The authority can disconnect services for non-payment but must follow due process for eviction, ensuring access to premises until lawful eviction occurs.

ORDER :

A. The Petition:

1. This writ petition challenges the impugned orders dated 07.11.2023 and 13.12.2023 and seeks a consequential direction for the second respondent to restore the power connection and all other facilities for the petitioner company to operate its business.

1.1. By the first impugned order dated 07.11.2023, the Traffic Manager of Chennai Port Authority, the second respondent herein, required the petitioner to pay the total outstanding dues, including the licence fee and penalty claim, amounting to Rs. 37,53,718/-. It was mentioned that failing compliance would result in further actions, such as the forfeiture of the security deposit, stoppage of services, and eviction under the Public Premises Act, 1971. By the second impugned order dated 13.12.2023, it was decided to disconnect power and water, and to halt the issuance of the harbour entry permit to the petitioner company.

B. The Factual Details :

2. The petitioner company is engaged in ship repair and fabrication, with facilities established within the port area. It has been conducting its activities since 1992 at Chennai Port. For this purpose, the port authority allocates vacant land, allowing the petitioner company and similarly situated concerns/individuals to construct and operate within the available space.

2.1. The petitioner company was allotted sites, and these allocations were periodically renewed and extended until 2019. In 2014, land policy guidelines were established for the allotment of lands within custom-bound areas. According to these guidelines, e-tender-cum-auction procedures must be followed. Consequently, notices were issued to the existing allottees on 05.08.2019, requesting them to vacate the area by 30.09.2019 and remove their temporary structures.

2.2. The petitioner company challenged this through W.P.No.27657 of 2019. The writ petition was disposed of by a common Order dated 07.04.2021. This Order quashed the eviction notice dated 05.08.2019 and directed the petitioner company to submit a fresh representation, while the authorities were instructed to pass a speaking order after granting a personal hearing. Additionally, the order stipulated that the petitioner company must not have any outstanding monthly charges, including penalty charges, as of the date of their fresh representation. Accordingly, the petitioner company cleared the outstanding dues for the monthly charges, and after providing an opportunity for a personal hearing, a speaking order was issued on 18.12.2021. The petitioner's request to reduce the license fee and the GST rate was rejected by this order.

2.3. It is the case of the respondent authorities that even after passing the order pending allotment of the site by e-tender, the petitioner company was allowed to occupy the premises. The petitioner company also applied for allotment on a nomination basis under the modified allotment procedures. According to the respondent authority, the petitioner company had dues amounting to Rs.2,47,880/-. Taking advantage of the rule regarding the payment of incremental penal interest up to 180 days, the petitioner company continued to deposit only the license fee belatedly, without the corresponding penal interest. The petitioner company also made representations for a waiver of rent and was granted a discount on rent, citing the slump in business during the COVID-19 pandemic. However, a communication dated 19.01.2023 rejected this request from the respondent authority. Once again, the estate rentals were revised according to the scale of rates effective from 20.01.2023. In the revision, the rules regarding delayed payment of the license fee were also changed. According to the revised rules, any delay in payment of the license fee would attract interest at the rate of 15% per annum for the first 15 days, and if not paid within that extended time, the occupation of the premises will be treated as unauthorised, requiring payment of three times the license fee by the end of the mont