Supreme Court of India
DALSUKHBHAI BACHUBHAI SATASIA & OTHERSversusSTATE OF GUJARAT & OTHERS
- Citation
- 2026 INSC 21
- Decided
- 6 January 2026
- Disposal
- Appeal(s) allowed
- Bench
- B V NAGARATHNA
Holding
A notice under s.10(5) of the ULC Act must be served to the actual possessor; without such service and without de facto possession by the State, the proceedings abate under s.4 of the Repeal Act, granting relief to the private possessor.
Summary
The appellants were sub‑plot owners of a 9,303 sq m parcel in Surat that had been declared excess land under the Urban Land (Ceiling and Regulation) Act, 1976 (ULC Act). The State issued a notice under s.10(5) of the ULC Act only to the original landowner, not to the appellants who were in actual possession, and subsequently took "paper" possession of the excess land. The appellants argued that the mandatory notice under s.10(5) was not served to them, so the acquisition process was incomplete and the proceedings should abate under s.4 of the Urban Land (Ceiling and Regulation) Repeal Act, 1999. The Supreme Court held that notice must be served to the person actually in possession, that vesting of title does not transfer de facto possession, and that because the State failed to serve notice and take actual possession, the proceedings abated, entitling the appellants to relief. Consequently, the High Court’s dismissal of the writ petitions was set aside and the appeal was allowed.
Issues considered
- The mandatory nature of serving notice under s.10(5) of the ULC Act to the person actually in possession of excess land
- Whether the failure to serve such notice results in abatement of proceedings under s.4 of the Urban Land (Ceiling and Regulation) Repeal Act, 1999
- Whether recording of land in the State's name without actual transfer of possession defeats the benefit of s.4 of the Repeal Act
Legislation cited
- Gujarat Land Revenue Rules, 1972
- Urban Land (Ceiling and Regulation) Act, 1976s. 10(3), s. 10(5), s. 10(6), s. 21, s. 6(1)
- Urban Land (Ceiling and Regulation) Repeal Act, 1999s. 3, s. 4
Headnote
Issue for Consideration Issue arose whether the High Court was justified in dismissing the writ petitions by not applying s.4 of the Repealing Act and thereby not granting relief to the appellants; was the delivery of notice u/s.10(5) of the ULC Act to the appellants (as possessors of a mandatory step, the non-fulfilment of which would render abatement of the proceedings in terms of s.4 of the Repealing Act; and that despite the recording of lands in the name of the State Government, if actual possession was not subsequently transferred to the Government, would this render the
Subjects
excess vacant landvestingpossessionde jure possessionde facto possessionUrban Land Ceiling ActRepeal Actmandatory noticeabatement of proceedingsnatural justicepaper possession
Judgment
[2026] 1 S.C.R. 332 : 2026 INSC 21
Dalsukhbhai Bachubhai Satasia & Others
v.
State of Gujarat & Others
(Civil Appeal No. 6130 of 2016)
06 January 2026
[B.V. Nagarathna* and R. Mahadevan, JJ.]
Issue for Consideration
Issue arose whether the High Court was justified in dismissing
the writ petitions by not applying s.4 of the Repealing Act and
thereby not granting relief to the appellants; was the delivery of
notice u/s.10(5) of the ULC Act to the appellants (as possessors
of the concerned lands) a mandatory step, the non-fulfilment of
which would render abatement of the proceedings in terms of s.4
of the Repealing Act; and that despite the recording of lands in
the name of the State Government, if actual possession was not
subsequently transferred to the Government, would this render
the proceedings to abate u/s.4 of the Repealing Act.
Headnotes†
Urban Land (Ceiling and Regulation) Act, 1976 – ss.6(1), 10(5),
10(6), 21 – Urban Land (Ceiling and Regulation) Repeal Act,
1999 – ss.3, 4 – Acquisition of vacant land in excess of ceiling
limit – Requirement of issuance of notice to possessors – Land
admeasuring 9303 square metres belonged to the heir as its
true owner and occupier – Order by the competent authority
that the land in question was exempt u/s.21 and the remaining
land was within the ceiling limit and was not excess land – In
a public auction, land was purchased by a Society and issued
possession receipts to multiple sub-plot holders including the
appellant – Assistant Collector cancelled the mutation entry,
thereafter, the order was challenged before various forums
and finally the Competent Authority passed an order declaring
662.18 sq. metres as excess land – On the cancellation of
the auction purchase, the original landowner, entered into a
registered agreements of sale for the sub-plots in favour of
* Author
[2026] 1 S.C.R. 333
Dalsukhbhai Bachubhai Satasia & Others v. State of Gujarat & Others
the sub-plot holders/appellants, and the appellants became
owners and came into possession of sub-plots – Notice
u/s.10(5) issued only to original landholder directing him to
vacate and handover possession of the “excess land” to the
respondent-State – Since possession was not surrendered,
the Deputy Collector directed taking over of possession of
the excess land – Sub-plot holders tried to resell their sub-
plots, the Competent Authority refused to grant NOCs – Writ
petitions by the appellants before High Court dismissed as
also appeals thereagainst – Correctness:
Held: Requirement of issuance of notice u/s.10(5) is mandatory
and must be issued to the persons actually in possession of the
concerned land – This is clear from the wording of the statute-
order any person who may be in possession of it – Importance
of delivering notice lay in avoiding a situation where a person is
“dispossessed” without notice which would be in violation of the
principles of natural justice, thereby clearly envisioning that the
possessor must be served with notice – As per the provisions of
s.10(3) and 10(5), the subject land, despite having ‘vested’ in the
State Government, was not in the possession of the Government –
Possesion of the land continued with the appellant – Proviso to
s.4 not applicable and the benefit of abatement under the section
would apply – Legislative intent is that in cases where lands
were deemed to have been vested but possession was not yet
transferred as on date of enforcement of the Repealing Act, the
lands were to remain in possession of the private parties – Vesting
and possession are distinct and that without the latter, the private
parties have a claim over continuing to be in possession – On
the date of issuance of notice, the appellants as possessors did
not receive the notice – It was sent to the erstwhile owner of the
subject land – This also implies that the respondents also were
aware of the fact that actual possession was not with them and
there was a need to issue notice u/s.10(5) before taking over actual
possession – However, the respondents did not ascertain as to in
whose name actual possession stood – Thus, no notice was issued
to the appellants and hence there being no transfer of possession
in accordance with s.10, it continues with the appellants both in
fact as well as in law – Hence, entitled to the benefit of s.4 of the
Repealing Act as they do not fall within the scope of s.3 of the said
Act which is the savings clause – Omission to issue notice to the
334 [2026] 1 S.C.R.
Supreme Court Reports
appellants violated the mandatory requirement of serving notice
u/s.10(5) and meant that the legal process of acquiring possession
was still ongoing, leading to abatement of proceedings u/s.4 of the
Repealing Act on its enforcement – Abatement of proceedings is
by operation of law based on the facts of each case and once the
proceedings u/s.10 abate, the consequential reliefs would have to
be granted to the appellants – Hence, the appellants entitled to all
consequential reliefs pursuant to the abatement of the proceedings
u/s.4 of the Repealing Act as the case of the appellants squarely
falls within the scope of the provision – Division Bench of the High
Court not right in holding that the appellants not in possession
of the subject land on the date on which the ULC Act came into
force and were illegal occupants; and that although the electricity
bills showed the name of the appellants, it did not establish their
possession u/s.10(5) – Impugned orders of the High Court set
aside. [Paras 18.1, 18.3, 19.2-19.4, 22 22.1-22.9, 23]
Case Law Cited
C. Albert Morris v. K. Chandrasekaran [2005] Supp. 4 SCR 779 :
(2006) 1 SCC 228; State of Assam v. Bhaskar Jyoti Sarma [2014]
14 SCR 1451 : (2015) 5 SCC 321; Mangalsen v. State of Uttar
Pradesh (2014) 15 SCC 332; Gajanan Kamlya Patil v. Additional
Collector & Competent Authority [2014] 1 SCR 1032 : (2014) 12
SCC 523; State of Orissa v. Sakhi Bewa [2021] 10 SCR 1105 :
(2022) 16 SCC 594 – referred to.
State of Uttar Pradesh v. Hari Ram [2013] 2 SCR 301 : (2013) 4
SCC 280; AP Electrical Equipment Corporation v. Tahsildar [2025]
2 SCR 1625 : 2025 SCC OnLine SC 447; U.A. Basheer v. State
of Karnataka [2021] 1 SCR 893 : (2021) 5 SCC 313 – relied on.
List of Acts
Urban Land (Ceiling and Regulation) Act, 1976; Urban Land
(Ceiling and Regulation) Repeal Act, 1999; Gujarat Land Revenue
Rules, 1972.
List of Keywords
Excess vacant land; Vesting; Possession; Paper possession; de
jure and de facto possession; Effect of the Repealing Act; Notice;
Abatement of proceedings; Mandatory notice; Natural justice;
Person in possession; Forced dispossession.
