Judgement

HIDAYATULLAH, J. : The petitioner is a partnership firm which manufactures and sells bidis, under the name and style of Anwarkhan Mehboob and Co., Jabalpur. In 1948 the petitioner, firm, with a view to securing a supply of tendu leaves over the years acquired for a term of 25 years, the right to pluck and carry away tendu leaves from plants in ninety-nine villages in the former Imlai Estate from the Mulguzar Raja Raghuraj Singh. The period of 25 years was to run from 1948 to 1973. The document, which was not registered (Annexure I), was executed by the Raja on August 22, 1948. It is a very brief document and all that it says is that tendu leaves in 99 villages have been "sold for 25 years for a consideration of Rs. 9,000 per year which must be paid after each tendu leaf crop is over but before the expiry of three months, that only the leaves should be plucked and that no bushes should be cut down.

2. In 1950 the Madhya Pradesh Abolition of Proprietary Rights (Estates, Mahals and Alienated Lands) Act (No. 1 of 1951) was passed. Under that Act (which may be briefly called the Abolition Act) all rights, title and interest vesting in the proprietor or any person having interest in such proprietary right through the proprietor, in an area to which the Abolition Act was extended, including land (cultivable or barren), grass land scrub-jungle, forest, trees, etc., ceased and vested in the State for purposes of State, free from all encumbrances. The Government of Madhya Pradesh obstructed the persons who held contracts for tendu leaves, lac, wood, timber or other forest produce, including the petitioner firm. The petitioner firm and many other petitioned to this Court under Art. 32 of the Constitution to enforce what they described as "fundamental rights to property , and asked for writs or orders to restrain the State Government from enforcing the Abolition Act generally and in particular so as to interfere with the right of the petitioner firm to pick, gather and carry away the kind of forest produce for which they held agreements. A dozen such petitions were heard together, that of the petitioner being W. P. No. 309 of 1951 (Firm Anwar Khan Mehboob and Co. v. State of Madhya Pradesh), and were decided on December 23, 1952. The main judgment of this Court was pronounced in petition filed by the Chootabhai Jethahai and is reported in Chhotabhai Jethabhai v. State of Madhya Pradesh, 1953 SCR 476. A Divisional Bench of this Court held that contracts and agreements, such as the one held by the petitioner firm, were "in essence and effect licences granted to the transferees to cut, gather and carry away, the produce in the shape of tendu leaves, lac, or timber or wood. Holding further that there was nothing in the Abolition Act to affect their validity or to extinguish such rights in favour of the State, the Divisional Bench ruled that the State had no right to interfere with the right under the contracts and agreements. A "writ of prohibition was issued, prohibiting the State "from interfering in any manner whatsoever with the enjoyment of those rights . In cases where the periods under the contracts had expired or where the proprietors had still to recover anything from transferees after the date of vesting, the State was held entitled "to assert and enforce its rights standing in the shoes of the proprietors.

3. The petitioner firm, in common with the other petitioners on that occasion obtained a "writ of prohibition also. It would have enjoyed the fruits of its agreement with. the Raja till the year 1973 but other events followed. In 1964 the Madhya Pradesh Tendu Patta (Vyapar Viniyaman) Adhiniyam, 1964 (29 of 1964), (conveniently called the Adhiniyam) was passed as the preamble openly professes to make provision for regulating in the public interest the trade of Tendu leaves by creation of State monopoly in such trade. The Adhiniyam conferred power on the State Government to divide specified areas into units, to