1. Renewal of license under Salt Act — Dispute regarding the requirement to establish title to land or obtain a lease as a condition for renewal. (Para 2 )
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1996 Supreme(SC) 697
1996(4) Supreme 450
SUPREME COURT OF INDIA
K. Ramaswamy and G.B. Pattanaik, JJ.
Union of India through Deputy Salt Commissioner Bombay -Appellant
versus
Purnamal Lalchand Mundra & Anr. -Respondents
Civil Appeal No 6961 of 1996
(Arising out of SLP(C) No.25181 of 1995)
Decided on 2-4-1996
Important Points
IMPORTANT POINT
Person seeking renewal of licence under Salt Act must be either the owner or the lessee from the owner.
Person seeking renewal of licence under Salt Act must be either the owner or the lessee from the owner.
Subject
LICENSING - RENEWAL OF SALT LICENCE
Act Referred
SALT ACT: .
Headnote
Salt Act-Application for renewal of licence-Applicant must be either the owner or the lessee from owner -Respondents had not filed any application before any authority to establish their title-District Collector to enquire whether respondents had title to the property taking into account the statutory vesting in State under the provisions of the Act-Appellant to renew licence till then which will be subject to result in those title suits. (Paras 4 & 5)
Legal Category Hierarchy
Table of Contents
2. Whether the authority can insist on the applicant conceding title to the government or providing a lease before renewing a license under the Salt Act. (Para 2 )
3. The court observed that applicants must be owners or lessees to seek renewal and that title disputes should be adjudicated by the competent authority. (Para 3 , 4 )
4. An applicant must be either the owner of the property or a lessee from the owner to be eligible for renewal of a license under the Salt Act. (Para 4 )
5. Respondents directed to establish title before the competent authority; license to be renewed pending the outcome of the title determination. (Para 5 )
6. What is the legal requirement regarding property title for the renewal of a license under the Salt Act?
It is settled law that the applicant must be either the owner of the property or a lessee from the owner to seek renewal of the license. (Para 4 )
7. What factors should the competent authority consider when determining title to salt lands?
The authority should consider the statutory vesting of the salt lands in the State and any other relevant documents filed by the parties during adjudication. (Para 3 , 5 )
8. Is it permissible to renew a license while the title to the property is still under adjudication?
Yes, the court may direct the renewal of the license subject to the final result of the title suits or the outcome of the enquiry by the competent authority. (Para 2 , 3 , 5 )
ORDER
Leave granted.
We have heard learned counsel on both sides.
2. The respondents had applied for renewal of the licence under the SALT ACT . The appellant insisted upon the respondents for grant of renewal of the licence either to concede to the title of the land of the Government or to obtain any lease from the owners. Challenging the order, the respondents filed the writ petitions in the High Court. In similar cases, the Division Bench of the Bombay High Court directed that the appellant would not insist upon conceding to the title to the property. But appropriate authority was directed to dispose of the pending matter on title in appeal. Till then the direction was issued to grant renewal of the licence subject to the result in the appeal.
3. When similar matters have come up, this Court in two cases where the title of the licences were upheld by the primary authority but appeals are pending, had directed that pending disposal of the appeals, renewal of the licences under SALT ACT would be granted subject to the result in the appeals. In other cases, this Court directed the respondents to make application before the competent Authority namely, the District Collector who was directed to dispose of the application whether the respondent has title to the property. This Court also directed to consider the statutory vesting of the salt lands in the State and also other relevant documents that may be filed by the respondents in the adjudication. A further direction was issued to the appellant to file the objections before the original authority and the original authority was directed to dispose of the matters after hearing parties within a period of six months from the date of the receipt of that order.
4. In this case, the latter situation arises, namely, the respondents had not filed any application before any authority to establish their title. It is settled law that the respondents must be either the owner or the lessese from the owner to seek renewal of the licence.
5. In view of the fact that the title is yet to be decided, the respondents are directed to make an application before the District Collector. The District Collector is directed to enquire whether the respondents have title to the property taking into account the statutory vesting under the provisions of the Act as also any other documents to be produced by the respondents or the State Government or the appellant, as the case may be. After hearing the parties and giving opportunity, the matter will be disposed of within a period of six months from the date of the receipt of this order. Until then, the appellant is directed to renew the licence under the SALT ACT . It will be subject to the result in those title suits.
The appeal is accordingly disposed of. No costs.
Appeal accordingly disposed of.
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Parallel Citations of other Journals :
Union of India through Deputy Salt Commissioner Bombay v. Purnamal Lalchand Munda & Anr., 1996(4) Supreme 450
00025
