PARADIP PORT AUTHORITY versus PARADEEP PHOSPHATES LTD.

Citation: [2025] 8 S.C.R. 1695 · Decided: 12-08-2025 · Supreme Court of India · Bench: M.M. SUNDRESH

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Judgment (excerpt)

[2025] 8 S.C.R. 1695 : 2025 INSC 971
Paradip Port Authority  
v. 
Paradeep Phosphates Ltd.
(Civil Appeal No. 10542 of 2025)
12 August 2025
[M.M. Sundresh and Rajesh Bindal,* JJ.]
Issue for Consideration
The issue pertains to fixation of tariff by the Paradip Port Authority 
(Earlier Paradip Port Trust). Whether it would be appropriate if an 
expert appellate body is constituted to hear appeals against the 
orders passed by the adjudicatory board/Tariff Authority for Major 
Ports (TAMP).
Headnotes†
Major Port Trusts Act, 1963 – Major Port Authorities Act, 
2021 – In C.A. No.10542 of 2025, an agreement was executed 
between the parties, namely appellant-Paradip Port Trust 
and respondent-Paradeep Phosphates Ltd on 03.08.1985 for 
use of ‘captive berth’ in terms of the conditions laid down in 
the Agreement – Appellant revised scale of rates for use of 
various facilities at the Ports – Respondent sought waiver of 
interest for delayed payment of certain dues from October 
1993 to January 1996 – Proposal rejected by the appellant – 
Dispute arose between the parties – Arbitral award was 
passed – The Arbitrator held the appellant liable to refund 
the enhanced amount of port services from October 1993 till 
31.03.1999 – As the period of dispute for determination for 
the Arbitrator was from October 1993 till 31.10.2001, for the 
period from 01.04.1999 till 31.10.2001, the parties were given 
option to approach the TAMP for resolution of their dispute – 
Appellate Authority upheld the arbitral award – The award and 
appellate order were subject matter of challenge in the Writ 
Petition – The High Court dismissed the petition, upholding 
the impugned award and the appellate order – Correctness:
Held: The issues required to be considered for revision of rates 
applicable to the respondent for use of various facilities, have 
* Author
1696
[2025] 8 S.C.R.
Supreme Court Reports
not been considered in the manner these were required to be 
considered – The TAMP being an independent authority consisting 
of experts, will be the right authority for resolution of dispute between 
the parties, which is pending for more than two decades – The 
Award of the Arbitrator, the order of the Appellate Authority and 
also the order passed by the High Court are set aside – Matter 
remitted to TAMP for adjudication of the dispute regarding revision 
of tariff applicable to the respondent for the period from October 
1993 till 31.03.1999. [Paras 33 and 34] 
Major Port Trusts Act, 1963 – Major Port Authorities Act, 
2021 – In C.A. No. 10543 of 2025, the order dated 11.01.2023 
passed by the High Court is under challenge – Before the High 
Court, an order passed by TAMP on 22.11.2011 was the subject 
matter of challenge – Vide aforesaid order, tariff proposal for 
the financial year 1999-2000 to 2009-10 was determined:
Held: Further, once this Court set aside the award of the Arbitrator, 
order of the Appellate Court and also of the High Court pertaining 
to the revision of the tariff for the period from October 1993 to 
31.03.1999, and remitted the matter to be decided by TAMP, in 
opinion of this Court, even the order pertaining to the period in 
question also deserves to be set aside as the base for revision 
of tariff for subsequent periods is yet to be determined – The 
impugned order passed by the TAMP and also the High Court are 
set aside – The matter is remitted to the TAMP for decision afresh 
along with the matter for the period prior thereto. [Paras 46, 47]
Major Port Authorities Act, 2021 – Constitution of Appellate 
Authority:
Held: The process for fixation of tariff presently by the TAMP or 
the adjudicatory board, as constituted and provided for under 
the 2021 Act, is the job of experts in the field – Direct appeals 
have been provided against the order passed by the TAMP or 
the adjudicatory board to this Court – Section 60 of the 2021 Act 
provides for remedy of appeal against the order passed by the 
adjudicatory board to this Court – Meaning thereby, first appeal 
against the order passed by the adjudicatory board and at present 
in its absence the TAMP, would lie to this Court – It cannot be 
denied that fixation of tariff would involve consideration of various 
factual aspects, especially figures involved – This Court may 
[2025] 8 S.C.R. 
1697
Paradip Port Authority v. Paradeep Phosphates Ltd.
not have the expertise to examine the accounts in detail for the 
purpose of fixation of tariff – While deciding appeal against

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