Judgment

SIKRI, C.J.I.:- Two main points arise in this petition under Art. 32 of the Constitution brought by the Kannan Devan Hills Produce Company Ltd. hereinafter referred to as the petitioner; (1) Whether the Kannan Devan Hills (Resumption of Lands) act, 1971 (Kerala Act 5 of 1971) - hereinafter referred to as the impugned Act - is within the legislative competence of the State of Kerala; and (2) whether the impugned Act is protected from challenge under Art. 31A of the Constitution, and if so, to what extent.

2. The petitioner is in possession of an area of approximately 1,27,904 acres, commonly known as the Concession Area lying contiguously in the Kannan Devan Hills village. The petitioner grows and manufactures tea in the plantation set up and developed by it. The petitioner s predecessor-in-title was one Mr. John Deniel Munro, who obtained, what is called, the first Pooniat Concession from Punhatil Kavikal Kela Varma Valuja Raja, on July 11, 1877 (Mithunam 20, 1052). This Concession recited that an application was made for the grant of the above property to the Raja for coffee cultivation. The Concession conveyed the properties in consideration of Rs.5,000/-. It was further stipulated in the Concession that "you shall clear and remove the jungles, and reclaim the waste lands within the said boundaries, and cultivate them with coffee up to the year 1958 and from the year 1959, pay our rent collector a yearly rent at the rate of 3,000 British Rupees". Various other conditions were mentioned but it is not necessary to refer to them because this Concession was superseded by another agreement called the Second Pooniat Concession.

3. Before we refer to the terms of the Second Pooniat Concession, we may mention that H. H. the Maharaja executed a deed of ratification, dated November 28, 1878, by which the Government ratified the First Pooniat Concession dated July 11, 1877. This deed of ratification laid down the terms and conditions in regard to Government assessment and other matters under which the Government permitted the grantee to hold the land. These terms and conditions were declared in the Deed to be independent of any rents or payments due to the Poonjar Chief under the Grantee s Agreement with him.

4. Clause 5 of the Deed of Ratification, is important. It provides, inter alia, that "the grantee can appropriate to his own use within the limits of the grant all timber except the following and such as may hereafter be reserved namely, Teak, Cole Teak, Bhackwood, Ebony, Karoonthaly, Sandalwood; should he carry any timber without the limits of the grant it will be subject to the payment of Kooteekanom, or Customs Duty..."

The eleventh clause reads:

"The land granted shall be held in perpetuity as heritable or transferable property, but every case of transfer of the grant by the grantee shall be immediately made known to the Sircar, who shall have the right of apportioning the tax, if a portion of the holding is transferred".

The twelfth clause stipulates:

"The discovery of useful mines and treasures within the limits of the grant shall be communicated to the Sircar, and the grantee shall in respect to such mines and treasures, abide by the decision of the Sircar".

The sixteenth clause provides:

"The grantee shall be bound to preserve the forest trees growing on the banks of the principal streams running through the tract to the extent of fifty yards in breadth on each side of the stream, the underwood only being permitted to be cleared and coffee planted instead. Similarly he shall also be bound to preserve the trees about the crest of the hill to the extent of a quarter of a mile on each side".

5. On August 2, 1886, the agreement called the Second Pooniat Concession was entered into modifying the previous deed of ratification. It appears that by this time a company called the North Travancore Land Planting and Agricultural Society, Ltd. had acquired the rights in the said land from John Daniel Munro. The Land Revenue Manual (Vol