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IN THE HIGH COURT OF CALCUTTA
AMRITA SINHA, J.
TIL Limited & Anr. - Appellant
Versus
Union of India & Ors. - Respondent
Writ Petition No. 15451 of 2017
Decided On : 11-01-2019
Natural Justice - Land Allotment - Major Port Trust Act, 1963 - Policy Guidelines 2014 - Section 34(1) of the Major Port Trust Act, 1963 - SoR - Land Allotment Committee - Consultative Process - Opportunity of Hearing
Fact of the Case:
The petitioners sought to challenge the order of the Tariff Authority of Major Ports (TAMP) approving the schedule of rates (SoR) proposed by the Kolkata Port Trust (KoPT) without affording them an opportunity of hearing. The petitioners were in possession of land leased by KoPT and sought renewal of the lease, but were not included in the list of stakeholders for the SoR consultation process. The respondents argued that the petitioners were unauthorised occupants and had no right to challenge the SoR.
Finding of the Court:
The court found that the petitioners, as existing users of the port lands, were entitled to participate in the consultative process for fixing the SoR. The court held that the respondents' failure to forward the proposal and afford the petitioners an opportunity of hearing amounted to a breach of natural justice. The court directed KoPT to forward the proposal to the petitioners and instructed TAMP to consider their objections before making the SoR effective.
Issues: 1. Whether the petitioners were entitled to participate in the consultative process for fixing the SoR. 2. Whether the respondents' failure to afford the petitioners an opportunity of hearing breached the principles of natural justice.
Ratio Decidendi: The court held that the petitioners, as existing users of the port lands, were entitled to participate in the consultative process for fixing the SoR. The court found that the respondents' failure to forward the proposal and afford the petitioners an opportunity of hearing amounted to a breach of natural justice.
Final Decision: The court directed KoPT to forward the proposal to the petitioners and instructed TAMP to consider their objections before making the SoR effective. The petition was disposed of with no order as to costs.
AMRITA SINHA, J.
1. The petitioners have filed the instant writ petition praying for setting aside the order dated 29th March, 2017 passed by the Tariff Authority of Major Ports (TAMP for short) whereby the schedule of rates (SoR for short) proposed by the Kolkata Port Trust (KoPT for short) have been approved. The petitioners have also made a prayer for injunction restraining the respondents from giving any effect and/or further effect to the impugned SoR.
2. The petitioner no. 1 is a company within the meaning of the Companies Act. It is engaged in the business of manufacturing and selling of material handling and port handling equipments. The petitioner no. 2 is its Managing Director. The petitioner no. 1 is in possession of two separate plots of land of KoPT within the Kolkata Dock System in belts 1 and 2. The said plots of land were leased out by KoPT in favour of the petitioner no. 1 by two separate lease deeds. The petitioner no. 1 is in possession of the said plots for more than fifty/sixty years. A factory is in operation on the said plots directly employing approximately thousand persons and several daily wage earners. The lease deeds were executed last on 10th July, 2001 with effect from 1st. August 2000 and on 27th January, 2004 with effect from 1st. April 2000. Both the lease deeds were valid for a period of 15 years. The petitioners vide their letter dated 4th August, 2014 requested the KoPT for renewal of the lease as well as license in their favour.
3. To regulate the allotment of land the Ministry of Shipping issued guidelines from time to time as per the provisions contained in Section 34(1) of the Major Port Trust Act, 1963. The Policy Guidelines for land management by Major Ports 2014 is presently in operation. One of the objectives of the said Policy Guidelines is to ensure that optimum value is realised by licensing/leasing port land through a transparent tender-cum-auction methodology.
4. Ld. Advocate for the petitioners submit that paragraph 9 of the Policy Guidelines 2014 mention that the ports are empowered to lease/license land based on the approved land use plan/zoning of the port within the framework of MPT Act. Paragraph 10.2 of the said Guidelines deals with renewal of existing land leases wherein it mentions that the procedure outlined in paragraph 11.3 will be adopted for renewal of lease of land inside the custom area.
5. As per paragraph 11(e) a Land Allotment Committee shall be constituted by the Port Trust Board consisting of the Deputy Chairman of the Board and heads of the Department of Finance, Estate and Traffic. The Land Allotment Committee will finalise the reserve price as per the methodology explained in paragraph 13(b).
6. As per paragraph 11.3(c) in case of renewal of existing leases without renewal option at the end of the lease term the land will be put to tender-cum-auction with the first right of refusal to be extended to the existing lessees. The existing lessee should be allowed to match the highest bid. If the only bidder is the existing lessee the annual lease renewal would be determined on the basis of the latest SoR notified as per paragraph 13(c) or the price quoted by the existing lessee in the tender-cum-auction whichever is higher. The provision of first right will also apply to expired lease.
7. Paragraph 13 of the said Guidelines mention the factors to be taken into account for fixing up the market value of the land and SoR. Paragraph 13(b) mentions that the Land Allotment Committee shall while recommending the latest market value for any land would normally take into account the highest of the factors mentioned in paragraph 13(a). Reserve price in terms of the annual lease rent would be latest SoR determined in accordance with the paragraph 13(a) and 13(c) and would in no case be less than 6% of the latest market value recommended by the Port Trust.
8. Paragraph 13(c) mentions that the Port Trust would make a proposal as outlined in paragraph 13(a) to TAMP for f
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