GUJARAT MARITIME BOARD Vs. HK DAVE PVT.LTD.

JUDGEMENT

(1.) Present appeal under Sec. 96 of the Code of Civil Procedure, 1908 (for short, " the C.P.C ."), at the instance of the appellants herein - original defendants Nos.2 and 3, is directed against the judgment and decree dated 30 th April 1998 passed by the learned Civil Judge (Senior Division), Bhavnagar in Special Civil Suit No.33 of 1995, whereby the suit filed by the respondents herein - original plaintiffs Nos.1 and 2 has been allowed by directing the defendants, inter alia, to pay Rs.20,43,308.68 together with interest @ 12% by holding Traffic Circular No.90 dtd. 29/10/1985 as illegal. The defendants further have been permanently restrained from implementing the said circular against the plaintiff - company.

(2.) The plaintiff is engaged in the business of stevedores, lending, clearing and forwarding cargo and goods. The original defendant No.2 is constituted under the provisions of the Gujarat Maritime Board Act, 1981 (for short, "the Act, 1981") and thereby, vested with powers to frame the scale of rates for the purpose of imposing of recovery of rates and ports as per the provisions of the Act, 1981. The defendant No.2 issued circular No.90 dated 29 th October 1985 in respect of assessment of lighterage charges in case of supplementing private barge along with port barges bulk cargo handling. The plaintiffs, being aggrieved by the aforesaid circular, filed the suit mainly on the ground that the defendant No.2 has not authority or power to issue such circular and that no procedure has been followed and there is no approval or sanction of the State Government. The plaintiffs, thus, by way of suit, sought excess levy in terms of refund of Rs.20,43,308.68.

(3.) The defendants contested the said suit by fling written statement at Exhibit : 17 raising various grounds such as challenge to the circular is not within three years from the date of issuance, hence, the suit is time barred. The suit is not maintainable in absence of statutory notice under Sec. 107 of the Act, 1981. The circular in question has been issued within the powers competence and thereby, fully legal and enforceable and that requisite procedure prescribed under the Act, 1981 has been followed.