Back
Supreme Court of India
H.L. GOKHALE & J. CHELAMESWAR, JJ.
Yazdani International P. Ltd.
Versus
Auroglobal Comtrade P. Ltd. & Others
Civil Appeal No. 11229 of 2013
Decided On : 17-12-2013
(2012) 3 SCC 1 - Relied upon
(2012) 10 SCC 1 - Referred
(b) Constitution of India - Article 136 - Board raising new grounds - Preliminary objection not to consider these new grounds - Accepting the objection and allowing the appeals will lead to fresh litigations because after setting aside impugned order, Board shall again cancel allotments on these grounds - Jurisdiction under Article 136 is discretionary - Can be exercised for avoiding multiplicity of litigation. (Para 36)
(1975) 1 SCC 770; (1976) 1 SCC 194 - Relied upon
(c) Easements Act, 1882 - Section 52 - Licence - Government Policy 2010 under section 111, Major Ports Trust Act, 1963 - Property to be given on licence - Tenure 1 months - Renewable only twice - Revocable subject to exceptions u/s 60 - Appellants not showing application of these exceptions - Appellants not having any legal right to the property or renewal of licence - Nevertheless the Port Trust cannot cancel the licences arbitrarily - Trust Board intending to utilize the land resumed from the licensees except Odisha Mining Development Corporation, a state instrumentality for better facilities - No illegality. (Paras 42 and 43)
(1979) 3 SCC 489 - Relied upon
(d) Constitution of India - Article 14 - Trust Board intending to resume property from all licensees except Odisha Mining Development Corporation, a state instrumentality for better facilities - Exception to State instrumentality not discriminatory under Article 14 as it forms a class in itself. (Para 44)
R.D. Shetty v. Airport Authorities, (1979) 3 SCC 489 - Relied upon [Para 43]
(e) Administration of Justice - Approbation and reprobation - Appellant acquiring licence knowing the terms and conditions fully well - Availing benefits for more than a year - Now challenging the terms of licence - It cannot approbate and reprobate - Not permissible - Claim of discrimination between allottees prior to and after 2005 - Not tenable. (Para 51)
(1975) 1 SCC 737; (1977) 1 SCC 336; (1980) 3 SCC 599 - Relied upon impliedly
(f) Major Port Trust Act, 1963 - Section 49(3) - Language of the provision - Use of word 'may' - Lease by auction not mandatory. (Para 54)
(g) Major Port Trust Act, 1963 - Section 111 - Land Policy 2004 and 2010 - 2004 policy not putting any restriction on number of renewals - 2010 policy restricting renewals to two - Licensees of mechanical plots obtaining licenses under 2004 policy - Obtained several renewals - Causing huge loss to Board - Termination of licenses - Not unjustified in public interest. (Para 57)
(h) Administration of Justice - Licenses of some allottees terminated pursuant to High Court direction - Appellant contending that they were not parties before High Court - Hence not covered by that direction - Supreme Court treating the matter as if under Article 32 of the Constitution giving full opportunity to appellants to place their case - Objection not tenable. (Para 58)
Facts of the case:
Auroglobal was allotted one of the plots for manual iron ore storage plot. After one year it made an application to the High Court with prayers relating to renewal of the allotment. An MC was also filed.
The High Court opined that the Paradeep Board did not follow a uniform and consistent procedure in making allotment of various plots of lands to various parties and that plots could be allotted only on the basis of an auction to the highest bidders. It also found fault with the Paradeep Board for having renewed certain licences granted earlier.
Pursuant to the above order dated 2nd August, 2012 of the Orissa High Court, the Paradep Port Trust Board cancelled the licences of 48 manually operated iron ore storage plots and 11 mechanically operated storage plots.
Out of these 38 licensees of the manually operated plots category and 7 of the mechanical category have challenged the cancellation in these appeals.
Finding of the Court:
Appellants have no indefensible right to renewal of their licenses.
Result: Civil Appeal arising out of SLP(C) No.28841/2012 disposed of. All other Appeals dismissed.
Judgment :-
Chelameswar, J.
1. Leave granted in all the SLPs.
2, All these SLPs arise out of an order of the Orissa High Court made in Miscellaneous Case No. 11005 of 2012 in Writ Petition (Civil) No. 11785 of 2012 on 2nd August, 2012. The said writ petition was filed by the appellant in the appeal arising out of Special Leave Petition (C) No. 38013of 2012 i.e. M/s. Auroglobal Comtrade Pvt. Ltd. (hereinafter referred to as Auroglobal).
3. Since the appeals at hand require examination of the rights and obligations arising under the Major Port Trusts Act, 1963, we deem it appropriate to examine the scheme of the said Act, insofar as it is irrelevant.
Paradeep Port is a major port as defined under Section 3 sub-Section (8)1 [3(8) "major port" means any port which the Central Government may by notification in the Official Gazette declare, or may under any law for the time being in force have declared, to be a major port.] of the Indian Ports Act, 1908. The activities of all major ports including the Paradeep Port are regulated by various enactments such as the Indian Ports Act, 1908 and the Major Port Trusts Act, 1963 (hereinafter referred to as “the Act”) etc. The Act stipulates under Section 3 that the Central Government shall cause to be constituted a Board of Trustees with respect to each of the major ports. Such Boards are declared to be bodies corporate. The second respondent in the appeal arising out of SLP(C) No.26321 of 2012 (also a respondent in all the appeals), described (wrongly) as Paradeep Port Trust is one such Board of Trustees constituted under Section 3 of the Act. But for the sake of convenience hereinafter will be referred to as the ‘Board’. Each such Board is authorised under Section 37 to compel any sea-going vessel within the port or “port approaches”2 [Section 2(r)of Major Port Trusts Act, 1963 – 2(r) " port approaches", in relation to a port, means those parts of the navigable rivers and channels leading to the port, in which the Indian Ports Act is in force]; to use the various facilities provided by the Board. Section 35 enumerates the various facilities and services at the port which can be undertaken by the Boards. Section 48 of the Act authorizes the framing of a “scale of rates” for any one of the services rendered by a Board. Such a scale of rate is required to be notified in the official gazette. The scale of rates is required to be framed by the Tariff Authority for Major Ports constituted under Section 47A3 [47A. Constitution and incorporation of Tariff Authority for Major Ports. - (1) With effect from such date as the Central Government may, by notification in the Official Gazette, appoint there shall be constituted for the purposes of this Act an Authority to be called the Tariff Authority for Major Ports.
(2) The Authority shall be a body corporate by the name aforesaid having perpetual succession and a common seal and shall by the said name sue and be sued.
(3) The head office of the Authority shall be at such place as the Central Government may decide from time to time.
(4) The Authority shall consist of the following Members to be appointed by the Central Government, namely:-
(a) A Chairperson from amongst persons who is or who has been a Secretary to the Government of India or has held any equivalent post in the Central Government and who has experience in the management and knowledge of the functioning of the ports;
(b) A Member from amongst economists having experience of not less than fifteen years in the field of transport or foreign trade;
(c) a Member from amongst persons having experience of not less than fifteen years in the field of finance with special reference to investment or cost analysis in the Government or in any financial institution or industrial or services sector.]
4. Section 49 of the Act, 1963, as it stands today reads as follows:-
“49. Scale of rates and statement of condit
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
