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Supreme Court of India

UNION OF INDIA AND ANR. ETC.versusLAXMAN GAJANAN DESAI AND ANR. ETC.

Citation
1996 INSC 441
Decided
25 March 1996
Disposal
Disposed off

Holding

The competent authority must decide the title within six months and, pending that decision, the licence under the Salt Act shall be renewed.

Summary

The Union of India appealed against the renewal of a salt‑pan licence granted to the respondents, Laxman Gajanan Desai and others, on the ground that title to the land was still in dispute. The Bombay High Court had directed that the licence could be renewed without the respondents conceding title, pending a decision by the competent authority on the ownership issue. The Supreme Court noted that, under the Central Excises and Salt Act, a clear title or lease is normally a pre‑condition for licence renewal, but held that where title is pending, the appropriate authority (Collector/District Magistrate) must be directed to determine the title within six months and, meanwhile, the licence should be renewed. The Court ordered the respondents to file their title claims before the competent authority, which must give notice to the Central Government, consider the material, afford a hearing and decide the matter. Pending that decision, the licences under the Salt Act are to be issued/renewed. The appeals were disposed of with no costs.

Issues considered

  • Whether a licence under the Central Excises and Salt Act can be renewed when the title to the land is pending before a competent authority.
  • Whether the competent authority can be directed to decide the title within a specified period and grant renewal of the licence pending that decision.

Legislation cited

Subjects

salt pan landlicence renewaltitle pendingCentral Excises and Salt Actcompetent authorityland revenueleaseadministrative law

Judgment

     A                 UNION OF INDIA AND ANR. ETC.
                                   . v.
                    LAXMAN GAJANAN DESAI AND ANR. ETC.

                                     MARCH 25, 1996

     B              [K. RAMASWAMY AND G.B. PATTANAIK, JJ.]

             . Central Excises and Salt Act, 1944/Central Excise Rules, 1944.

               Bombay Land Revenue Code, 1966.

     c         Salt pan land-Licence-Renewal of-Applications for title pending
         before competent authority-Held, competent authority would dispose of the
         applications-Pending decision licences would be renewed.
                             ,
              CIVIL APPELLATE JURISDICTION : Civil Appeal No. 6743 of
         1996 Etc.
'~
     D
              From the Judgment and Order dated 1.4.92 of the Bombay High
         Court in W.P. No. l151 of 1984.

              A. Jayaram, Additional Solicitor General, R.R. Mishra, K. Madhava
         Reddy, D.S. Mehra, Ms. Binu Tamta, C. Babu, Dr. R.B. Masodkar, K.L.
     E   Taneja, A.M. Khariwilkar for the appearing Parties.

               The following Order of the Court was delivered :

               Leave granted

     F         We have heard the learned counsel on both sides.
                                                                                      l
             In the appeal arising out of SLP (C) No. 15356/92 dated February
       26, 1996, the Division Bench of the High Court in W.P. 2333/1983 by order
       dated July 29, 1991 directed that the appellants cannot insist upon the
       respondents conceding to the title of the Government. It directed the
     G appellant to renew the licence without insisting upon conceding the title of
       the appellant. In the appeal, this Court had held that for obtaining
       licence/renewal, title to the property or a lease. from the. owner is a
       pre-condition. In that case, the Deputy Collector had held that the respon-
       dent had title to property and appeal thereon was pending. Accordingly
     H this Court had directed the appellant to grant renewal of the licence
                                           872
                           0       U.O.l. v. L.G. DESAI                          873

pending decision on title.                                                              A
       In these cases, admittedly, no decision on title has yet been given by
any authority. The respondents are directed to file their claims before the
competent authority (Collector/District MagL,trate, as the case may be)
within one month from today either as an owner or a lessee from the owner.
The competent.authority is direct~d'to issue ·notice to the Central Govern-             B
ment and after considering the material and affording an opportunity of
hearing and after taking into consideration the law on vesting, dispose of
all those applicatiOJ).S on title. Subject to ihe result the~ein, the licences
under the Salt Act would be issued/renewed. Pending decL,ion, the appel-
lants are directed to grant renewal. The authority i.s direded to dispose of            C
those matters within a period of six months from the date of the receipt of
the c9py ofth~ orde~.                      ·                .        '


        .The appeals
              ·- -.•'
                      are accordingly disposed of. No costs.
                           .   .   ~ '   .   '   .

'R:P.                                                            Appeals disposed of.
              ~.   ~   .

          '
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