Holding

Matters already decided by the Supreme Court and the High Court cannot be reopened; any such attempt is contempt and the authorities must comply with the Supreme Court's orders.

Summary

The dispute concerned several survey parcels of former royal land in Gujarat that were sold to Palitana Sugar Mills. The land, initially excluded from the Agricultural Land Ceiling Act, later fell under the Urban Land (Ceiling and Regulation) Act, and the reservation of one parcel for Bhavnagar University was claimed to have lapsed. After a long series of proceedings, the Supreme Court had ordered the authorities to sanction a development plan and make revenue entries, but the Collector and other officials repeatedly issued show‑cause notices and orders contrary to those judgments. The Court held that the issues had already been finally decided by the Supreme Court and the High Court, and any attempt to reopen them amounted to contempt. Consequently, the Court directed the authorities to comply with its interim order, grant non‑agricultural permission for the disputed parcel, and collect the applicable dues, while warning that further non‑compliance would be treated as contempt.

Issues considered

The applicability of the Gujarat Agricultural Land Ceiling Act, 1960 and the Urban Land (Ceiling and Regulation) Act, 1976 to the disputed parcels.
Whether the reservation of Survey No. 469/1 for Bhavnagar University had lapsed and the land could be developed.
The authority of the Collector and Deputy Collector to issue show‑cause notices after a Supreme Court judgment.
Whether the High Court could entertain clarification and contempt applications after its order merged with the Supreme Court order.
Whether the repeated issuance of orders constitutes contempt of the Supreme Court.

Legislation cited

Bombay Land Revenue Codes. Rule 108(6), s. Section 66, s. Section 67
Urban Land (Ceiling and Regulation) Acts. Section 20, s. Section 21

Subjects

land ceilingurban land actcontempt of courtres judicatarevenue mutationbid landnon‑agricultural permissionGujarat

Judgment

A PALITANA SUGAR MILLS PVT. LTD. AND ANR.
v.
STATE OF GUJARAT AND ORS.

OCTOBER 15, 2004

B [K.G. BALAKRlSHNAN AND DR. AR. LAKSHMANAN, JJ.]

Gujarat Agricultura/Land Ceiling Act, 1960/Urban Land (Ceiling and
Regulation) Act, 1976/Bombay Land Revenue Code, 1879~Bid Land-
C Exclusion from purview of Agricultural Land Ceiling Act and covered by
Urban Land Act-Sale of the /and-Revenue mutation in the name of
purchaser-Development thereof after sanction of plan except the land
reservedfor University-Issue regarding coverage of Land under Agricultural
Land Ceiling Act or Urban Land Act decided by the Authority, High Court
and Supreme Court in favour of the purchaser-After lapse of reservation of
D land for University order to sanction plan for its development passed by High
Court and Supreme Court-Despite payment of all the dues plan not
sanctioned-After decision of Supreme Court concerned Authorities issued
show cause Notices with regard to disputes already decided and passed
orders contrary to the order of Supreme Court on the ground that full facts
were not placed before the Court-Land mutated in the name of State-
E Applications for clarification and initiation of contempt proceedings by
purchaser-Dismissal of applications by High Court-On appeal, held: The
issues reopened by the Authority were already decided by Supreme Court-
Such an attempt would amount to contempt of this Court-The issues already
covered by earlier proceedings reached finality and hence cannot be
F reopened-Authorities directed to comply with the orders of Supreme Court-
Saurashtra Gharkhed Ordinance.

Constitution of India, 1950-Article 141-Precedent-Judgment of
Supreme Court-Ignored on the ground that full facts had not been placed
before the Court-Held: Such an attempt is perverse and amounts to gross
G contempt of Court-Contempt of Court.

The land in question comprising of survey No.469/1, 470/1, 47112, 471/
3 and 472, being a Bid Land was excluded from the purview of Gujarat
Agricultural Land Ceiling Act, 1960. The land was sold to the appellants.
After enforcement of Urban Land (Ceiling and Regulation) Act, 1976, the land
II 552
PALITANASUGARMILLS PVT. LTD. v. STATE OF GUJARAT 553
was covered under that Act. In 1976 Gujarat Agricultural Land Ceiling A
(Amendment) Act, 1972 came into force amending the original Act so as to
bring Bid Land within its purview. Revenue Department thereafter clarified
that the land in question would be governed by Urban Land Act and not
Agricultural Land Act. Hence the proceedings regarding the sale of the land
to the appellant under Agricultural Land Act were dropped. Revision against B
the order was dismissed finally concluding the proceedings under
Agricultural Land Act. Right and title entry No. 1950 was entered in the
revenue records in the name-Of appellants and the same was certified in 1979
finally in view of Notice under Bombay Land Revenue Code, 1879 and no
objections were raised against it.

Competent Authorities sanctioned Scheme u/s 21 of Urban Land Act
c
pursuant to which appellants developed the lands except the land in Survey
No. 469/1 which was reserved for University.Municipal Corporation filed Writ
Petition seeking setting aside of the order sanctioning the scheme and seeking
direction to the Authority to decide the proceedings under Agricultural Land
~ D
State Government granted no objection in respect of lands in Survey
Nos. 470/1 and 471/2, but refused the same in respect of other land except
Survey No.469/1. Against the order of refusal of no-objection, appellants filed
writ petition wherein appellant was permitted to do construction at its own
risk. Appellant made representation to State Government that they were being E
harassed. State Government asked the appellants that his representation
would be considered on unconditional withdrawal of his petitions agains, the
Government. Hence proceedings initiated by appellants were withdrawn.
Thereafter, the Authority held that the revenue mutation entry No.1950 was
legal and valid, by its order dated 10.7.1992. It was also held that proceedings F
under Agricultural Land Act would not be in respect of the land.

Appellant filed Writ Petition for declaration that land in Survey No.469/
1 reserved for the University was free for development as the reservation had
lapsed.
G
Revenue Authority issued suo-motu Notice seeking to revise its order
dated 10.7.1992, against which appellants filed another Writ Petition. In the
meantime Urban Land Act was repealed and the repealing Act was adopted by
the State. High Court quashed the Notice and upheld the order dated 10.7.1992.
High Court also dismissed the Writ petition filed by the Municipal
H
554 SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.

A Corporation. It also declared that reservation in respect of the University had
lapsed.

Appeal filed by Municipal Corporation before this Court against the
order of High Court regarding issue of Urban Land Act and Agricultural Land
Act was withdrawn. Appeal against the High Court order in respect of
B reservation of land in Survey No.469/1 was dismissed by this Court. The
appeal against the H,igh Court order in Writ Petition against notice dated
25.1.1996 was dismissed. Review petition filed by State Government in this
~
Court was also dismissed. In contempt petition this Court directed the
Authorities to sanction plan of land in survey No.469/1. Municipal
C Corporation sanctioned lay out plan for the same.

After dismissal of review petition, Deputy Collector again issued Notices
under BLR Code for deciding the title of land in Survey No.472 stating therein
that Supreme Court had decided the case in favour of the appellants due to
lack of full facts. Appellant moved recusal application before Revenue
D Department requesting to direct the Deputy Collector to recuse himself from
hearing of the show cause notices on the ground that he was deponent in review
petition before Supreme Court. However, Collector passed orders directing
City Mamlatdar to take possession of the lands.

Appellant submitted revised plans in respect of land in Survey No.469/
E 1, which is still pending. Deputy Collector passed order stating that land in
Survey No. 4.72 belonged to State Government. Mamlatdar passed an order
under Agricultural Land Act holding that the land in question was excess
land under Agricultural Land Act and hence they vested in the State
Government. Collector issued Notice for modification of Revenue Entry
F No.1950 in respect of Survey Nos.469/1. 470/1, 471/2, 471/3 and 472 in the
name of State Government The appeals against the orders before the Revenue
Secretary and the Collector are pending.

Appellant filed applications before High Court for clarification and
directions and for initiating contempt proceedings against the Collector,
G Deputy Collector and Mamlatdar. Entry No.1950 was finally modified on the
name of State Government without considering the orders passed by High
Court and this Court and the pending disputes before High Court.

High Court held that the orders passed by High Court had merged with
the order passed by this Court. High Court went into the maintainability of
H the contempt petition.
PALITANASUGARMILLS PVT. LTD. v. STATE OF GUJARAT 555

On appeal, this Court passed interim order directing the Authorities to A
sanction plan of Survey No.469/l and make entries in the revenue records. ·
This order was not complied with by the officers of the State Government.

