Taking of operations of clearing and forwarding agents inside the Port.

These two petitions filed under Article 226 of the Constitution were heard together, as they raise common questions of law. They originally came on before one of us Jagadisan, J., who directed them to be posted before a Division Bench, having regard to the importance of the questions raised. The prayer in both the petitions is for the issue of a writ of mandamus or such other writ as this Court may think fit to the Board of Trustees of the Port Trust, Madras, calling upon them to forbear giving effect to a resolution passed by the Board on 29th May, 1959. The resolution runs thus:

"Resolved that the Trust take over export cargo other than ores, vegetable oils, molasses and any other cargo in bulk and do the handling on shore from a date to be fixed by the Chairman, Mr. A. R. Liddiard, and Saravashri A. M. Kothandarama Reddi, J. R. Nayak, C. K. Duraivelan and B. Ramalinga Reddi, dissented.

"Resolved also that Mr. A. R. Liddiard, Shri Jasjit Singh or his nominee and Shri U. S. As Gaffoor, Officiating Traffic Manager, re-examine item (ii) in paragraph 1 above and report early what modifications are required."

The petitioner in W.P. No. 1224 of 1959, is a clearing and shipping agent, carrying on business in Madras and holding a licence for acting as such from the Collector of Customs at Madras. He is also the Secretary of the Madras Clearing and Shipping Agents’ Association at Madras. The petitioner in W.P. No. 4 of 1960 is a merchant and exporter of hides and skins, carrying on business in Madras. To understand the contentions of the parties, it is necessary at the outset to mention the facts and circumstances which led up to the passing of the above resolution.

The Madras Harbour was constructed in or about 1886. In that year, an Act known as the Harbour Trust Act was passed, because it was considered necessary that there should be in existence a body of persons well acquainted with the affairs of the harbour, in whom may be vested all powers, to maintain and administer all matters relating to the harbour, and, inter alia, to levy tolls, to execute works and make contracts. In 1905, the Madras Port Trust Act replaced the Harbour Trust Act, which was repealed. One of the main reasons for the passing of this Act was that the Harbour Trust Braid should be constituted a Port Trust Board. Another object of the Act was to invest the Trust Board with additional powers and privileges in respect of the landing and shipping of goods, pilotage and towing of vessels, provision of pilot boats and tugs, use of docks and piers and ¦other like matters. The Preamble to the Act is as follows:-

"Whereas it is expedient to amend and consolidate the law relating to the regulations, conservancy and improvement of the Port of Madras......."

Under section 6 of this Act, the duty of carrying out the provisions of the Act is vested in a Board called "The Trustees of the Port of Madras", which is a body corporate with perpetual succession and a common seal.From and alter the coming into force of the Act, the immovable properties specified in Schedule II and all movable property held by or in trust for the previous Board of Trustees of the Harbour of Madras shall vest in the Board, subject to all charges and liabilities affecting the same (section 31). Schedule II comprises what may be called compendiously “ The Madras Harbour”, including land, building;, structures and appliances thereon, and the sea space occupied by and enclosed in the north and south groynes of the harbour together with the moorings therein laid down. The Board is given power for the purpose of the Act to acquire and hold immovable or movable property, whether within or without the limits of the port, and to lease or sell any immovable or movable property which may have become vested in or acquired by it with the consent of the Central Government. The Board may execute such works and provide such appliances as the Board may determine to be necessary or expedient for the pu