Hon'ble Dr. CHAUHAN, J.—This appeal has been preferred against the Judgment and order of Bombay High Court dated 20th February, 2006, passed in Writ Petition No. 1018 of 1999, filed by the respondent herein setting aside the order passed by the State Government withdrawing the proceedings under the provisions of the Urban Land (Ceiling and Regulation) Act, 1976 (hereinafter called as, “Act, 1976”).

2. Facts and circumstances giving rise to the present case are that the Act, 1976 was enacted to provide for imposition of a ceiling on vacant land in urban agglomerations for the acquisition of such land in excess of the ceiling limit, to regulate the construction of buildings on such land and for matters connected therewith. The said Act prescribed the maximum ceiling to which the land can be retained by the owner and determination of the surplus land and transfer thereof in favour of the State after drawing the final statement under Section 9 of the Act, 1976, and the State would acquire the vacant land in excess of the ceiling limit under Section 10 of the Act, 1976. The Act came into force on 17th February, 1976. On the said date, the suit land was not within urban limits, however it was included in the urban area residential zone only with effect from 17.05.1976, by extending the limits of the Municipal Corporation. The suit land was acquired under the Act, 1976, in the years 1978-1979 and its possession was taken and handed over to Pune Municipal Transport (for short PMT) for establishing a bus depot and staff quarters. In 1988, the bus depot was constructed on a part of the suit land, however, the appellant preferred a revision under Section 34 of the Act, 1976, dated 6.4.1998 contending that the land ought not to have been acquired under the Act, 1976, on the ground that on the date of commencement of the Act, 1976, i.e. 17.2.1976, the suit land was not within the limits of urban area. In order to substantiate the claim, reliance was placed on the Judgment of this Court in Atia Mohammadi Begum vs. State of U.P. & Ors., AIR 1993 SC 2465, wherein it has been held that for the purpose of the Act, 1976, the categorization of the land in the Master Plan in existence at the time of commencement of the Act into force was a relevant factor and any subsequent change in the Master Plan cannot be taken into consideration. The said application was allowed by the Hon’ble Minister, exercising his revisional powers by order dated 29.09.1998.

3. Being aggrieved, the PMT filed writ petition No. 1018 of 1999 before the High Court of Maharashtra and the said writ petition has been allowed vide Judgment and order dated 20.02.2006 in spite of the fact that the Act, 1976 stood repealed by the Urban Land (Ceiling and Regulation) Repeal Act, 1999 (hereinafter called ‘Act 1999’) with effect from 18.03.1999. Subsequent thereto, this Court in State of A.P. & Ors. vs. N. Audikesava Reddy & Ors., AIR 2002 SC 5 overruled the Judgment in Atia Mohammadi Begum (supra). Hence, this appeal.

4. Sh. A.K. Ganguly, learned senior counsel for the appellant, has submitted that the High Court erred in interfering with the order of the Revisional Authority, which was fully justified being in consonance with the law laid down by this Court in Atia Mohammadi Begum (Supra). The provisions of Section 34 of the Act, 1976, do not provide for any limitation and in case, proceedings had been initiated against the appellant in contravention of the Act, 1976 itself, the order passed by the prescribed authority dated 23.05.1979 was a nullity, and, therefore, was unenforceable and inexecutable. It has also been pointed out by Mr. Ganguly that originally, the land was allotted to PMT for establishing a bus depot, though the land was earmarked for residential purposes, thus, it was not permissible for the respondent authority to change the user of the land. If the land is vested in the State free from all encumbrances without any authority of law, the original tenure holder is entit

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