Bhikhubhai Vithlabhai Patel & Ors vs State Of Gujarat & Anr

3. The Gujarat Town Planning and Urban Development Act, 1976 (for short the said Act) came into force with effect from February 1st, 1978. The State Government in exercise of its power conferred under the provisions of the Act constituted Surat Urban Development Authority (SUDA) which prepared a draft development plan whereby the lands belonging to the appellants were proposed for designating the use of the lands for residential purposes. The State Government having considered the draft development plan submitted by SUDA sanctioned the plan in the modified form on January 31, 1986 whereby the appellants lands in question were reserved for education complex of South Gujarat University. The final development plan was accordingly brought into force with effect from March 31, 1986. Neither the Area Development Authority nor the Authority for whose purpose land has been designated in the final Development Plan initiated any steps to acquire the lands of the appellants. The appellants having waited for a period of 10 years from the date of coming into force of the final development plan got served a notice on the Authority concerned requiring it to acquire the land within six months from the date of the service of such notice. However, no steps were taken by any of the authorities proposing to acquire the lands. Instead SUDA in purported exercise of its power under Section 21 of the Act sought to revise the development plan by reserving the lands in question once again for education complex of South Gujarat University.

5. The revised development plan submitted by SUDA was awaiting the sanction of the State Government. The State Government in exercise of powers conferred by the proviso to sub-clause (ii) of clause (a) of Section 17(1) of the Act proposed modifications in the draft revised development plan submitted by SUDA and proposed to designate the land under Section 12(2)(o) for educational use. The appellants challenged the action on the part of State Government in issuing notification dated July 22, 2004 on various grounds. During the pendency of the Writ Petition the State Government came out with final notification dated September 28, 2004 designating the land in question for educational use under Section 12(2)(o) of the Act. The appellants sought the leave of the court to challenge the said notification also. The final notification was set aside on the ground that there was no material before the Government on the basis of which the decision to designate the lands for educational purposes could have been arrived at. The matter was remitted for fresh consideration in the light of the observations and the directions issued by the High Court.

26. The formation of the opinion by the State Government should reflect intense application of mind with reference to the material available on record that it had become necessary to propose substantial modifications to the draft development plan.

32. We are of the view that the construction placed on the expression reason to believe will equally be applicable to the expression is of opinion employed in the proviso to Section 17 (1)

33. The Court is entitled to examine whether there has been any material available with the State Government and the reasons recorded, if any, in the formation of opinion and whether they have any rational connection with or relevant bearing on the formation of the opinion. The Court is entitled particularly, in the event, when the formation of the opinion is challenged to determine whether the formation of opinion is arbitrary, capricious or whimsical. It is always open to the court to examine the question whether reasons for formation of opinion have rational connection or relevant bearing to the formation of such opinion and are not extraneous to the purposes of the statute.

38. For the view we have taken to strike down both the notifications and declare them ultra vires it is unnecessary to go into various other contentions urged before us.

40. The present move of the State Government to designate the land for the educational use under Section 12 (2) (o) of the Act is declared ultra vires and void and this shall put an end to the controversy enabling the appellants to utilize the land for residential purposes. The authorities including the State Government shall accordingly do the needful, without creating any further hurdle in the matter.

41. The appeal is, accordingly, allowed with costs.