Gohil Jesangbhai Raysangbhai and Others v. State of Gujarat and Another
Background
Owners of land purchased through tenancy-reform legislation challenged restrictions on transfers and the premium payable to change its use. They also disputed use of government valuation rates applicable when permission was granted rather than when they applied. Some applications had remained pending for lengthy periods.
Decision Breakdown
The Supreme Court dismissed the appeals and upheld the statutory restrictions and premium framework. Tenants who acquired land at concessional prices under the welfare law remained subject to its conditions, including restrictions designed to preserve cultivation. The charge was a premium for permission, rather than a tax or service fee, and the relevant valuation date was the Collector's sanction. However, applications could not be left unresolved indefinitely: the Court expected decisions within ninety days where possible, with recorded reasons for longer delay.
Lesson Learnt
Concessional acquisition under land-reform law can carry continuing conditions on sale or conversion. Applying for permission does not freeze the valuation date, but the authority should decide promptly and explain excessive delay.