2009 Supreme(SC) 803

Supreme Court of India
THE HONOURABLE MR. JUSTICE R.V. RAVEENDRAN & THE HONOURABLE MR. JUSTICE LOKESHWAR SINGH PANTA
M/s. Delta Engineers
Versus
State of Goa & Others
Civil Appeal No. 5510 of 2001 With CA Nos. 5511, 5512, 5513 & 5515 of 2001
Decided On : 22-04-2009

IMPORTANT POINTS
Government is empowered to regulate the use of government riverine land and levy fees/charges for use thereof.
Rental charge is neither tax nor fee. Authority for such charges is derived partly from ownership and partly with reference to statutory rules
No charges for occupation of government riverine land for any period prior to 3.3.1994 could be demanded.
1992 amendment and the 1994 amendment in the Goa, Daman and Diu Ports Rules, 1983 are not ultra vires rule making power under the Indian Ports Act, 1908.

Headnote:(a) Goa, Daman and Diu Ports Rules, 1983 – Rule 64 r/w Entry 21(4)(A-iv) of the First Schedule; Rule 2(ff) – Amendments in 1992 and 1994 authorizing levy and collection of charges for occupation of any open land at all ports – Not merely clarificatory – Appellant paying the rental charges voluntarily – Estopped from challenging validity of the levy of rental charges. (Para 6)

       (b) Indian Ports Act, 1908 – Section 6(jj) – ‘Government riverine land forming part of any ‘landing place mentioned in section 6(jj) – Government empowered to regulate the use of such government riverine land and levy fees/charges for use thereof. (Para 8)

       (c) Rental law – Rental charge is neither tax nor fee – Authority for such charges deriving partly from ownership and partly with reference to statutory rules – It is incidental to right of ownership and supervision – Express sanction of law not necessary for levy of rental charges – Port authorities, therefore, entitled to demand and recover rental charges even without reference to Rules. (Para 10)

       (d) Riverine land – Landing place – Landing place does not only mean a place on a river or other navigable water for loading and unloading of goods, or for receiving and delivering of passengers as in Rules 34, 38, 40, 41, 42, 54 and 55 of the Port Rules – The river side of every warehouse or workshop on the banks of a river, which has a prepared berth in which vessels/craft can lie, with facilities for unloading or loading of men and material, will be a landing space, though not a designated landing place – The river surface (during high water period) and river bed (during low water period), belonging to the government, alongside the workshop will also be a part of such landing place/workshop – A boat/ barge repairing workshop situated on the river bank, can therefore, be said to be using the government riverine land – Goa, Daman and Diu Ports Rules, 1983 – Rule 54A. (Para 16)

       (e) Goa, Daman and Diu Ports Rules, 1983 – Rule 54A – Entire river and the riverbed belong to the government and is under the control of port authorities – When port authorities permit regular or exclusive use, whether continuous or intermittent, to anybody, they can demand a fee for such permission. (Para 18)

       1992 Supp (3) SCC 91 – Relied upon

       (f) Goa, Daman and Diu Ports Rules, 1983 – 1992 amendment and the 1994 amendment – Not ultra vires rule making power under the Act. (Para 19)

       (g) Goa, Daman and Diu Ports Rules, 1983 – Amendment Rules, 1992 and 1994 – Retrospectivity in operation not provided – Circumstances not implying retrospectivity – Amendments not clarificatory – Provisions investing Port authorities with power to levy and collect charges for occupation of government riverine land – Levy and collection of such charges valid only from 3.3.1994 – No charges for any period prior to 3.3.1994 could even be demanded. (Para 24)

       Facts of the case:

       Appellant opened its workshop in the year 1983, after securing a NOC dated 25.7.1983 from the Captain of Ports, Government of Goa. The said NOC was renewed every year.

       On 29.8.1989, the appellant sought an amendment to NOC seeking permission to manufacture fishing trawlers etc. The Captain of Ports sent a reply dated 15.11.1989 calling upon the appellant to settle the outstanding dues (rental charges for use of river area adjoining the workshop) before considering the request for issue of a modified NOC.

       Some years later, the Captain of Ports issued a show cause notice dated 15.5.1992 as to why the NOC issued to it on 25.7.1983 for setting up the workshop, which was being renewed every year, should not be revoked or withdrawn for non-payment of the outstanding rental charges for use of the government riverine land from 1983. The demand was reiterated on 13.7.1992. By letter dated 1.11.1993, the Captain of Ports informed the appellant that unless there was compliance with the demand, action will be taken to revoke the NOC and evict the appellant.

       The appellant, without prejudice to its rights and under protest, sent a payment of Rs. 145000/- on 25.9.1995 stating that the amount paid was calculated with reference to the use of 1000 sq.m. of river area.

       The appellant filed W.P. contending that it was not liable to pay any rent and the demand was illegal. It prayed (a) for a declaration that the Goa Ports (Amendment) Rules, 1992 and Rule 54A of the Goa Ports (Amendment) Rules, 1994 were ultra vires the Indian Ports Act, 1908; (b) for quashing the demand for rental charges by letter dated 1.11.1993; and (c) for a direction to the respondents to refund the amounts paid by appellant towards rental dues.

       The High Court by a common order dated 11.4.2001, dismissed the appellant’s writ petition and other similar petitions.

       Findings of the Court:

       Government is empowered to regulate the use of government riverine land and levy fees/charges for use thereof.

       No charges for occupation of government riverine land for any period prior to 3.3.1994 could be demanded.

       Result:

       Appeal partly allowed.