Case Note & Summary
The petitioners, M/s Kundil Sponge Iron Limited and its director Vijay Kashyap, filed a writ petition under Article 226 of the Constitution of India challenging a circular dated 11 June 2009 issued by the Traffic Manager of Mormugao Port Trust. The circular imposed demurrage charges on coal/coke importers at specified rates, effective from 15 June 2009. The petitioners sought quashing of the circular and a direction to allow them to lift coal lying at the port yard. The petitioners argued that the Traffic Manager had no power under any law, rules, or regulations to issue such a circular, as the exclusive authority to prescribe rates for services under the Major Port Trusts Act, 1963, is vested in the Traffic Authority for Major Ports (TAMP) constituted under Section 47-A of the Act. The respondents contended that the circular was within their administrative powers. The court, after hearing both sides, held that the impugned circular was issued without legal authority and was ultra vires the Act. The court quashed the circular and directed the respondents to allow the petitioners to lift their coal without payment of the demurrage specified in the circular. The decision was based on the principle that statutory authorities cannot levy charges without express statutory backing.
Headnote
A) Administrative Law - Ultra Vires - Demurrage Levy - Major Port Trusts Act, 1963, Section 47-A - The Traffic Manager of Mormugao Port Trust issued a circular imposing demurrage charges on coal/coke importers. The court held that the power to prescribe rates for services is exclusively vested in the Traffic Authority for Major Ports (TAMP) under Section 47-A of the Act. The Traffic Manager lacked authority to issue such a circular, rendering it ultra vires and void. (Paras 3-5)
Issue of Consideration
Whether the Traffic Manager of Mormugao Port Trust had the authority to issue a circular imposing demurrage charges on coal/coke importers without the approval of the Traffic Authority for Major Ports (TAMP) under the Major Port Trusts Act, 1963.
Final Decision
The impugned circular dated 11/06/2009 is quashed and set aside. The respondents are directed to allow the petitioners to lift the coal lying at the yard without payment of demurrage as per the impugned circular.
Law Points
- Demurrage cannot be levied without authority under Major Port Trusts Act
- 1963
- Traffic Authority for Major Ports (TAMP) has exclusive power to prescribe rates
- Circular issued by Traffic Manager without TAMP approval is ultra vires
