Land Lease Dispute in Gujarat: Supreme Court Ruling Explained

The Supreme Court of India, in its judgment in Civil Appeal No. 360 of 2016, addressed a long-standing dispute between the State of Gujarat and Shree Ratnakar Enterprise regarding the lease of 1500 acres of land in Village Mundra, Kutch, for salt production. This case highlights the legal intricacies involved in land allocation, governmental policies, and the impact of economic projects like Special Economic Zones (SEZs).

Background of the Case

Shree Ratnakar Enterprise applied for a lease of 1500 acres of land from Survey No. 141 in Mundra, Kutch, for salt manufacturing. The application was rejected by the District Collector on June 5, 1993, citing non-availability of the requested land. The enterprise challenged this decision through a revision application, leading to the Additional Chief Secretary remanding the matter for reconsideration. Despite this, the Collector once again rejected the request on December 18, 1999, stating that the land was scattered and not available in a single stretch.

After a prolonged delay of more than five years, Shree Ratnakar Enterprise filed a revision application against this rejection, which was dismissed by the revisional authority on April 27, 2005, due to the delay in filing. Subsequently, the government approved the establishment of an SEZ in Mundra on May 24, 2009, which included the disputed land.

Legal Battle in the High Court

Six years after the revision dismissal, Shree Ratnakar Enterprise filed Special Civil Application No. 16050 of 2011 in the Gujarat High Court, seeking to quash the April 27, 2005 order and requesting land allocation. The Single Judge dismissed the petition on November 28, 2011, citing delay and latches, stating that the petitioner had failed to diligently pursue its legal remedies.

The petitioner then appealed to the Division Bench through Letters Patent Appeal No. 218 of 2012. The Division Bench overturned the Single Judge’s decision on January 8, 2014, ruling that the delay was primarily on the part of the state authorities rather than the petitioner. The court ordered the Collector to allot land to Shree Ratnakar Enterprise within three months.

Supreme Court’s Ruling

The State of Gujarat challenged the High Court’s ruling in the Supreme Court, arguing that the petitioner had no absolute right to claim the land for salt production. It also stated that post-SEZ establishment, no land was available for allocation. The government emphasized that historically, no individual had been allotted 1500 acres for salt production.

The Supreme Court, after reviewing the facts, determined that the Division Bench had erred in reversing the Single Judge’s decision. The Court emphasized the petitioner’s prolonged delay in pursuing legal remedies and upheld the Single Judge’s ruling, restoring its order. The Court categorically stated that the Collector was not obligated to allocate land to Shree Ratnakar Enterprise.

In conclusion, the Supreme Court allowed the appeal, reversing the Division Bench’s decision and reinstating the Single Judge’s ruling. This judgment reinforces the importance of timely legal action and underscores the limitations of land claims in the wake of large-scale economic projects.

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Download Judgment: State of Gujarat and vs Shree Ratnakar Enter Supreme Court of India Judgment Dated 19-01-2016.pdf