Case Note & Summary
The Supreme Court allowed the appeal by M/s. R. K. Industries (Unit-II) LLP, a non-party before the High Court, limited to correcting the interpretation of the Gujarat Maritime Board (Conditions & Procedures for granting permission for Utilizing Ship Recycling Plots) Ship Recycling Regulations, 2015. The Gujarat Maritime Board had issued a tender in February 2017 for auction of eight vacant plots at Alang-Sosiya Ship Recycling Yard, reserving four for ST, two for SC, and two for General category. The S.C./S.T. Shipbreakers Association challenged this, arguing that reservation should be computed out of total plots (20 vacant plots), not just those auctioned. The High Court agreed, quashing the tender and directing reservation out of total plots. The Supreme Court examined the 1994, 2006, and 2015 Regulations. The 1994 Regulations reserved plots from specific categories (vacant as of a date, fell vacant, or newly developed). The 2006 Regulations changed to 'Out of total plots'. The 2015 Regulations, in clauses 5.1-5.4, omitted the phrase 'total plots' and instead referred to 'the plots' in context of plots offered for tender-cum-auction. The Court held that the High Court erred by reading 'total plots' into the 2015 Regulations. The correct interpretation is that reservation under 5.4 applies to the plots being auctioned, not all plots. The Court set aside the High Court's judgment and remanded the matter for fresh consideration, leaving open the appellant's individual grievances.
Headnote
A) Interpretation of Regulations - Reservation Policy - Contextual Reading - Regulation 5.4 of the Gujarat Maritime Board (Conditions & Procedures for granting permission for Utilizing Ship Recycling Plots) Ship Recycling Regulations, 2015 - The dispute centered on whether reservation for SC and ST categories should be calculated out of total plots or only those being auctioned. The Court examined the change in language from the 2006 Regulations ('Out of total plots') to the 2015 Regulations ('of the plots') and held that the expression must be read in context with clauses 5.1 and 5.2, which refer to plots offered for tender-cum-auction. The Court concluded that reservation under 5.4 applies to plots being auctioned, not total plots. (Paras 1-8)
B) Subordinate Legislation - Change in Language - Intent of Legislature - The 2006 Regulations expressly used 'Out of total plots' while the 2015 Regulations omitted this phrase. The Court noted that this change indicated a shift in policy, and the High Court's interpretation reading 'total plots' into the 2015 Regulations was erroneous. (Paras 6-8)
Issue of Consideration
Whether reservation of 7% and 14% for SC and ST categories under Regulation 5.4 of the Gujarat Maritime Board (Conditions & Procedures for granting permission for Utilizing Ship Recycling Plots) Ship Recycling Regulations, 2015 is to be computed out of the total number of plots or only out of the plots being auctioned.
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's judgment, and remanded the matter to the High Court for fresh consideration in light of the correct interpretation that reservation under Regulation 5.4 applies to plots being auctioned, not total plots. The appellant's individual grievances were left open.
Law Points
- Interpretation of subordinate legislation
- Reservation policy
- Contextual reading of regulations
- Change in language from earlier regulations
Case Details
2019 lawtext (SC) (7) 111
Civil Appeal No. 5609 of 2019 (Arising out of SLP (C) No. 27765 of 2018)
Shekhar Naphade (for appellant), Gursharan Virk (for Gujarat Maritime Board), Rajendra Singhvi (for respondent Nos. 1-3)
M/s. R. K. Industries (Unit-II) LLP
S.C/S.T Shipbreakers Association & Ors.
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Nature of Litigation
Civil appeal against High Court judgment interpreting reservation policy under ship recycling regulations.
Remedy Sought
Appellant sought to set aside High Court's interpretation that reservation must be computed out of total plots, and to allow auction of plots without such interpretation.
Filing Reason
Appellant, a non-party before High Court, challenged the High Court's interpretation of Regulation 5.4 of the 2015 Regulations, which affected his plot and amalgamation plans.
Previous Decisions
High Court of Gujarat allowed Special Civil Application No. 5509 of 2017, quashing tender notice and directing reservation out of total plots.
Issues
Whether reservation under Regulation 5.4 of the 2015 Regulations is to be computed out of total plots or only out of plots being auctioned.
Submissions/Arguments
Appellant argued that clause 5.4 must be read with clauses 5.1 and 5.2, and the omission of 'total plots' from the 2006 Regulations indicates reservation applies only to plots being auctioned.
Gujarat Maritime Board argued that the issue is academic as it followed the High Court judgment, and that reservation out of total plots avoids incongruous results.
Respondent Nos. 1-3 argued that the High Court's interpretation is correct and that reservation should be out of total plots.
Ratio Decidendi
The expression 'of the plots' in Regulation 5.4 of the 2015 Regulations must be read in context with clauses 5.1 and 5.2, which refer to plots offered for tender-cum-auction. The omission of the phrase 'Out of total plots' from the 2006 Regulations indicates a change in policy, and reservation under 5.4 applies only to the plots being auctioned, not all plots.
Judgment Excerpts
The bone of contention between the parties is, what is the meaning of the expression 'the plots'
A perusal of paragraph 9 of the 1994 Regulations would show that reservations were to be based only on three categories of plots
The vital change is contained in the opening words of clause 9 which states 'Out of total plots'
The High Court held that not only would all the eight plots that were subject matter of the auction notice be reserved for the ST and SC candidates but that, even for the remaining number, i.e., if 20 plots were to be taken as a block, all 20 would have to be reserved
Procedural History
The Gujarat Maritime Board issued a tender in February 2017 for auction of eight plots. The S.C./S.T. Shipbreakers Association filed Special Civil Application No. 5509 of 2017 before the Gujarat High Court, which stayed the tender on 22.04.2017 and by judgment dated 16.04.2018 quashed the tender and directed reservation out of total plots. The appellant, a non-party, filed SLP (C) No. 27765 of 2018, which was converted into Civil Appeal No. 5609 of 2019.
Acts & Sections
- Gujarat Maritime Board (Conditions & Procedures for granting permission for Utilizing Ship Recycling Plots) Ship Recycling Regulations, 2015: 5.1, 5.2, 5.3, 5.4
- Gujarat Maritime Board (Conditions and Procedures for granting permission for Utilising Shipbreaking Plots) Regulations, 2006: 9
- Gujarat Maritime Board (Conditions and Procedure for granting permission for Utilising Shipbreaking Plots) Regulations, 1994: 9
