The Supreme Court has upheld a Bombay High Court order refusing to grant interim relief to a lessee challenging the termination of a salt pan land lease in Mumbai. The apex court noted that granting a stay on such a matter is not a statutory right and agreed with the High Court’s finding that equitable relief could not be extended where land had remained unused for decades.
The case involves 150 acres of salt pan land forming part of a larger 782-acre parcel spread across Mulund, Bhandup, and Kanjurmarg. The land, leased for salt manufacturing since 1917, has been the subject of prolonged litigation after its lease termination by the Centre in 2004.
Supreme Court’s Ruling
A bench of Justices Aravind Kumar and N.V. Anjaria delivered the order on August 20, observing that the High Court had correctly refused interim relief on equitable grounds. The judges highlighted that records showed the disputed 150 acres, located on the western side of the Eastern Express Highway, had not been used for salt production for nearly 30 years.
“The High Court has rightly taken note of the fact that the land was not utilised for the purpose it was leased, and permitting continuation of the lease would be inequitable to the Centre,” the court noted, while clarifying that its observations were only prima facie and should not prejudice the ongoing appeal.
Long History of the Lease
The salt pans in question were originally leased for 99 years by the Salt Commissioner in 1917. The land, roughly equivalent to 90% of New York City’s Central Park in scale, was used for salt works named ‘Battiwala Salt Works’ and ‘Jamasp Salt Works’.
In 1994, the lease was transferred to Vikas Walawalkar, who became the new lessee. A decade later, in 2004, the Centre terminated the lease citing two reasons:
- Grass had overgrown on large portions of the land, indicating non-use.
- Salt production failed to meet the minimum levels prescribed by the state government.
Walawalkar challenged this termination before the Bombay High Court in 2005, setting off two decades of legal battle.
High Court’s Findings
In May 2023, a single-judge bench of Justice S.V. Marne dismissed Walawalkar’s suit, upholding the government’s decision to terminate the lease over the entire 782-acre tract. The court stressed that in Mumbai, where land values are among the highest in the country, public land leased for salt production cannot be treated as conferring a vested right for private benefit.
Walawalkar appealed the decision before a division bench. Initially, in August 2023, the High Court granted an interim stay on the lease termination. However, in April 2025, Justices B.P. Colabawalla and F.P. Pooniwalla vacated the stay for 150 acres on the western side, holding that the land had been lying idle. The court allowed Walawalkar to retain possession of the remaining 632 acres on the eastern side, subject to payment of ground rent and assignment fees.
Arguments Before the Supreme Court
Appearing for Walawalkar, senior counsel Gopal Shankaranarayanan argued that the High Court ought not to have vacated the interim stay on the 150 acres, as irreversible damage would be caused if the land were taken away before the appeal was decided. He stressed that if the lessee eventually succeeded, the loss could not be undone.
On behalf of the Centre, Solicitor General Tushar Mehta defended the High Court’s order. He pointed out that even by the lessee’s own admission, the 150 acres had not been used for salt manufacturing since at least 1995, making the case for retention untenable.
The Supreme Court refrained from delving into the merits of the case, noting that the High Court was better placed to adjudicate the factual disputes. The bench emphasised that any detailed comment on merits could prejudice the ongoing appeal.
By endorsing the High Court’s refusal to grant interim relief, the apex court has effectively left the fate of the disputed 150 acres in the Centre’s hands while keeping the broader appeal alive.
The ruling underscores the judiciary’s view that public land leases cannot be allowed to continue indefinitely if the intended purpose is not met, particularly in a land-scarce and high-value city like Mumbai. It also highlights the long-pending disputes surrounding salt pan lands, which often occupy prime locations in the city’s eastern suburbs.
As the legal battle continues, Walawalkar retains temporary possession of 632 acres, but the final outcome of the case will depend on the Bombay High Court’s adjudication of the pending appeal.
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