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IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
DEVASHIS BARUAH, J.
Trimurti Multipurpose Farming Co-Operative Society Ltd.- Appellant
Versus
The State Of Assam And 3 Ors. – Respondent
WP(C) 3131 OF 2022
Decided on : 28-07-2023
AFDC - Society registered under the Assam Co-operative Societies Act, 2007 - Assam Co-operative Societies Act, 2007 - [Rule 8(c)(ii), Rule 12] - The court discussed the cancellation of settlement orders of fisheries, the authority of the Managing Director of the AFDC to make settlements without calling for a tender, and the principles of natural justice. The court referred to the Full Bench Judgment in the case of M/S 129 Haria Dablong Min Mahal Samabai Samity Ltd. Vs. Assam Fisheries Development Corporation Ltd. and Others and the judgment in the case of Mahmud Hussain Vs. The Assam Fisheries Development Corporation Ltd. and 5 Others to analyze the legal provisions and their interpretations, influencing the court's decision.
Fact of the Case:
The Petitioner, a Cooperative Society registered under the Assam Co-operative Societies Act, 2007, challenged the cancellation of settlement orders of fisheries by the Managing Director of AFDC. The Petitioner claimed to be involved in farming, fishing, and agricultural activities, catering to surrendered militants. The settlement was cancelled due to lack of approval from the Department of Fishery, Government Assam, and violation of the law laid down by the Full Bench Judgment.
Finding of the Court:
The court found that the Managing Director of AFDC had the authority to make settlements, and the cancellation was in line with the law. The court also noted the absence of a rehabilitation package for settlement of fisheries directly to lessees and the failure to follow the principles of natural justice.
Issues: The issues revolved around the authority of the Managing Director of AFDC to make settlements without calling for a tender, the existence of a rehabilitation package, and the adherence to the principles of natural justice in the cancellation of settlement orders.
Ratio Decidendi: The court held that the Managing Director of AFDC had the authority to make settlements, the cancellation was justified, and the absence of a rehabilitation package for settlement of fisheries directly to lessees was noted. The court also found that the principles of natural justice were not violated in the cancellation of settlement orders.
Final Decision: The court dismissed the writ petition, allowing the Petitioner to approach the Civil Court for any claims regarding the investment and loss incurred due to the fault of AFDC, if permitted under law.
JUDGMENT :
1. The instant writ petition has been filed by the Petitioner which is a Society registered under the Assam Co-operative Societies Act, 2007 challenging the order dated 26.04.2022 passed by the Managing Director, AFDC whereby the settlement pursuant to Ghorajan Fishery was cancelled.
2. It is the case of the Petitioner herein that the Petitioner which is the Cooperative Society registered under the Assam Co-operative Societies Act, 2007 is involved in the business of farming, fishing and other agricultural related activities. All the members of the Petitioner society are surrendered militants who have given up arms and have joined the mainstream and earning their bread and butter by way of the said Co-operative Society. It is the further case of the Petitioners that initially a portion of the Ghorajan Fishery including the Office established by the AFDC, quarters etc. were encroached by the Red Cross Society and as the Respondent AFDC has invested a huge sum of money for the development of the fishery, a decision was taken to turn the fishery into a tourist attraction, model fishery etc. by removing the encroachment as the said portion centrally falls under Guwahati. In that view of the matter, a decision was taken to bifurcate a portion of the said fishery measuring 20 Hectares and manage it by way of PPP mode. Upon the approval of the Chairperson, the Managing Director of the AFDC vide an order dated 30.08.2019 had settled the bifurcated portion of the fishery measuring 20 Hectares in favour of the Petitioner society for a period of 7 years for an annual revenue of Rs.1,50,000/-which may be extended to another 4 (four) years. Thereupon, the Petitioner Society had entered into agreement with the Respondent Corporation on 17.09.2019 for management of the bifurcated portion of the Ghorajan Fishery for a period of 7 years and the same was valid up to 31.03.2026. It has been claimed that the Petitioner society had paid the security deposits and requisite kist money and thereupon, the Respondent Corporation had handed over the possession of the said fishery to the Petitioner society.
3. The further case of the Petitioner is that the Petitioner while running the said portion of Ghorajan Fishery, all of a sudden was served a copy of the order dated 26.04.2022 passed by the Managing Director of Respondent AFDC Ltd. by which the settlement of the Fishery with the Petitioner society as well as some other fisheries with other settlement holders were cancelled and the Project Managers of the said fisheries were asked to take possession of the said fisheries. A perusal of the said order dated 26.04.2022 would show that the reason for cancellation of the settlement including the settlement made in favour of the Petitioner society was that the stated tanks/ponds/lands were bifurcated from the original beels and these tanks were settled directly to the respective lessees. It was mentioned that while bifurcating the said tanks/ponds/lands from the original beels, no approval from the Department of Fishery, Government Assam was obtained. Further to that, in the said order, it was mentioned that the said settlements so made directly with the lessee was contrary to the law laid down by the Full Bench Judgment of this Court in the case of M/S 129 Haria Dablong Min Mahal Samabai Samity Ltd. Vs. Assam Fisheries Development Corporation Ltd. and Others without inviting any tender and accordingly, the Managing Director, AFDC Ltd. cancelled/recalled the settlement orders of the listed tanks/ponds/lands including the fishery settled with the Petitioner and the Project Manager of the stated tanks/ponds/lands were ordered to take possession of all the tanks/ponds/lands. The Petitioner therefore being aggrieved has filed the instant writ Petition challenging the cancellation vide impugned order dated 26.04.2022 insofar as their settled fishery is concerned. The said writ petition was filed on 10.05.2022 and this Court vide an order dated 13.05.2022
The authority of the Managing Director of AFDC to make settlements without calling for a tender and the absence of a rehabilitation package for settlement of fisheries directly to lessees were the ce....
A procedure prescribed by law to do a certain thing in a certain manner must be followed strictly and there cannot be any deviation from such procedure.
The judgment emphasized the requirement of transparency and fairness in settlement procedures, the need for adherence to the tender process, and the applicability of the doctrine of promissory estopp....
The settlement of fisheries under the PPP mode must adhere to the principles of fairness and transparency, and must be preceded by a tender process in accordance with the rules.
The main legal point established in the judgment is that the Assam Fisheries Development Corporation has no power of direct settlement of fisheries and settlements made without calling for tenders ar....
Co-operative Society’ -It is for the Settling Authority in the Fishery Department, Government of Assam to examine the enforceability of the Notification in the context of its publication or non-publi....
Tender disqualification must adhere strictly to statutory rules, excluding arbitrary criteria. A co-operative society's corporate identity shields it from the personal liabilities of its members. Add....
Rule 12 of Assam Fishery Rules, 1953 has prescribed that a 60% category fishery is to be settled with special category of Cooperative Societies, Non-Government Organisations and Self Help Groups cons....
Under the powers which can be traced to Regulation 16 and Regulation 155 of the Assam Land and Revenue Regulation, 1886 read with Section 6 of the Indian Fisheries Act, 1897 that enables a Deputy Com....
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