is no scope for interference by the Court unless the particular provision impugned before it can be said to suffer from any legal infirmity, in the sense of its being wholly beyond the scope of the regulation- making power or its being inconsistent with any of the provisions of the parent enactment or in violation of any of the limitation imposed by the Constitution."
20. We may also usefully refer to the judgment in State of Madhya Pradesh v. Nandlan Jaiswal. In this judgment, licence to run a liquor shop granted in favour of A was challenged as arbitrary and unreasonable. The Supreme Court held that there was no fundamental right in a citizen to carry on trade or business in liquor. However, the State was bound to act in accordance with law and not according to its sweet will or in an arbitrary manner and it could not escape the rigour of Article 14. Therefore, the contention that Article 14 would have no application in a case 4 (1984) 4 SCC 27 5 (1986) 4 SCC 566 where the licence to manufacture or sell liquor was to be granted by the State Government was negatived by the Supreme Court. The Court, however, observed:
"But, while considering the applicability of Article 14 in such a case, we must bear in mind that, having regard to the nature of the trade or business, the Court would be slow to interfere with the policy laid down by the State
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Government for grant of licences for manufacture and sale of liquor. The Court would, in view of the inherently pernicious nature of the commodity allow a large measure of latitude to the State Government in determining its policy of regulating, manufacture and trade in liquor. Moreover, the grant of licences for manufacture and sale of liquor would essentially be a matter of economic policy where the Court would hesitate to intervene and strike down what the State Government had done, unless it appears to be plainly arbitrary, irrational or mala fide."
In the case of Satya Dev Bbhagaur & Ors. v The Sstate
of Rajasthan and Ors. Reported in 2022 LiveLaw (SC)
177 (para 16 and 18.)
16. It is trite that the Courts would be slow in interfering in the policy matters, unless the policy is found to be palpably discriminatory and arbitrary. This court would not interfere with the policy decision when a State is in a position to point out that there is intelligible differentia in application of policy and that such intelligible differentia has a nexus with the object sought to be achieved.
18. A three Judge bench of this Court in Sher Singh and Others vs. Union of India and Others, (1995) 6 SCC 515 has observed thus: "As a matter of fact the courts would be slow in interfering with matters of government policy except where it is shown that the decision is unfair, mala fide or contrary to any statutory directions."
10. And here even no challenge is made to the policy and as
such, in view of the aforesaid proposition of law laid down in
respect of relevant issues, no case is made out by the petitioner
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to call for any interference. Apart from that, the scope of
exercise of extraordinary jurisdiction is also succinctly
propounded by Hon'ble Apex Court and considering such
proposition also, the Court is of the opinion that no case is made
out by the petitioner. Following are the observations contained
in the decision in the case of Mohd. Inam Vs. Sanjay Kumar
Singhal and Others reported in (2020)7 SCC 327, in respect
of exercise of extraordinary jurisdiction.
"34. It is a well settled principle of law, that in the guise of exercising jurisdiction under Article 227 of the Constitution of India, the High Court cannot convert itself into a court of appeal. It is equally well settled, that the supervisory jurisdiction extends to keeping the subordinate tribunals within the limits of their authority and seeing that they obey the law. It has been held, that though the powers under Article 227 are wide, they must be exercised sparingly and only to keep subordinate courts and Tribunals within the bounds of their authority and not to correct mere errors. Reliance in this respect can be placed on a catena of judgments of this Court including the ones in Satyanarayan Laxminarayan Hegde & Ors. vs. Millikarjun Bhavanappa Tirumale, Bathutmal Raichand Oswal vs. Laxmibai R.10 (1960) 1 SCR 890 37 Tarta & Anr.11, M/s India Pipe Fitting Co. vs. Fakruddin M. A. Baker & Anr.12, Ganpat Ladha v. Sashikant Vishnu Shinde, Mrs. Labhkuwar Bhagwani Shaha & Ors. vs. Janardhan Mahadeo Kalan & Anr., Chandavarkar Sita Ratna Rao vs. Ashalata S. Guram, Venkatlal G. Pittie and another vs. Bright Bros (Pvt.) Ltd., State of Maharashtra vs. Milind & Ors., State Through Special Cell, New Delhi vs. Navjot Sandhu Alias Afshan Guru and others, Ranjeet Singh vs. Ravi Prakash, Shamshad Ahmad & Ors. vs. Tilak
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Raj Bajaj (Deceased) Through LRs. and others, Celina Coelho Pereira (Ms.) and others vs. Ulhas Mahabaleshwar Kholkar and others."
11. In light of the aforesaid proposition, and in light of the
aforementioned discussion, the Court is of the clear opinion that
no case is made out by the petitioner to interfere with the
orders under challenge. Accordingly, petitions being devoid of
merits stand dismissed with no order as to costs.
12. Since all other cognate petitions are raising similar issues
and the lead matter was essentially argued, the present order
would govern other sets of petitions which are attached along
with the present group of petitions and the same also
accordingly dismissed hereby. Rule is discharged. Interim relief
if any, stands vacated.
(ASHUTOSH SHASTRI, J)
phalguni
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