IN THE HIGH COURT AT CALCUTTA
Sachi Konta Hazari, J.
E.C. Bose & Co. Pvt. Ltd. & other – Petitioners
Versus
Board of Trustees for the Port of Calcutta & other – Respondents
Matter No. 2538 of 1992
Decided On: December 15, 1992
STEVEDORES LICENCE - SUSPENSION - POWER OF CHAIRMAN, CALCUTTA PORT TRUST - RULE 8 OF THE CALCUTTA PORT TRUST (LICENSING OF STEVEDORES) REGULATIONS, 1987 - WHETHER ULTRA VIRES THE CONSTITUTION OF INDIA - WHETHER ARBITRARY, ILLEGAL, MALA FIDE AND IN EXCESS OF JURISDICTION WITHOUT THE AUTHORITY OF LAW - WHETHER THE ORDER OF SUSPENSION WAS PASSED BONA FIDE - WHETHER THE PETITIONER WAS ABLE TO MAKE OUT A STRONG PRIMA FACIE CASE FOR THE INTERVENTION OF THE COURT.
Fact of the Case:
The petitioner, a company carrying on the business of Stevedores at the Port of Calcutta since 1851, was engaged for doing stevedoring work on vessel M.V. Eagle Breeze. However, due to a wild cat strike by the workers on 23.10.1992, all work at the Calcutta Port was stalled. The petitioner was unable to carry out the stevedoring work on the vessel despite its best efforts and desire. The Chairman, Calcutta Port Trust, in exercise of the powers conferred upon him by Rule 8 of the Regulation, suspended the stevedoring licence of the petitioner for a period of one month with immediate effect, on the ground that the petitioner did not make arrangement to commence work on the vessel in the second shift after she was berthed at 'D' NSD on 23.10.1992 and also did not work in the third shift of 23.10.1992 and first shift of 24.10.1992 causing loss to the Port.
Finding of the Court:
The Court held that the order of suspension of the stevedoring licence was not made bona fide and/or to sub-serve any public interest. It was irrational, unjust and in any event beyond the sense of proportion. The situation did not warrant taking such an action. Right to carry on one's business cannot be made dependent upon the sweet will or pleasure of the Chairman of the Port Trust. Every activity of the State have a public element in it had it must be based on good and sufficient reason. Its validity is dependent on reasonableness and public interest. If it fails to satisfy this twin test, it would be liable to be struck down as unconstitutional. The order of suspension was on the face of it unreasonable, arbitrary and whimsical and as such the same was cancelled and set aside.
Issues: 1. Whether Rule 8 of the Calcutta Port Trust (Licensing of Stevedores) Regulations, 1987 is ultra vires the Constitution of India? 2. Whether the order of suspension of the stevedoring licence was arbitrary, illegal, mala fide and in excess of jurisdiction without the authority of law? 3. Whether the order of suspension was passed bona fide? 4. Whether the petitioner was able to make out a strong prima facie case for the intervention of the Court?
Ratio Decidendi: 1. The Court held that the order of suspension of the stevedoring licence was not made bona fide and/or to sub-serve any public interest. It was irrational, unjust and in any event beyond the sense of proportion. The situation did not warrant taking such an action. Right to carry on one's business cannot be made dependent upon the sweet will or pleasure of the Chairman of the Port Trust. Every activity of the State have a public element in it had it must be based on good and sufficient reason. Its validity is dependent on reasonableness and public interest. If it fails to satisfy this twin test, it would be liable to be struck down as unconstitutional. The order of suspension was on the face of it unreasonable, arbitrary and whimsical and as such the same was cancelled and set aside. 2. The Court held that the petitioner was able to make out a strong prima facie case for the intervention of the Court.
Final Decision: The Court cancelled and set aside the order of suspension of the stevedoring licence.
1. This is an application under Article 226 of the Constitution of India, inter alia, praying for an order: –
"(a) A declaration that the provisions of Regulation 8 of the Calcutta Port Trust (Licensing of Stevedores) Regulations, 1987 is ultra vires the Constitution of India and thus illegal, invalid and void.
(b) A writ of and/or order and/or direction in the nature of Mandamus commanding and directing the respondents and each of them, their servants and/or agents to forthwith, revoke, recall and/ or cancel the said impugned order passed by he respondent no. 2 being Annexure-E hereof and to refrain from giving effect thereto or from taking any steps in terms thereof or thereunder and to act in accordance with law.
(c) A writ of and/or order and/or direction in the nature of certiorari directing the respondents and each of them, their servants and/or agents to forthwith transmit and/or certify the records relating to the said impugned order being Annexure-E hereof and of all purported proceeding initiated and/or steps taken on the basis thereof or thereunder so that the same may be quashed and/or set aside and conscionable justice might be rendered.
(d) A writ of and/or order and/or direction in the nature of Prohibition prohibiting the respondents from giving effect to or further effect to or taking any steps or further steps in terms of or pursuant to the said impugned order passed by the respondents no. 2, being Annexure-E hereof.
(e) An appropriate writ, order or direction do issue for production of all relevant records and for protection of all the rights of the petitioners and for granting the petitioners such relief as in the circumstance of the case shall be just and proper.
(f) Injunction restraining the respondents from giving effect to or further effect to or taking any steps or further steps in terms of or pursuant to the said impugned order passed by the respondent no. 2 being Annexure-E hereof till the disposal of this application."
2. The petitioner no. 1 case is that the petitioner no. 1 carries on business of Stevedores, inter alia, at the Port of Calcutta since 1851. The said company has branches all over the country. The further case of the petitioners are that the loading and discharge of cargo to and from vessels in the Port of Calcutta are done through combined operation of Stevedores and the Calcutta Port Trust. The workers suddenly went on wild cat strike on and from 23.10.1992, which has completely stalled all work at the Calcutta Port since 23.10.1992.
3. On 22.10.1992, vessel M.V. Eagle Breeze arrived at the port of Calcutta carrying about 400 containers and the petitioner company was engaged for doing stevedoring work. 23.10.1992, when the representatives of the petitioners went to submit a requisition for booking of registered workers working in second and third shifts on 23.10.1992, on the said vessel M.V. Eagle Breeze, they were prevented by the workers and their associates from entering the Call Stand where booking are taken and made. However, ultimately, the petitioner succeeded in booking the registered employees/workers for the third shift on 23.10.1992 and first shift on 24.10.1992. The Chief Clerk or the Senior Supervisor was not available in view of the strike and in view of that and inspite of the best efforts and desire the petitioners were unable to carry out the stevedoring work on the vessel M.V. Eagle Breeze. The further case of the petitioners is that no other Stevedores was also able to carry out any stevedoring work at the Calcutta Port since the second shift on 23.10.1992. On 24.10.1992, at about 2 A.M. the petitioner was surprised to receive a notice dated 23.10.1992. The said notice was replied to by the petitioners letter dated 24.10.1992 and the reply was handed over by Sri. A.K. Sen an employee of the petitioner company to the respondent no. 4 personally at 3:30 P.M.
4. On 24.10.1992 at about 4:30 P.M an employee of the petitioner company found a sealed envelope in the Le
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