M/S. DELTA ENGINEERS versus STATE OF GOA & ORS.

Citation: [2009] 10 S.C.R. 1 · Decided: 22-04-2009 · Supreme Court of India · Bench: R.V. RAVEENDRAN · Disposal: Case Partly allowed

Judgment (excerpt)

.. 
[2009] 10 S.C.R. 1 
M/S. DELTA ENGINEERS 
v. 
STATE OF GOA & ORS. 
(Civil Appeal No. 5510 of 2001) 
APRIL 22, 2009 
[i::t.V. RAVEENDRAN AND LOKESHWAR SINGH 
PANTA, JJ.] 
A 
B 
Goa, Daman and Diu Port Rules, 1983.:.. rr.2(ff) and 54A; 
First Schedule, Entry 21(4)(A-iv)..., Goa, Daman and Diu Ports C 
(Amendment) Rules, 1992 - Goa, Daman and Diu Ports 
(Amendment) Rules, 1994 - Amendments in 1992 and 1994 
relating to levy of rental charges for use of government riverine 
land - Challenge to - Power and authority of Port Authorities 
to demand and recover rental charges for use of government o 
riverine land, even before the amendment i.e. with 
retrospective effect - Held: The concerned amendment of 
Entry 21(4)(A-iv) in the First Schedule, and insertion of rules 
54A and 2(ff) by the Amendment Rules, 1992 and the 
Amendment Rules, 1994 respectively, are valid -
E 
Respondents however could not demand or recover any 
amount for use and occupation of govern"!ent riverine land 
for the period prior to 3.3.1994 when the 1994 amendment to 
the Rules came into force - Indian Ports Act, 1908. 
Appellant, which was running a barge repair F 
workshop on private land on the banks of river Zuari 
within jurisdiction of Panaji Port, was called upon by the 
port authorities to pay rental charges for use of river area 
adjoining the workshop. In response, appellant stated that 
it was not using any government land to repair barges, G 
and all its activities were carried on within its own plot and 
therefore the demand was illegal. 
Subsequently, the appellant filed writ petition 
1 
H 
2 
SUPREME COURT REPORTS 
(2009] 10 S.C.R. 
A contending that it was not liable to pay any rental charges 
and the demand was illegal and challenged the validity 
of the amendments to Goa, Daman & Diu Port Rules, 
1983, providing for payment of rental charges. 
Alternatively, it contended that even if the said 
B Amendment Rules W4~re valid and there was any liability 
under the said Rules, the rental charges would be 
payable only from 3.3.1994 when the 1994 amendment to 
the said rules came into force. It therefore inter alia prayed 
for a declaration that the Goa Ports (Amendment) Rules, 
c 1992 and Rule 54A o1f the Goa Ports (Amendment) Rules, 
1994 were ultra vires the Indian Ports Act, 1908 and for 
quashing the demand for rental charges. 
The High Court lheld that the challenge was only to 
the 1992 and 1994 amendments and not to the 
D unamended Goa, Daman and Diu Port Rules, 1983; that 
the Port Authorities were entitled to levy rental charges 
on 'open land' from the date when the said Rules came 
into force (on 5.4.1984), under Rule 64 read with Entry 
21(4)(A-iv) in the First Schedule of the said Rules; that the 
E term 'open land' included riverine land and the 
amendments to the rules in 1992 and 1994 merely clarified 
the said pre-existing position; and that as the power to 
levy rental charges was not created for the first time 
under the 1992 or 'I 994 amendment to the rules, but 
F existed even under tlhe unamended rules which were not 
challenged, the appellant could not avoid liability to pay,-
the rental charges demanded and accordingly dismissed 
the writ petition filed by the appellant. 
G 
In appeals to this Court, the questions which arose 
for consideration were whether the appellant, whose 
workshop is situated on the banks of river Zuari, used 
government riverine land; whether the amendments to 
the Goa, Daman and Diu Port Rules, 1983, by the 
H Amendment Rules, 1992 and 1994, relating to levy of 
DELTA ENGINEERS v. STATE OF GOA & ORS. 
3 
rental charges for the use of government riverine land is A 
ultra vires the provisions of the Indian Ports Act, 1908; 
whether the Goa, Daman and Diu Ports Rules, 1983 
confers authority on the Port Authorities to demand and 
recover rental charges for the use of government riverine 
land, even before the amendment by the Amendment B 
Rules of 1992 and 1994 and whether the Port Authorities 
have the power and authority to claim rental charges for 
the use of government riverine land, retrospectively for 
the period 5.4.1984 to 3.3.1994. 
Partly allowing the appeals, the Court 
c 
HELD:1.1. The Indian Ports Act,1908 applies to Panaji 
Port. The workshop of appellant falls within the port limits 
of Panaji Port, in view of the extended definition of the 
i 
word 'port' in Ports Act and the notification dated D 
29.11.1967 defining the areas falling within Panaji Port. 
The barge/boa

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