High Court Of Calcutta
T. K. Basu
ARVIND KUMAR DHANUKA - Appellant
Versus
BOARD OF TRUSTEES - Respondent
Matter 1103 Of 1976
Decided On : 07/18/1977
MAJOR PORT TRUSTS ACT, 1963 - SECTIONS 49 AND 52 - LEASE OF LAND - SCALE OF RATES - RESERVED RENT - STATUTORY POWERS - INTERPRETATION - COURT'S DECISION.
Fact of the Case:
The petitioner, an unemployed Commerce Graduate, intended to start a new business on a plot of land owned by the Calcutta Port Trust. The Port Trust had issued a notice inviting sealed offers for the lease of certain plots, including the plot in question. The petitioner submitted an offer in accordance with the scale of rates prescribed by the Port Trust under Section 49 of the Major Port Trusts Act, 1963. However, the Port Trust treated the scale of rates as a reserved rent and invited offers for higher rents.
Finding of the Court:
The court held that the Port Trust could not treat the scale of rates prescribed under Section 49 of the Act as a reserved rent and invite offers for higher rents. The court found that the Port Trust had exercised its statutory powers in prescribing the scale of rates and that it could not deviate from that exercise of power by issuing notifications or circulars.
Issues: Whether the Port Trust could treat the scale of rates prescribed under Section 49 of the Act as a reserved rent and invite offers for higher rents.
Ratio Decidendi: The court held that the Port Trust's power to prescribe a scale of rates under Section 49 of the Act was a statutory power and that the Port Trust could not deviate from that exercise of power by issuing notifications or circulars. The court found that the Port Trust had already exercised its statutory powers in prescribing the scale of rates for the plot in question and that it could not now treat that scale of rent as a reserved rent or minimum rent and invite tenders for higher rents and offer it to the highest bidder.
Final Decision: The court issued a Writ in the nature of mandamus directing the Port Trust to forthwith recall, cancel and/or withdraw the impugned notice and the circular bearing the same date and issued thereunder, only in so far as the plot in question was concerned.
( 1 ) THE petitioner is an unemployed Commerce Graduate who intends to start a new business on a plot of land which is the subject-matter of this application. The matter arises in the following manner.
( 2 ) AT all material times prior to February, 1975, the port of Calcutta was governed by the Calcutta Port Act, 1890. However with effect from the 1st February, 1975, the port of Calcutta came to be governed by the Major Port Trusts Act, 1963 (hereinafter referred to as the Act ). By virtue of Section 133 (2b) of the Act all the provisions with which we are concerned in this application came to be applicable to the port of Calcutta and the old Act of 1890 ceased to be applicable. Sections 49 and 52 of the Act with which we are concerned and in so far as is material for our purpose may be set out herein below;"49. (1) Every Board shall, from time to time, also frame a scale of rates on payment of which and a statement of conditions under which any property belonging to, or in the possession or occupation of the Board, or any place within the limits of the Port or the Port approaches may be used for the purposea specified hereunder: (a ). . . . . . (b ). . . . . . (c) leasing of land or sheds by owners of goods imported or intended for export or by steamer agents; (d) any other use of land, building, works, vessels or appliances belonging to or provided by the Board. (2) Different scales and conditions may be framed for different classes of goods and vessels. 52. Every scale or rates and every statement of conditions framed by a Beard under the foregoing provisions of this Chapter shall be submitted to the Centra! Government for sanction and shall have effect when so sanctioned and published by the Board in the Official Gazette. "by a notice dated the 8th November, 1976, the Board through its Land Manager issued an advertisement which appeared for the first time in the Amrita Bazar Patrika of 11th November, 1976. The respondent No. 1 notified that sealed offers quoting the rate of rent in the prescribed form were invited for the lease of certain plots. The notice prescribed the procedure for making the application and also reserved the right to reject any or all offers without assigning any reason whatsoever.
( 3 ) PURSUANT to the said notice dated 8th November, 1976 the respondent No. 1 through its Land Manager issued a circular in cyclostyled form inviting sealed offers for lease of various plots Including the plot No. 17 in Sonapur Road measuring an approximate area of 788. 747 sq. metres. In the circular, a sum of Rs. 50 was mentioned as the reserved rent per 100 sq. metres for the same offer.
( 4 ) THE petitioner, pursuant to the said notice and the circular, obtained the requisite application form and in answer to the item regarding the rate of rent the petitioner in the form stated that Rs. 50 was the maximum rate which the Port Trust was entitled to realise in respect of the plot.
( 5 ) THE controversy in the present Rule arises because according to the petitioner, in terms of the provisions contained in Section 49 of the Act the respondent No. 1 has framed a scale of rates in accordance with the provisions of the Act. Such scale of rates was published in the Calcutta Gazette in terms of Section 52 of the Act. This position is not disputed by the respondents. It is not disputed either that in so far as the plot No, 17 Sonapur Road with which we are concerned the scale of rent has been fixed at Rs. 50 per 100 sq. metres.
( 6 ) THE sole question to be decided is that having prescribed the scale of rent at Rs. 50 for this plot in question in terms of the statutory powers contained in the Act, is it open to the respondents now to treat Rs. 50 as reserved rent as they have purported to have done in terms of the impugned notice and the impugned circular? In other words, is it now open to the respondents to invite offers for bid above Rs. 50 per 100 sq. metres in respect of the offer in question and offer it
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