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2026 Supreme(Bom) 219

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
MANISH PITALE,  SHREERAM V. SHIRSAT, JJ.
JSW Steel Limited formerly known as ISPAT Industries Limited - Petitioner 
Versus
The Board of Trustees of the Mumbai Port Trust and others – Respondents
Writ Petition No. 2127 of 1996 With Interim Application (L) No.17073 Of 2025 With Interim Application (L) No.29912 Of 2025 With Interim Application (L) No.13670 of 2025 
Decided On : 10-04-2026

Advocates Appeared:
For the Petitioner:Mr. Surel Shah, Senior Advocate a/w. Ms. Fatema Kachwalla and Ms.Meher Mistri, i/b. J. Sagar Associates
For the Respondent:Mr. Venkatesh Dhond, Senior Advocate a/w. Mr. Dhruva Gandhi and Ms. Heenal Wadhwa, i/b. The Law Point, Mr. S. Shamim a/w. Mr. Murtuza Slatewala, i/b. S. Shamim and Co., Mr. Shyam Kapadia a/w. Mr. Vikas V. Warekar and Mr. Shamant Satia, i/b. Warekar and Warekar

Under Section 14 of Indian Ports Act, 1908, only vessel's owner liable for wreck removal; time charterer or cargo owner not disponent owner lacking possession/control, notice invalid against them without following statutory mechanism.

Headnote:(A) Indian Ports Act, 1908 - Section 14 - Liability for raising, removal or destruction of wrecked vessel impeding navigation - Notice issued to owner of vessel - Only owner liable to furnish security and bear deficiency after sale of recovered property - Principal employer or cargo importer using vessel on time charter through intermediary not owner or disponent owner, hence not liable - Hyper-technical interpretation requiring registered owner not applicable as literal meaning prevails. (Paras 40-55)

(B) Indian Ports Act, 1908 - Sections 10-12, 57 - Stepwise mechanism mandatory for removal of obstructions like timber, raft or floating things and recovery of expenses - Conservator must follow procedure including demand, sale by auction before claiming deficiency - Cannot invoke at final hearing without pleadings or material; notice under correct provision S.14 tested on its contents. (Paras 56-72)

(C) Merchant Shipping Act, 1958 - Section 402 - Salvage services for wrecked vessel or cargo - Dispute resolution before Magistrate or High Court mandatory - Cannot belatedly rely without following procedure or pleadings - Principles of quantum meruit or polluter pays inapplicable absent services rendered or pollution evidence. (Paras 73-79)

Facts of the case:
Petitioner imported cargo using private jetty, lighterage via barges through port waters controlled by respondent No.1. Barge owned by respondent No.3, time-chartered to respondent No.2 for petitioner, sank with cargo impeding navigation. Notice under S.14 issued to petitioner, respondents 2 & 3 for removal and Rs.70 lakhs security. Petitioner filed writ challenging liability as non-owner; interim stay on suspension of permission subject to deposit. Salvage completed by port; petition dismissed infructuous, remanded by Supreme Court for pure question of law on liability.

Findings of Court:
Notice and suspension letter set aside; respondent No.1 directed to refund Rs.4,09,25,764 (deposit with interest) withdrawn by it within six weeks.

Issues: Whether petitioner liable as owner or disponent owner under S.14; whether alternative provisions (Ss.10-12, Merchant Shipping Act) or principles sustain action despite specific invocation of S.14; validity of notice sans stepwise mechanism.

Ratio Decidendi: Literal interpretation of 'owner' excludes time charterer lacking commercial control/possession; documents confirm respondent No.3 as owner; port failed statutory procedure depriving dispute resolution; no pleadings for other powers; conduct post-sinking irrelevant to statutory liability.

Result: Writ petition allowed.

Table of Content
1. supreme court remands writ for deciding wreckage liability under section 14. (Para 1 , 10 , 11 , 12 , 38 , 39)
2. petitioner's lighterage operations lead to barge sinking and mpt notice. (Para 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9)
3. petitioner not owner of sunken barge under section 14. (Para 13 , 14 , 15 , 16 , 17 , 18 , 40 , 41 , 43 , 44 , 45 , 46 , 47)
4. notice validity tested by its contents, not extraneous material. (Para 19 , 20 , 21 , 22 , 62 , 63 , 64 , 71)
5. quantum meruit and polluter pays principles inapplicable here. (Para 25 , 35 , 78 , 79)
6. time charter does not make petitioner disponent owner. (Para 27 , 28 , 29 , 30 , 31 , 48 , 49 , 50 , 51 , 52 , 53 , 54 , 55)
7. sections 10-12 require separate stepwise removal mechanism. (Para 33 , 65 , 66 , 67 , 68 , 69 , 70)
8. merchant shipping act section 402 inapplicable without procedure. (Para 34 , 73 , 74 , 75 , 76 , 77)
9. mpt failed to follow section 14 stepwise mechanism. (Para 56 , 57 , 58 , 59 , 61)
10. writ allowed; mpt to refund deposit with interest. (Para 81 , 82 , 83 , 84 , 85)

Judgment :

Manish Pitale, J.

1. The proceedings in this petition were remitted by the Supreme Court by its order dated 14.02.2025, after setting aside order dated 13.08.2021 passed by a Division Bench of this Court, disposing of the writ petition as infructuous, on the basis of the events that took place during the pendency of the petition. The Supreme Court found that the writ petition could not have been disposed of, as a pure question of law was required to be decided in the light of Section 14 of the Indian Ports Act, 1908 (for short ‘the said Act’) and that in that context, the lis between the parties was very much alive. The Supreme Court requested this Court to give priority to the matter for disposing it of expeditiously. In this backdrop, the writ petition was taken up for hearing and disposal.

2. The petitioner, formerly known as ISPAT Industries Limited, was engaged in the business of manufacturing steel at its plant located at Dolvi, Dharamatar, Raigad and for the said purpose, it was required to import large quantities of iron ore. The petitioner constructed a private jetty at Dharamatar and it’s cargo was being transported through the jetty to the said plant from waters upon which the respondent No.1 - Mumbai Port Trust (MPT), formerly known as Bombay Port Trust, was having control. As large vessels could not directly access the jetty, the cargo was required to be discharged at anchorage outside the port limits of respondent No.1 – MPT and it had to be transported to the petitioner’s jetty through the waters of the port in small barges. During monsoon season, the petitioner had to conduct its lighterage operations from Jawaharlal Nehru Port Trust (JNPT) anchorage to a jetty at Dharamatar.

3. A number of communications were exchanged between the petitioner and the respondent No.1 - MPT for permission to the petitioner to use the said waters for transporting cargo in barges from larger vessels outside the port limit to the petitioner’s jetty on payment of applicable charges. In this context, on 27.09.1994, the petitioner executed a contract with the respondent No.2 - N. S. Guzder & Co., under which the said respondent No.2 was responsible for providing barges for transporting the said cargo of the petitioner. Respondent No.3 - Shivam Engineers executed a memorandum of understanding (for short, ‘MOU’) with the respondent No.2 to provide barges, including a barge called M. V. Satyam on a time charter basis. On 09.01.1995, requisite permission was granted to the said barge M. V. Satyam under the provisions of the said Act to move in the said waters under the control of the respondent No.1 - MPT.

4. On 11.04.1995, the said barge M. V. Satyam, carrying iron ore from a larger vessel M. V. Aditya Gaurav to the petitioner’s jetty, sank in the harbour at anchorage W-1. In this backdrop, on 19.04.1995, the respondent No.1, through its Deputy Conservator, issued a notice addressed

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