2014 Supreme(AP) 522
IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD
P. NAVEEN RAO, J.
United Port & Dock Employees Union, rep. by its General Secretary, V.S. Padmanabha Raju & Another
Versus
The Government of India, rep by its Secretary, Ministry of Shipping, Transport & Others
Writ Petition Nos. 24835 & 34252 of 2013
Decided on: 29-04-2014
Subject
PRIVATIZATION - PORT MANAGEMENT
Act Referred
Headnote
Major Port Trusts Act, 1963 – Seeking appropriate directions from Central Government – Claim of Compensation - Petitioner are unions representing workers working in Visakhapatnam Port Trust - Petitioners assail invitation of tenders for qualification by VPT for up gradation of existing facility and creation of new facility for Iron Ore Handling on Design Build Finance Operate and Transfer commenced its operations in year and became one of major ports in India - This port was initially administered by Central Government directly through Port Administrative Officer -Thus on various aspects concerning operation of Port several practical difficulties were faced and businessmen who use port for export/import of goods have also complained to Government of India of difficulties experienced by them and delays caused in seeking appropriate directions from Central Government from time to time - Central Government therefore felt it necessary to grant autonomy to Visakhapatnam Port - By then administration of three Ports Calcutta Bombay and Madras were vested in Trusts port is having two outer and inner is having six berths plus one mooring facility - Government of India approved implementation of project at an estimated cost of cores - Global tender Notice was issued - Held, Thus it is necessary to allow experiment to operate - It is always permissible to renew experiment - Petitioners can espouse cause of public within Board and outside if respondent attempts to adopt monopolistic policies - In opinion there should be judicial restraint in fiscal and economic regulatory measures - State should not be hampered by Court in such measures unless they are clearly illegal or unconstitutional - All administrative decisions in economic and social spheres are essentially ad hoc and experimental - Since economic matters are extremely complicated this inevitably entails special treatment for distinct social phenomena - State must therefore be left with wide latitude in devising ways and means of imposing fiscal regulatory measures and Court should not unless compelled by statute or by Constitution encroach into this field - In opinion it will make no difference whether policy has been framed by legislature or executive and in either case there should be judicial restraint - Court can invalidate an executive policy only when is clearly volatile of some provisions of the statute or Constitution or is shockingly arbitrary but not otherwise - petitions dismissed (Paras 43 and 45 )
For the Petitioners:M/s. Srinivas Rao Bodduluri, Advocate.
For the Respondents:M/s. Indus Law Firm, P. Veera Raju, Rama Rao Gantannagiri, Advocates.
1. With the consent of the learned counsels for the parties, these writ petitions are heard and disposed of by this order.
2. In these two writ petitions, petitioners are the unions representing the workers working in Visakhapatnam Port Trust (VPT). Petitioners assail the invitation of tenders for qualification by VPT for upgradation of existing facility and creation of new facility for Iron Ore Handling (IOH) on Design, Build, Finance, Operate and Transfer (DBFOT) basis issued in October, 2012.
3. Visakhapatnam Port commenced its operations in the year 1936 and became one of the major ports in India. This port was initially administered by the Central Government directly through Port Administrative Officer. The Port Administrative Officer was treated as Head of Department and was vested with limited powers to take decisions at his level. Thus, on various aspects concerning operation of Port, several practical difficulties were faced and the businessmen, who use the port for export/import of goods have also complained to the Government of India of the difficulties experienced by them and the delays caused in seeking appropriate directions from the Central Government from time to time. The Central Government, therefore, felt it necessary to grant autonomy to the Visakhapatnam Port. By then, administration of three Ports, namely, Calcutta, Bombay and Madras were vested in Trusts. There were three more major ports at Visakhapatnam, Cochin and Kandla. Therefore, Government proposed to bring about legislation to administer the major Ports in India including Visakhapatnam. Indian Parliament passed ‘The Major Port Trusts Act, 1963’ (for short ‘Act’). This was enacted to make provision for constitution of port authorities for certain major ports in India and to vest the administration, control and management of such ports in such authorities. Visakhapatnam Port Trust is constituted in the said manner.
4. The port is having two harbours, i.e., outer harbour and inner harbour. Outer harbour is having six berths plus one mooring facility. The outer harbour can accommodate vessels upto 150,000 DWT vessels and 16.5 meters draft. One container terminal operated by contractor selected as BOT operator. Inner harbour is having 15 berths and one mooring facility. It can cater to Panamax vessels upto 11 meters draft. There are two berths built on BOT basis.
5. The Cargo profile of the Port comprises iron ore, manganese, thermal coal, coking coal, lime stone, marine products, fertilizers, fertilizers raw materials, food grains, granite, timber logs, crude oil, petroleum products, LPG, phosphoric acid, liquid ammonia etc. It owns a railway network of about 200 KMs of Broad-gauge connected to East Coast Railway and South Central Railway.
6. To cater to the future growing traffic needs, the authority decided to undertake upgradation of existing facility and creation of new facility for iron ore handling (IOH) through Public Private Partnership (PPP) on DBFOT basis. It has also taken up steps to improve the facilities in the Port, such as deeping of inner and outer entrance channel to accommodate vessels of bigger size, mechanising of coal handing facility, etc.
7. The Government of India approved the implementation of the project at an estimated cost of 845.41 crores. On 25.10.2012, Global tender Notice was issued. The request for qualifications were opened on 24.12.2012. Five applicants submitted Request for Qualification (RFQ) for the said project including M/s.Vadinar Oil Terminal Limited (VOTL) (3rd respondent). All the five applicants were issued with request for proposal documents fixing the due date of opening of the REF Bid as 28.03.2013. The Ministry of Shipping issued security clearance on 06.05.2013 and approval of implementation of project was received on 27.05.2013. Out of five, only two remained in the fray. Bids were opened on 28.05.2013. As a consequence, Trust decided to enter into a concession agreement with M/s.Vadinar Oil T