[2026] 1 S.C.R. 335
Dalsukhbhai Bachubhai Satasia & Others v. State of Gujarat & Others
Case Arising From
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 6130 of 2016
From the Judgment and Order dated 23.07.2014 of the High Court
of Gujarat at Ahmedabad in LPA No. 2024 of 2010 and SCA No.
533 of 2009
Appearances for Parties
Advs. for the Appellant(s):
K.K. Trivedi, Rabin Majumder, Krishna Yadav.
Advs. for the Respondent(s):
Ms. Deepanwita Priyanka, Anuj Chaudhary.
Judgment / Order of the Supreme Court
Judgment
Nagarathna, J.
This civil appeal assails the impugned judgment dated 23.07.2014
passed by the High Court of Gujarat at Ahmedabad in LPA
No.2024/2010 in Special Civil Application No.533/2009 wherein the
appeal filed by the appellants herein was dismissed.
Factual Backdrop:
2. The facts of the case are that the land in question is admeasuring
9303 square metres and bearing Survey No. 339 of Town Planning
Scheme No.4, Final Plot Nos.9A and 9B of Village Katargam, Surat,
Gujarat (for short, “Survey 339”). According to the appellants, the
said land belonged to one Nathubhai Ranchhodbhai, upon whose
death in the year 1933, his heir Kuberbhai Nathubhai became its
true owner and occupier.
2.1 On 17.02.1976, the Urban Land (Ceiling and Regulation) Act,
1976 (“ULC Act”, for the sake of convenience) came into force.
Section 6(1) of the said Act directed every person holding
vacant land in excess of the ceiling limit to file a statement
specifying the location, extent, value and such other particulars
of all vacant lands held by him. Accordingly, on 12.08.1976,
336 [2026] 1 S.C.R.
Supreme Court Reports
Kuberbhai Nathubhai filed a Form under Section 6(1) of the
ULC Act declaring the following lands of Katargam, Surat under
his holding:
Sl. Area (square
Survey No. Type of Use
No. metre)
1. 470/1 paiki 23168 Agricultural
2. 472 paiki 3035 Agricultural
3. 472 paiki 11331 Agricultural
4. Residence House No. 111-484 Residential
1355 in Ward No. 15
2.2 Thereafter, on 18.02.1980, the Competent Authority under the
ULC Act (for short, “Competent Authority-I”) passed an order
holding that lands bearing Survey Nos. 479 and 472/p were
exempt under Section 21 of the ULC Act, which stated that
excess vacant land shall not be treated as excess in certain
cases. The order also held that the remaining land of Survey
No.339 was within the ceiling limit, so there was “no excess
land” being held by the family members of Kuberbhai Nathubhai.
The respondents contended that the form filled earlier under
Section 6(1) was not processed and was kept pending.
2.3 Thereafter, one Khodidas Kanjibhai Patel, the organiser of
Sardar Hira Udhyog Sahakari Mandali Ltd. (for short, “the
Society”) purchased the lands of Survey No.339 at a public
auction held by the Special Recovery Officer on 28.04.1981. By
order dated 28.05.1981, the officer confirmed the auction, and
directed that the name of the Society be entered in the records
of rights. Accordingly, the name of the Society was entered in
the revenue records by Mutation Entry No.7068 on 16.05.1983.
Thereafter, Khodidas Kanjibhai Patel obtained Construction
Permission (for short, “Raja Chitthi”) on 13.12.1983 from the
Surat Municipal Corporation for constructing industrial units for
the Society. Khodidas Patel then issued Possession Receipts
(for short, “Kabja Receipts”) to multiple sub-plot holders, the
appellants herein, who have remained in possession of the said
sub-plots since the year 1983-84.
2.4 However, on 12.10.1984, the Assistant Collector, Choryasi
Prant, passed an order cancelling Mutation Entry No.7068 dated
[2026] 1 S.C.R. 337
Dalsukhbhai Bachubhai Satasia & Others v. State of Gujarat & Others
16.05.1983, inter alia, on the basis that the public auction dated
28.04.1981 was not conducted according to the provisions of
the ULC Act. This order was challenged before the Collector,
Choryasi Prant in Appeal No.152/1985, which passed an order
dated 16.01.1986 upholding the original order dated 12.10.1984
of the Assistant Collector. The order of the Collector was in turn
challenged before the Assistant Secretary, Revenue Department
in Revision under Rule 108(6A) of the Gujarat Land Revenue
Rules, 1972. By order dated 07.04.1986, said Revision was
dismissed thereby upholding the order dated 16.01.1986 passed
by the Collector in Appeal No.152/1985.
2.5 On 03.05.1988, the Government of Gujarat exercised its powers
of revision under Section 34 of the ULC Act and set aside the
order dated 18.02.1980 passed by the Competent Authority-I,
and remanded the matter to the Competent Authority & Additional
Collector, ULC, Surat (for short, “Competent Authority-II”) for
reconsideration of the question of “excess land” with regard to
the subject land Survey No.339. Thereafter, on 16.01.1989, the
Competent Authority-II passed an order declaring that 662.18
square metres out of the total area of 9303 square metres of
the subject land in Survey No.339 – Final Plot Nos. 9A and 9B
was ‘excess land’.
2.6 According to the appellants, in the order dated 16.01.1989, the
cancellation of the mutation entry was specifically mentioned.
However, they were not served with any notice by the Competent
Authority-II, though they were the unit holders (sub-plot holders),
and were in actual physical and legal possession of the said
units. Furthermore, none of them was made a party before the
Competent Authority-II, despite being in possession.
2.7 Therefore, on the cancellation of the auction purchase in favour
of Khodidas Kanjibhai Patel the original landowner, Kuberbhai
Nathubhai, entered into a registered agreements of sale for the
sub-plots in favour of the sub-plot holders/appellants herein,
and hence the appellants became owners and came into
possession of sub-plot Nos.1 to 77 situated upon Survey No.339.
According to the appellants, majority of them are engaged in
the business of diamond cutting and polishing, while a few of
them are engaged in different businesses, such as embroidery
and other small businesses.
338 [2026] 1 S.C.R.
Supreme Court Reports
2.8 On 22.11.1990, a notice under Section 10(5) of the ULC
Act was issued to the original landholder directing him to
vacate and handover possession of the “excess land” to the
respondent/State Government within a period of thirty days.
Since possession was not surrendered, the Deputy Collector,
ULC drew Panchnama dated 21.01.1992, directing taking
over possession of the ‘excess land’ to the tune of 662.18
square metres out of the total area of the land admeasuring
9303 square metres. In the said order, it was also observed
that the said excess land is “open on the site” and that the
possession of the same has been taken by the Competent
Authority and Deputy Collector, ULC.
2.9 When some of the sub-plot holders tried to resell their sub-
plots, the Competent Authority-II sent letters dated 20.06.2007
and 05.07.2008 refusing to grant ‘No Objection Certificates’
(for short, “NOCs”) for the subsequent sale, on the ground that
the constructed units were situated over the alleged ‘excess
land’ as the said surplus land was taken over and therefore
vested in the government since 21.01,1992. The appellants
contended that this was the first time it came to their knowledge
that the said property had been declared as ‘excess land’ by
the Competent Authority-II.
2.10 Aggrieved, the appellants preferred Writ Petition being Special
Civil Application No.533/2009 before the Gujarat High Court,
seeking relief in the nature of directions to the respondent to
issue the necessary NOCs for subsequent sale of the said
sub-plots. Thereafter another Writ Petition being Special Civil
Application No.10844/2010 was preferred by the appellants
before the Gujarat High Court, seeking relief in the nature
of a declaration to the effect that no ‘Non-Agricultural Use
Permission’ was required for the usage of the said allotted
sub-plots. Both the said Writ Petitions were dismissed vide
separate orders dated 08.02.2010 by the Gujarat High Court.
2.11 Aggrieved by the dismissal of the said Writ Petitions, the
appellants preferred Letters Patent Appeals bearing LPA
Nos.2024/2010 and 1171/2011 before the Gujarat High
Court. The said Letters Patent Appeals were dismissed vide
impugned common order dated 23.07.2014. The Gujarat
[2026] 1 S.C.R. 339
Dalsukhbhai Bachubhai Satasia & Others v. State of Gujarat & Others
High Court, while dismissing the said Letter Patent Appeals,
observed that the appellants herein are ‘illegal occupants’ of
the said sub-plots and had the knowledge and notice of the
proceedings under the ULC Act as it is apparent from the
perusal of the sale deeds and ‘Raja Chitthi’ that said transfers
were made subject to the proceedings and provisions of the
ULC Act. It was further observed by the High Court that the
order of permission granted was in favour of the Society and
not in favour of the appellants. It was observed that the fact
that electricity connections and subsequent bills raised were
in the name of the appellants but the same do not establish
their possession as emphasised under Section 10(5) of the
ULC Act. Lastly, the High Court also observed that none of
the appellants were in possession of the said pieces of land
on the date on which the ULC Act came into force.
