Back
2019 Supreme(Kar) 1854
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
ARAVIND KUMAR, J.
NEW MANGALORE PORT TRUST PANAMBUR MANGALORE - PETITIONERS
Vs.
SRI CLIFFORD D’SOUZA - RESPONDENT
W.P.NO.4398/2018 (GM-PP) C/W W.P.NOs.4428/2018, 4431/2018, 1358/2018, 3913/2018, 3915/2018, 3919/2018, 3905/2018, 3908/2018, 3918/2018, 3910/2018, 3914/2018, 3903/2018, 3906/2018, 3912/2018, 3917/2018, 4403/2018, 4404/2018, 4433/2018, 4434/2018, 3909/2018, 4430/2018, 3911/2018, 3916/2018, 3907/2018, 4436/2018, 4399/2018, 4406/2018, 427/2018, 4429/2018, 4432/2018, 4435/2018 & 4437/2018
Decided On : 22-11-2019
For The Appellant :SRI. SUBRAMANYA R, ADVOCATE)
For The Respondent:SRI Y. RAJENDRA PRASAD SHETTY, ADVOCATE
Headnote:
Constitution of India,1950 - Articles 14 and 226 - Limitation Act, 1963 - Article 52 - Major Port Trusts Act, 1963 - Sections 49, 15 and 7(3) - Public Premises Act, 1971 - Section 7(2) - Interest Act, 1978 - Seeking payment of difference of licence fee on account of the notification - Pay difference of arrears - Land on lease or licence - Port Trust - Whether New Mangalore Port Trust (NMPT) was entitled to recover arrears of rent for period ending by issuing notices of demand - Whether particular statute permits such a course - Respondents in all these petitions were allotted certain area of unpaved land belonging to NMPT on a monthly licence fee basis - Respondents had applied to NMPT for allotment of port land for storage of transit cargo as and when required by providing required details of cargo, ship name, importers/exporters name, area required etc - Basis of such application, NMPT was allotting port land to applicants/respondents, collect licence fee as per tariff rates - applicants/respondents would surrender back the allotted port land to NMPT - Applicants/respondents would only facilitate safe keeping of imported and exported cargo in port land allotted to them by NMPT - Respondents questioned the same by filing Writ Petition contending that revision of rates for the period – Held, Demand came to be issued during and same had been stayed by this Court by granting interim order was in operation till dismissal of the writ petition on period from if reckoned for purposes of exclusion of 3 years, it would be days and even if this period is excluded for the purposes of computing or reckoning limitation, proceedings ought to have been initiated on or Whereas proceedings under Section 7(1) has been initiated by issue of notice was clearly time barred and consequential order passed by Estate Officer determining the arrears of rent was also time barred - Conclusion arrived at by the learned trial Judge arrears of rent or Stevedore charges demanded from respondents were time barred and conclusion drawn by the trial court is just and correct would not call for interference at hands of this Court - Clear issue involved in these writ petitions, which has been adjudicated relates to demand for arrears of differential rent for period - Writ petitions are dismissed
ORDER :
A short point that arises for consideration in these writ petitions revolves around limitation for recovery of pre-fixed ‘service charges’ from petitioners by respondent under The Public Premises (Eviction of Unauthorised Occupants) Act, 1971 (for short ‘Act’) namely;
“Whether New Mangalore Port Trust (NMPT) was entitled to recover arrears of rent for the period 20.02.2007 ending upto 31.12.2010 by issuing notices of demand dated 12.08.2015?”
BRIEF BACKGROUND OF THE CASE:
2. The New Mangalore Port Trust (for short ‘NMPT’) established under the Major Port Trusts Act, 1963 enables the said Port to administer, control and manage the matters connected therewith.
3. Respondents in all these petitions were allotted certain area of the unpaved land belonging to the NMPT on a monthly licence fee basis. Respondents had applied to NMPT for allotment of port land for storage of transit cargo as and when required by providing required details of cargo, ship name, importers/exporters name, area required etc. On the basis of such application, NMPT was allotting port land to the applicants/respondents, collect licence fee as per the tariff rates. On completion of transaction, the applicants/respondents would surrender back the allotted port land to the NMPT. Applicants/respondents would only facilitate safe keeping of imported and exported cargo in the port land allotted to them by NMPT. The NMPT extends the licence period or the period of allotment from time to time on payment of licence fee as per the Scale Of Rates (for short ‘SOR’) fixed by the Tariff Authority for Major Ports, which has been constituted under the provisions of Major Port Trust Act, 1963 i.e., as per Section 47A of the Act. The said provision empowers the Tariff Authority to frame SOR from time to time in relation to the service provided by the Port Trust which is inclusive of allotment of land on lease or licence basis. The SOR so notified in the Official Gazette would be binding on all the major Port Trusts.
4. Section 49 of the Major Port Trusts Act, 1963 deals with SOR and conditions for allotment of property belonging to NMPT. The Tariff Authority for major Ports prescribes the SOR for a block period of five years which will be valid for the period specifically indicated in the notification. The process of fixation of SOR is undertaken by considering the objections of the stake holders, allottees or lease holders etc. and the Tariff Authority for major Ports would then prescribe the SOR.
5. NMPT forwarded a proposal on 05.03.2007 for fixation of SOR for the period of five years commencing from 20.02.2007 to 19.02.2012 by requesting the Tariff Authority to revise the SOR upwards as per the Land Policy Guidelines. The Tariff Authority issued a notification on 16.06.2010 fixing the lease rentals, which was revised on 23.07.2010 for the block period of five years commencing from 20.02.2007 to 19.02.2012.
6. A demand notice dated 27.05.2011 came to be issued to the respondents herein seeking payment of difference of licence fee on account of the notification dated 23.07.2010 (Annexure-C). The respondents questioned the same by filing Writ Petition Nos.34541/2011 & 34784/2011 contending that revision of rates for the period from 20.02.2007 till the issuance of notification dated 23.07.2010 amounts to revision of rates with retrospective effect. Said writ petitions came to be dismissed by order dated 28.06.2013 (Annexure-F) and thereafter fresh demand notices came to be made calling upon the respondents to pay difference of arrears. Respondents have filed Writ Appeal Nos.4400-01/2013 and other connected matters which are pending consideration. On account of there being no order of stay granted in the appeals, NMPT has issued a reminder or fresh notice of demand on 28.03.2015 to respondents by calling upon them to furnish the bank guarantee for the amounts of demand
