C.L. Soni, J.

1. By the present petition filed under Article 226 of the Constitution, the petitioners seek to quash and set aside the decision dated 21.07.2001 of respondent No. 2 - Chairman, Board of Trustees of the Port of Kandla/Kandla Port Trust at Annexure - FF to the petition. By the impugned decision, the petitioners are held jointly and severally liable to pay demurrage charges of Rs. 43,37,760/- as demanded in the notice dated 04.08.2000 issued under Section 56 of the Major Port Trusts Act, 1963 ("MPT Act").

2. As per the case of the petitioners, M/s. RASL Enterprises of USA had agreed to purchase 5000 Metric Tone (MT) of double polished PR-106 (15% broken) of rice crop 1997 from the petitioner No. 1 and such rice would export from the Port of Kandla to the Port of Nikolev, Ukrain. To transport the cargo from Kandla Port to Nikolev Port, the petitioners entered into charter party on 24.03.1998 with one Chinese Shipping Company through the vessel MV Rongjiang from Kandla to Nikolev and also to transport 7000 MT of rice from Kandla to Novorossisk. For such purpose, petitioner No. 1 obtained necessary approval from the Director General of Shipping, Ministry of Surface Transport on 03.04.1998 for chartering the vessel. On 30.03.1998, petitioner No. 1 filed three shipping bills bearing Nos. 007732-34 with the custom authority for the export of 5000 MT of rice. On 04.04.1998, the rice cargo consisting of 60731 bags of 50 kilograms each totaling to 3036 MT to be exported against the contract of 5000 MT was brought in the port area and stacked in the transit shed. On 07.04.1998, vessel MV Rongjiang arrived at the Kandla Port, however, the petitioners were unable to load the cargo on the said vessel since during the period of the stay of the vessel at Kandla, the Letter of Credit opened by the same buyer for 7000 MT of rice for Novorossisk was not extended and, therefore, it was not economically viable for the owner of the vessel to load only 5000 MT of cargo against charter party for 12000 MT of price. The petitioner No. 1 entered into a charter party with M/s. Tiger Lines Ltd., Malta on 30.04.1998 for transporting 5000 MT rice part which was lying in the transit shed. However, the vessel MV Indian Tiger of M/s. Tiger Lines Ltd. which arrived at Kiandla on 07.05.1998 refused to take the cargo of petitioner No. 1 lying in the transit shed due to non-availability of other cargo. It was then on 31.05.1998, the petitioners shifted the cargo from the transit shed to the warehouses of the Kandla Port Trust on rental terms as the next vessel MV Romanati for transportation of the rice under charter party dated 28.05.1998 was to arrive at Kandla only on 15.06.1998. As per the further case of the petitioners, on 09.06.1998, a devastating cyclone hit the Kandla Port causing tremendous damage to the port and the warehouses of the port wherein cargo of various exporters and importers had stored. In view of the cyclone, the port was damaged and become non-operational, the vessel MV Romanati did not arrive at the port on 15.06.1998 and the cargo stored in the rental warehouse which was partly damaged in the cyclone could not be exported and the Kandla Port Trust authority gave directives to remove the damage cargo from its warehouses. In view of such directives of the Kandla Port Trust, the petitioners were required to destroy the damage cargo under the supervision of the representative of the port trust and removed the balance cargo to enable the Kandla Port Trust to repair its warehouses. The damaged cargo destroyed of 50 MT to 250 MT respectively were destroyed and balance cargo was, thereafter, under the directives of the Kandla Port Trust, moved out of the port area. Such cargo had moved out of the port area was repacked under the supervision of buyer's surveyor and petitioner No. 1 entered into a charter party for transport of 4000 MT of the rice from Kandla to Nikolev and obtained necessary permission from the Director Genera