2.12 Aggrieved by the impugned common order dated 23.07.2014
passed in LPA No.2024/2010 in Special Civil Application
No.533/2009 and LPA No.1171/2011 in Special Civil Application
No.10844/2010, the appellants have preferred the present
Civil Appeal. The appellants submitted that they have only
challenged one order and hence the declaration of ‘excess
vacant land’ is the only hurdle preventing the issuance of
NOC’s. Therefore, if they were to succeed in the present appeal,
the other reliefs sought for, and grievances of the appellants,
including the relief sought for in LPA No.1171/2011, can be
redressed by the respondents themselves.
Submissions:
3. We have heard learned counsel for the respective parties and perused
the materials on record.
3.1 Learned counsel for the appellants submitted as follows:
3.1.1 As per the wording of Section 10(5) of the ULC Act,
the intention of the legislation is clear inasmuch as the
persons who are in possession of the land are required
to be served with notice and not merely the persons
who had filled the declaration form under Section 6(1)
of the ULC Act. Therefore, the High Court misinterpreted
the provisions of Section 10(5) of the ULC Act. Had the
340 [2026] 1 S.C.R.
Supreme Court Reports
appellants, as possessors of the concerned plots been
served notice, they would have been in a position to take
appropriate action against the orders of the Competent
Authority-II, as well as the original landowners. Neither
Benches of the High Court disagreed with the fact that
the physical and actual possession of the sub-plots in
question were with the appellants. Rather, while the
learned Single Judge did not consider the question of
possession, the Division Bench held that possession
of the sub-plots by the appellants was illegal under the
provisions of the ULC Act.
3.1.2 That the above finding is contrary to law. This is because
when the Society allotted the sub-plots to its members,
including the appellants herein, in the year 1983-84,
there was no declaration regarding ‘excess vacant
land’. No notice was ever served to the appellants about
such a declaration, despite them possessing the sub-
plots, putting up construction upon them and running
small factories/diamond factories/industrial units. The
appellants had adduced electricity bills in their name to
prove possession. However, the High Court held that
the electricity bills do not establish possession.
3.1.3 Further, the High Court erred in holding that the appellants
were in illegal occupants. The original landowners,
who had executed the sale deeds, did not mention
the declaration of ‘excess vacant land’. Moreover, the
Competent Authority-II only took ‘paper possession’ of
the sub-plots, and did not take over actual, physical
and legal possession, which has always remained with
the appellants. No notice was served on the appellants
and therefore the possession of ‘excess vacant land’
was not taken over legally by, for and on behalf of the
respondents. Therefore, the High Court should have
declared the proceedings ‘abated’ under Section 4 of the
Urban Land (Ceiling and Regulation) Repeal Act, 1999
(for the sake of convenience, “Repealing Act”), which
speaks of abatement of legal proceedings and granted
relief to the appellants herein.
[2026] 1 S.C.R. 341
Dalsukhbhai Bachubhai Satasia & Others v. State of Gujarat & Others
4. Per contra, learned counsel for the respondents submitted as follows:
4.1 At the outset, while arguing before the learned Single Judge
of the Gujarat High Court, the appellants conceded all claims,
except the prayer to direct the Competent Authority-II to issue
necessary NOCs for the purpose of getting the registered
sale deed that was withheld by the Joint Sub-Registrar, Surat.
Therefore, the High Court was constrained to not consider
the challenge to the order dated 16.06.1989 on merits. The
High Court thus never had to consider the applicability of the
Repealing Act, the challenge to the order dated 16.06.1989,
or the claims regarding the appellants’ right to receive notice
under Section 10(5). The concessions made by the appellants
cannot now be raised before this Court.
4.1.1 The appellants have no locus to challenge any order
passed since the alleged sales were made without
obtaining permission from the Competent Authority-II
and were in violation of Sections 5(3) and 27 of the ULC
Act. The concerned lands were recorded in the name
of the State Government by an entry dated 22.10.1993,
well before the repeal of the ULC Act. The appellants
have challenged the order dated 16.06.1989 after almost
twenty-one years.
4.1.2 The possession claimed by the appellants traces back
to possession receipts issued by the Society, in whose
favour the land was transferred by auction dated
28.04.1981. However, this auction was cancelled by order
dated 12.10.1984, following which the registration in the
name of the Society was cancelled, and possession of the
land was restored to the original landowner. The fact that
the landowner challenged the order dated 16.06.1989
by an appeal under Section 33 of the ULC Act, shows
that possession was with the landowner.
4.1.3 It was further submitted that Section 4 of the Repealing
Act does not apply in the present case, since the
appellants had no pending proceedings under the ULC
Act before the commencement of the Repealing Act. On
24.09.1992, a final order was passed under Section 11 of
the ULC Act regarding compensation for ‘excess vacant
342 [2026] 1 S.C.R.
Supreme Court Reports
land’. This marked the conclusion of proceedings under
the ULC Act.
4.1.4 The claim of the appellants depends solely upon the
alleged non-issuance of mandatory notice under Section
10(5) of the ULC Act. However, the legislature did not
intend that illegal possessors be provided the requisite
notice under Section 10(5). In this regard, the judgement
of this Court in C. Albert Morris vs. K. Chandrasekaran,
(2006) 1 SCC 228 was referred to.
4.1.5 Possession was restored to the landowner upon
cancellation of the auction. Therefore, the subsequent
sale deed executed in favour of the appellants was in
violation of Section 5(3) of the ULC Act. If a right is borne
out of an act that does not have legal sanction, such a
right may exist, but is not enforceable. Therefore, the
appellants cannot contend that they had an enforceable
right to receive notice under Section 10(5) of the ULC Act.
Points for consideration:
5. The following points would arise for our consideration:
(i) Whether the High Court was justified in dismissing the Writ
Petitions by not applying Section 4 of the Repealing Act and
thereby not granting relief to the appellants herein.
(ii) What Order?
6. Section 10 of the ULC Act reads as under:
“10.Acquisition of vacant land in excess of ceiling
limit. –
(1) As soon as may be after the service of the statement
under section 9 on the person concerned, the competent
authority shall cause a notification giving the particulars
of the vacant land held by such person in excess of the
ceiling limit and stating that-
(i) such vacant land is to be acquired by the
concerned State Government; and
(ii) the claims of all person interested in such vacant
land may be made by them personally or by
[2026] 1 S.C.R. 343
Dalsukhbhai Bachubhai Satasia & Others v. State of Gujarat & Others
their agents giving particulars of the nature of
their interests in such land,
to be published for the information of the general public
in the Official Gazette of the State concerned and in such
other manner as may be prescribed.
(2) After considering the claims of the persons interested
in the vacant land, made to the competent authority in
pursuance of the notification published under sub-section
(1), the competent authority shall determine the nature and
extent of such claims and pass such orders as it deems fit.
(3) At any time after the publication of the notification
under sub-section (1), the competent authority may, by
notification published in the Official Gazette of the State
concerned, declare that the excess vacant land referred
to, in the notification published under sub -section (1)
shall, with effect from such date as may be specified in the
declaration, be deemed to have been acquired by the State
Government and upon the publication of such declaration,
such land shall be deemed to have vested absolutely in
the State Government free from all encumbrances with
effect from the date so specified.
(4) During the period commencing on the date of publication
of the notification under sub-section (1) and ending with
the date specified in the declaration made under sub-
section (3) –
(i) no person shall transfer by way of sale,
mortgage, gift, lease or otherwise any excess
vacant land (including any part thereof) specified
in the notification aforesaid and any such transfer
made in contravention of this provision shall be
deemed to be null and void; and
(ii) no person shall alter or cause to be altered the
use of such excess vacant land.
(5) Where any vacant land is vested in the State
Government under sub-section (3), the competent authority
may, by notice in writing, order any person who may be in
344 [2026] 1 S.C.R.
Supreme Court Reports
possession of it to surrender or deliver possession thereof
to the State Government or to any person duly authorised
by the State Government in this behalf within thirty days
of the service of the notice.
(6) If any person refuses or fails to comply with an order
made under sub-section (5), the competent authority may
take possession of the vacant land or cause it to be given
to the concerned State Government or to any person duly
authorised by such State Government in this behalf and
may for that purpose use such force as may be necessary.
Explanation.- In this section, in sub-section (1) of section
11 and in sections 14 and 23, “State Government”, in
relation to-
(a) any vacant land owned by the Central Government,
means the Central Government;
(b) any vacant land owned by any State Government and
situated in a Union Territory or within the local limits of
a cantonment declared as such under section 3 of the
Cantonments Act, 1924, means that State Government.”
7. Section 10 of the ULC Act speaks of acquisition of vacant land in
excess of the ceiling limit. Once a final statement is issued under
Section 9 of the ULC Act, the same has to be served on the person
concerned by the Competent Authority which shall also issue a
notification giving the particulars of the vacant land held by such
person in excess of the ceiling limit. The said notification shall also
state that:
(i) such vacant land is to be acquired by the concerned State
Government;
(ii) the claims of all persons interested in such vacant land may be
made by them personally or by their agents giving particulars
of the nature of their interests in such land.
8. The said notification has to be published in the Official Gazette of the
State concerned. The Competent Authority shall thereafter consider
the claims of the persons interested and determine the nature and
extent of such claims and pass orders accordingly. From the date of
the publication of the notification in the Official Gazette of the State
[2026] 1 S.C.R. 345
Dalsukhbhai Bachubhai Satasia & Others v. State of Gujarat & Others
as per sub-Section (1) of Section 10 of the ULC Act, the vacant
land is deemed to have been acquired by the State Government.