Disposing of the appeals, the Court

HELD: I. Most of the issues sought to be raised by the respondents are B
nothing but raising the same issues all over again which had been raised in
the earlier proceedings and were rejected by this Court and would amount to
replaying of a recorded cassette. The issues of the alleged violation of VIDI
Formula, Bid Land, ALC Act, Saurashtra Gharkhed Ordinance and the alleged
. lack of title to Survey No. 472 are the issues which had been raised before
the High Court and thereafter in this Court in Spech1! Leave Petition and C
again. in Review Petition but did not find favour either with this Court or the
High Court. The issues covered by the earlier proceedings and finally decided
by the Courts and thus reached finality, cannot be reopened. (576-B-C)

2. Despite appellant No. I bringing to the notice of the former Collector
that the said actionc;; his part of issuing the show cause Notices was in D
violation of this Court judgment and orders, he brushed aside the same and
proceeded to issue various ex parte orders in utter contempt of this Court. A
written representation requesting him to recuse himself from hearing the
show cause Notices on the ground that he had been a party to the earlier
proceedings as well as filed affidavits in those proceedings, he refused to E
recuse himself from hearing.the show cause notices and passed various orders
on the aforesaid show cause Notices. [577-E-F)

3. The judgments of this Court are binding on all the Authorities under
Article 141 of the Constitution of India and it is not open to any Authority to
ignore a binding judgment of this Court on the ground that the full facts had F
not been placed before this Court and/or the judgment of this Court in the
earlier proceedings had only collaterally or incidentally decided the issues
raised in the show cause notices. Such an attempt to belittle the judgments
and the orders of this Court is plainly perverse and amounts to gross contempt
of this Court. The then Deputy Collector has scant respect for the orders
passed by the Apex Court. [577-G, H; 578-A] G
• 4. In so far as Survey No.469/l is concerned, several Notices were
issued by the appellants herein to the Commissioner, Municipal Corporation
and the Collector, inviting their attention to the interim order passed in the
present appeals. The Authorities have not permitted the appellants to carry
out the construction on the said land on Survey No.469/1. Identification of H
556 SUPREME COURT REPORTS [2004] SUPP. S S.CR.

A the land has not also been done as directed by this Court. In the meanwhile,
the appellant paid development charges to Area Development Authority for
construction ofvarious blocks of Survey No.469/1. With respect to the land,
the Authorities have already entered the· name of the appellant in the revenue
records. Thereafter, the appellant's name was deleted from the said entry
B pursuant to the order of the Collector and the order of the City Mamlatdar.
Thereafter when the entry was made pursuant to the interim order of this
Court, it was incumbent on the City Mamlatdar to not only make the entry of
the area of Survey No.469/1 in the revenue records but also to make that
entry in the name of the applicant. This has not been done so far. (578-B-F)

C 5. The conduct and behaviour of the Collector, the Commissioner, the
Dy. Secretary to Revenue Department and the Deputy Commissioner are
improper. In respect of the specific direction issued by this Court in its interim
order, the Authorities are deliberately not complying with the orders passed
by this Court and have prevented the appellants from carrying out the
construction on the lands in question for the last four years even though the
\
D appellants have succeeded in ·an the petitions before this Court. All the
Authorities are directed to comply with the interim orders passed by this Court
in its letter and spirit. (579-E, F)

6. It is open to the appellants to pursue the appeals which have already
been filed by them and it is made clear that the Authority shall consider and
E decide only the matters which are not covered by and concluded by any of the
earlier orders passed by the Authorities, the High Court and of this Court.
(582-C)

7. As the Authorities have not issued planning permit with reference
to Survey No. 469/1, all the respondents/Authorities are directed to consider
F the application and sanction the plan of Survey No.469/1 and make entries in
the revenue records forthwith in accordance with law. (582-DI

8. It is open to the respondents to proceed against the appellant with
regard to the violation of permission granted to construct the dwelling units
on the lands in question after giving Notice and after affording sufficient
G opportunities to the appellant to put forth their grievance in this regard.
(582-F( •
9. The Collector is directed to grant non agricultural permission in
respect of the land comprised in Survey No. 469/l after collecting the non-
agricultural tax applicable at the time when the application was made by the
H applicant. Dispute, if any, with regard to the tax calculated and the rate has to
PALITANASUGARMILLS PVT. LTD. v. STATEOH}UJARAT[LAKSHMANAN,J.] 557

be agitated separately and collected later. The Commissioner of Municipal A
Corporation is directed to consider the application for sanction as per the
current development control rules and pass order in accordance with law.
Respondent Nos.I and 2 are also directed to collect non-agricultural
permission charges and conversion charges for the lands bearing Survey
Nos.470/1, 47112, 471/3 and 472. Respondent Nos. 1 and 2 are further directed B
to collect non-agricultural permission charges and conversion charges for
the land bearing Survey No.469/1 as prevalent on 24.2.2003, which is the
date on which the appellants had applied for the grant of non-agricultural
permission for the said survey number and on receipt of payment to grant the
non-agricultural permission in respect thereof as applied for.
(582-F-H; 583-A-B) C
CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 6798-6799 of
2004.

From the Judgment and Order dated 23/26.3.2004 and 2/5.4.2004 of the
Gujarat High Court in Misc. C. Application No. 2340 and 2341/2003 and in S.C. D
Application No. 1032of1996.
WITH
C.P. (C) No. 410/2004 in SLP (C) No. 1562/2002, C.P. (C) No. 411/2004 in
C.A. No. 5556 of2001.
E
Mukul Rohatgi, P.H. Parekh, E.R. Kumar, Sumit Goel, Ms. Sweety
Manchanda and H. Ahmadi for Mis. P.H. Parekh and Co., with him for the
Appellants.

C.A. Sundaram, Ms. Hemantika Wahi, Ms. Archana P.Khopde, Urmesh
Triwedi and Jatin Zaveri with him for the Respondents. F
The Judgment of the Court was delivered by

DR. AR. LAKSHMANAN, J. Leave granted.

.. The present appeals were filed against the final judgment and order
dated 23/26.03.2004 and 02/05.04.2004 passed by the High Court of Gujarat in
G

Misc. Civil Application No. 2340 and 2341 of 2003 and in Special Civil
Application No. I 032 of 1996 whereby the High Court dismissed the application
filed by the appellants herein.

This case has a chequered history. Parties to this action are fighting a H
558 SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.

A legal battle in the Court of law from 1971 onwards and still has not reached
the finality of the litigation for one reason or the other. .

The former Ruler of Bhavnagar was the owner of large extent of lands
in the area in question. The subject-matter of this litigation are the lands
owned by the former Ruler comprised in survey Nos. 469/1, 470/l, 471/2, 471/
B 3 and 472 Village Vadva aggregating about 952 acres being a Bid Land (a
pasture land) was excluded from the purview.of Gujarat Agricultural Land
Ceiling Act, 1960, (hereinafter referred to as "the ALC Act"). This decision
taken by the Collector on 26.03.1971 went through the motion of ·appeal
remand etc. and finally the Gujarat Re~enue Tribunal (for short "the GRT')
C held that the land in question being the bid land was excluded from the
purview of the ALC Act and remanded the matter to the Mamlatdar for fixing
the ceiling of the other lands of the former Ruler. The review application filed
by the State Government was also dismissed by the Tribunal on 15.04.1977.
No further appeal was preferred by the State Government against the order
ofreview.
D
The former Ruler executed a registered sale deed in favour of the
appellants herein of the lands in the above survey nos. aggregating about 952
acres. The document was registered by the Collector.

In 1976, the Urban Land (Ceiling and Regulation) Act, 1976 (hereinafter
E referred to as "the ULC Act") c;ame into force in the State of Gujarat and the
land in question being situated within the residential zone in the master plan
under the Town Planning Act fell within the definition of vacant land under
the ULC Act. On 01.04.1976, the Gujarat Agricultural Land Ceiling (Amendment)
Act, 1972 came into force amending the definition of land so as to include
F the bid land as well within the definition of land. On a clarification sought by
the competent authority and the Under Secretary, Revenue Department and
the Additional Collector (ULC Act) informe9 the said authority that in view
of the overriding provisions contained in Section 42 of the ULC Act, the land
in question would be governed by the ULC Act and requested the said
authority to proceed under the said Act. On a further clarification sought by
G the competent authority and the Additional Collector, the Revenue Department
conveyed to the said authority the opinion of legal department of the State
Government that the land in question would be governed by the ULC Act and
not by the ALC Act. On receipt of a similar communication from the Revenue
Department, the Deputy Collector passed orders to drop the proceedings on
H the application filed by the former Ruler under Section 8 of the ALC Act for
PALITANASUGARMILLSPVT. LTD. v. STATEOFGUJARAT[LAKSHMANAN,J.] 559

a declaration that the sale effected by him vide aforementioned sale deed A
dated 31.03.1971 had not been done in anticipation of or with a view to defeat
the provisions of the ALC Act. Thus by proceedings dated 09.11.1979 of the
Deputy Collector, the ALC proceedings were concluded. Thereupon the right
and title entry No. 1950 was entered in the revenue records in the name of
the appellants in respect of the land in question and the same was certified
on 15 .11.1979. The said entry was certified finally in view of the earlier notice B
issued under Section 135(d) of the Bombay Land Revenue Code, 1879
(hereinafter referred to as "the BLR Code") Code and no objections were
raised. On 06.12.1979, the competent authority and the Additional Collector,
ULC issued a declaration in exercise of power under Section 21 (I) of the ULC
Act after verifying the title of the appel1ant holding that the appellant was C
entitled to retain the vacant land comprised in all the above survey nos.
admeasuring 930 acres and 4 gunthas for the purpose of construction of
dwelling units under Section 21 of the ULC Act. Pursuant to the sanction, the
appellants have already developed the lands wherein about 7000 dwelling
units have already come up. Presently, the appellant is seeking no objection
permission and sanction of lay out plan in respect of the land situated in D
survey No. 469/l which could not be developed earlier since there existed a
reservation on this land for Bhavnagar University.

