SUBMITTED FOR APPROVAL:

The Court made the following ORDER:

Heard Sri C.P. Ramaswami, learned Counsel for the Writ Petitioner and Sri P. Veerraju, learned Counsel for Respondent No.2.

2. The present Writ Petition is filed seeking following relief:

“to issue an order, writ or direction more particularly one in the nature of Writ of Mandamus declaring inaction and inordinate delay being indulged in by the Respondents as illegal and arbitrary and unfair and in violation of Article 39 of the Constitution of India and consequently direct the Respondents to immediately release funds for a sum of Rs.4,64,18,369/- coupled with interest at appropriate rate as per Tariff Authority for Major Ports (TAMP) order from the due date of such sum and pass such other order or orders as this Hon’ble Court deems fit and proper in the circumstances of the case.”

3. At the outset, it must be stated that the Visakhapatnam Dock Labour Board, Visakhapatnam, which is involved in the present dispute with the Writ Petitioner herein got later merged with Visakhapatnam Board Trust (Respondent No.2). Therefore, upto the stage of merger of Visakhapatnam Dock Labour Board, Visakhapatnam (for short ‘VDLB’) with Visakhapatnam Port Trust (Respondent No.2) in the year 2008, the initial reference will be made to VDLB, and, after 2008 the reference would be Visakhapatnam Port Trust (Respondent No.2).

Submissions of the Writ Petitioner:

4. The Writ Petitioner herein is a duly registered Charitable Trust. The said Trust has been founded by the Visakhapatnam Stevedores’ Association and Visakhapatnam Clearing & Forwarding Agents Association and registered on 19.01.1994 (Ex.P.1). The purpose for establishing the Writ Petitioner’s Trust is to identify, enroll, allot the work and regulate the Private Workers engaged by the Members and users of Stevedores’ Association and Clearing & Forwarding Agents Association, Visakhapatnam, only against short supply of the labour by the VDLB. The following are the objectives of the Trust :

“The Main Objects of the Trust are :

a) To identify, enroll, allot the work and regulate the Private Workers engaged by the Members and users of Stevedor's Association and Clearing and Forwarding Agents' Association of Visakhapatnam, only against short supply of the labour by the Visakhapatnam Dock Labour Board, Visakhapatnam.

b) To generally promote the welfare of the workers who are identified and enrolled in the Trust.

c) To utilise the Funds of the Trust for the above purposes and also for other Charitable purposes such as Education, Health, Sports and Alleviation of sufferings of the Poor and the needy etc.,

d) To carry out other public utility activity within the meaning of "Charitable purposes" defined in the Income-tax Act.”

5. The Trust also has other objects which are ancillary or incidental to the attainment of the main objects i.e., collecting money from the users of the Private Workers’ and also collect subscriptions from the Members of the two Associations and to utilize the surplus fund arising out of collections from the users and voluntary contributions to such Charitable purpose as Board of Trustees may deem it expedient etc.,

6. Sri C.P. Ramaswamy, learned Counsel for the Writ Petitioner submits that the Writ Petitioner submitted an Application on 09.08.1994 for registration under Section 12A of the Income Tax Act, 1961; that the registration was granted on 02.03.2001 with effect from 19.01.1994 in favour of the Writ Petitioner (Ex.P.2); that the VDLB, in its Board meeting held on 24.01.1994 had resolved to this effect; that as a sequel to the decision of the Board dated 24.01.1994, the Writ Petitioner had authorized the VDLB to collect the levy from the employers and pass on the same to the Pool i.e., the Writ Petitioner herein vide Proceeding dated 27.01.1994; that, subsequently, from time to time, the percentage of levy to be transferred was increased and about 40% of the levy was transferred to the Writ Petitioner with effect fr