NDLI: Maheshwary Handling Agency Private Limited Vs. Board of Trustees of Kandla Port Trust and Others

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Storage of goods / cargo at the Kandla Port Kandla Port Regulations ss.52 and 47A Major Port Trusts Act 1963
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Customs Act, 1962 (52 of 1962) Major Port Trust Act, 1963 (38 of 1963)
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Dismissed
Headnote	Ports – Major Port Trusts Act, 1963 – ss.52 and 47A – Notification dated 4th November, 1993 published u/s.52 of the Act fixing a schedule / scale of rates for storage of goods / cargo at the Kandla Port – Act amended in 1997 whereby s.52 was omitted and s.47A was inserted to constitute a Tariff Authority – Circular dated 31st August, 1998 issued by Traffic Manager of the Port, stipulated levy of penalty for storage of goods beyond period of sixty days treating the same as unauthorised occupation – Whether the 1998 circular was in conformity with the terms of the 1993 Notification or had the effect of modifying or amending the same – Held: The first portion of the Notification prescribing escalating rates for use of open area and sheds did not vest any right to occupy such space for unlimited period of time – Prescribing different slabs or rates for storage of cargo for different periods by the 1993 Notification was meant to fix rates for the rent payable and not to deny or curtail the power of the Traffic Manager to authorise and permit use of sheds and space for storage of cargo / containers – The 1993 Notification had empowered and left it to the Traffic Manager to deal with the question of unauthorised occupation, including the time limits or period during which the goods could be authorised to be stored – Levy of penalty for unauthorised occupation of space for period beyond sixty days of storage as fixed vide the impugned 1998 circular was in conformity and in consonance with the 1993 Notification and in particular Notes 1, 4 and 5 thereof, and was hence not illegal or invalid.Ports – Kandla Port Regulations – Regns. 64 and 128 – Power and authority of the Traffic Manager of the Port under the Port Regulations – Notification dated 4th November, 1993 published u/s.52 of the Act fixing a schedule / scale of rates for storage of goods / cargo at the Kandla Port – Act amended in 1997 whereby s.52 was omitted and s.47A was inserted to constitute a Tariff Authority – Circular dated 31st August, 1998 issued by Traffic Manager of the Port, stipulated levy of penalty for storage of goods beyond period of sixty days treating the same as unauthorised occupation – Whether the 1998 circular was beyond the powers available and entrusted to the Traffic Manager under the Port Regulations – Held: The contention that the Traffic Manager was not competent to fix time limit for storage, is unacceptable and contrary to the Notes to the said Notification and the powers vested and given under the Regulations to the Traffic Manager – The Traffic Manager had authority and discretion for allotment of space for storage on rent and to withdraw allotment of space depending on the availability and to ensure that the port operations were not hindered and obstructed due to congestion and shortage of space – Major Port Trusts Act, 1963 – ss.52 and 47A.Ports – Storage of goods / cargo at the Kandla Port – Circular dated 31st August, 1998 issued by Traffic Manager of the Port, stipulated levy of penalty for storage of goods beyond period of sixty days treating the same as unauthorised occupation – Whether the circular was unreasonable and violative of Art. 14 of the Constitution – Held: The circular though issued on 31st August, 1998 was made effective and applicable from 1st October, 1998 – Therefore, the parties were given time to take steps to avoid the usage of the storage facility from being declared as unauthorized – The impugned circular (which specifically recorded that there was congestion at the Port which had necessitated issuance of the circular) brought about uniformity, clarity and transparency in the use of storage facilities at the Kandla Port – The circular ensured equal treatment without discretion as upper time limit of sixty days was prescribed for storage of goods failing which penalty was payable – Period of sixty days is sufficient and long and cannot be termed as unreasonable and violating Art.14 of the Constitution – Constitution of India, 1950 – Art. 14.
Judge	Hon'ble Mr. Justice Sanjiv Khanna
Neutral Citation	2019 INSC 1041
Petitioner	Maheshwary Handling Agency Private Limited
Respondent	Board Of Trustees Of Kandla Port Trust And Others
SCR	[2019] 18 S.C.R. 969
Judgement Date	2019-09-17
Case Number	5277

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