Also, the publication of such a notification implies a declaration that
such land shall be deemed to have vested absolutely in the State
Government free from all encumbrances with effect from the date so
specified. No person can transfer any excess vacant land specified
in the notification in any manner known to law and no person shall
alter or cause to be altered the use of such excess vacant land once
the publication of the notification under sub-Section (1) is made till
the dates specified in the declaration made under sub-Section (3)
of Section 10 of the ULC Act.
9. On the basis of the vacant land having vested in the State Government
as per sub-Section (3) of Section 10 of the ULC Act, the Competent
Authority, by notice in writing, order any person who may be in
possession of vacant land of it to surrender or deliver possession
to the State Government or to any person duly authorised by the
State Government within thirty days of the service of the notice (vide
Section 10(5) of the ULC Act). In case, if any person refuses or fails to
comply with an order made under sub-section (5) of Section 10 of the
ULC Act, the Competent Authority may take possession of the vacant
land or cause it to be given to the concerned State Government or
to any person duly authorised by such State Government and may
for that purpose use such force as may be necessary.
10. Therefore, Section 10 of the ULC Act categorically distinguishes
between the vesting of land in the State Government and taking
possession of the vested land from any person who is in possession
of the said land. The two legal consequences are distinct and have
to be borne in mind while considering the savings clause as well
as the abatement clause under Sections 3 and 4, respectively of
the Repealing Act.
11. The Explanation to Section 10 does not require any discussion for
the purpose of this case.
12. In the State of Uttar Pradesh vs. Hari Ram, (2013) 4 SCC 280 (“Hari
Ram”), a two-judge bench of this Court explained the enactment of
the ULC Act, as well as the Repealing Act, in great detail including
the history of the ULC Act. Then, this Court referred to the Statement
of Objects and Reasons of the Repealing Act, outlining as follows:
346 [2026] 1 S.C.R.
Supreme Court Reports
“12. Before examining the scope of sub-section (3) of
Section 10 as well as sub-sections (5) and (6) of Section
10, reference may be made to the Repeal Act, 1999 and
its object and reasons which are as follows:
Statement of Object and Reasons:
“1. The Urban Land (Ceiling and Regulation) Act, 1976
was passed when Proclamation of Emergency was in
operation with a laudable social objective in mind…….
Unfortunately public opinion is nearly unanimous that the
Act has failed to achieve what was expected of it. It has
on the contrary pushed up land prices to unconscionable
levels, practically brought the housing industry to a stop
and provided copious opportunities for corruption. There
is widespread clamour for removing this most potent clog
on housing.
xxx
4. The proposed repeal, along with some other incentives
and simplification of administrative procedures is expected
to revive the stagnant housing industry and provide
affordable living accommodation for those who are in
a state of underserved want and are entitled to public
assistance. The repeal will not however, affect land on
which building activity has already commenced. For that
limited purpose, exemptions granted under Section 20 of
the Act will continue to be operative. Amounts paid out by
the State Government will become refundable.”
13. While the Repealing Act thus sought to put an end to the substantive
operation of the ULC Act, it contained a savings clause, which is
as follows:
“3. Savings.—(1) The repeal of the principal Act shall
not affect—
(a) the vesting of any vacant land under sub-section (3) of
Section 10, possession of which has been taken over by
the State Government or any person duly authorised by
the State Government in this behalf or by the competent
authority;
[2026] 1 S.C.R. 347
Dalsukhbhai Bachubhai Satasia & Others v. State of Gujarat & Others
(b) the validity of any order granting exemption under sub-
section (1) of Section 20 or any action taken thereunder,
notwithstanding any judgment of any court to the contrary;
(c) any payment made to the State Government as a
condition for granting exemption under sub-section (1) of
Section 20.
(2) Where—
(a) any land is deemed to have vested in the State
Government under sub-section (3) of Section 10 of
the principal Act but possession of which has not been
taken over by the State Government or any person duly
authorised by the State Government in this behalf or by
the competent authority; and
(b) any amount has been paid by the State Government
with respect to such land,
then, such land shall not restored unless the amount paid,
if any, has been refunded to the State Government.”
14. On the other hand, Section 4 of the Repealing Act provides
for abatement of proceedings pending immediately before the
commencement of the Act, and for immediate reference, is reproduced
once as under:
“4. Abatement of legal proceedings.—All proceedings
relating to any order made or purported to be made
under the principal Act pending immediately before the
commencement of this Act, before any court, tribunal or
other authority shall abate:
Provided that this section shall not apply to the proceedings
relating to Sections 11, 12, 13 and 14 of the principal Act
in so far as such proceedings are relatable to the land,
possession of which has been taken over by the State
Government or any person duly authorised by the State
Government in this behalf or by the competent authority.”
15. The core of the dispute at hand centers around the proper application
of Section 4 of the Repealing Act to the facts of this case. The
appellants contended that without notice being delivered to them
348 [2026] 1 S.C.R.
Supreme Court Reports
under Section 10(5) of the ULC Act (since they were in actual
possession of the concerned land), possession has not been legally
transferred to the State. Therefore, the proceedings relating to
transfer of possession of the sub-units was ‘pending’ at the time of
commencement of the Repealing Act, resulting in their abatement
under Section 4 of the Repealing Act.
15.1 Per contra, the respondents submitted that a ‘final order’
regarding compensation for the land deemed to be “excess”
and “vacant” was passed on 24.09.1992. With this order, the
proceedings concluded and hence there is no question of the
matter of possession having been ‘abated’ with the advent of
the Repealing Act.
16. The legal questions that arise for our consideration in the present
appeal are therefore as follows:
i) Was the delivery of notice under Section 10(5) to the appellants
(as possessors of the concerned lands) a mandatory step,
the non-fulfilment of which would render abatement of the
proceedings in terms of Section 4 of the Repealing Act?
ii) Despite the recording of lands in the name of the State
Government, if actual possession was not subsequently
transferred to the Government, would this render the
proceedings to abate under Section 4 of the Repealing Act?
The aforesaid questions shall be considered together.
17. In Hari Ram, this Court considered the proper meaning of the
phrases “deemed to have been acquired by the State Government”
and “vested absolutely in the State Government” in Section 10(3)
of the ULC Act. The relevant paragraphs containing this Court’s
reasoning are reproduced below:
“24. The expression “deemed to have been acquired”
used as a deeming fiction under sub-section (3) of Section
10 can only mean acquisition of title or acquisition of
interests because till that time the land may be either in
the ownership of the person who held that vacant land
or to possess such land as owner or as a tenant or as
mortgagee and so on as defined under Section 2(1) of the
Act. The word “vested” has not been defined in the Act,
[2026] 1 S.C.R. 349
Dalsukhbhai Bachubhai Satasia & Others v. State of Gujarat & Others
so also the word “absolutely”. What is vested absolutely
is only the land which is deemed to have acquired and
nothing more….
xxx
29. What is deemed “vesting absolutely” is that “what is
deemed to have acquired”. In our view, there must be
express words of utmost clarity to persuade a court to
hold that the legislature intended to divest possession
also, since the owners or holders of the vacant land are
pitted against a statutory hypothesis….
30. Vacant land, it may be noted, is not actually acquired
but deemed to have been acquired, in that deeming
things to be what they are not. Acquisition, therefore,
does not take possession unless there is an indication
to the contrary. It is trite law that in construing a deeming
provision, it is necessary to bear in mind the legislative
purpose. The purpose of the Act is to impose ceiling on
vacant land, for the acquisition of land in excess of the
ceiling limit thereby to regulate construction on such lands,
to prevent concentration of urban lands in the hands of a
few persons, so as to bring about equitable distribution.
For achieving that object, various procedures have to
be followed for acquisition and vesting. When we look
at those words in the above setting and the provisions
to follow such as sub-sections (5) and (6) of Section 10,
the words “acquired” and “vested” have different meaning
and content. Under Section 10(3), what is vested is de
jure possession not de facto, for more reasons than one
because we are testing the expression on a statutory
hypothesis and such an hypothesis can be carried only
to the extent necessary to achieve the legislative intent.”
(underlining by us)
17.1 Therefore, the land ‘vesting’ with the State Government does
not connote the transfer of possession. Rather, what is ‘deemed’
to have ‘vested’ are the aspects that have deemed i.e., by
a legal fiction to have been ‘acquired’, i.e., title or interests.
Possession, as explained in Hari Ram vests de jure and not
de facto. ‘Acquisition’ (of title or interests) does not necessarily
350 [2026] 1 S.C.R.
Supreme Court Reports
involve the transfer of such de facto possession. Such transfer
requires certain explicit steps to be taken, which were also
outlined by this Court in Hari Ram as follows:
“Voluntary Surrender
31. The “vesting” in sub-section (3) of Section 10,
in our view, means vesting of title absolutely and
not possession though nothing stands in the way
of a person voluntarily surrendering or delivering
possession…
32. We are of the view that so far as the present
case is concerned, the word “vesting” takes in every
interest in the property including de jure possession
and, not de facto but it is always open to a person to
voluntarily surrender and deliver possession, under
Section 10(3) of the Act.
