SOCIEDADE DE FORMENTO INDUSTRIAL PVT. LTD. AND ORS. versus MORMUGAO DOCK LABOUR BOARD AND ANR.

Citation: [1995] 1 S.C.R. 377 · Decided: 18-01-1995 · Supreme Court of India · Bench: P.B. SAWANT · Disposal: Dismissed

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Judgment (excerpt)

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SOCIEDADE DE FORMENTO INDUSTRIAL 
A 
PVT. LTD. AND ORS. 
v. 
MORMUGAO DOCK LABOUR BOARD AND ANR. 
JANUARY 18, 1995 
B 
[P.B. SAWANT AND S.C. AGRAWAL, JJ.] 
Dock Workers (Regulation of Ernployment) Act, 1948/Mormugao Dock 
Workers (Regulation of Employment) Scheme, 196S: ss.3, 4, SA, SB/Clauses 
3(e), 3(f), 32, S4-Circulars dated 19.3.1983 issued by Mormugao Dock c 
Labour Board, increasing general levy from 200% to 400% and welfare levy 
from 30% to 60% in respect of handling by grab crane fitted ships w.e.f 
30.10.1982-Central Government according approval on 11.3.1983-Imposi-
tion of levy on the basis of notional employment-Held, is permissible under 
the Scheme-Circulars neither ultra vires Clause S4 of Scheme nor violative D 
of Article 14 of the Constitution-Prior approval of Central Government in 
terms of clause S4(3), being a condition precedent, increase in levy not to 
have retrospective operation but would operate from date of Circulars. 
Constitution of India : 
Article 14-Mormugao Dock Workers Board--lssuance of Circulars E 
dated 19.3.1983 by-Increase in general levy and welfare levy from 200% to 
400% and 30% to 60% respectively in respect of handling by grab crane fitted 
ships--Circulars challenged as being discriminatory since a higher levy was 
imposed on ocean going vessels fitted with grab cranes as compared to 
transhippers-Held, Circulars not violative of Article 14. 
F 
In order to ensure greater regularity of employment for registered 
dock workers and to secure availability of adequate number of,. 4ock 
workers to the registered employers for efficient performance of dock ~ork 
at the Port of Murmugao, Government of India, in exe~cise of its powers 
under the Dock Workers (Regulation of Employment) Act, 1948, framed G 
the Murmugao Dock Workers (Regulation of Employment) Scheme 1965. 
The scheme applied to stevedoring work and cargo handling from wharf 
to transit shed and vice verse. The category of stevedors covered by the 
Scheme were gang workers and winch drivers. The Scheme provided for 
payment of attendance allowance and disappointment money to registered H 
377 
378 
SUPREME COURT REPORTS 
[1995] 1 S.C.R. 
A workers, and prescribed that registered employers would pay to the ad-
ministrative body in such manner and at such time as the respondent-
Board, whi~h was entrusted with the responsibility of administrating the 
scheme, may direct the le"y ()ayable under Clause 54(1) of the Scheme and 
the gross wages due to daily workers. 
B 
The respondent-Board, by a resolution dated 30.10.82, decided to 
increase the percentage of general levy payable in respect of handling by 
grab craltt!s fitted to ships, from 200% to 400% on the actual payment of 
one set of winch drivers and on the notional employment of two gangs per 
hook (400% for each gang), and to enhance the welfare levy relating to the 
C above operations from 30% to 60% of the time rate wages both in respect 
of winch drivers and in respect of notional. employment of two gangs per 
hook. The Central Government approved the resolution by its order i:lated 
March 11,1983. Accordingly, the Board issued a Circular dated March 19, 
1983 increasing the general levy and the welfare levy as aforesaid, from the 
D date of the resolution, i.e. 30.10.1982. By another Circular a special levy of 
Re.1/- per tonne was imposed in respect of all cargoes manually handled 
from March 14, 1983. By a subsequent circular dated July 14, 1983 it was 
clarified that the special levy was to be calculated in respect of cargoes 
handled with the help of registered dock workers, whether gang workers 
or winch drivers. The Companies and the firms engaged in mining and 
E export of mineral ores and carrying on the business of stevedoring in 
Mormugao Harbour filed writ petitions before the High Court challenging 
the validity of the Circulars. It was contended on behalf of the petitioners 
that the circulars were violative of Article 14 of the Constitution inasmuch 
as higher levy was imposed in respect of loading of mineral ore through 
F ocean going vessels fitted with grab cranes as compared to loading of ore 
through transhippers fitted with grab cranes; and, in any event, retrospec-
tive increase in the levy was not permissible under the Scheme. The High 
Court upheld the validity of the circulars, but held that the increased levy 
and the special levy could not be realised with retrospective effect. Ag-
grieved, the writ petitio

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