The main legal point established in the judgment is that the Assam Fisheries Development Corporation (AFDC) has the authority to lease out/settle the fisheries vested with them, but cannot make direct settlements as per the proviso to Rule 12 of the Assam Fishery Rules. The court emphasized the need for transparency in settlement and providing relief to lessees in suitable cases.

P. G. AGARWAL, J. :- The matter has been placed before the Full Bench pursuant to the order of Reference dated 9-8-1999 passed by a Division Bench of this Court in Writ Appeal No. 260/99.

2. We have heard Mr. N. M. Lahiri, Mr. S. N. Bhuyan, Mr. A.K. Phukan, Mr. K.N. Choudhury, learned Senior Advocates, Mr. B.C. Das, Govt. Advocate, Mr. M.A. sheikh and Mr. K. Agarwal learned counsel for the parties.

3. The matter in hand relates to settlement of fisheries by the Assam Fisheries Development Corporation, for short AFDC. Regulation 16 of the Assam Land and Revenue Regulation, 1886, for short the Regulation reads as follows :

"Right in fisher. The Deputy Commissioner, with the previous sanction of the State Government, may, by proclamation published in the prescribed manner, declare any collection of water, running or still to be a fishery; and no right in any fishery so declared shall be deemed to have been acquired by the public or any person, either before or after the commencement of this Regulation, except as provided in the rules made under S. 155 :

Provided that nothing in this section shall affect any express grant of a right to fish made by or on behalf of the Government or on any fishery rights acquired by a proprietor before the commencement of this Regulation, or the acquisition by a proprietor of such rights in any fishery forming after the commencement of this Regulation in his estate."

4. Regulation 155(f) reads as follows :

"(f) the granting of licenses, or the forming of the right, to work mines, stones, and lime quarries, salt-wells, to wil-wells, to fish in fisheries proclaimed under S. 16, and to carry on gold washing operations."

5. In exercise of the power under S. 155 and 156 of the Regulation the Fishery Rules were made. Rule 8 of the Fishery Rule, for short the Rule, provides for settlement of fisheries. In this Reference we are concerned particularly with Rule 8(c)(ii), which reads as follows :-

"(ii) The State Government may, at any time after constitution of the Assam Fisheries Development Corporation by Notification in the official Gazette, vest management of any registered fishery with the Assam Fisheries Development Corporation as considered necessary for the purpose of its development and management. On publication of such Notification, the Deputy Commissioners, Sub-Divisional Officers and the Director of Fisheries, Assam, as the case may be shall handover such fisheries to the Corporation."

6. Clause (c)(ii) of Rule 8 was inserted vide Notification dated 5-6-1976

7. The AFDC was incorporated asthe Govt. Corporation and the Govt. of Assam has 100% share in the Corporation and the aims and objectives are detailed in the Memorandum of Association of the Corporation. After the AFDC came into existence and in view of the provisions contained in Rule 8(c)(ii), as quoted above, the State Govt. vide the. Notification issued from time to time, transfer certain fisheries to AFDC, for their development and management. The AFDC thereafter started settling these fisheries in favour of private individuals or the co-operative societies.

8. In the case of M/s Agragati Matsyajibi Samabai Samity Ltd. State of Assam and Ors. Civil Rule No. 5408/96, Honble Chief Justice V.K. Khanna, Honble Mr. Justice A.K. Patnaik held as follows :

"If that be so, we are of the opinion that it is the AFDC Ltd which has to exercise the power of settling the Fishery in accordance with the guidelines which may be laid down by the Board of Directors of the afaresaid Corporation and in accordance with the objects of the aforesaid Corporation as laid down in the memorandum of association of that Corporation."

9. In Writ Appeal No. 161/95, 248/95, 171/95, 156/95 decided on 26-11-1996 a Division Bench of this Court comprising Honble the Chief Justice Mr. V.K. Khanna and Honble Mr. Justice. A.K. Patnaik held that the AFDC has the power to make settlement in respect of the fisheries transferred to them and the Board of Directors of AFDC has the nec