33. Before we examine sub-section (5) and sub-
section (6) of Section 10, let us examine the meaning
of sub-section (4) of Section 10 of the Act, which says
that during the period commencing on the date of
publication under sub-section (1), ending with the day
specified in the declaration made under sub-section
(3), no person shall transfer by way of sale, mortgage,
gift or otherwise, any excess vacant land, specified
in the notification and any such transfer made in
contravention of the Act shall be deemed to be null
and void. Further, it also says that no person shall
alter or cause to be altered the use of such excess
vacant land. Therefore, from the date of publication
of the notification under sub-section (1) and ending
with the date specified in the declaration made in
sub-section (3), there is no question of disturbing the
possession of a person, the possession, therefore,
continues to be with the holder of the land.
Peaceful dispossession
34. Sub-section (5) of Section 10, for the first time,
speaks of “possession” which says that where any
land is vested in the State Government under sub-
[2026] 1 S.C.R. 351
Dalsukhbhai Bachubhai Satasia & Others v. State of Gujarat & Others
section (3) of Section 10, the competent authority
may, by notice in writing, order any person, who
may be in possession of it to surrender or transfer
possession to the State Government or to any other
person, duly authorised by the State Government.
35. If de facto possession has already passed
on to the State Government by the two deeming
provisions under sub-section (3) of Section 10, there
is no necessity of using the expression “where any
land is vested” under sub-section (5) of Section 10.
Surrendering or transfer of possession under sub-
section (3) of Section 10 can be voluntary so that the
person may get the compensation as provided under
Section 11 of the Act early. Once there is no voluntary
surrender or delivery of possession, necessarily the
State Government has to issue notice in writing under
sub-section (5) of Section 10 to surrender or deliver
possession……
Forceful possession
36. The Act provides for forceful dispossession but
only when a person refuses or fails to comply with an
order under sub-section (5) of Section 10. Sub-section
(6) of Section 10 again speaks of “possession” which
says, if any person refuses or fails to comply with
the order made under sub-section (5), the competent
authority may take possession of the vacant land
to be given to the State Government and for that
purpose, force—as may be necessary—can be
used…. Forcible dispossession of the land, therefore,
is being resorted to only in a situation which falls
under sub-section (6) and not under sub-section (5)
of Section 10. Sub-sections (5) and (6), therefore,
take care of both the situations i.e. taking possession
by giving notice, that is, “peaceful dispossession” and
on failure to surrender or give delivery of possession
under Section 10(5), then “forceful dispossession”
under sub-section (6) of Section 10.”
(underlining by us)
352 [2026] 1 S.C.R.
Supreme Court Reports
17.2 Hence, after de jure possession is vested, there are three
methods by which de facto possession may be transferred: the
first is voluntary transfer by the possessor under Section 10(3)
of the ULC Act. If possession is not voluntarily transferred, then
the second method is through delivery of notice under Section
10(5) of the ULC Act to the possessor. In case possession
is still not transferred, then the third method involves the
Competent Authority taking possession under Section 10(6)
of the ULC Act (by force, if required) and delivering it to the
State Government.
18. On the question of delivery of notice under Section 10(5), this Court
observed in Hari Ram as under:
“37. The requirement of giving notice under sub-sections
(5) and (6) of Section 10 is mandatory. Though the word
“may” has been used therein, the word “may” in both the
sub-sections has to be understood as “shall” because a
court charged with the task of enforcing the statute needs
to decide the consequences that the legislature intended
to follow from failure to implement the requirement. Effect
of non-issue of notice under sub-section (5) or sub-section
(6) of Section 11 is that it might result in the landholder
being dispossessed without notice, therefore, the word
“may” has to be read as “shall”.
xxx
39. The abovementioned directives make it clear that
sub-section (3) takes in only de jure possession and not
de facto possession, therefore, if the landowner is not
surrendering possession voluntarily under sub-section (3)
of Section 10, or surrendering or delivering possession
after notice, under Section 10(5) or dispossession by use
of force, it cannot be said that the State Government has
taken possession of the vacant land.”
(underlining by us)
18.1 We, therefore, see that the requirement of issuance of notice
under Section 10(5) is mandatory and must be issued to the
person(s) actually in possession of the concerned land. This
is clear from the wording of the statute (“order any person
[2026] 1 S.C.R. 353
Dalsukhbhai Bachubhai Satasia & Others v. State of Gujarat & Others
who may be in possession of it”), which are interpreted by this
Court in Hari Ram. This Court opined that the importance of
delivering notice lay in avoiding a situation where a person
is “dispossessed” without notice which would be in violation
of the principles of natural justice, thereby clearly envisioning
that the possessor must be served with notice.
18.2 Having held thus, this Court concluded by establishing the
proper scope of application of Section 4 of the Repealing
Act, as under:
“Effect of the Repeal Act
41. Let us now examine the effect of Section 3 of
Repeal Act 15 of 1999 on sub-section (3) of Section
10 of the Act. The Repeal Act, 1999 has expressly
repealed Act 33 of 1976. The objects and reasons
of the Repeal Act have already been referred to in
the earlier part of this judgment. The Repeal Act has,
however, retained a saving clause. The question
whether a right has been acquired or liability incurred
under a statute before it is repealed will in each case
depend on the construction of the statute and the
facts of the particular case.
42. The mere vesting of the land under sub-section
(3) of Section 10 would not confer any right on the
State Government to have de facto possession of
the vacant land unless there has been a voluntary
surrender of vacant land before 18-3-1999. The State
has to establish that there has been a voluntary
surrender of vacant land or surrender and delivery of
peaceful possession under sub-section (5) of Section
10 or forceful dispossession under sub-section (6)
of Section 10. On failure to establish any of those
situations, the landowner or holder can claim the
benefit of Section 4 of the Repeal Act. The State
Government in this appeal could not establish any
of those situations and hence the High Court is right
in holding that the respondent is entitled to get the
benefit of Section 4 of the Repeal Act.”
(underlining by us)
354 [2026] 1 S.C.R.
Supreme Court Reports
18.3 Therefore, landowner/holder of land may claim the benefit of
Section 4 of the Repealing Act (abatement of proceedings) if
de facto possession has not yet been transferred either through
voluntary surrender, peaceful transfer under Section 10(5)
(which, as observed earlier, requires notice to the possessor)
or forceful dispossession under Section 10(6) of the ULC Act.
19. It would also be apt to refer to a more recent judgment of this Court
in AP Electrical Equipment Corporation vs. Tahsildar, 2025 SCC
OnLine SC 447 (“AP Electrical”), in which a Bench comprising J.B.
Pardiwala and R. Mahadevan, JJ. (one of us) ruled on the acquisition
of ‘possession’ under the ULC Act. Writing for the bench, Pardiwala,
J. observed:
“20. Thus, by virtue of the provisions of Section 3 of the
Repeal Act, 1999, if possession of vacant land has been
taken over on behalf of the State Government before the
coming into force of the Repeal Act, 1999, the repeal
of the Principal Act would not affect the vesting of such
land under sub-section (3) of Section 10 of Act, 1976.
Hence, the issue as to whether actual possession of land
declared excess under the Act has been taken over or
not assumes great significance after the coming into force
of the Repeal Act, 1999 inasmuch as if possession has
not been taken over, the proceedings would abate under
Section 4 of the Repeal Act, 1999 and the ownership of
the land, if vested in the State Government under Section
10(3) of the Act, 1976 would be required to be restored
to the original land-holder subject to repayment of any
amount that has been paid by the State Government
with respect to such land.”
(underlining by us)
19.1 On the specific question of delivery of notice under Section
10(5) of the ULC Act, it was held as follows:
“22. On a plain reading of the aforesaid provisions,
it is apparent that the statute contemplates giving
an opportunity to the landholder or any person in
possession of excess vacant land to surrender or
deliver possession thereof to the State Government
[2026] 1 S.C.R. 355
Dalsukhbhai Bachubhai Satasia & Others v. State of Gujarat & Others
and for this purpose provides for giving notice in
writing, ordering such person to surrender or deliver
possession of such land. It is only when pursuant to
such notice, such person refuses or fails to comply
with an order under sub-section (5) within a period of
thirty days of the service of notice, that the competent
authority is required to take over possession of the
vacant land and for that purpose may use force, if
necessary. Therefore, the provisions of sub-section
(6) are to be resorted to only when there is refusal
or non-compliance of an order under sub-section (5)
of Section 10 of the Act, 1976 within the prescribed
period.
xxx
25. ….when sub-section (5) of Section 10 mandates
giving notice of an order under the said sub-section to
the person in possession, the same is required to be
complied with in its true letter and spirit. Considering
the nature of rights involved, mere issuance of notice
without service thereof, cannot be said to be due
compliance with the provisions of the statute. Besides,
the provisions of subsection (6) of Section 10 can be
resorted to only if the person fails to comply with an
order under sub-section (5) thereof, within a period
of thirty days of service of notice. Hence, possession
cannot be taken over under Section 10(6) of the Act,
1976 unless a period of thirty days from the date of
service of notice has elapsed. In absence of service
of notice under sub-section (5) of Section 10, there
will be no starting point for calculating the period of
thirty days. In other words, time will not start running,
hence the question of taking over possession under
sub-section (6) of Section 10 of the Act, 1976 will
not arise at all….