The Bhavnagar Municipality filed a writ petition being spt";cil!_I Civil
Appeal No. 941 of 1980 for quashing and setting aside the order dated E
06.12.1979 granting exemption to the lands and sanctioning the scheme under
Section 21 of the ULC Act and a further direction to the authorities to
adjudicate and decide the ALC Act proceedings. The High Court passed an
interim order in favour of the Municipality restraining the appellants from
implementing the scheme. Various affidavits were filed by the competent
authority and the Deputy Collector under the ULC Act and the Deputy F
Collector to the Revenue Department stating that the title of the appellant to
the land in question was verified and the same was clear, authentic and valid
and the orders passed by the Deputy Collector under the. ALC Act and the
competent authority under the ULC Act were valid and legal. The High Court,
thereafter, vacated the ad-interim relief granted earlier to the Municipality and G
also permitted the appellant. herein (respondent No.8 therein) would be at
liberty to construct at its own risk and cost without claiming equities. The
said order is quoted below:

"Rule. To be heard in the !st or 2nd week; of September, 1980.
Having regard to the important questions arising in the petition; the H
560 SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.

A matter may be placed before the learned Chief Justice for being assigned
to a Division Bench. Mr. Chhatrapati waives notice for R.1 to R. 7 Mr.
Mehta for R.8 and Mr. A.J. Pandya for R.~ also waive notice of Rule.
Ad-interim relief vacated on condition that the respondent No.8 will
be at liberty to construct at its own risk and costs and the facts of
such construction having been raised on the land shall not be a factor
B in favour of respondent No.8. The above order is made at the request
of the learned advocate General who appears for Respondent No.8.

A.M. Ahmadi. J.
24.7.1980"
c It is submitted that ever since the appellant had raised constructions
\..

on the said land and the lands have been fully developed save and except
the lands in Survey No. 469/1 which was reserved for Bhavnagar University.
On 09.12.1981, the State Government granted no objection pennission in
respect of the lands in Survey Nos. 470/1 and 47112 by three separate orders.
D However, the Government refused the no objection pennission on the balance
three applications for the remaining lands excluding survey No. 469/1. The
grounds for refusal were ( 1) the scheme of exemption was under review by
the State Government under Section 34 of the ULC Act and (2) the SCA No.
941 of 1980 filed by the Bhavnagar Municipality was pending before the High
Court.
E
On 16.02.1982, the High Court passed an order in SCA No. 5059 of 1981
against the order dated 09 .12.1981 refusing the non-agricultural pennission by
the Deputy Collector in regard to the three applications referred to above. The
order reads thus:-

F "Rule. To be heard with Sp!. C.A.941/80. Petitioner may construct on
the land at their own risk and cost but the fact of the such construction
will not be pleaded as a circumstance in their favour at the time of final
hearing of the matter. Affidavit to be completed by both the sides
within 6 weeks from today. To be expedited."
G The Gujarat Revenue Tribunal by its judgment in Revision Application
No. 1723 of 1983 dismissed the Revision Application of the State Government
in respec~ of the ALC Act proceedings. it is to be noticed that this revision
was filed by the State Government against the order dated 09 .11.1979 and
20.11.1979 whereby the Deputy Collector dropped the proceedings filed by
H the foriner Ruler under Sedion 8 of the ALC Act for declaration that the sale
PALITANASUGARMILLS PVT. LTD. v. STATEOFGUJARAT[LAKSHMANAN,J.] 561

deed dated 3 l.03.1971 was not effected by him with a view to defeat the ALC A
Act. The said order thus finally concluded the proceedings under the ALC
Act. No further appeal was preferred by the State Government.

As several notices had been issued by the· revenue officials under the
Land Revenue Code and other laws in respect of the land in question and
the writ proceedings in the High Court and the stay order obtained, the B
appellant made a representation dated 27 .08.1990 to the State Government that
they were being harassed by the Officials by multifarious proceedings. On
17 .05.1991, the Government of Gujarat took a decision and communicated the
same to the appellant. The letter reads thus:

"No.ULC-2190-MRA-2-69-V-I c
Revenue Department
Sachivalaya, Gandhinagar
Dated:l7.5.1991
To
The Managing Director, D
Palitana Sugar Mills Pvt. Ltd.,
C-2, Divya Apartments,
Mithakhali Gamala,
Navrangpura,
Ahmedabad
E
Sub: Urban Land (Ceiling and Regulation)
Act, 1976.
Regarding lands of survey Nos. 469/1,
470/1, 471/2, 471/3 and 472 of
Village Vadva Dist: Bhavnagar. F
Sir,
With reference to our letter dated 28.9.1990 addressed to the
Hon'ble Chief Minister on the aforesaid subject, I am_ directed to state
that on your producing necessary evidence regarding unconditional
.withdrawal of the petitions filed against the Government in the Hon'ble G

- High Court of Gujarat with regard to this land, an appropriate decision
will be taken on your representation, which please note.
Yours faithfully,
Sd NA Shah
Under Secretary H
562 SUPREME COURT REPORTS [2004) SUPP. 5 S.C.R.

A Revenue Department
Received on : 25 .5 .1991"

This letter is self-explanatory. Accordingly, all the proceedings ini~iated
by the appellant were withdrawn by them. In view of all the writ petitions filed
B by the appellant being withdrawn, the Deputy Collector on 27.09.1991 issued
a notice in Ceiling Case No. 1/83-84 and rule 108(6) of the BLR Code again
seeking to revise the right and title entry No 1950 on the grounds detailed
herein below, principally contending that the sale by the former Ruler in
favour of the appellant of the lands in question vide sale deed dated 3 l.03.1971
is invalid.
c (a) That title of survey No.472 did not vest with the petitioner;
(b) That the subject lands being bid lands could not transferred;
(c) That the transfer of the lands to the petitioner was in violation
of the Saurashtra Gharkhed Ordinance;
D (d) Notice under the BLR code was not issued; and
I
(e) On the above mentioned grounds the mutation entry was sought
to be cancelled.

The Deputy Collector issued another notice seeking to reopen the ALC
E proceedings which had been closed on the grounds that the Bid Lands were
not covered by the ALC Act as it then stood, and that it was the ULC Act
which would govern the land in question and not the ALC Act.

The Deputy Collector, Bhavnagar in Revision Case No. 1/83-84 after
considering the entire issues of the said notice held that ownership of the
F land in question was of the appellant. It was decided that the revenue
mutation entry No. 1950 as recorded in village form no. 6 was legal and valid.
It was also decided tp withdraw the show cause notice dated 27.9.1991 and
to drop all the proceedings commenced under the said notice.

G By a separate order rendered in Ceiling Appeal No. 4/82-83 under the
ALC Act the Deputy Collector confirmed the order of the Mamlatdar dated
16.09.1982 in \. hich it had been, inter a/ia, held that the ALC Act did not
apply to the land in question. The Mamlatdar in the said order dated 16.09.1982
had followed the aforementioned order of the GRT dated 03.01.1974, whereby
the GRT had held that the land in question was not covered by the ALC Act.
H By the said order dated 16.09.1982, the Mamlatdar, inter alia, determined the
PALITANA SUGAR MILLS PVT. LTD. v. STATE OF GUJARAT[LAKSHMANAN,J.] 563

ceiling of the other lands of the fonner Ruler. It was thus held that no A
proceedings under the ALC Act would lie in respect of the land in question.

SURVEY NO. 469/1:

We shall now come to survey No. 469/1 which could not be developed
contemporaneously along with other survey nos. since there existed reservation B
on this land for Bhavnagar University.

