DELTA ENGINEERS Vs. STATE OF GOA

JUDGEMENT

(1.) The appellant runs a barge repair workshop on a private land at Oudossim, Cortalim on the banks of river Zuari within the jurisdiction of Panaji Port. According to the appellant, there are two types of barge workshops : one is dry dock workshop, and the second is where the barges anchored in the river alongside the workshop are repaired. Appellants workshop falls under the second category as it undertakes repair of barges only when the barge is floating above the waterline. About 1300 sq. mtrs. of the river area adjoining the workshop is used by the anchored barge under repair. The Zuari being a tidal river, the water level therein recedes during low tide and rises back during high tide. Consequently, the barge under repair moored alongside the river bank, would settle on the riverbed during low tide and rise with the water during high tide.

(2.) Appellant opened its workshop in the year 1983, after securing a NOC dated 25.7.1983 from the Captain of Ports, Government of Goa. The said NOC was renewed every year. On 29.8.1989, the appellant sought an amendment to NOC seeking permission to manufacture fishing trawlers etc. The Captain of Ports sent a reply dated 15.11.1989 calling upon the appellant to settle the outstanding dues (rental charges for use of river area adjoining the workshop) before considering the request for issue of a modified NOC. Appellant replied on 27.11.1989 stating that it was not using any Government land to repair barges, and all its activities were carried on within its own plot and, therefore, the question of any dues did not arise. Some years later, the Captain of Ports issued a show cause notice dated 15.5.1992 alleging that the appellant was using Government riverine land for the workshop without paying the prescribed rental charges, in spite of demand letter dated 15.11.1989, and therefore, the appellant should show cause why the NOC issued to it on 25.7.1983 for setting up the workshop, which was being renewed every year, should not be revoked or withdrawn for non-payment of the outstanding rental charges for use of the Government riverine land from 1983. The demand was reiterated on 13.7.1992. By letter dated 1.11.1993, the Captain of Ports informed the appellant that unless there was compliance with the demand, action will be taken to revoke the NOC and evict the appellant. In view of the said threat, the appellant, without prejudice to its rights and under protest, sent a payment of Rs.1,45,000/- on 25.9.1995 stating that the amount paid was calculated with reference to the use of 1000 sq.m. of river area.

(3.) The appellant filed W.P. No.131/1996 contending that it was not liable to pay any rent and the demand was illegal. It challenges the validity of the amendments to Goa, Daman and Diu Port Rules, 1983, providing for payment of rental charges. Alternatively, it contended that even if the said Amendment Rules were 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 prayed (a) for a declaration that the Goa Ports (Amendment) Rules, 1992 and Rule 54-A of the Goa Ports (Amendment) Rules, 1994 were ultra vires the Indian Ports Act, 1908; (b) for quashing the demand for rental charges by letter dated 1.11.1993; and (c) for a direction to the respondents to refund the amounts paid by appellant towards rental dues.