(underlining by us)
19.2 The delivery of notice to the person in possession was therefore
unequivocally held to be mandatory. Indeed, the emphasis
356 [2026] 1 S.C.R.
Supreme Court Reports
was on the service of notice on the possessor, as opposed
to mere issuance of the same. In the absence of such service
of notice, any attempt at forced dispossession was held to be
contrary to the statute and hence illegal.
19.3 This Court reiterated the conclusion in Hari Ram, i.e., that if
possession has not been taken over by the State Government,
then the proceedings under the Act would abate under Section
4 of the Repealing Act. The “mere vesting of the vacant land
with the State Government by operation of law, without actual
possession, is not sufficient”. This Court in AP Electrical
phrased the conclusion of Hari Ram in the following manner:
“29. ….To put it in other words, the mere paper
possession would not save the situation for the State
Government unless the State is able to establish by
cogent evidence that actual physical possession of
the entire land was taken over by evicting each and
every person from the land. The onus is on the State
to establish that actual physical possession of the
excess vacant land was taken over before the repeal.”
(underlining by us)
19.4 A situation in which possession was not actually transferred
to the State Government under the provisions of Section 10
of the ULC Act, was thus deemed to be ‘paper possession’,
and incapable of preventing proceedings from abating under
Section 4 of the Repealing Act.
19.5 This Court in AP Electrical examined a prior decision of this
Court in State of Assam vs. Bhaskar Jyoti Sarma, (2015)
5 SCC 321 (“Bhaskar Jyoti Sarma”), since it appeared to
“at the first blush create an impression that the dictum as
laid in Hari Ram has been diluted”. It assessed the effect of
Bhaskar Jyoti Sarma on the dictum on Hari Ram as follows.
“33. We quote few relevant paras of the said judgment
as under:—
xxx
“15. The High Court has held that the
alleged dispossession was not preceded
[2026] 1 S.C.R. 357
Dalsukhbhai Bachubhai Satasia & Others v. State of Gujarat & Others
by any notice under Section 10(5) of the
Act. Assuming that to be the case all that
it would mean is that on 7th December,
1991 when the erstwhile owner was
dispossessed from the land in question,
he could have made a grievance based on
Section 10(5) and even sought restoration
of possession to him no matter he would
upon such restoration once again be liable
to be evicted under Sections 10(5) and
10(6) of the Act upon his failure to deliver
or surrender such possession. In reality
therefore unless there was something
that was inherently wrong so as to affect
the very process of taking over such as
the identity of the land or the boundaries
thereof or any other circumstance of a
similar nature going to the root of the matter
hence requiring an adjudication, a person
who had lost his land by reason of the
same being declared surplus under Section
10(3) would not consider it worthwhile to
agitate the violation of Section 10(5) for
he can well understand that even when
this Court may uphold his contention that
the procedure ought to be followed as
prescribed, it may still be not enough for
him to retain the land for the authorities
could the very next day dispossess him
from the same by simply serving a notice
under Section 10(5). It would, in that view,
be an academic exercise for any owner
or person in possession to find fault with
his dispossession on the ground that no
notice under Section 10(5) had been
served upon him.
16. The issue can be viewed from another
angle also. Assuming that a person in
possession could make a grievance, no
358 [2026] 1 S.C.R.
Supreme Court Reports
matter without much gain in the ultimate
analysis, the question is whether such
grievance could be made long after the
alleged violation of Section 10(5). If actual
physical possession was taken over from
the erstwhile land owner on 7th December,
1991 as is alleged in the present case any
grievance based on Section 10(5) ought to
have been made within a reasonable time
of such dispossession. If the owner did not
do so, forcible taking over of possession
would acquire legitimacy by sheer lapse
of time. In any such situation the owner
or the person in possession must be
deemed to have waived his right under
Section 10(5) of the Act. Any other view
would, in our opinion, give a licence to a
litigant to make a grievance not because
he has suffered any real prejudice that
needs to be redressed but only because
the fortuitous circumstance of a Repeal Act
tempted him to raise the issue regarding
his dispossession being in violation of the
prescribed procedure.
17. Reliance was placed by the respondents
upon the decision of this Court in Hari
Ram’s case (supra). That decision does
not, in our view, lend much assistance
to the respondents. We say so, because
this Court was in Hari Ram’s case (supra)
considering whether the word ‘may’
appearing in Section 10(5) gave to the
competent authority the discretion to issue
or not to issue a notice before taking
physical possession of the land in question
under Section 10(6). The question whether
breach of Section 10(5) and possible
dispossession without notice would vitiate
the act of dispossession itself or render it
[2026] 1 S.C.R. 359
Dalsukhbhai Bachubhai Satasia & Others v. State of Gujarat & Others
non est in the eye of law did not fall for
consideration in that case. In our opinion,
what Section 10(5) prescribes is an
ordinary and logical course of action that
ought to be followed before the authorities
decided to use force to dispossess the
occupant under Section 10(6). In the
case at hand if the appellant’s version
regarding dispossession of the erstwhile
owner in December 1991 is correct, the
fact that such dispossession was without
a notice under Section 10(5) will be of
no consequence and would not vitiate or
obliterate the act of taking possession for
the purposes of Section 3 of the Repeal Act.
That is because Bhabadeb Sarma-erstwhile
owner had not made any grievance based
on breach of Section 10(5) at any stage
during his lifetime implying thereby that he
had waived his right to do so.”
(Emphasis supplied)
34. We have supplied emphasis on paras 15 and 17
of Bhaskar Jyoti Sharma (supra) referred to above, for
the purpose of highlighting that Hari Ram (supra) has
not been diluted in any manner. We are of the firm
view that Hari Ram (supra) holds the field even as
on date. The statements of law in Hari Ram (supra)
are absolutely correct.
35. If two decisions of this Court appear inconsistent
with each other, the High Courts are not to follow one
and overlook the other, but should try to reconcile and
respect them both and the only way to do so is to
adopt the wise suggestion of Lord Halsbury given in
Quinn v. Leathem, [1901] A.C. 495 and reiterated by
the Privy Council in Punjab Cooperative Bank Ltd. v.
Commr. of Income Tax, Lahore AIR 1940 PC 230:
“…… every judgment must be read as
applicable to the particular facts proved or
360 [2026] 1 S.C.R.
Supreme Court Reports
assumed to be proved, since the generality
of the expressions, which may be found
there, are not intended to be expositions
of the whole law, but governed or qualified
by the particular facts of the case in which
such expressions are to be found.” and
follow that decision whose facts appear
more in accord with those of the case at
hand.”
20. We are inclined to agree with this view of this Court in AP Electrical
regarding the effect of Bhaskar Jyoti Sarma on the dictum in
Hari Ram. In the former, de facto possession had actually been
transferred to the State Government. Albeit, this was done by force
in contravention of the requirement to mandatorily issue notice under
Section 10(5) of the ULC Act. In this regard, this Court held that if
the objection regarding the non-compliance with Section 10(5) is
not made within a “reasonable time”, then the right to so object is
“waived”.
20.1 However, the facts of Hari Ram (and indeed, the present
case) are different insofar as de facto possession was not
transferred, by force or otherwise. Therefore, the question is
not whether an actual transfer of possession by force is vitiated
by a delay in raising objections to the transfer. Rather, the
question is whether actual possession has been transferred
at all, if no process of transfer has been conducted under the
various provisions of Section 10 of the ULC Act. Therefore,
the dictum in Hari Ram stands undisturbed by the judgment
in Bhaskar Jyoti Sarma.
20.2 In fact, this Court in AP Electrical wholly aligned with the
dictum in Hari Ram regarding the difference between ‘vesting’
and ‘possession’, observing as follows:
“38. If de facto possession has already passed on to
the State Government by the two deeming provisions
under sub-section (3) to Section 10, there is no
necessity of using the expression “where any land
is vested.” under sub-section (5) to Section 10…
39. The mere vesting of the land under subsection
(3) of Section 10 would not confer any right on the
[2026] 1 S.C.R. 361
Dalsukhbhai Bachubhai Satasia & Others v. State of Gujarat & Others
State Government to have de facto possession of
the vacant land unless there has been a voluntary
surrender of vacant land before 18.03.1999. State
has to establish that there has been a voluntary
surrender of vacant land or surrender and delivery of
peaceful possession under subsection (5) of Section
10 or forceful dispossession under sub-section (6)
of Section 10. On failure to establish any of those
situations, the landowner or holder can claim the
benefit of Section 3 of the Repeal Act, 1999. In the
case on hand, the State Government has in our
considered view not been able to establish any of
those situations and hence the learned Single Judge
was right in holding that the appellant herein is entitled
to get the benefit of Section 3 of the Repeal Act, 1999.”
