Failure to issue notice under Section 10(5) of the ULC Act to possessors renders dispossession unlawful and results in the abatement of proceedings under Section 4 of the Repealing Act.

JUDGMENT :

B.V. NAGARATHNA, J.

1. This civil appeal assails the impugned judgment dated 23.07.2014 passed by the High Court of Gujarat at Ahmedabad in LPA No. 2024/2010 in Special Civil Application No. 533/2009 wherein the appeal filed by the appellants herein was dismissed.

Factual Backdrop:

2. The facts of the case are that the land in question is admeasuring 9303 square metres and bearing Survey No. 339 of Town Planning Scheme No. 4, Final Plot Nos. 9A and 9B of Village Katargam, Surat, Gujarat (for short “Survey 339”). According to the appellants, the said land belonged to one Nathubhai Ranchhodbhai, upon whose death in the year 1933, his heir Kuberbhai Nathubhai became its true owner and occupier.

2.1 On 17.02.1976, the Urban Land (Ceiling and Regulation) Act, 1976 (“ULC Act” for the sake of convenience) came into force. Section 6(1) of the said Act directed every person holding vacant land in excess of the ceiling limit to file a statement specifying the location, extent, value and such other particulars of all vacant lands held by him. Accordingly, on 12.08.1976, Kuberbhai Nathubhai filed a Form under Section 6(1) of the ULC Act declaring the following lands of Katargam, Surat under his holding:

2.2 Thereafter, on 18.02.1980, the Competent Authority under the ULC Act (for short “Competent Authority-I”) passed an order holding that lands bearing Survey Nos. 479 and 472/p were exempt under Section 21 of the ULC Act, which stated that excess vacant land shall not be treated as excess in certain cases. The order also held that the remaining land of Survey No. 339 was within the ceiling limit, so there was “no excess land” being held by the family members of Kuberbhai Nathubhai. The respondents contended that the form filled earlier under Section 6(1) was not processed and was kept pending.

2.3 Thereafter, one Khodidas Kanjibhai Patel, the organiser of Sardar Hira Udhyog Sahakari Mandali Ltd. (for short “the Society”) purchased the lands of Survey No. 339 at a public auction held by the Special Recovery Officer on 28.04.1981. By order dated 28.05.1981, the officer confirmed the auction, and directed that the name of the Society be entered in the records of rights. Accordingly, the name of the Society was entered in the revenue records by Mutation Entry No. 7068 on 16.05.1983. Thereafter, Khodidas Kanjibhai Patel obtained Construction Permission (for short “Raja Chitthi”) on 13.12.1983 from the Surat Municipal Corporation for constructing industrial units for the Society. Khodidas Patel then issued Possession Receipts (for short “Kabja Receipts”) to multiple sub-plot holders, the appellants herein, who have remained in possession of the said sub-plots since the year 1983-84.

2.4 However, on 12.10.1984, the Assistant Collector, Choryasi Prant, passed an order cancelling Mutation Entry No. 7068 dated 16.05.1983, inter alia, on the basis that the public auction dated 28.04.1981 was not conducted according to the provisions of the ULC Act. This order was challenged before the Collector, Choryasi Prant in Appeal No. 152/1985, which passed an order dated 16.01.1986 upholding the original order dated 12.10.1984 of the Assistant Collector. The order of the Collector was in turn challenge