Justice C L Soni stayed the state forest department's 14-year-old order to evict families from the island village and directed the authorities not to take any action till the pendency of a civil suit before the magisterial court of Bharuch district.
The petition, filed by the villagers, said Gujarat government authorities termed them as "encroachers" and initiated a process to evict them.
The island village was propsed as the "mini-Japan township" project of Gujarat government in the year 2008.
However, after the township project did not take off, it was later decided to be included as part of the Dholera Special Investment Region (SIR) near Ahmedabad district.
Also Read
In 2010, the area of the island was identified for a Special Investment Region (SIR) by an international consultant and recommended to Gujarat government.
The petition alleged the eviction notice was served though they possessed all necessary documents, including ration cards and voters' indentification cards.
The PIL also said the island has been used for cattle grazing as far back as 1916 by their forefathers and they also had receipts of the year 1916 and 1960 for possession of the land.