A Writ petition was filed by the appellant in the High Court being
Special Civil Application No. I0 I08 of 1994, inter alia, praying that the
reservation of Survey No. 469/1 in favour ofBhavnagar University had fapsed
and for a declaration that the land is free for development by the appellant. C
This writ petition was filed on 10.08.1994. The Collector, Bhavnagar issued a
'· suo motu notice on 25.01.1996 seeking to revise the order dated 10.07.1992
rendered in Revision Case No. 1/83-84 which sought to revise the right and
title entry No. 1950 on the following grounds:
(a) That title to survey no. 472 did not vest with the petitioner; D
(b) That the subject lands being bid lands could not be transferred;
(c) That the transfer of the lands to the petitioner was in violation
of the Saurashtra Gharkhed ordinance, and
~
(d) Notice underihe BLR code was not issued. E
It is pertinent to notice that these issues are already covered by the
earlier proceedings finally decided in favour of the appellant. Against the
above show cause notice, the appellant filed Special Civil Application No.
I032 of 1996 before the High Court wherein the High Court granted interim
stay against the said show cause notice. The Deputy Secretary, Revenue F
Department of the State Government filed affidavits in all connected matters
stating that the title of the appellant to the land in question is authentic and
valid. In the meanwhile, the ULC Act was repealed and the said repealing Act
was subsequently adopted by the State Legislature. The High Court, by
judgment rendered in Special C.A. No. 1032 of 1996, quashed the notice dated G
.. 25.01.1996 of the Collector, seeking to revise the order passed by the Deputy
Collector dated 10.07.1992. The High Court, in the said judgment, has observed
that it was unfair, unjust and too late in the day for the Collector to raise
various issues such as illegal sale of bid land, breach of Saurashtra Gharkhed
Ordinance, ALC Act etc. which were closed and decided 3Yz years earlier. The
order of the Deputy Collector dated 10.07.1992 was upheld by the said judgment H
564 SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.

A in which all the issues were concluded.
By a separatejudgment pronounced on the same day, the High Court
rejected all the contentions raised by the Municipal Corporation in Special
Civil Application No. 941 of 1980 relating to sanction of ULC Act scheme and
the ALC Act proceedings. By a common judgment, a declaration was given
.B in Special Civil Application No. 10108of1994 that the designation of the land
bearing Survey No. 469/l reserved for Bhavnagar University had lapsed. The
issue of the ULC Act and the ALC Act was concluded by the said judgment
rendered in S.C.A. No 941 of 1980.

While granting leave, this Court directed status quo to be maintained
C in the SLP filed by the Municipal Corporation against the judgment in SCA
No. 941 of 1980. This Court again modified the interim order dated· 17.08.2001
directing _that it will be open to the appellant herein to construct dwelling
units on the lands in accordance with the approved or sanctioned scheme but
such construction would be at its own risk and shall not be a factor in its
D favour.

This Court also passed an order in Contempt Petition No. 142 of2002,
inter alia, directed the authorities to sanction the plan of Survey No. 469/1,
make revenue entries in the revenue records and collect the dues related to
the said land. Civil Appeal No. 5556 of 2001 was dismissed by this Court as
E withdrawn after a detailed hearing. Thus the issue of the ULC Act and the
ALC Act raised in the S.C.A. No. 941 of 1980 was finally concluded by the
said judgment. On 03.12.2002, this Court dismissed the civil appeals filed
against the order of the High Court in SCA No. 10108 of 1994 and batch
relating to reservation in Survey No. 469/l in, favour of the Bhavnagar
F University. Other SLPs being SLP No. 1561-63 of2000 filed against the order
dated 24.11.2000 in SCA No. 1032 of 1996 were heard and the SLPs were
dismissed by a detailed order. Thus, according to the appellant, various
issues regarding the right and the title of the lands in question were finally
concluded by the said judgment.

G Review Petition No.33 of2003 was filed by the State Government before
this Court by raising the following grounds:- r

(a) That title to survey no. 4 72 did not vest with the petitioner;
(b) That the subject lands being bid lands could not be transferred;

H (c) That the transfer-of the lands to the petitioner was in violation
PALITANA SUGAR MILLS PVf. LTD. v. STATE OF GUJARAT [LAKSHMANAN, J.] 565
of Sec.54 of Saurashtra Gharkhed Ordinance; A
(d) Notice under the BLR code was not issued; and
(e) Violation of ALC Act.
(

According to the appellant, these very same issues are covered by the
earlier proceedings and finally decided in favour of the appellants in B
proceedings dated 27.09.1991, 10.07.1992, 25.01.1996, 24.11.2000, 05.12.2002,
06.03.1987, 10.07 .1992 and 14.11.2002 reported in Bhavnagar University v.
Palitana Sugar Mill (P) Ltd and Ors., [2003) 2 SCC 111.

The affidavit was filed by Shri Kanti Lal Patel, the Collector of Bhavnagar
District (since retired), who was the second petitioner in the review petition C
as well as in the SLP.

On 21.01.2003, the Bhavnagar Municipality issued an order for
sanctioning the lay out plan in respect of R.S. No. 469/1. In the said order,
four conditions were stated including obtaining of non-agricultural permission D
from the Collector.

On 06.02.2003, this Court dismissed the Review Petition No. 33 of2003
in the following words:

"Delay condoned.
E
We have carefully gone through the review petition and the connected
papers. We do not find any merit in the review petition. The review
petition, accordingly, dismissed."

After the dismissal of the review petition again notice of inquiry was
issued by the Deputy Collector under Section 37(2) of the B.L.R. Code fo_r F
deciding the title ofR.S. No. 472 which issue was covered by earlier proceedings
finally decided in favour of the appellant. In proceedings dated 27.09.1991,
10.07.1992, 25.01.1996, 24.11.2000, 05.12.2002 and 06.02.2003 the Collector issued
9 show cause notices on 12.05.2003, 13.05.2003, 17.05.2003, 19.05.2003 and
22.05.2003 in regard to the dispute covered by earlier proceedings between G
the parties and finally decided in favour of the appellant. In the show cause
notices, the Collector stated as follows:-

"For taking a decision in that regard, due to lack offull facts before
the Hon'ble Supreme Court, it was held by the Hon'ble Supreme Court
that it does not see any reason to interfere with the judgment of the H
566 SUPREME COURT REPORTS . [2004] SUPP. 5 S.C.R.

A Hon'ble High Court rendered in Special Civil Application No. 1032 of
1996 dated 24.11.2000. On the basis ofthis judgment, the illegal acts
committed by the "Mill" cannot be termed to be legal. In these
circumstances, show cause notice for breach of Section 66 of the
Bombay Land Revenue Code, 1879 is hereby issued/given."

·B The appellant moved recusal application before the Principal Secretary,
Revenue Department with a request to direct the Collector to recuse himself
from the hearing of the aforementioned show cause notices issued by him.
Another reminder was issued on 21.07.2003. The Deputy Secretary wrote a
letter to the appellant stating that no administrative directions could be issued
C to the Revenue Department, to the Collector to state the aforementioned
proceedings as he was discharging quasi-judicial functions.

On 29/30.08.2003, the Collector Shri Kantilal Patel (a day prior to
retireinent) has passed 6 orders against the appellant and directed the City
Mamlatdar to take possession of the Lands.' The said orders were based on
D the self same grounds concluded in favour of the appellant. The said grounds
are:-

(a) Sec 54 of Saurashtra Gharkhed.
(b) Bid Land.

E (c) N.A. Permission, Breach the conditions of ULC Act scheme.
(d) N.A. conditions breached.
(e) N.A. conditions breached.
(t) N.A. conditions breached.
F According to the appellant, the Collector had passed orders despite
recusal application by the appellant on the ground that he was the deponent
in: review petition No. 33 of2003 and in another affidavit in C.A. No. 5556 of
200 l before this Court wherein the same allegations made in the show cause
notice were obtaining against the appellant.
G On 09.09.2003, the appellant submitted its revised plans of Survey No.
469/l and submitted to the Bhavnagar Municipal Corporation for sanctioning
the lay out and building plans in view of the Development Control Rules was
revised by the State Government vide notification dated 01.09.2003. Those
plans are still pending for sanction. On 11.09.2003, the Deputy Collector
H passed an order against the appellant in respect of the land in Survey No.
PALITANA SUGAR MILLS PVT.LTD. v. STATE OF GUJARAT[LAKSHMANAN, J.] 567
·<'
472 was of the State Government. According to the appellant, this issue is A
covered by earlier proceedings finally decided in favour of the appellant and
referred to in paragraph supra. On 15.09.2003, the Mamlatdar A.L.T passed an
~
order under the ALC Act against the appellant and held that the lands in
question were excess land under the ALC Act and, therefore, all lands ir.
question were vest in the State Government. According to the appellant, the
ALC Act proceedings were concluded in the earlier proceedings dated B
06.03.1987 and 10.07.1992. On 16.09.2003, the Collector issued a notice for
modification of Revenue Entry No. 1950 in respect of survey Nos. 469/l, 470/
..._J
l, 471/2, 471/3 and 472 in the name of the State Government. Though the said
right and title entry was confinned by the Deputy Collector vide order dated
10.07.1992 and the same were upheld by this Court. Against the respective c
orders of the Collector, the Deputy Collector and the Mamlatd_ar ALT, the
appellant filed appeals before the Revenue Secretary and the Collector of
Bhavnagar District respectively. The appeals are pending.

