GAYATRI SALT WORKS Vs. GOVERNMENT OF ANDHRA PRADESH

JUDGEMENT

(1.) The petitioners are two firms carrying on the business of salt production at Polekurru. Kakinada taluk, East Godavari District. The first petitioner was granted a licence to manufacture salt in en extent of Ac. 607-52 and the second petitioner in an extent of Ac. 572-41. The licences were issued from year to year pending alignment of the salt pans as per the plan to be approved by the Salt Department. Accordingly, realignment plans were submitted and applications were made for the grant of permanent licences. Approval of the re-alignment plan was communicated and the firms were directed to take up the work of realignment as per the approved plans.

(2.) As large sums of money were required for undertaking the various works in accordance with the approved realignment plans and due to shortage of funds the petitioners decided to sell some of the lands covered by the licences in order to raise the required funds. The firms therefore, entered into negotiations with buyers and having entered into contracts with them were considering the execution of the sale deeds in respect of those lands. They were however, informed that under the provisions of the Andhra Pradesh Agricultural Lands (Prohibition of Alienation) Act, 1972 (referred to in this judgment as the Act), the lands could not be alienated as the petitioners owned lands in excess of the limit specified in the Act, namely 4 hectares of wet land and 10 hectares of dry land and any document of sale could not be registered.

(3.) The petitioners therefore, filed this writ petition praying that this court may declare that the Act does not apply to the petitioners lands and that a direction may be given that the sale-deeds in respect of those Lands may be registered. The case of the petitioners is that the Act applies only to lend which is used or is capable of being used for the purpose of agriculture, including horticulture. The lands which the petitioners intend to sell are lands in which salt is being produced and are neither used for the "purpose of agriculture nor are they capable of being used for that purpose. Hence, they are free to alienate those lands and the sale deeds in respect of those lands have to be registered. Subsequently, a petition to amend the writ petition by adding paragraphs 6 (a) to 6 (e) was filed and was ordered as it was not opposed. In the amended writ petition it was contended that as the lands were actually under use for manufacture of salt they cannot be treated as agricultural lands or capable of being used for agricultural purpose, nor can they be so treated on the ground that sometime ago some of these lands were used for agriculture. Conversion of the petitioners lands into salt lands became inescapable due to the tidal wave in the year 1963 which completely submerged these lands with sea water. It was further contended that in case the petitioners salt lands are to be treated as agricultural lands, the definition of land in the Act so as to bring within its fold salt lands licenced as a salt factory under the Central Excises and Salt Act, which provides that such salt lands shall be held only for the purpose of manufacturing salt and for no other purpose, is ultra vires the State Legislature as the subject of manufacture, regulation and control of manufacture of salt is a union subject falling under Entry 52 of List I of the Constitution. The definition of Land in such manner is repugnant to the Central Excises and Salt Act, 1944. The State Legislature has enacted the Act by virtue of Entry 18, List II, but as the Central Excises and Salt Act is a law enacted by Parliament under Entry 58, the State Act would be wholly repugnant to the Central Act if it should be applicable to salt lands. The definition of land in the Act, in so far as it seeks to include salt lands is wider and different from the expression agricultural land which is the subject of Entry 18, List II and it is not open to the State Legislature to legislate with respect to lands which are not agricultural lands by merely enlarging the definition of agricultural land.