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2026 Supreme(Online)(Guj) 12475

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Hemant M. Prachchhak, J
Shirish Jagmohandas Shah – Appellant
Versus
Gujarat Industrial Development Corporation – Respondent
R/SPECIAL CIVIL APPLICATION NO. 6712 of 2025

Advocates:
For the Appellants/Petitioners: Yatin Oza, Mohit A Gupta
For the Respondents: Prithu Parimal

Administrative authorities cannot impose arbitrary restrictions on the alienation of individual industrial plots by claiming 'deemed amalgamation' based solely on common historical allotment records, particularly when the plots are held as distinct entities and inconsistent administrative practices have previously permitted individual transfers.

Headnote:(A) Constitution of India - Articles 226 and 227 - Industrial property rights - Right to alienate or transfer property - Restriction on transfer of individual plots based on collective historical allotment - Arbitrariness in administrative action.

(B) Administrative Law - Principles of fairness and non-arbitrariness - Authority cannot impose restrictive conditions on land transfer lacking statutory basis or formal amalgamation proceedings - Doctrine of estoppel - The authority cannot adopt inconsistent standards where previous dealings allowed individual sales of similarly situated plots. (Paras 7, 9)

Facts of the case:
The petitioner purchased multiple industrial plots through a court-confirmed auction process following liquidation proceedings of a company. When the petitioner sought to sell or sub-divide individual plots, the respondent authority refused, contending that the plots were 'deemed to be amalgamated' because they were covered under a common original allotment letter and a subsequent common transfer order. The petitioner argued that the plots were distinct with separate identifiers and that the authority had previously allowed the sale of other plots under similar transfer documents without requiring amalgamation.

Findings of Court:
The Court held that the claim of 'deemed amalgamation' was unsupported by any formal process or specific legal provision. The authority's refusal to permit individual sale or sub-division was found to be arbitrary and unjustified. The Court noted that in the absence of a formal amalgamation order and in light of the historical treatment of the plots as individual units, the restriction imposed by the authority was untenable.

Issues: Whether the respondent authority can restrict the transfer or sub-division of individual industrial plots by citing a 'deemed amalgamation' based solely on a common historical allotment letter despite the absence of a formal record of merger.

Ratio Decidendi: An administrative authority cannot impose restrictive conditions on an owner’s right to alienate or sub-divide property based on a unilateral, retroactive claim of amalgamation that lacks statutory backing or formal processing. Such restrictions contravene the principle of non-arbitrary administrative action, especially when the authority's past conduct has treated the assets as distinct and separate.

Result: Petition allowed. The impugned communication is quashed and set aside. The authority is directed to permit the petitioner to sell the plots either as a whole or through sub-division according to established procedures.

Table of Content
1. factual background regarding gidc land allotment, liquidation, and subsequent transfer dispute. (Para 3 , 4 , 5)
2. contention regarding the legality of deeming multiple plots amalgamated for sale purposes without formal procedural compliance. (Para 7 , 8)
3. unilateral imposition of amalgamation restrictive conditions on plots lacking formal merger is arbitrary and lacks statutory basis. (Para 9)
4. courts permit sale of individual plots subject to payment of prescribed sub-division fees and legal compliance. (Para 10)

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Approved for Reporting Yes No

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SHIRISH JAGMOHANDAS SHAH

Versus

GUJARAT INDUSTRIAL DEVELOPMENT CORPORATION & ANR.

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CORAM:HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK

JUDGMENT

1. RULE returnable forthwith. Learned counsel Mr. Prithu Parimal, waives service of notice of Rule for and on behalf of the respondents.

2. With the consent of the learned counsels for the parties, the matter is taken up for final hearing and disposal.

3. By way of present petition under Article 226 & 227 of the Constitution of India read with the provisions of the Gujarat Industrial Development Act, 1962 (hereinafter be referred to as “the Act”), petitioner has prayed for the following reliefs :

(A) YOUR LORDSHIPS BE PLEASED to issue a writ of certiorari, mandamus, or any other writ, direction or order to quash and set aside the impugned letter dated 06.06.2023, bearing No. GIDC/Pra.Me/Vd/596, issued by Respondent No. 2 at Annexure – A8 as being illegal and void in the interest of justice.

(B) YOUR LORDSHIPS BE PLEASED to issue a writ of mandamus, or any other writ, order or direction directing Respondent No. 2 to permit the Petitioner to transfer Plot No. 868, either as a whole or by way of sub-division, and Plot No. 869, either as a whole or by way of sub-division, situated at GIDC, Makarpura Industrial Estate, Vadodara, in accordance with law, in the interest of justice.

(C) YOUR LORDSHIPS BE PLEASED to stay the operation and implementation of impugned letter dated 06.06.2023, bearing No. GIDC/Pra.Me/Vd/596, issued by Respondent No. 2 at Annexure – A8 pending admission, hearing and disposal of petitioner in the interest of justice.

(D) YOUR LORDSHIPS BE PLEASED pass such other and further orders, which may be deemed fit in the interest of justice.

4. Brief facts giving rise to the present petition are that, the subject plots namely Plot Nos. 867, 868, and 869, were originally allotted to M/s. Gujarat Communication & Electronics Ltd. by respondent No.2 – GIDC pursuant to Allotment Letter No. GIDC/SO/BD dated 02.04.1979 and the possession of the said plots was also handed over to M/s. Gujarat Communication & Electronics Ltd. on the dame date. That thereafter, M/s. Gujarat Communication & Electronics Ltd. was ordered to be wound up by this Court in Company Petition No. 47 of 2001 and Company Petition No. 310 of 2000, vide order dated 18.02.2002, under Section 433(e) of the Companies Act, 1956 and therefore, a sale committee was constituted for the disposal of the company's assets pursuant to the order dated 04.11.2004, passed by this Court in OL Report No. 105 of 2003. That, the petitioner submitted the highest bid of Rs. 11.72 crores for the purchase of Plot Nos. 867, 868, 869, 866/3, 638, 639, 640, 649, 650, and 651, situated at GIDC, Makarpura Industrial Estate, Vadodara and the sale was duly confirmed in favor of the petitioner by this Court vide order dated 13.07.2006 in OL Report No. 54 of 2006 in Company Petition No. 310 of 2000, under Section 457 of the Companies Act, 1956. That, the petitioner fully discharged its payment obligations by remitting the entire sale consideration of Rs. 11.72 crores by 11.09.2006 and therefore, possession of the aforesaid plots was handed over to the petitioner on 23.09.2006 and a registered Sale Dee

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2026 Supreme(Online)(Guj) 12475

IN THE HIGH COURT OF GUJARAT AT AHMEDABADHemant M. Prachchhak, JShirish Jagmohandas Shah – AppellantVersusGujarat Industrial Development Corporation – RespondentR/SPECIAL CIVIL APPLICATION NO. 6712 of 2025

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Hemant M. Prachchhak, J
Shirish Jagmohandas Shah – Appellant
Versus
Gujarat Industrial Development Corporation – Respondent
R/SPECIAL CIVIL APPLICATION NO. 6712 of 2025