SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2016 Supreme(Ori) 576

IN THE HIGH COURT OF ORISSA, CUTTACK
VINEET SARAN AND B.R. SARANGI, JJ.
M/s Bhushan Steel Limited - Petitioner
Versus
Paradip Port Trust & Others - Opp. Parties
W.P.(C) No. 13421 of 2012
Decided On : 12-09-2016

Advocates Appeared:
For the Petitioner: M/s. R.K. Rath, with Sanjay Sen, S. Ratho, M.K. Das and A. Hota.
For the Opp. Parties : M/s G. Mishra with D.K. Patra, A. Dash, M/s A.K. Bose.

Headnote:1. MAJOR PORT TRUSTS ACT, 1963 - Sec. 49 - Utilisation of plots - Charging of ground rent - Authority imposes MGT that can only be prospective one and as such the Act does not authorise any rate or fee retrospectively - Demand cannot be raised or enhanced retrospectively - Power cannot be delegated by the authority as the said provision does not empower such delegation or sub-delegation - On 06.04.2011 when Annexure-3 was issued, the land policy dated 13.01.2011 had not come into force - It came into force only when Annexure-D/1 was issued by virtue of notification issued on 04.08.2011 - "Authority" as defined u/s. 2 (aa) has not notified any rate in official gazette by the time Annexure-3 was issued on 06.04.2011 Any demand raised on the basis of the land policy in Annexure D/1 giving retrospective effect is contrary to the provisions contained u/s.49 of the Act itself - Demand so raised giving retrospective effect cannot sustain in the eye of law.

       2. ADMINISTRATIVE LAW - Every demand by the State or State owned organizations must be backed by law - State or its instrumentality cannot collect any amount without authority of law.

JUDGMENT :

B.R. SARANGI, J.

The petitioner is a Limited Company incorporated under the Companies Act, 1956 and carrying on business in steel sector, mostly engaged in Cold rolled, galvanized and special steel producer having its producing plant located at Meramandali, Orissa required to import different items through Paradip Port. For the purpose of said import, an arrangement was made to utilize the plots allotted for a period of 11 months on charging of ground rent subject to renewal. The plots have been classified as siding plots and non-siding plots depending upon their proximity from the railway line. The petitioner having been allotted with the plots, the same were utilized as per the terms and conditions of such allotment, but all of a sudden on 06.04.2011 in Annexure-3, Paradip Port Trust introduced Minimum Guarantee Throughput (MGT) for siding and non-siding plots though subsequently by letter dated 03.01.2012 under Annexure-4, the same has been withdrawn. The period of which the petitioner was in possession of the siding and non-siding plots those were utilized to ensure the movement of Minimum Guarantee Quantum for which the petitioner had to execute a bank guarantee of Rs.12,63,64,500/- issued on 20.05.2011 and was valid up to 31.07.2012. But, the opposite party having raised illegal demand on 04.04.2012 for an amount of Rs.5,24,05,296/- vide Annexure-9 which was subsequently revised on 05.04.2012 amounting to Rs.4,73,09,637/- vide Annexure-10, the petitioner has approached this Court by filing this present writ petition.

2. Mr. R.K. Rath, learned Senior Counsel appearing for the petitioner along with Miss S. Ratho, advocate strenuously urged before this Court that Paradip Port Trust has no authority to fix MGT pursuant to letter under Annexure-3 dated 06.04.2011. Apart from the same, the petitioner being the “licencee”, the Land Policy for Major Ports issued by the Ministry of Shipping, Government of India dated 13.01.2011 has no application in the present case, if at all same is applicable, would be applicable to the “lease” holder. As such, there is difference between “lease” and “licence”. The petitioner being the licence holder, the said principle is not applicable. Thereby any consequential demand raised cannot sustain in the eye of law. To substantiate his contentions, he has relied upon Purbanchal Cables and Conductors Private Limited v. Assam State Electricity Board and another, (2012) 7 SCC 462, Tamil Nadu Electricity Board & Anr. V. Status Spinning Mills Ltd. & Anr., AIR 2008 SC 2838, Union of India and Ors. v. B.V. Gopinath, AIR 2014 SC 88, M.P. Gopalakrishnan Nair and another v. State of Kerala and others, (2005) 11 SCC 45 and Shehla Burney (DR.) and others v. Syed Ali Mossa Raza (dead) by Lrs. And Others, (2011) 6 SCC 529 along with other decisions.

3. Mr. G. Mishra, learned counsel appearing for the Paradip Port Trust argued with vehemence stating that the entire action has been taken by imposing MGT being a part of Land Policy for Major Ports, 2010 issued by the Ministry of Shipping, Government of India dated 13.01.2011. Therefore, the claim made by the opposite party-Paradip Port Trust is wholly and fully justified. Apart from the same, it is urged that when MGT has been fixed, the petitioner has not objected the same. Rather having acted upon on the basis of such MGT, subsequently demand was raised, he could not have assailed the same before this Court by filing the present writ petition. To substantiate his contention, he has relied upon State of Haryana and others v. Lal Chand and others, AIR 1984 SC 1326 and Manish Kumar Shahi v. State of Bihar and others, (2010) 12 SCC 576.

4. We have heard learned counsel for the parties and perused the record. With the consent of learned counsel for the parties, the matter has been decided finally at the stage of admission.

5. The thrust of the contention is that Paradip Port Trust has no authority to issue office order dated 06.04.2011 in Annexure-3 by imposing M





































































Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top