(underlining by us)
20.3 Finally, bringing all the above concepts together, this Court
summed up the proper effect of the Repealing Act, as also
the question of possession under Section 10 of the ULC Act,
as follows:
“40. The effect of Repeal Act, 1999 is further clear. If
the landowner remains in physical possession, then
irrespective of his land being declared surplus and/
or entry being made in favour of the State in revenue
records, he will not be divested of his rights….
41. The propositions of law governing the issue of
possession in context with Sections 10(5) and 10(6)
respectively of the Act, 1976 read with Section 3 of
the Repeal Act, 1999 may be summed up thus:
[1] The Repeal Act, 1999 clearly talks about the
possession being taken under Section 10(5)
or Section 10(6) of the Act, 1976, as the case
may be.
[2] It is a statutory obligation on the part of the
competent authority or the State to take
possession strictly as permitted in law.
362 [2026] 1 S.C.R.
Supreme Court Reports
[3] In case the possession is purported to have been
taken under Section 10(6) of the Act, 1976 the
Court is still obliged to look into whether “taking
of such possession” is valid or invalidated on
any of the considerations in law.
[4] The possession envisaged under Section 3 of
the Repeal Act, 1999 is de facto and not de
jure only.
[5] The mere vesting of “land declared surplus”
under the Act without resuming “de facto
possession” is of no consequence and the land
holder is entitled to the benefit of the Repeal
Act, 1999.
[6] The requirement of giving notice under sub-
sections (5) and (6) of Section 10 respectively
is mandatory. Although the word “may” has
been used therein, yet the word “may” in both
the sub-sections should be understood as
“shall” because a Court is obliged to decide
the consequences that the legislature intended
to follow from the failure to implement the
requirement.
[7] The mere vesting of the land under sub-section
(3) of Section 10 would not confer any right
on the State Government to have de facto
possession of the vacant land unless there
has been a voluntary surrender of vacant land
before 18th March 1999.
[8] The State has to establish by cogent evidence on
record that there has been a voluntary surrender
of vacant land or surrender and delivery of
peaceful possession under sub-section (6) of
Section 10 or forceful dispossession under sub-
section (6) of Section 10.”
(underlining by us)
[2026] 1 S.C.R. 363
Dalsukhbhai Bachubhai Satasia & Others v. State of Gujarat & Others
20.4 We find that this view is in accordance with the prior dictum
of this Court in Hari Ram, and agree with the same. At this
juncture, we find it appropriate to briefly go through certain
other pronouncements of this Court, all of which are aligned
on the necessity of serving notice on the possessor under
Section 10(5); the difference between vesting and possession;
the difference between de jure and de facto possession and
the effect of the Repealing Act.
21. The following judgments of this Court could be adverted to at this stage:
a) In Mangalsen vs. State of Uttar Pradesh, (2014) 15 SCC
332, this Court observed that the application filed under Section
20 of the ULC Act was still pending and therefore, the State
Government’s claim to taking possession of the surplus land was
found not based on facts. It was also not clear from the record
whether or not the notice under Section 10(5) was served upon
the appellant therein. The notice under Section 11(8) of the ULC
Act determining compensation was after a gap of ten years.
Hence, it was observed that there was no evidence to prove
that the notice issued under Section 10(5) had been served
upon the appellant therein or that he had illegally occupied the
surplus land after 30.01.1990. In paragraph 14 of the judgment,
this Court has also noted the tardy approach in the matter by
the competent authority which makes an interesting reading.
b) In Gajanan Kamlya Patil vs. Additional Collector &
Competent Authority, (2014) 12 SCC 523, it was held that
in the absence of any evidence to show that appellant therein
had voluntarily surrendered or respondents therein had taken
peaceful or forceable possession of the lands in question, the
respondents therein had only de jure possession before coming
into force of the Repealing Act. Since de facto possession of
lands was not taken before execution of possession receipt, it
was held that the respondent therein could not hold on to the
lands in question which were legally owned and possessed by
the appellants therein. Accordingly, it was observed as under:
“12. We have, therefore, clearly indicated that it
was always open to the authorities to take forcible
possession and, in fact, in the notice issued under
Section 10(5) of the ULC Act, it was stated that if the
364 [2026] 1 S.C.R.
Supreme Court Reports
possession had not been surrendered, possession
would be taken by application of necessary force. For
taking forcible possession, certain procedures had to
be followed. The respondents have no case that such
procedures were followed and forcible possession
was taken. Further, there is nothing to show that the
respondents had taken peaceful possession, nor is
there anything to show that the appellants had given
voluntary possession. The facts would clearly indicate
that only de jure possession had been taken by the
respondents and not de facto possession before
coming into force of the repeal of the Act. Since there
is nothing to show that de facto possession had been
taken from the appellants prior to the execution of
the possession receipt in favour of Mmrda, it cannot
hold on to the lands in question, which are legally
owned and possessed by the appellants….”
(underlining by us)
c) In U.A. Basheer vs. State of Karnataka, (2021) 5 SCC 313,
while referring to Sections 3 and 4 of the Repealing Act which
deal with savings clause and abatement of proceeding clause
respectively observed as under:
“18. It is clear from the aforementioned legislative
provisions that the question of current possession
of the suit property is absolutely material to a full
adjudication of the controversy before us. This is
because, if the appellant does enjoy possession,
as claimed by him, any proceedings for any excess
land under the principal Act are liable to abate, as
per Section 3 and Section 4 of the Repeal Act, and
the appellant would be entitled to ownership and
possession over the suit property……”
(underlining by us)
d) In State of Orissa vs. Sakhi Bewa, (2022) 16 SCC 594, it
was held that the question whether surplus land was taken
over by the State is a question of fact and is not concerned
with payment of compensation to the landowner. That merely
[2026] 1 S.C.R. 365
Dalsukhbhai Bachubhai Satasia & Others v. State of Gujarat & Others
because compensation has not been paid, it cannot be presumed
that possession was not taken over. In the aforesaid context,
it was observed as under:
“4.3. A fair reading of Sections 3 and 4 of the 1999
Repeal Act makes it clear that all proceedings relating
to any order made or purported to be made under
the principal Act (the 1976 Act) pending immediately
before the commencement of the 1999 Repeal Act,
before any court, tribunal or other authority shall
abate. Section 4 of the Repeal Act shall not apply
provided possession of land has been taken over by
the State Government or any person duly authorised
by the State Government in this behalf or by the
competent authority. Therefore, if the possession of
the surplus land/land has been taken over by the State
Government or any person duly authorised by the
State Government in this behalf or by the competent
authority, in that case, the proceedings relating to
any order made under the principal 1976 Act shall
not abate, meaning thereby that the 1999 Repeal Act
shall not affect all those proceedings with respect
to the land of which the possession has been taken
over. Therefore, before declaring the proceedings
as having abated in view of Sections 3 and 4 of the
1999 Repeal Act, it has to be considered and decided
whether possession of the surplus land/land has been
taken over by the State Government or any person
duly authorised by the State Government in this behalf
or by the competent authority or not. If it is found
and held that the possession of the surplus land has
been taken over, in that case, the proceedings shall
not be declared as having been abated.”
(underlining by us)
22. The land in question is admeasuring 9303 square metres in Village
Katargam, Surat, Gujarat which initially belonged to one Nathubhai
Ranchhodbhai and on his demise to his heir Kuberbhai Nathubhai.
That on the enforcement of ULC Act proceedings were initiated under
the said Act on Kuberbhai Nathubhai filing a Form under Section
6(1) of the ULC Act and by making a declaration thereby. Initially,
366 [2026] 1 S.C.R.
Supreme Court Reports
the Competent Authority-I under the ULC Act held that the land in
question was exempt as per Section 21 of the said Act and the
remaining land was within the ceiling limit. The Society purchased
the land bearing Survey No.339 at a public auction on 28.04.1981
conducted by the Special Recovery Officer and the name of Society
was entered in the Mutation records. Industrial units were developed
on the said land. Thereafter, the Assistant Collector passed an
order cancelling Mutation entries on the premise that the public
auction dated 28.04.1981 was not conducted in accordance with the
provisions of the ULC Act which order was challenged before the
Collector and on being unsuccessful, it was challenged before the
Assistant Secretary, Revenue Division by filing a revision petition.
22.1 When the matters stood thus, the Government of Gujarat
exercised its revisional powers under Section 34 of the ULC
Act and set aside the initial order dated 18.02.1980 passed
by the Competent Authority-II and remanded the matter for
reconsideration and on 16.01.1989 it was held that 662.18
square metres was ‘excess land’. None of the appellants
herein were parties to the proceedings culminating in the order
dated 16.01.1989. Further, on the cancellation of the auction
purchase in favour of Khodidas Kanjibhai Patel, the original
landowner, Kuberbhai Nathubhai, entered into an agreement
of sale of the sub-plots in favour of the appellants herein, and
they became owners in possession of the said sub-plot Nos.1
to 77 situated upon Survey No.339. When such being the
position, on 22.11.1990, a notice was issued under Section
10(5) of the ULC Act to the original landholder directing him to
vacate and handover possession of the “excess land” to the
respondent/State Government within a period of thirty days.
