( 1 ) THIS appeal is filed by the respondents 2 and 3 in the writ petition viz. , Visakhapatnam Port Trust (hereinafter referred to as port Trust ) and its Traffic Manager against the Judgment of the learned single Judge allowing W. P. No. 15897/1986, D/- 5-12-1986 filed by four petitioners viz. , (1) Bihar Alloy Steels Limited (hereinafter referred to as Company); (2) a Principal Officer and Shareholder of petitioner No. 1 -- Company; (3) M/s. Sarat Chatterjee and Co. , (snipping agents of the Company) and (4) a Director of the said shipping agent. The 1st respondent in the writ petition is the Union of India, Ministry of Surface Transport, which is also impleaded as a respondent in writ appeal. No relief is granted against the 1st respondent in the writ petition. The parties are referred to according to their rank in the writ petition. The 1st petitioner is a Public Limited Company, which has a Mini-steel Plant at Patratu near Ranchi for manufacturing special alloy steels. The Company imports scrap iron (one of its raw materials) through Visakhapatnam Port, which is governed by the Major Port Trusts Act, 1963 and is managed by its Board of Trustees.

( 2 ) THE petitioners initially filed a writ petition in the Calcutta High Court, which was disposed of on 23-10-1986 holding that it had no territorial jurisdiction. Thereafter, they have filed the present writ petition in this court on 30-10-1986 seeking the following relief : ". . . . . appropriate writ, order or direction directing the respondents to allow the petitioners to remove their melting scrap of Carbon Steels (Shredded Scrap) from Visakhapatnam Port on payment of usual tease amount for the period from 1-8-1986 to 31-10-1986 and pass such other orders. " During the pendency of the writ petition a direction was issued to the respondents not to sell or dispose of the goods pending further orders. The learned single Judge has by the impugned judgment issued a direction to respondents, 2 and 3 to allow the petitioners to remove the scrap viz. , 12,000 MT (approximately) from the G. C. B. area of Port on payment of lease charges at Rs. 237-60 per 100 square meters per month in respect of 4000 square meters and at Rs. 475-20 per 100 square meters per month in respect of 3,000 square meters for the period 1-8-86 to 31-10-1986. Pursuant to the interlocutory orders passed in the appeal the petitioners have removed the scrap after furnishing Bank guarantee and undertaking of the Directors.

( 3 ) THE scrap meant for the Company was unloaded from two ships during first week of June, 1986 to 6/08/1986 at the General cargo berth of the Port, the actual berth is a cement platform abutting the sea and there is an adjacent open space beyond it. The berth and the adjacent area are generally known as G. C. B. area and is enclosed by a Customs barrier. Any goods unloaded from a ship on the berth are immediately pushed away and kept in the adjacent open space and have to be removed within the prescribed period viz. two days by the consignee. Otherwise, transit charges and demurrage is levied as per rules. This is also for proper functioning of the Port, as keeping the goods at such place obstructs the loading and unloading of other cargo.

( 4 ) THE company in its letter dated 25-7-1986 addressed to the Traffic Manager of the Port Trust stated that due to a labour strike since 13-6-1986 the Company was not in a position to organise the movement of the cargo from the Port to the Plant and at that time about 16,500 metric tons of imported shredded scrap was lying at the Port. They pointed out to the good relations between the Company and the Port Trust and also the fact that they were one of the major importers of scrap through this Port and pleaded to consider and allow the Company to store their cargo at the north-western corner in an area of 10,000 square meters. This was apparently a request to lease out that area on payment of the lease charges to avoid payment of transit charges and d

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