The court established that lessees have enduring rights under perpetual leases, and any acquisition must follow due process as per statutory requirements.

JUDGMENT :

(PER : HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE SUNITA AGARWAL)

1. The instant petition has been filed by a group of petitioners, which are industrial units carrying on business on various plots allotted by the Gujarat Industrial Development Corporation (GIDC). The plots allotted to the petitioners in GIDC Estate at Dabhoi are adjacent to the narrow gauge Miyagam Karjan-Dabhoi-Samalaya railway line.

2. The prayers made in the Writ petition are to issue a writ of mandamus commanding the respondents not to take possession of Plot Nos. 4, 24, 35/B, 50, 36, 49, 37 at Dabhoi GIDC Estate in Vadodara (allotted to the petitioners herein) for the purpose of conversion of the above railway line from narrow gauge to broad gauge. It is further prayed that the respondents be directed not to acquire the aforesaid plots without treating the petitioners as persons interested in such lands. A further prayer is to stay the execution, operation and implementation of the Corrigendum Order dated 17.05.2023 issued by the respondent GIDC has also been sought.

3. There is no dispute about the fact that the petitioners are lawful allottees of the industrial plots in the industrial estate and the allotments have been made on various dates starting from the year 1981 onwards. The lease deeds have been registered. With GIDC vide Corrigendum Order dated 17.05.2023, the GIDC has intimated the petitioners that their plot size would be reduced, inasmuch as, a portion of their plots are required for the project of Railways for conversion of narrow gauge to broad gauge of Miyagam Karjan-Dabhoi- Samalaya railway line.

4. The submission is that the petitioners have invested their savings in such plots allotted and have arranged their business, made investments and earned goodwill on the lands of the area leased to the petitioners. The leases in favour of the petitioners are permanent leases for 99 years and the petitioners have been given an option to purchase the lease lands as the GIDC has a policy for converting the lease hold rights to absolute ownership. It is, thus, not open for the GIDC to terminate the leases before completion of the lease period as the petitioners have never violated any terms and conditions of the lease deeds and have paid entire consideration for execution of the lease deeds. The reduction in the plot area results in unilateral amendment to the concluded contracts and results in termination of the lease to the extent of the area sought to be deducted.

5. It was argued by Ms.Megha Jani, learned advocate appearing for the petitioners that such an action of GIDC is ex facie illegal, arbitrary, high-handed and impermissible. The GIDC while executing the lease deed is a 'lessor' and under the Transfer of Property Act, 1882, it is not open for the lessor to modify the terms and conditions of the lease deed by reducing the land area, unilaterally. Admittedly, no proceedings for acquisition of the lands required for the project of Railways has been carried out under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (for short as "the Act' 2013") or under the Railways Act, 1989. It was urged that in the event the land in question is acquired under any of the statutory land acquisition provisions, the petitioners have a statutory right to be considered as persons interested in the acquired land to claim for fair compensation, and to further challenge the determination of compensation and even acquisition, if any.

6. The respondent State Authorities specifically the office of the Collector, Vadodara and GIDC are acting in an absolute highhanded manner, misusing their authority in a bid to evict the petitioners from the portion of the plots given to them on lease of 99 years. A copy of one of such lease deed appended at page 20' of the paper book has been placed before us to demonstrate that as per the terms and conditions of the lease deed, in consideration of the amount (indicate