Andhra Pradesh High Court
Judges : B.SUDERSHAN REDDY
Tinna Oils and Chemicals Limited, rep.by its Director - Appellant
Versus
Visakhapatnam Port Trust, rep.by its Deputy Secretary, Visakhapatnam - Respondent
Decided On : 06-30-97
Constitution of India, 1950 - Articles 14, 226, 12 - Major Port Trust Act, 1963 - Sections 33, 34, 42, 56 - Business Activities - Manufacturing - Be that as it may respondent administration by Resolution resolved to sanction to lease out shed for a period of thirty years subject to review once in ten years same was however subject to approval by Central Government - Lease was for purpose of enabling petitioner Company to export oil cake and agricultural products through VPT by modernisation shed and installing mechanised cargo handling system for shipment through berth at their cost subject to payment of charges fixed by Port from time to time for all Port services including lease for shed - Petitioner is said to have invested huge amount of Crore for modernisation - It appears by proceedings Ministry of Surface Transport Port Wing conveyed its approval to lease Transit Shed for setting up mechanised Cargo handling facilities for Oil Cake and other agricultural by products and modernisation of shed to petitioner for a period of thirty years subject to certain conditions namely that lessee shall provide a minimum guarantee traffic in a phased manner to Port - Held, In almost all cases dispute has been referred to a senior retired District Judge - Therefore submission that no useful purpose would be served by invoking arbitration clause is not accepted - It is settled law that Arbitrators have necessary jurisdiction to decide both question of fact as well as question of law - long lease agreement itself provides for mode of settlement of disputes arising from agreement - There is no reason why petitioner should not follow and adopt that remedy and invoke extraordinary jurisdiction of this Court - petitioner in my considered opinion has effective alternative remedy prayer for issuance of a Writ of Certiorari is wholly misconceived in this case - concept of arbitrariness non-application of mind error apparent on face of record have no application to a case and dispute arising out of concluded commercial contract - public law remedy sought for by petitioner is wholly misconceived - Order accordingly.
( 1 ) THE petitioner herein prays for an appropriate writ, particularly one in the nature of Writ of Certiorari calling for the records of the first and second respondents having reference No. TM/cb/wharfage/tinns dated 11-6-1997 and quashing the same as illegal.
( 2 ) THE petitioner is stated to be a public limited company incorporated under the Companies Act, carrying on various business activities, including manufacturing of edible oils, stevedoring, port logistics, import and export of diverce commodities. It is stated in the affidavit that the petitioner sent proposal dated 14-3-1994 to the Chairman, Visakhapatnam Port Trust (for short vpt) to set up mechanised loading and handling facility at the Vizag Port for export of extractions and Agricultural Products berth EQ-VI. The main objectives of the facilities was to provide an efficient loading rate of over 2500 MT per day and to maximise utilisation of ports existing infrastructure, ensure minimum through put and thereby maximise income to the Port. For the above said purpose, the petitioner had entered into a Memorandum of Understanding (for short "mou") on 13-5-1994 with the first respondent.
( 3 ) BE that as it may, the respondent administration by Resolution No. 83/94-95 resolved to sanction to lease out the T-6 shed for a period of thirty years subject to review once in ten years. The same was, however, subject to approval by the Central Government. The lease was for the purpose of enabling the petitioner Company to export oil cake and agricultural products (extraction) through VPT by modernisation, the shed and installing mechanised cargo handling system for shipment through EQ-VI berth at their cost subject to payment of charges fixed by the Port from time to time for all Port services, including lease for T-6 shed. The petitioner is said to have invested huge amount of Rs. 2. 5 Crore for modernisation.
( 4 ) IT appears by proceedings dated 3-10-1994, the Government of India, Ministry of Surface Transport, Port Wing, conveyed its approval to lease Transit Shed T-6 for setting up mechanised Cargo handling facilities for Oil Cake and other agricultural by products and modernisation of shed to the petitioner for a period of thirty years subject to certain conditions namely that the lessee shall provide a minimum guarantee traffic in a phased manner to the Port.
( 5 ) IT is born out by the record that a thirty year lease agreement dated 17-10-1995 was entered into by and between the petitioner and the respondents. Under the said agreement, the respondents granted the petitioner the right to have the lease of a berth situated in the Dock Yard of the VPT for making use of Transit shed at EQ-6 for storage and installation facilities subject to the terms and conditions contained therein.
( 6 ) IT is further stated in the affidavit that the petitioner in compliance with Clause 7 of the MOU dated 13-4-1994 had commissioned the mechanised facility for export of Oil Cakes and agricultural products within twelve months from the date of handing over the Transit Shed i. e. , to say by 23-11-1994. The petitioner had also shipped 1,62,589. 77 tonnes during the first period and had shipped 2,47,979. 00 tonnes during the first accountable years (23. 2. 1996 to 22. 2. 1997 ). The petitioner is stated to have paid wharfage charges of Rs. 48 Lakh. It is asserted that the petitioner has been performing at an average load rate of 4500 tonnes per day as against the guaranteed load rate of 2500 MT, according to the petitioner it is more than the guaranteed load rate. As such the petitioner states that it has complied with Cl. 9 of the MOU which casts an obligation on the petitioner to guarantee a minimum annual production 3. 50 Lakh to 4. 00 Lakh tonnes initially which shall be increased to one million tonnes over a period of three to four years.
( 7 ) THE gravemen of the complaint in the instant writ petition is that the Traffic Manager of the Respondent-authority,
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