On 27. l l .2003, the appellant moved the High Court of Gujarat in Misc.
Civil Application No. 2340 of2003 for clarification and directions and second D
Misc. Civil Application No. 2341 of 2003 for initiating contempt proceedings
against the Collector Kantilal Patel, the Deputy Collector and the Mamlatdar
ALT. The right and title Entry No. 1950 was finally modified by the Collector
office on the name of State Government in the Revenue Records in respect
of all Survey Nos. without considering the orders passed by the High Court
E
and of this Court as well as pending dispute before the High Court for the
same and without hearing the objections of the appellant. On 23.03.2004, the
High Court held that its order dated 24.11.2000 passed in SCA No. 941 of 1980
. had merged with the order of 14.11.2002 passed by this Court in Civil Appeal
No. 5556 of 2001 filed by the Bhavnagar Municipal Corporation which was
dismissed as withdrawn. F
However, after holding so that its order .had merged with the
aforementioned order of this Court, the High Court instead of staying its
hands went into the maintainability of the contempt petition and passed
orders thereon.
G
An interim order was passed by this Court on 05.05.2004 directing the
authorities to sanction the plan of Survey No. 469/l and make entries in the
revenue records. According to the appellant, this order was not complied with
the officers of the State Government.

We heard Mr. Mukul Rohatgi, learned senior counsel ably assisted by H
568 SUPREME COURT REPORTS [2004) SUPP. 5 S.C.R.
>·
A Mr. P.H. Parekh for the appellants and Mr. C.A. Sundaram, learned senior
counsel ably assited by Ms. Hemantika Wahi for the contesting respondents.
We also heard other learned counsel for the respective parties. Both the
learned counsel invited our attention to the pleadings filed in several volumes,
annexures, orders passed by the authorities and the judgments rendered by
the Tribunal, High Court and of this Court and made elaborate and lengthy
B submissions. Mr. Rohatgi, learned senior counsel, submitted that the High
Court had no jurisdiction to make an observation as regards the merits of the
two applications preferred by the appellants despite it having expressly come
to the conclusion that since the order of the High Court had merged with the
~-
order of this Court. Such application would lie only before this Court. He
c would further submit that the High Court was in gross error in dismissing the
contempt petition on merits despite having held that the order in respect of
which the contempt had .been committed had merged with the orders passed
by this Court. Having said so, it was wholly beyond the domain of the High
Court to comment upon the merits of the contempt petition. The said
observation thus made in relation to the contempt petition were made by a
D Court which on its own analogy was bereft of jurisdiction to proceed as it
is well considered that petition for contempt only lies before the Court whose
order is violated. Therefore,.he contended that the observations made by the
High Court as regards the merits of the two applications were without
jurisdiction. In the present case, the High Court observed in para 22 as
E follows:-

'.'Appropriate remedy of the Petitioners would be to file an application
if at all it is maintainable before the Supreme Court."

Having made the aforesaid .observation, it is submitted that the High ..
Court encroached upon the domain of this Court by making observation on
F
the question as to whether the clarification application was maintainable or
not.

Mr. Rohatgi submitted that the order of the High Court suffers from
infirmities and is thus liable to be set aside on this short ground alone.
G
Mr. Rohtagi further submitted that having purchased the land by a
registered sale deed, the appellants became the owner of the entire extent and
..
that the land not being fit for cultivation was excluded from the purview of
the ALC Act. The authorities have also clarified that the land in question
would be governed by the ULC Act and not by the ALC Act. Therefore, he
H contended that the appellant was entitled to retain· the entire vacant land
PALITANA SUGAR MILLS PVT.LTD. v. STATE OF GUJARAT[LAKSHMANAN, J.) 569
-- comprising the above survey numbers for the purpose of construction of A
dwelling units under Section 21 of the ULC Act. So far as Survey No. 469/
1 is concerned, the said land could not be developed contemporaneously··
since there existed a reservation on this land for Bhavnagar University and
-r the Special Civil Application filed by the Bhavnagar University questioning
the order dated 6.12.1999 grai:iting exemption to the lands and sanctioning of ·
the Scheme under Section 21 of the ALC Act was also decided in favour of B-
the appellant. The High Court granted liberty to the appellant to construct at
its own risk and cost without claiming equities. It was also a matter of record
that the land in question have already been fully developed save and except
the land in Survey No. 469/l. He would further submit that in view of the
cabinet decision of the Government of Gujarat, the appellant was informed to c
withdraw the pending cases filed by them so that appropriate decision would
be taken in respect of the pending disputes by the State Government. It is
also·a matter of record that the proceedings initiated by the appellant were
withdrawn by them. Thereupon again the matter was reopened by the
authorities, principally contending that the sale in favour of the appellant of
the lands in question is invalid. The matter was agitated by the appellant D
before the authorities concerned and the authorities have held that the ALC
Act did not apply to the lands in question.

He further submitted that the writ petition filed by the appellant in the
... High Court in SCA No. l 0 l 08 of 1994 with regard to the land in Survey No.
E
469/1 which was reserved for Bhavnagar University since 1965 under the
Town Planning Act had lapsed and for further declaration that the land is free
for development. The Collector of Bhavnagar issued a suo motu notice even
though the issues are covered by the earlier proceedings and finally decided
by the authorities in favour of the appellant. The suo motu notice was
challenged by the appellant in the High Court. The High Court quashed the F
show cause notice dated 25.1.1996 of the Collector seeking to revise the order
passed by the Deputy Collector dated l 0. 7.1992. The High Court also observed
that it was unfair, unjust and too late in the day for the Collector to raise
various issues such as illegal sale of bid land, breach of Saurshtra Gharkhed

..
Ordinance, ALC Act etc. which were closed and decided three and a half
years earlier. It was also submitted that the High Court by a separate judgment
G
rejected all the contentions raised by the Municipal Corporation in Special
Civil Application No. 941 of 1980 relating to sanction of ULC Act Scheme and
the ALC Act proceedings. The Court also declared that the designation of
the land bearing Survey No. 46911 reserved for Bhavnagar University had
lapsed. Thus Mr. Rohtagi submitted that the issue of ULC Act and ALC Act H
570 SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.

A was concluded by the above judgment. After referring to the judgment of this
Court, "Mr. Rohtagi submitted that this Court has already granted permission
to the appellant to construct dwelling units on the land in accordance with
the approved or sanctioned Scheme but such construction would be at its
own risk and shall not be a factor in its favour. This Court also in the
B contempt proceedings directed the authorities to sanction the plan of Survey
No. 469/l and make revenue entries in the revenue record and collect the dues
related to the said land. This Court dismissed the civil appeal preferred by the
Municipal Corporation as withdrawn after a detailed hearing.

Our attention was further invited to the judgment of this Court in the
C case of Bhavnagar University v. Pa/itana Sugar Mill (P) Ltd and Ors.,
(supra) by which this Court dismissed the appeals filed by the Bhavnagar
University. Therein the learned counsel appearing for the University contended
having regard to the scope and purport of the said Act, the High Court must
~.
be held to .have erred insofar as it failed to take into consideration that the
objects of an integrated, incorporated and interdependent development plan,
D cannot be fully achieved·within a period often years and in that view of the
matter when steps are taken for revision of the final development plan, the
period specified in sub~section (2) of Section 20 of the Gujarat Town Planning
and Urban Development Act, 1976 (27 of 1976) would get automatically
extended. Learned counsel appearing for the appellant herein who was the
E respondent therein contended that the right of an owner of the land cannot
be kept under suspension for a long time and the period often years specified
by the legislature must be held to be a reasonable one, and thus by no stretch
of imagination only by taking recourse to the provisions of Section 21 of the
Act, the period specified therein can be extended. After considering the rival
stibmissioris, this Court dismissed the civil appeals filed by the University.
F
' Thus the proceedi'lgs under the above Act has also reached its finality
by the judgment of this Court in Bhavnnagar University v. Palitana Sugar
Mill (P) Ltd (supra). The various issues regarding the right and title of the
land·in question were finally concluded by the judgment. A.further review
petition filed by the State Government was also dismissed by this Court on
G 6.2.2003. After the conclusion of all the above proceedings, nine show cause
notices were issued by the Collector raising the very same issues but in a
different tone and form. Mr. Rohtagi submitted that all the disputes between
the appellant and the respondents were finally completed between the parties
in view of the cabinet decision of the Govemme'lt of Gujarat and the subsequent
H .withdrawal of the writ petitions filed by the appellant herein. Therefore, he
PALITANASUGARMILLSPVT. LTD. v. STATEOFGUJARAT[LAKSHMANAN,J.] 571

would submit that the authorities have no right or jurisdiction to issue show A
cause notices in regard to the earlier proceedings finally decided in favour of
the appellant to which the respondents were also parties. Concluding his
arguments, Mr. Rohtagi submitted that the authorities have failed to act on
the directions issued by this Court. The appellant moved the High Court for
clarification and also initiated contempt proceedings. Mr. Rohtagi also submitted B
that the authorities must be directed to issue the planning permit for
construction of the houses with reference to Survey No. 469/1 immediately
and on payment of necessary charges etc.

