JUDGMENT :

N.V. Anjaria, J.

Heard learned Assistant Government Pleader Mr. Sahil Trivedi for the appellant - State and learned advocate Mr. Hriday Buch for the respondent.

2. The present Letters Patent Appeal preferred under clause 5 of the Letters Patent by the State is directed against order dated 19th February, 2020 passed by learned single Judge, whereby the learned single Judge disposed of the Special Civil Application by issuing certain observations and directions.

2.1 Learned single Judge provided in para 8 of the order that the order of Special Secretary (Appeals), Revenue Department, dated 16.2.2018 impugned before him shall operate only with regard to the observations made in para 2 of the operative order. As per those observations, the petitioners were directed to approach the competent authority with proposal for payment of premium within stipulated time and the Collector was directed to decide the same. Learned single Judge maintained the said direction, but set aside para 1 of the Revisional order, in which the Collector's order forfeiting the land was maintained.

2.2 The Collector was directed to decide the application of the petitioner with regard to the regularisation of the land in question by fixing premium as per the policy dated 6.6.2003 or any other policy which may apply. The parties were directed to maintain status quo with regard to the land in question.

2.3 It may be stated that the Collector passed the order forfeiting the land on the ground that there was breach of condition of original lease deed and that the transfer of lad was in reach of condition. As stated above, the Revisional Authority confirmed the said aspect yet simultaneously relegated the petitioners to approach the Collector for determination of premium on the ground that the petitioners had shown such willingness and readiness.

2.4 Thus, while maintaining the above observations of the Revisional Authority in para 2 of the operative portion, learned single Judge at the same time directed the Collector, Bhavnagar to decide the application of the petitioner with regard to regularising the land in question by fixing premium. It was the parcels of land bearing Survey Nos. 240, 244, 245, 500, 501 and 502 admeasuring 28.01 bighas situated at Sihor, Bhavnagar District, which was the subject matter of dispute before the revenue authorities.

3. The facts were that the erstwhile Ruler of the then Bhavnagar State had granted the said land on 99 years' lease basis to one M/s. Bharat Electrical Manufacturing Co. Ltd. for the purpose of establishing a factory to manufacture electrical accessories. The lease commenced on 14.1.1948 as per order dated 6.1.1948 of the Administrator of erstwhile rural.

3.1 The order of grant, on record, which contained conditions inter alia that in the event of sale or transfer of the land, the Administrator of the Ruler would have to be informed in advance and further that 1/4th of the profit earned was required to be deposited with the erstwhile ruler. The lease deed dated 16.3.1948 was executed containing such condition.

3.1.1 The said grantee M/s. Bharat Electrical Manufacturing Co. Ltd. had obtained financial assistance from the then Saurashtra Finance Board established by the government of Saurashtra State to the tune of Rs. 2,80,000/-. The factory premises as well as the machinates were mortgaged for the said financial assistance on 5.6.1949.

3.1.2 It further appears that the allottee M/s. Bharat committed default in making the repayment. The Saurashtra Finance Board took the possession of the land as well as the factory premises on the ground of breach of conditions of mortgage. When the State Financial Corporation Act, 1951 came into force in the year 1952, the Saurashtra Finance Board merged with the Corporation. The Corporation auctioned the land as the allottee had failed to pay the dues. The highest bidder was Saurashtra Electrical and Metal Industries Pvt. Ltd., which offered Rs. 3.71 lakhs for the land as well as the