SESA SHIPPING LIMITED AND SESA GOA LIMITED Vs. BOARD OF TRUSTEES OF THE PORT OF MORMUGAO MORMUGAO HARBOUR GOA AND

JUDGEMENT

(1.) A stillborn contract, the terms of which proposed by respondent No. 1, the Board of Trustees of the Port of Mormugao (the Board for short), is a subject matter of challenge in this petition at the instance of the petitioner, who is one of the exporters engaged, inter alia, in export of iron ore. The question sought to be raised, in our view, is no longer res integra. However, much debate is raised on this question which needs determination before going to the merits of challenges set up in the petition. FACTS IN BRIEF

(2.) THE facts giving rise to the present petition in, nutshell, are as under : The First petitioner is a fully owned subsidiary company of the second petitioner, incorporated under the Companies Act, 1956. Respondent No. 1 set up a Mechanical Ore Handling Plant, a facility in the Port of Mormugao for loading of iron ore for export at Berth No. 9. The said facility is offered to the iron ore exporters. The iron ore exporters are obliged to load the vessels nominated by the foreign buyers at the said facility. However, as the iron ore exports through the Port of Mormugao increased continuously over the years, the said facility was found to be inadequate for the needs of the exporters. As a result of the low loading rate at the facility,the vessels nominated by the foreign buyers could not be loaded quickly at the said facility because of certain limitations imposed over the size of loading which resulted in causing heavy losses to the exporters by way of demurrage. The iron ore exporters from Goa, therefore, could not compete in the iron ore international market.

(3.) THE aforesaid circumstances compelled some of the iron ore exporters from Goa to acquire ocean going vessels equipped with sophisticated gear for a quicker loading of iron ore in mid-stream for the barges. Such vessels are known as transhippers. Loading of iron ore at the said facility by the transhippers is controlled and regulated by the regulations known as "mormugao Port (Shipment of Ore and Pellets from the Mechanical Ore Handling Plant at Berth No. 9 and related matters) Regulations, 1979" ("berth No. 9 Regulations" for short ).