Mr. C.A. Sundaram, learned senior counsel appearing for the
respondents, submitted that the principal issue which directly and substantially C
arose and which was decided by the High Court in SCA No. l 032 of 1996 was
in respect of the validity of mutation entry No. 1950 and that what was finally
and conclusively decided by the High Court in its aforesaid judgment was a
controversy relating to the validity of mutation entry arising directly and
substantially in the writ petition and the observations relating to various
other issues/contraventions under other independent legislations were, at the D
best, collateral and incidental observations made only with a view to hold that
after a long lapse of time, the Collector could not have sought to disturb the
mutation entry on the strength of the contravention of the provisions of other
enactments referred to above. Similarly, the principal issue which arose for the
consideration of the High Court in SCA No. 941 of 1980 at the behest of the E
Bhavnagar Municipality was the legality and validity of the order dated
6.12 .1979 passed by the authority concerned sanctioning the weaker section
scheme under Section 21 of the ULC Act in favour of the appellant-Company.
Ultimately, the High Court while dismissing the writ petition held that the
alleged excess land which was allowed to be retained by the appellant-
Company for implementing the Scheme for weaker sections under Section 21 F
of the ULC Act would remain unaffected by the provisions of Section 3 of
the ULC Repeal Act and that the possession thereof shall be allowed to be
continued with the land owners. Mr. Sundaram further contended that the
land admeasuring 76 acres 39 guntas of Survey No. 469/l is concerned, the
same was never part of the aforesaid scheme and that, therefore, the same was G
never governed by the ULC Act prior to its repeal. Referring to show cause
notices, it was submitted that at no point of time, the proceedings for the
violation of the provisions of the Vid Formula for illegal sale of the land
initiated against the appellant-Company and were ever concluded till the
rendition of order dated 29/30.8.2003. Likewise, at no point of time, the
proceedings for violation of the provisions of the Saurashtra Gharkhed Tenancy H
572 SUPREME COURT REPORTS [2004) SUPP. 5 S.C.R.

A Agricultural Ordinanct'., 1949 had ever been concluded.

Mr. Sundararn, however, conceded that no further action can be, taken
for disturbing the finality of the mutation entry in view of the judgment of
the High Court dated 24.11.2000 in SCA No. l 032 of 1996, which was also a
stand taken by the respondent, in their affidavit in reply on behalf of the
B State. The said statement is placed on record.

In the appeal arising out of Special Leave Petition (C) 8718 of2004, in
regard to the grant of non-agricultural permission or cancellation thereof, it
was submitted that the said issue was never the subject matter of either SCA
No. 941/1980 or SCA No. 1032/1986 and that, therefore, there was never a
C question of the said issue reaching any finality. Mr Sundaram further submitted
that it was owing to the aforesaid reasons that the fresh proceedings came
to be pursued against the appellant-Company and that the proceedings were
initiated in view of the breaches committed by the appellant-Company under
various enactments. According to Mr. Sundaram, the appellant-Company
D appeared in response to the aforesaid show cause notices in different sets
of proceedings and that in all the aforesaid proceedings, the appellant-Company
was duly represented by its advocate and ultimately the said orders have
been rendered aft~r affording ample opportunities of being heard and after
considering the applicable legal provisions.

E On 30.8.2003, an order was passed imposing penalty, conversion tax,
non-agricultural assessment, local fund and education cess totalling to the
tune of Rs. 5,80,61,510 in respect of 31,48,208 sq. mts. (excluding land of
Survey No.472), inter a/ia, on the ground that the aforesaid transfer of open
plots in favour of third parties were in violation of the provisions of Registration
F Act, Bombay Stamps Act, Town Planning Act, Municipal Regulation, Building
Regulation etc. and for using land of different survey numbers for non~
agricultural purpose without permission. This order was with reference to the
show cause notice dated 12.5.2003:

Another order was passed on dated 30.8.2003 deciding show cause
G notice dated 13.5.2003 issued under Section 67 of BLR Code etc. for breach
of conditions of non-agricultural permission granted vide order dated 23.~.1980
in respect of 720 sq. mts. of land of Survey No. 4701/l and construction is
not as per Condition No. 4 or order of non-agricultural permission since the
construction has been carried out on the land in question in violation of the
lay out plans for t~e said land as approved by the specified authority.
H
PALITANASUGARMILLS PVT. LTD. v. STATEOFGUJARAT[LAKSHMANAN,J.] 573
A separate order was passed on dated 30.8.2003 deciding show cause A
notice dated 13.5.2003 issued under Section 67 of BLR Code etc. for breach
of conditions of non-agricultural pennission granted vide order dated 28. l 0.1980
in respect of 17927.50 sq. mts. of land of Survey Nos. 470/l and 471/2.

Another order was passed on 30.8.2003 deciding show cause notice
dated 13.5.2003 issued under Section 67 of BLR Code etc. for breach of B
conditions of non-agricultural pennission granted vide order dated 27.3.1981
in respect of 78,713 sq. mts. of land of Survey No. 470/1 (Part), 471/2 (Part)
and 47l(Part).

For the show cause notice dated 17.5.2003, an order was passed on 29/
30.8.2003, for illegal sale of Bid land of Survey Nos. 469/1, 470/1, 471/3 and C
471/2 admeasuring 880 A.04 Gs. in violation of Bid Formula and that of the
provisions of the BLR Code have been contravened and that, therefore, the
appellant-Company being in unauthorised occupation and enjoyment of the ·
land was ordered to be summarily evicted.
D
Another order on the same date was issued under Section 75 of the
Saurashtra Gharkhed Tenancy Settlement and Agricultural Lands Ordinance,
1949 for transfer of land of Survey Nos. 469/l, 470/l, 471/3, 471/2 and 472 to
non-agricultural in breach of Section 54 and that the appellant-Company has
failed to produce any evidence as to whether permission for purchasing the
land was obtained or that the appellant-Company is a farmer/agriculturist. E
Another order was passed for forfeiture of land bearing Survey Nos.
469/1, 470/1, 471/2, 471/3 and 471/4 admeasuring 832 acres 4 guntas on the
ground that on repeal of ULC Act all the lands are governed by the provisions
of the Gujarat Agricultural Lands Act, 1960 and that the appellant-Company
had admittedly acquired surplus land admeasuring 880 acres and 4 guntas in F
excess of the prescribed ceiling limit ofVadva Village ofBhavnagar District,
which acquisition is required to be declared illegal and the excess land vests
in the State Government.

Another order was issued in respect of the land bearing Survey No. 4 72 G
admeasuring 101 acres 14 guntas, inter a/ia, on the ground that the land
bearing Survey No. 472.since 1949-1955 was never included in Village Form
No.6 and was entered as Government land.

The appellant-Company has, therefore, taken up various proceedings
against the orders passed by various authorities and during. the pendency of H
574 SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.

A the afore~aid appeals, the appellant-Company filed two miscellaneous civil
applications being 2340 of 2003 and 2341 of 2003 before the High Court
seeking clarification and also initiating contempt proceedings and against the
order of rejection, the appellant have filed the above appeals herein before
this Court.

B Mr. Sundaram, after narrating all the events, submitted that a plain
reading of the judgment, impugned in these.special leave petitions, passed
by the High Court makes it abundantly clear that the High Court has not gone
into the merits of the case of the appellant and both the miscellaneous
applications were rejected mainly on the following grounds:
c (i) That the application for clarification and directions is not
maintainable in law since the same under the guise of seeking
clarification, challenge legality and validity of various orders
passed by the different authorities under different statutes which
are the subject matter of challenge by the appellant before various
D revisional and appellate authorities;
(ii) That appellants' application for clarification and directions filed
before the High Court did not mention as to under which
provisions of law the same was filed despite such requirement as
per Rule 50 of the Gujarat High Court Rules, 1993;
E (iii) That the appellants' application for clarification and directions
was admittedly not for rectification of an order or removal of
ambiguity and that the appellants have not invoked the inherent
power of the High Court for rectification of error or for removal
of ambiguity and if inherent powers are not invoked, then there
must be some provisions under which the application was filed.
F
(iv) That the judgment of the High Court in SCA No.941 of 1980 has
merged into the order of this Court. passed in Civil Application
No. 5556/2001 whereas judgment of the High Court rendered in
SCA No. 1032/1996 though not merged into the order of this
Court, various averments and grounds mentioned in the
G application for seeking clarification and directions based on two
decided petitions are almost common, interconnected and
interlinked and that, therefore, the orders passed by this Court
dismissing the special leave petition as well as the review petition
of the State preferred against the judgment of the High Court in
H SCA No. 1032·of 1996 may attract Art. 141 of the Constitution.
PALITANASUGARMILLS PVT. LTD. v. STATEOFGUJARAT[LAKSHMANAN,J.] 575

(v) That the application for contempt is not entertainable since the A
respondents herein have not committed contempt of Court and
the appellants are not entitled to relief of quashment of the orders
passed by various authorities in the year 2003 in contempt
proceedings more particularly when appellants themselves have
approached the High Court for clarification of its judgments B
rendered in SCA Nos. 941/1980 and 1032/1996.

Mr. Sundaram reiterated that the High Court did not go into the various
other contentions raised on behalf of the appellants relating to the merits of
the case and that, therefore, it is not correct on the part of the appellants to
contend that the High Court has made observations as regards the merits of C
the applications despite it having expressly come to the conclusion that since
the order of the High Court had merged with the order of this Court and that,
therefore, any such application would lie only before this Court.

