JUDGMENT :

SURYA KANT, J.

1. Leave granted.

2. This batch of appeals arises from the judgment dated 20.07.2021 passed by the Jaipur Bench of the High Court of Judicature for Rajasthan whereby the Writ Petition filed by Respondent No. 1-M/s. Arfat Petrochemicals Pvt. Ltd. in all connected matters was allowed. As a corollary, the decision by the Cabinet Committee of the State of Rajasthan, and resulting instructions issued to the Rajasthan State Industrial Development and Investment Corporation Ltd. (“RIICO”) to cancel a series of permissions and approvals granted/awarded to Respondent No. 1 in respect of industrial land in Kota, Rajasthan, were set aside.

3. There are different Appellants before us in the respective SLPs. They include the State of Rajasthan (hereinafter, “State of Rajasthan” or “State Government”), RIICO and various workers unions (hereinafter “Appellant Unions”). As the nature and type of relief sought by both the State of Rajasthan and RIICO, stand on a slightly different footing to that of the Appellant Unions, we will address the State of Rajasthan and RIICO (collectively, “Appellants”) separately, to maintain the distinction between the reliefs sought by them as compared to the Appellant Unions.

(A) FACTS

4. The dispute originates from the allotment of approximately 271.39 acres of land by the State of Rajasthan through the District Collector, Kota, in the Large-Scale Industrial Area, Kota (“LIA Kota”) to J.K. Synthetics Ltd. (“JKSL”) on 12.09.1958. Following the allotment, a lease deed was executed with JKSL by the Collector, Kota, and permission was granted for setting up its industrial units in the area. JKSL’s retention of the property was facilitated over the following decades through the execution of fresh lease deeds with respect to the same area, as and when the period specified in the earlier lease lapsed.

5. Just after the first allotment was initially made, the State Government exercised its powers under Section 100 of the Rajasthan Land Revenue Act, 1956 and formulated the RAJASTHAN INDUSTRIAL AREAS ALLOTMENT RULES , 1959 (“1959 Rules”) to regulate the allocation of land to entrepreneurs and the development of industrial areas across the State. Section 100 of the Rajasthan Land Revenue Act is provided below:

“100. Sale of land in Industrial and Commercial Areas - The State Government may make rules regulating sales of lands in industrial and commercial areas and may also impose an annual assessment of such lands, wherever necessary.”

6. Similarly, Rules 2, 8 and 9 of the 1959 Rules are also of some relevance and the same are reproduced below:

“2. Period for which land may be allotted - Land in industrial area may be allotted on lease-hold basis for a period of 99 years:

(a) for setting of a large-scale industry anywhere in the state, by the State Government in the Industries Department and in the case of large-scale tourism unit, the allotment shall be made by the Government in the Revenue Department.

(b) for setting up of other industries:

(i) in Jaipur District, by the Director of Industries, Rajasthan Jaipur provided that in case of a tourism unit the allotment shall be made by the Government in the Revenue Department.

(ii) in any other district, by the Collector concerned.

(bb) for the setting up of IT Industries Government land shall be allotted by the State Government in the Revenue Department on the recommendation of the Department of Information Technology and Communication.

(c) all allotment of land under clause (a) shall be made within a period of 60 days and under clause (b) within a period of 30 days from the date of receipt of the completed application in Form-B. In case applicants submit complete application electronically in Single window System Portal, it shall be disposed as per the provisions of the Rajasthan Enterprises Single Window Enabling and Clearance Rules, 2011.

Provided that the allotment of land for the purpose of setting up of Common Effluent Treatment Plant and related act