The said notice has been extracted below. The said notice
was not issued to the appellants herein and despite that it
appears that the Deputy Collector, ULC drew a Panchnama
dated 21.01.1992, “taking over possession” of the ‘excess
land’ to the tune of 662.18 square metres out of the total area
of the land admeasuring 9303 square metres. It is only when
the appellants herein sought ‘No Objection Certificates’ for
further sale that they became aware that ‘excess land’ was
taken over by the State Government and had vested with
them. Hence, they filed the Writ Petition before the High Court
which was dismissed.
[2026] 1 S.C.R. 367
Dalsukhbhai Bachubhai Satasia & Others v. State of Gujarat & Others
22.2 The fact that notice under Section 10(5) of the ULC Act was
issued to the original owners implies that the respondents
were aware that the possession of the said land had to be
taken in accordance with Section 10 of the ULC Act. This was
without ascertaining the fact that possession of the said land
was with the appellants herein but no notice was issued to
the appellants herein who were in actual possession of the
subject land.
22.3 Applying the above settled law to the facts at hand, we find
the following facts on the face of the record:
a) The appellants herein were in actual possession of the
sub-plots in question at the time of enforcement of the
Repealing Act.
b) On 22.11.1990, a notice under Section 10(5) regarding
transfer of possession to the State Government was
issued to the original landowner but not the appellants
herein, who were in possession of the concerned sub-
plots. The said notice reads as under:
“Regd. Post A.D. No.ULC/6(1)2/773/3912/733/
Section – 10(5)
Competent Authority and
Additional Collector Office,
First Floor, Nanpura, Surat
Date : 22-11-90
To,
Smt. Maniben wd/o Kuberbhai Nathubhai
Resident: Gotalavadi, Katargam,
Dist. Surat
Pursuant to Section – 9 of the Urban Land Ceiling
and Regulation Act, Part “CH” of Form – 3 of the
Final Statement made surplus and notice to the land
holder under Section – 10(5) regarding entrusting the
possession of the land forfeited to the government
vide Notification of Section – 10(3).
It is hereby informed to you that by passing an order
under Section – 8(4) of the above act regarding
368 [2026] 1 S.C.R.
Supreme Court Reports
the land as described in the schedule below, Final
Statement under Section – 9 was forwarded on 16-
6-89, after that Notification of Section – 10(1) was
published vide dated 28-9-89. Now Final Notification
of Section – 10(3) has been published on dated 21-
8-90 in Government Gazette in Part 4-C in English
and Gujarati on Page No.1316 to 1317. According
to that notification, a land mentioned in the schedule
below has been forfeited to the government from
the date of publication as an additional land free
from all encumbrances.
So, it is hereby ordered under Section – 10(5) of
the above Act that person holding the possession /
usage of the land mentioned in the schedule below to
entrust the possession of the said land to the officer
authorized by the state government i.e. Additional
Collector, Urban Land Ceiling, Surat within days –
30 (thirty) from the receipt of this notice.
If you may commit any delay or failure in entrusting
the possession of the land mentioned in the
schedule, possession shall be taken by using
required force by taking requisite steps under
Section 10 – (6) of the above act. So this notice
is for entrusting the possession of the land within
time limit of 30 days.
SCHEDULE
Sr. Name of Name of S.No. Declared
No. the Land Taluka Area of the surplus
Holder Plot land No. sq. Mt.
1 2 3 4 5
Maniben Katargam 339 662.18
wd/o Choryasi No.9/A
Paiki T.P.
Kuberbhai Paiki 9/B
No.4
Nathubhai
Sd/-
Competent Authority and
Additional Collector, Surat
[2026] 1 S.C.R. 369
Dalsukhbhai Bachubhai Satasia & Others v. State of Gujarat & Others
Copy forwarded: -
Surveyor – Shree I.G. Parekh
2/- For preparing map of the above surplus land
in triplicate.”
22.4 Therefore, as per the provisions of Sections 10(3) and 10(5) of
the ULC Act, the subject land, despite having ‘vested’ (along
with acquisition of title or interests) in the State Government,
was not in the possession of the Government. Further,
possession was not taken by any of the three possible means,
i.e., voluntary transfer by the appellants, issuance of notice
under Section 10(5) to the appellants followed by peaceful
transfer or forceful acquisition of possession under Section
10(6) of the ULC Act. The possession of the land continues
with the appellants herein till date.
22.5 Such a scenario is clearly one where the provision of abatement
under Section 4 of the Repealing Act applies. The proviso to
Section 4 states that the section would not apply to proceedings
under Sections 11, 12, 13 and 14 of the ULC Act relating to
land that has already been taken possession of by the State
Government. Therefore, the proviso has no applicability to the
facts at hand and the benefit of abatement under the section
would apply wholesale.
22.6 That the approach to be had with cases such as the present
one is also evident upon a reading of Sections 3 and 4 of the
Repealing Act. Clearly, the legislative intent is that in cases
where lands were deemed to have been vested but possession
was not yet transferred as on date of enforcement of the
Repealing Act (such as the present case), the lands were to
remain in possession of the private parties. Section 3(2) of
the Repealing Act prescribes the procedure to be followed in
specific types of situations, i.e., where amounts paid by the
State Government must be refunded. This is not so in the
present case. However, the underlying concepts are clear –
that vesting and possession are distinct and that without the
latter, the private parties have a claim over continuing to be
in possession. This is subsequently further emphasised in
Section 4 of the Repealing Act, as explained earlier under
which proceedings abate as a result.
370 [2026] 1 S.C.R.
Supreme Court Reports
22.7 We are therefore unable to agree with the contentions of the
respondents herein. Also, it is not correct to submit that the
proceedings under the Act had concluded with the ‘final order’
regarding compensation dated 24.10.1992. The matter could
only have concluded by transfer of possession through one of
the three possible means explained above. The mere recording
of the lands in the name of the State Government by entry dated
22.10.1993 does not demonstrate transfer of possession. Rather,
the same only denotes de jure possession with the de facto
possession remaining in the hands of the appellants herein.
22.8 Similarly, we are unable to agree with the contention of the
respondents that the appellants cannot claim a right to receive
notice under Section 10(5) of the ULC Act. The propriety of the
sale deed executed in favour of the appellants is immaterial.
Section 10(5) mandates the delivery of notice to the person(s)
in possession of the concerned lands. On the date of issuance
of notice (22.11.1990), the appellants as possessors did not
receive the same. It was sent to the erstwhile owner of the
subject land. This also implies that the respondents also were
aware of the fact that actual possession was not with them
and there was a need to issue notice under Section 10(5) of
the ULC Act before taking over actual possession. However,
the respondents did not ascertain as to in whose name actual
possession stood. Therefore, no notice was issued to the
appellants and hence there being no transfer of possession
in accordance with Section 10 of the ULC Act, it continues
with the appellants both in fact as well as in law. Hence, they
are entitled to the benefit of Section 4 of the Repealing Act as
they do not fall within the scope of Section 3 of the said Act
which is the savings clause. The omission to issue notice to
the appellants violated the mandatory requirement of serving
notice under Section 10(5) and meant that the legal process of
acquiring possession was still ongoing, leading to abatement
of proceedings under Section 4 of the Repealing Act on its
enforcement.
22.9 Another argument of learned standing counsel for the
respondent-State is to the effect that the appellants herein
had not pressed the main reliefs in Special Civil Application
No.533/2009 and had only sought prayer in terms of paragraph
[2026] 1 S.C.R. 371
Dalsukhbhai Bachubhai Satasia & Others v. State of Gujarat & Others
26(c) i.e., directing the competent authority and Additional
Collector, ULC, Surat to issue necessary “NOC” for the
purpose of getting the registered sale deeds released by the
Joint Sub-Registrar, Surat, and the said prayer was not rightly
granted as the other prayers were not pressed is also not
correct. Further, in the writ petition, the learned Single Judge
of the High Court also observed that the appellants herein
cannot be granted NOC as they did not have a valid title. We
find that the said reasoning is contrary to Section 4 of the
Repealing Act inasmuch as the abatement of proceedings is
by operation of law based on the facts of each case and once
the proceedings under Section 10 of the ULC Act abate, the
consequential reliefs would have to be granted to the appellants
herein. Hence, the appellants are entitled to all consequential
reliefs pursuant to the abatement of the proceedings under
Section 4 of the Repealing Act as the case of the appellants
squarely falls within the scope of the provision.
The consistent reasoning adopted by this Court in similar
cases, as detailed above squarely applies to this case also.
23. In this case, the Division Bench of the High Court was not right in
holding that the appellants were not in possession of the subject land
on the date on which the ULC Act came into force and they were illegal
occupants. Further, the High Court was also not right in holding that
although the electricity bills showed the name of the appellants, it did
not establish their possession under Section 10(5) of the ULC Act.
24. Consequently, the impugned orders of the High Court in LPA
No.2024/2010 in Special Civil Application No.533/2009 dated
23.07.2014 and in Special Civil Application No.533/2009 dated
08.02.2010 are set aside. This appeal is allowed in the aforesaid terms.
No costs.
Result of the case: Appeal Allowed.
†
Headnotes prepared by: Nidhi Jain
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