Concluding his arguments, Mr. Sundaram submitted that fresh nine
orders passed by various authorities under various legislations in the year D
2003 furnished fresh causes of action to the appellants and the same cannot
be set aside by entertaining an application which is styled as an application
for clarification and directions.

According to Mr. Sundaram, the appellants have committed breaches of
various laws with impunity and now under the guise of bar of res judicata E
and under the threat of contempt, want the authorities to desist from taking
any action against them. He also denied that the show notice notices and the
orders passed thereon are not hit by the principles of res judicata and
constructive res judicata and/or principles analogues to res judicata and
constructive res judicata, as alleged or otherwise.
F
We have given our anxious consideration to the rival claims to the
detailed and elaborate submissions made by the counsel appearing on either
side.

This Court, on 5.5.2004, heard these special leave petitions and by an
interim order directed the District Inspector, Bhavnagar to go at the spot and G
identify and earmark 76 acres and 39 guntas of land in Survey No. 469/1 in
the presence of representative of Bhavnagar Municipal Corporation,
Government and the petitioner-Mill, if not already done and further make
entries to that effect in the revenue record within four weeks from the date
of the said order. This Court further directed the Corporation to sanction the H
576 SUPREME COURT REPORTS [2004] SUPP. 5 S.C,R.

A lay out plan in another two weeks after the land is identified and dues are
paid. It is stated that in spite of several letters and reminders sent by the
appellants, the respondents have deliberately failed to comply with the
aforesaid interim order under the guise of issuing fresh show cause notices.
In our opinion, most of the issues which sought to be raised in the counter
B affidavit of the respondents are nothing but raising the same issues all over
again which had been raised in the earlier proceedings and were rejected by
this Court and would amount to replaying of a recorded cassette. It cannot
be disputed that the issues of the alleged violation ofVIDI Formula, Bid Land,
ALC Act, Saurashtra Gharkhed Ordinance and the alleged lack of title to
Survey No. 472 are the issues which had been raised before the High Court
C in SCA No. 1032 of 1996 and thereafter in this Court in Special Leave
Petition(Civil) No. 1562 of2002 and again in Review Petition No. 33 of2003
but did not find favour either with this Court or the High Court. The High
Court, after elaborate discussion by its judgment dated 24.11.2000 delivered
in Special Civil application No. 1032 of 1996 held, inter alia, as under:

D "In the instant case, even ifthe entire period from the first mutation
entry made in the year 1976 up to the conclusion of all litigations
pending in the High Court is excluded, we find that the impugned
show cause notice issued on 25. l.1996 ·to revise the order of the
Deputy Collector passed on 10.7.1992 being after a period of almost
3 years and 6 months. It is much beyond a reasonable period of one
E year as has been held by the Division Bench in the case of Bhagwanji
Patel (supra). As has been narrated above in statements of facts, not
only that the Revenue Entry was confirmed but the State Government
had sanctioned construction scheme prepared by the petitioner
company for construction of dwelling units for weaker sections of the
F society. The petitioner on that basis spent crores of rupees for
development of the land. It is reported that on part of the land some
dwelling units have been constructed. It is too late now for the
Collector, Bhavnagar to raise an issue that part of the land was Bid
Land and the erstwhile ruler of Bhavnagar could not have sold it to
the petitioner company and it is not covered in the definition of
G 'agriculturist' under the Saurashtra Gharkhed Tenancy Settlement and
Agricultural Lands Ordinance Act, 1949. The petitioner's grievance is
legitimate that attempt to upset the construction scheme by treating
the urban land to be an agricultural. land after such a long period, is
an action highly belated and unjust."
H
PALITANASUGARMILLSPVT. LTD. v. STATEOFGUJARAT[LAKSHMANAN,J.) 577

In the special leave petition filed against the aforesaid judgment of the A
High Court, the very same grounds raised in the counter affidavit under reply
had been raised as well as argued before this Court and the same were
rejected. The respondents once again raised those issues in Review Petitipn
No. 33 of2003 filed in this Court. The Review Petition was dismissed by this
Court on 6.2.2003. Refusing to concede defeat, the then Collector filed affidavits B
in this Court and had remained present in this Court issued a series of sho:w
cause notices, wherein the orders of this Court was described as under:

"For taking a decision in that regard due to lack of full facts
before this Court, it was held by this Court that it does not see any
reason to interfere with the judgment of this Court rendered in Special C
Civil Application No. 1032 of 1996 dated 24.11. 2000. On the basis of
this judgment, the illegal acts committed by the "Mill" cannot be
termed as legal. In these circumstances, show cause notice for breach
of Section 66 of the Mumbai Land Revenue Code, 1879 is hereby
issued/given."
D
(Emphasis supplied)

Despite, appellant No. I bringing to the notice of the former Collector
that the said action on his part of issuing the show cause notices was in
violation of this Court judgment and order dated 5.12.2002 and 6.2.2003, he
brushed aside the same and proceeded to issue various ex parte orders in E
utter contempt of this Court. A written representation requesting him to
recuse himself from hearing the show cause notices on the ground that he
had been a party to the earlier proceedings as well as filed affidavits in those
proceedings, the then Collector refused to recuse himself from hearing the
show cause notices and passed various orders dated 29/30.8.2003 on the F
aforesaid show cause notices.

It is well settled that the judgments of this Court are binding on all the
authorities under Article 141 of the Constitution of India and it is not open
to any authority to ignore a binding judgment of this Court on the ground
that the full facts had not been placed before this court and/or the judgment G
of this Court in the earlier proceedings had only collaterally or incidentally
decided the issues raised in the show cause notices. Such an attempt to
belittle the judgments and the orders of this Court, to say the least, is plainly
perverse and amounts to gross contempt of this Court. We are pained to say
that the then Deputy Collector has scant respect for the orders passed by the H
578 SUPREME COURT REPORTS [2004) SUPP. 5 S.C.R.

A Apex Court.

We have perused the various counter affidavits and the various notices
issued on different occasions. They are all mere repetition of the stand taken
by them in the earlier proceedings before this Court which has been elaborately
dealt with in the earlier proceedings. Insofar as Survey No. 469/l is concerned,
B several notices were issued by the appellants herein to the Commissioner,
Bhavnagar Municipal Corporation and the Collector, Bhavnagar inviting their
attention to the order dated 5.5.2004 passed in the present appeals. Several
correspondence took place between appellant No. I and the authorities from
I0.5.2004 to 29.6.2004. The authorities have not permitted the appellants to
C carry out the construction on the said land on Survey No. 469/I. Identification
of the land has not also been done as directed by this Court. In the meanwhile,
the appellant paid development charges to Bhavnagar Area Development
Authority for construction of various blocks of Survey No. 469/I amounting
to Rs.29,6 I 8 and development chares for the whole land amounting to Rs. 6
lakhs has already been paid by appellant No.I on 7.5.2002. The appellants
D have also paid scrutiny charges for the lay out plan for the whole land bearing .
Survey No. 469/1 amounting to Rs.3,11,508 and 1,55,754 has already been paid
on 13.5.2002 and 12.9.2003 by appellant No. I.

It was also brought to our notice that with respect to the land of Survey
E No.469/I, the authorities have already entered the name of the appellant in
the revenue records on 13.10.2002. Thereafter, the appellant's name was deleted
from the said entry pursuant to the order of the Collector dated 29/30.8.2003
and the order of the City Mamlatdar dated I5.9.2003. Thereafter whe11 the
entry was made pursuant to the order of this Court dated 5.5.2004, it was
incumbent on the City Mamlatdar to not only make the entry of the area of
F Survey No. 469/I in the revenue ~ecords but also to make that entry in the
name of the applicant. This has not been done so far. Learned counsel
appearing for the appellant, therefore, submitted that the City Mamlatdar is
the guilty of not complying with the order of this Court dated 5.5.2004. On
22.6.2004, the Collector of Bhavnagar District wrote a letter to the Deputy
G Commissioner, Bhavnagar, Municipal Corporation that as per the four separate
orders of the office of the Collector dated 30.8.2003, a total amount of
Rs.5,85,93,410 remains to be recovered from the appellant-Company. In reply
to the said letter dated 22.6.2004, the appellant wrote to the Collector and the
Commissioner stating that the alleged dues of five 5 crores and odd have no
reievance to the orders passed by this Court and the demand made is illegal
H and contrary to the order passed by this Court and that the four orders on
PALITANA SUGAR MILLS PVT.LTD. v. STATE OF GUJARAT[LAKSHMANAN, J.] 579

which the reliance was placed were all passed contrary to the order dated A
5.5.2004 passed by this Court.

