M/S NKD MARITIME LIMITED versus THE BOARD OF TRUSTEES OF THE PORT OF MUMBAI & ORS.

Citation: [2022] 7 S.C.R. 286 · Decided: 22-09-2022 · Supreme Court of India · Bench: INDIRA BANERJEE, J.K. MAHESHWARI · Disposal: Dismissed

Judgment (excerpt)

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SUPREME COURT REPORTS
[2022] 7 S.C.R.
M/S NKD MARITIME LIMITED
v.
THE BOARD OF TRUSTEES OF THE PORT
OF MUMBAI & ORS.
(Civil Appeal No. 6858 of 2022)
SEPTEMBER 22, 2022
[INDIRA BANERJEE AND J.K. MAHESHWARI, JJ.]
Major Port Trusts Act, 1963 – ss.48-50 – Notification –
Anchorage fees – Calculation of – Appellant purchased a Vessel in
an auction conducted in a Commercial Admiralty Suit – Bill of Sale
stated that the Vessel was sold free from all encumbrances however,
the successful bidder would be liable to pay the costs, charges, fees
and expenses involved in removing the Vessel – When the appellant
was going to remove the Vessel, disputes arose inter alia w.r.t
anchorage charges claimed by respondent no.1 – Application filed
by appellant seeking directions to raise revised bills – Allowed by
Single Bench – Order set aside by Division Bench – On appeal,
held: As per notification issued by Tariff Authority for Major Port,
the anchorage fees is calculated as per the formula depending on
the period of stay of the Vessel at the harbour – Rates vary depending
on the duration for which the Vessel remains at the anchorage – In
the present case, more than 30 days had elapsed since the Vessel
had been brought to the anchorage – At the time of sale, the Vessel
was paying anchorage fees at the rate applicable when a vessel is
docked for more than 30 days – Appellant purchased the Vessel on
‘as is, where is’ basis free from encumbrances, anchorage charges
have been levied from the date of the sale – Rates were payable on
the basis of the number of days for which the Vessel was docked –
Division Bench rightly set aside the order of Single Bench –
Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017
– s.8.
Major Port Trusts Act, 1963 – s.50-B – Appellant purchased
a Vessel in an auction – Bill of Sale inter alia stated that the Vessel
was sold free from all encumbrances – Disputes arose w.r.t anchorage
charges claimed by Respondent No.1-Port Trust – It charged approx.
Rs.15,00,000/- per day on the basis that the Vessel had been docked
at the anchorage for more than 30 days which would be approx.
[2022] 7 S.C.R. 286
286
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Rs.5,00,000/- per day if the vessel were to be docked for less than
30 days – Plea of appellant that that anchorage charges fall within
the ‘port dues’ u/s.50-B, port dues not having been defined in the
Act, all charges payable within the premises of the Port fall within
the broad expression ‘port dues’ – Held : Whether port dues within
the meaning of s.50-B of the Major Port Trust Act include other
charges leviable within the port premises i.e., charges other than
Port Entry charges, is not in issue in this case – The issue was
whether the rate would be approximately Rs.5,00,000/- per day or
Rs.15,00,000/- per day.
Dismissing the appeal, the Court
HELD: In exercise of powers under Sections 48, 49 and 50
of the Major Port Trusts Act, 1963, the Tariff Authority for Major
Port (TAMP) issued a notification notifying the scales of rate for
major ports. Clause 2.15 of this notification provides a schedule
of anchorage fees. As per the said Clause, the anchorage fees is
calculated as per the formula depending on the period of stay of
the Vessel at the harbour. The rates vary depending on the
duration for which the Vessel remains at the anchorage, herein
anchorage points V-1 and Y. The rate of anchorage for a foreign
going vessel is USD $ 0.0047 GRT (Gross Registered Tonnage)
per hour or any part thereof from the first day on wards till the
30th day. If the Vessel is docked at the anchorage for over 30
days, the applicable rate beyond the 30th day is USD $ 0.0118. In
this case, the vessel was at V-1 anchorage with effect from 13th
June 2020. It is not in dispute that more than 30 days had elapsed
since the Vessel had been brought to the anchorage. At the time
of sale, the Vessel was paying anchorage fees at the rate applicable
when a vessel is docked for more than 30 days. As held by the
Division Bench, it is far-fetched to suggest that prior anchorage
was of the Vessel under sale and the rate that it attracts as a
result of such prior anchorage are in the nature of encumbrances
for the purposes of anchorage fees to be applied after the date of
Bill of Sale and till the Vessel sells at the instance of the purchaser.
As held by the Division Bench, NKD purchased the Vessel on
‘as is, where is’ basis free from encumbrances in the instant case,
anchorage charges have been le

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