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2026 Supreme(Bom) 847

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Shree Chandrashekhar, CJ, Gautam A. Ankhad, J.
Union of India, Through the Deputy Salt Commissioner - Appellant
Versus
The Estate Investment Company Pvt. Ltd. - Respondents
First Appeal No.1430 of 2019
Decided On : 30-04-2026

Advocates Appeared:
For the Appellant :Mr. Anil C. Singh, Additional Solicitor General with Mr. Aditya Thakkar, Ms. Savita Ganoo, Mr. Ameya Mahadik, Mr. Siddha Pamecha, Ms. Simantini Mohite, Mr. Ashish Mehta, Mr. Adarsh Vyass, Mr. Rama Gupta, Mr. Rajdutt Nagre and Mr. Krishnakant Deshmukh, Advocates
For the Respondent:Mr. Girish Godbole, Senior Advocate, with Mr. Saurabh Kirpal, Senior Advocate, Mr. Jaydeep Oza and Mr. Mustafa Nulwala, i/by Ms. Tabbassum Achhan, Advocates Mr. Aspi Chinoy, Senior Advocate, with Mr. Yohaan Shah, Ms.Rujuta Patil, Mr. Hasan Mushabber and Adv. Divishada Desai, Advocates, i/by Negandhi Shah & Hidayatullah Mr. A.R. Patil, Additional Government Pleader

Government failed to prove title to salt works land absent vesting notification; historical private possession and revenue determinations confirming superior holder status prevail.

Headnote:(A) Maharashtra Land Revenue Code, 1966 - Section 20 - Bombay Tenancy and Agricultural Lands Act, 1948 - Section 44 - Salsette Estates Abolition of Land Revenue Exemption Act, 1951 - Section 3 - Government of India Act, 1935 - Section 172 - Civil Procedure Code - Section 80(2) - Title dispute over land used for salt manufacture - Plaintiff failed to prove ownership as no notification or schedule vested land in federal government - Historical possession by private parties since 1860s via indentures, assignment deeds and sale deeds executed 1928-1951 - Prior revenue proceedings, appeals and writs declared respondent as superior holder/owner and salt licensee as tenant - Government letters and admissions acknowledged private nature - Suit seeking declaration of title, setting aside revenue orders, possession, injunction and damages dismissed.

(B) Res judicata and prior proceedings - Multiple earlier appeals, writs and revenue applications conclusively determined title in favour of private respondent - Plaintiff participated but failed to intervene effectively - Collector orders under revenue laws confirmed superior holder status upheld up to apex court.

Facts of the case:
Plaintiff government entity filed suit claiming ownership of salt works land, alleging it was federal land held under license by respondent salt company. Sought declaration of title, quashing of revenue orders favouring respondents, possession and injunction against alienation/use beyond salt making. Respondents denied, asserting private ownership based on historical deeds and revenue records. Trial court framed issues on title, maintainability, jurisdiction, limitation, res judicata; held against plaintiff after evidence.

Findings of Court:
Plaintiff not owner; no entitlement to possession or other reliefs. Respondent private company declared owner/superior holder; salt company tenant.

Issues: Whether plaintiff proves ownership; suit maintainability, jurisdiction, limitation, barred by res judicata; entitlement to possession and reliefs.

Ratio Decidendi: Plaintiff bore burden of proving title but adduced no vesting document/notification including land in federal schedule; contradicted by own witness admissions of private lands; long continuous possession by respondents since 1866; revenue authorities consistently upheld private title in proceedings under relevant acts; government assumed temporary management but relinquished; prior decrees and orders binding.

Result: Suit dismissed.

JUDGMENT :

GAUTAM A. ANKHAD, J.

This First Appeal assails the judgment dated 13th April 2018 passed by the learned 7th Joint Civil Judge, Senior Division, Thane, whereby Special Civil Suit no.771 of 2011 filed by the appellant seeking declaration of its title over a piece of land comprised under Mira, Manek/Shapur Salt Works, at village Bhayander, district Thane has been dismissed (“impugned judgment”).

2. The appellant filed the suit seeking the following reliefs:

“(A) It be declared by this Hon’ble Court that the plaintiffs are owners of the suit lands bearing Survey Nos. schedule A covered by Mira, Manek/Shapur Salt Works, village Bhayander, District Thane and that the defendants have no right, title or interest in the same;

(A)(1) The plaintiffs be granted leave U/s. 80(2) of CPC to file this suit before expiry of statutory period of two months after service of the same upon defendant nos.3 to 5;

(B) The orders passed by the Collector dated 18th November 2002 in Application No.4 of 1999 filed by the defendant no.2 under section 20 MLRC, 1966 dated 8th October 2010 passed by defendant no.5 in Appeal Nos.38 and 97 of 2003 and Appeal No.133 of 2008 as also the order passed by the Collector dated 5th September 2008 under the provisions of Salsette Estates Abolition of Land Revenue Exemption Act, 1951 be set aside;

(C) The defendant nos.1 and 2 be directed to decreed and order to hand over vacant and peaceful possession of the suit land bearing survey nos. as per schedule A covered by Mira, Manek/Shapur Salt Works, village Bhayander, District Thane;

(D) The defendants by themselves, their agents and servants be restrained by a permanent order of injunction of this Hon’ble Court from transferring, alienating or creating any third- party interest in the suit land and from using the same for any purposes other than salt manufacture and for doing any construction work on the same and from developing it;

(E) For interim and ad-interim relief in terms of prayer clause/s above;

(F) The defendants be decreed, directed and ordered to pay sum of Rs.2,078=00 towards damages as mentioned in the particulars of the plaint;

(G) This Hon’ble Court be pleased to direct enquiry into mesne profit earned by the defendants as per the provisions of Order 20 Rule 11 of C.P.C.; (H) For costs of this suit;

(I) For such other and further reliefs, as this Hon’ble Court deems fit and proper be granted.”

3. On 21st July 2012, respondent nos.1 and 2 filed their written statements opposing the suit on several grounds. Respondent nos.3 to 5 did not file any written statement. The following issues were framed by the trial Court on 25th June 2013 and answered as under:

Sr.No.IssuesFindings
1Whether plaintiff proves that it is the owner of the suit property?No
2Whether the suit is maintainable?No
3Whether this Court has jurisdiction to try and entertain the suit?No
4Whether the suit is within limitation?Yes
5Whether the suit is barred by principle of res-judicata?No
6Is the plaintiff entitled to possession of suit property?No
7Is the plaintiff entitled to relief claimed as prayed for?No
8What order?No

4. The appellant led evidence of Mr. Harikrishna Agarwal, the then Assistant Salt Commissioner (PW-1), in an endeavour to prove its case on title to the suit lands. Respondent nos.1 and 2 also led documentary and oral evidence of one witness each. Respondent nos.3 to 5 did not lead any evidence nor cross-examined any of the witnesses who had tendered evidence in the matter, on behalf of the other parties. After considering the evidence on record, the trial Court dismissed the suit inter alia holding as follows:

“17. It is admitted position that prior to this suit many legal proceeding were initiated in respect of the suit property. Those are;

1) Appeal No.133/08 filed by defendant no.1 challenging the order dtd 07/08/1992 passed by SDO directing to delete the name of defendant no.1 from the other rights column in the Mutation Entry No.4996 dtd.28 /01/1989.

2) Appeal No.14/1983 in which the

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