Further it was submitted that in respect of the land bearing Revenue
Survey No. 469/l, all dues have been paid for sanctioning the plan and further
the appellant-Company has always been ready to pay the non-agricultural tax
for the revenue Survey No. 469/1 but the Collector and the Commissioner · B
have refused to grant any permission even after various reminders sent to
them by the appellant-Company. Through this letter, appellant No.1 once
again called upon the Collector, the Commissioner, the Deputy Secretary,
Revenue Department and other officers of the State Government to forthwith
comply with the orders passed by this Court on 5.5.2004. The authorities C
refused to sanction the plan in view of the pending dues. The appellant
informed the Collector, the Commissioner and other authorities that the order
was passed by this Court on 5.5.2004 only in respect of Revenue Survey
No.469/1 and the dues payable only for the said land. It was also informed
that all the dues which were demanded by the authorities in respect of
Revenue Survey No. 469/l aggregating amount ofRs.ll,80,607 has already D
been paid by the appellant and, therefore, call upon them to comply with the
order passed by this Court on 5.5.2004.

In our opinion, the conduct and behaviour of the Collector, the
Commissioner, the Dy. Secretary to Revenue Department and the Deputy
Commissioner are improper and less said is better. In our opinion, in respect E
of the specific direction issued by this Court on 5.5.2004, the authorities are
deliberately riot complying with the orders passed by this Court and prevented
the appellants from carrying out the construction on the lands in question for
the last four years even though the appellants have succeeded in all the
petitions before this Court. F
We, therefore, direct all the authorities to comply with the orders passed
by this Court on 5.5.2004 in its letter and spirit. We extend the time for
compliance finally by four weeks from the date of the pronouncement of this
judgment. Any lapse or delay on the part of the respondents herein will be
viewed very seriously. G
From the above discussion by us and of the record would clearly go
to show that the following issues are covered by the earlier proceedings and
finally decided by the Courts and reached its finality and which cannot be
reopened again:
H
580 SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.

A (l) The lands in Survey Nos. 469/l, 470/l, 47l/2, 47l/3 and 472
aggregating about 952 acres sold in favour of the appellants by
the former ruler with the permission of the; Collector and registered
has become final and conclusive.
~
(2) The lands in question being pasture land (Bid land) and not
B being fit for cultivation was excluded from the purview of the
Gujarat Agricultural Land Ceiling Act, 1960.

(3) The Right, Title Entry made in the revenue records in respect of
the lands in question in the name of the appellant has become
final and conclusive and, therefore, removal of the appellant from
c any of the Survey Numbers in question is not permissible.

(4) The declaration issued by the competent authority and Additional
Collector under the ULC Act, in exercise of the power under
Section 21 ( l) of the ULC Act after verifying the title of the
appellant in respect of the above survey numbers is final and
D conclusive.
(5)- The writ petition filed by the Bhavnagar Municipality for quashing
and setting aside the order dated 6.12.1979 granting exemption to
the lands and sanctioning the scheme under section 21 of the
ULC Act were valid and legal.
E (6) It is not in dispute that the appellant have 1aised construction on
the lands and the lands have been fully developed, save and
except, the lands in Survey No. 469/1.

(7) The orders dated 9.11.1979 and 20.11.1979 whereby the Deputy
Collector dropped the proceedings filed by the former Ruler under
F Section 8 of the ALC Act for a declaration that the sale deed
dated 31.3.197 l was not effected by him with a view to defeat the
ALC Act was rejected by the Tribunal in Revision appliCation by
the State Government. In respect of the ALC proceedings, the
said order was finally concluded since under the ALC Act no
further appeal was preferred by the State Government.
G
(8) This also was not in dispute that pursuant to the cabinet decision
of the Gujarat Government the appellants withdraw all the pending
proceedings and, thereafter notices were issued under Rule !08(6)
of the Bombay Land Revenue Code seeking to revise the right
and title Entry No.1950 principally contending that the sale deed
H
PALITANA SUGAR MILLS PVT. LTD. v. STATEOFGUJARAT[LAKSHMANAN,J.J 581

dated 31.3.1971 was invalid. A
On the abovementioned grounds, the mutation entry was sought to be
cancelled. The Deputy Collector, Bhavnagar held that the ownership of the
land in question was of the appellant and a decision was taken that the
revenue mutation No. 1950 as recorded in Village Form No.6 was legal and
valid wbich was also decided to withdraw the show cause notice dated B
27.7.1991 and to drop all the proceedings commenced under the said notice.

(9) The Deputy Collector also confirmed the order of the City
Mamlatdar dated 16.9.1962. The reservation of Survey No. 469/
l in favour of the Bhavnagar University had lapsed.

(IO) The High Court, in its judgment, in SCA No. 1032 ofl 996 quashed
c
the notice dated 25. l.1996 of the Collector. The High Court
observed that it is unfair for the Collector to raise various issues
such as illegal sale of bid land, breach of Saurashtra Gharkhed
Ordinance, ALC Act etc. which were closed and decided earlier.
(11) The issue of ULC Act and ALC Act was concluded by the
D
judgment of the High Court in SCA No. 941 of 1980.
(12) No further action can be taken for disturbing the finality of the
mutation entry in view of the judgment of the High Court rendered
on 24.11.2000 in SCA No. l 032 of 1996 and, therefore, there is no E
question of disturbing the mutation entry on the strength of the
contravention of the provisions of other enactments now.
(13) Civil appeal No. 5536 of 2001 preferred by the Municipal
Corporation was dismissed as withdrawn. Thus the issue of ULC
Act and ALC Act raised in the SCA 941 of 1980 was finally
concluded by the said judgment. F
(14) In the judgment in Bhavnagar University v. Palitana Sugar
Mills Ltd (supra) , this Court decided the dispute between the
Bhavnagar University and the appeflant with reference to Gujarat
Town Planning and Urban Development Act, 1976. The appeal
filed by the Bhavnagar University was finally dismissed by this G
Court.

(15) Review petition No. 33 of2003 was also dismissed by this Court.

Thus it is seen that the various proceedings were initiated again and
again by the authorities which have already been concluded by various H.
582 SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.

A orders of the Tribunal, the High Court and of this Court. It was fairly conceded
by Mr. Sundaram, at the time of arguments, that the matters which are finally
concluded and decided by the authorities and by the orders of the High Court
and of this Court will. not be reopened again anct that the matters which have
not peen raised and decided earlier will alone be persuaded by the respondents.
B The statement made by Mr. Sundaram is placed on record.·

It was stated that the appeals have been filed against the orders passed
by the authorities with regard to the show cause notices issued. It is open
to the appellants to pursue the appeals which have already been filed by them
and we make it clear that the authority shall consider and decide only the
C matters which are not covered by and concluded by any of the earlier orders
passed by the authorities, the High Court and of this Court.

It has already been noticed by us that the authorities have not issued
planning permit with reference to Survey No.469/l. We diiect all the
respondents/authorities to consider the application and sanction the plan of.
D Survey No. 469/l and make entries in the revenue records forthwith in
accordance with law. This direction shall be complied with by the officers of
the State Government within four weeks from the date of this judgment.

It is stated by Mr. Sundaram that the appellants have constructed
dwelling units on the lands in question not in accordance with the sanctioned
E scheme under the ULC Act and that the appellants have put up construction
contrary to the sanctioned scheme. If so, it is open to the respondents to
proceed agajnst the appellant with regard to the violation of permission
granted to construct the dwelling units on the lands in question after giving
notice and after affording sufficient opportunities to the appellant to put forth
F their grievance in this regard.

In the result, we allow the appeals in part and direct the Collector,
Bhavnagar to grant non agricultural permission in respect of the land of about
76 acres 36 guntas comprised in Survey No. 469/l Bhavnagar District after
collecting the non-agricultural tax calculated at the rate of 5% per sq. mt.
G Applicable at the time when th_e application was made by the applicant i.e.,
24.2.2003 which aggregate to Rs. I 5,57,540. Dispute, if any, with regard to the
tax calculated and the rate has to be agitated separately and collected later.
The Commissioner of Bhavnagar Municipal Corporation is directed to consider
the application for sanction within four weeks the lay out and building plans
as per the current development control rules· and pass order in accordance
H with law.
PALITANA SUGAR MILLS PVT.LTD. v. STATEOF GUJARAT [LAKSHMANAN, J.] 583

We also direct respondent Nos. I and 2 to collect non-agricultural A
pennission charges and conversion charges for the lands bearing Survey No.
470/1, 471/2, 471/3 and 472 situated at Village Vadva, Bhavnagar as prevalent
in the year 1981.

We further direct respondent Nos. I and 2 to collect non-agricultural
pennission charges and conversion charges for the land bearing Survey No. B
469/1 as prevalent on 24.2.2003, which is the date on which the appellants had
applied for the grant of non-agricultural permission for the said survey number
and on receipt of payment to grant the non-agricultural permission in respect
thereof as applied for.

For the foregoing reasons, we dispose of the appeals arising out of C
S.L.P.(C) Nos. 8718-8719/2004. In view of the disposal of the appeals, the
Contempt Petition Nos. 410 and 411 of 2004 in Special Leave Petition No.
1562/2002 and Civil Appeal No. 5556 of2001 are also disposed of accordingly.

K.K.T. Appeals disposed of.