IN THE HIGH COURT OF GAUHATI
SANJAY KUMAR MEDHI, J.
Mahmud Hussain — Appellant
Versus
Assam Fisheries Development Corporation Ltd. — Respondent
W.P(C) No. 2192, 2783, 2869, 3042, 4347, 3348, 2894, 4206, 2817, 2987, 2786, 2955, 2972, 2288, 3046, 4202, 4273, 2913, 3188, 4346, 2161, 3043, 2755 & 2862 of 2022
Decided on : 21-09-2022
CANCELLATION OF SETTLEMENT ORDERS - ASSAM FISHERY DEVELOPMENT CORPORATION LTD. (AFDC) - VARIOUS BEELS/FISHERIES IN THE STATE OF ASSAM - JURISDICTIONAL ERROR, VIOLATION OF PRINCIPLES OF NATURAL JUSTICE AND INVESTMENT MADE BY THE PETITIONERS - SECTION 10 OF THE CONTRACT ACT, 1972 - RULE 254 OF THE ASSAM FINANCIAL RULES - SECTION 254 OF THE ASSAM FINANCIAL RULES - RULE 12 OF THE ASSAM FISHERY RULES - ARTICLE 14 OF THE CONSTITUTION OF INDIA - ARTICLE 226 OF THE CONSTITUTION OF INDIA.
Fact of the Case:
The petitioners challenged the cancellation of settlement orders of various Beels/Fisheries in the State of Assam by the Assam Fishery Development Corporation Ltd. (AFDC) on the grounds of jurisdictional error, violation of the principles of natural justice, and non-consideration of the investment made by the petitioners. The AFDC justified the cancellation by stating that the settlements were not done in accordance with the Assam Fisheries Rules (Rules) and therefore, there was no settlement in the eyes of law.
Finding of the Court:
The Court held that the initial settlements done by the AFDC with the petitioners were not preceded by any procedure recognized by law. The concept of PPP, in settlement of Fisheries, is alien to the Rules governing the field and settlement can be given only by means of a tender process strictly in accordance with the Rules. The Court further held that the cancellation of the settlement with the petitioners is not liable to be interfered with as the initial orders of settlement are absolutely without any sanction of law.
Issues: 1. Whether the initial settlements done by the AFDC with the petitioners were in accordance with law? 2. Whether the cancellation of the settlement with the petitioners required adherence to the principles of natural justice? 3. Whether the petitioners are entitled to compensation for the investments made by them?
Ratio Decidendi: 1. The Court held that the initial settlements done by the AFDC with the petitioners were not preceded by any procedure recognized by law. The concept of PPP, in settlement of Fisheries, is alien to the Rules governing the field and settlement can be given only by means of a tender process strictly in accordance with the Rules. 2. The Court held that the cancellation of the settlement with the petitioners is not liable to be interfered with as the initial orders of settlement are absolutely without any sanction of law. 3. The Court held that the petitioners are not entitled to compensation for the investments made by them as the initial settlements were illegal.
Final Decision: The Court dismissed all the writ petitions.
JUDGMENT :
SANJAY KUMAR MEDHI, J.
The extra-ordinary jurisdiction of this Court under Article 226 of the Constitution of India is sought to be invoked in this bunch of writ petitions which arise out of a similar action taken by the Assam Fishery Development Corporation Ltd. (for short AFDC). The action, which is impugned, pertains to cancellation of settlement orders of various Beels/Fisheries in the State of Assam with the petitioners. In gist, the grounds of challenge in the petitions are jurisdictional error, violation of the principles of natural justice and not taking into consideration the issue of investment made by the petitioners pursuant to such settlement. On the other hand, the justification of the AFDC, in brief, is that the settlements, which have been cancelled, were done in a manner not recognised by law, more specifically, the Assam Fisheries Rules (for short hereinafter referred to as the Rules) and therefore, there was no settlement in the eyes of law which was required to be rectified. The authorities have also taken a plea that by the action adopted for cancellation of the settlements, a new process would be initiated strictly in accordance with law and by following the guidelines of transparency and fairness in matters of distribution of State largesse.
2. Before going to the issues involved which would require an adjudication, the facts of the respective cases can be summed up and put in the following manner.
3. WP(C)/2192/2022 has been instituted in respect of Banskandi Beel in the district of Cachar which was notified against Sl. No. 40 in the Tender Notice dtd. 14/3/2022. It is the case of the petitioner that earlier, an NIT was issued by the Managing Director, AFDC dtd. 18/2/2020 calling for tenders for the aforesaid Fishery for a period of 7 years, in which the petitioner had participated. Subsequently, vide an order dtd. 17/6/2020 the aforesaid Fishery was directed to be managed by the Project Manager by engaging the petitioner as stake holder for a period of 4 years which could be extended to 7 years. Accordingly, the petitioner, as a stake holder, and another fisherman, Manjur Ahmed entered into an agreement with the AFDC and the petitioner claims to have deposited an amount of Rs.3,70,000.00 as part payment and the Deed of Agreement was executed on 20/6/2020 when the possession was handed over. The petitioner claims that the Fishery, in question, was managed properly wherein, further investments were made by the petitioner. The petitioner further submits that the Fishery, in question, was not properly demarcated which caused inconvenience to him. However, suddenly, the impugned action was taken and vide a fresh NIT dtd. 14/3/2022 whereby, 54 nos. of Beels were enlisted for settlement.
4. WP(C)/2755/2022 has been instituted in respect of Samaguri Beel in the district of Nagaon. It is the case of the petitioner that earlier, vide an order dtd. 26/10/2021 issued by the Managing Director, AFDC, the petitioner was engaged with the aforesaid Fishery as a Stake Holder under PPP Mode for a period of 4 years which could be extended to 7 years after satisfactory completion of 4 years with certain targeted value. Accordingly, the petitioner claims to have deposited the stipulated amount of Rs.9,00,000.00 and entered into an agreement with the AFDC on 15/11/2021. The petitioner contends that he, as a stake holder, invested huge amount on various counts and undertaken various developmental activities of the Fishery, in question. However, suddenly, the impugned order dtd. 8/4/2022 was issued cancelling all the settlement orders of as many as 44 Beels, which were made earlier without calling tender, including that with the petitioner dtd. 26/10/2021 relating to Samaguri Beel.
5. WP(C)/2783/2022 has been instituted in respect of Sarbhog Beel in the district of Barpeta. It is the case of the petitioner that in terms of the Board of Directors' decision of the AFDC, vide an order dtd. 12/3/2020 issued by the Managing Di
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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 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....
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....
The term 'neighborhood' in fishery settlements is to be interpreted pragmatically, emphasizing community proximity over mere distance, and administrative authority's decisions should not be disturbed....
Respondent authority has no power to make any direct settlement in terms of Rule 12 of Assam Fishery Rules.
The paramount consideration for settlement of a fishery is public interest, and the court emphasized the importance of transparency, fair play, and compliance with previous court orders in such matte....
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