RAMNIWAS CHOWDHURY & ORS. Vs. UNION OF INDIA

JUDGEMENT

(1.) On 23rd May, 1984 two writ applications were moved by one Ramniwas Chaudhury, a ship breaker challenging the guidelines dated 20th Sept., 1982 issued by the Metal Scrap Trading Corporation Limited (hereinafter referred to as MSTC) to regulate the sale of inter alia Indian Flag vessels for scrapping, the alleged failure and/or refusal to grant "no objection certificate" by MSTC and the alleged failure of Scindia Steam Navigation Company Limited (for the sake of brevity hereinafter referred to as Scindia) to complete the deal in regard to sale of two vessels namely M. V. Jalatarang and M. V. Jalagirija belonging to Scindia. Two several writ applications have been made, one in respect of M. V. Jalatarang and the other in respect of M. V. Jalagirija. The contentions raised in the said two writ applications are identical and are disposed of by one common order.

(2.) The facts and circumstances mentioned in the said writ petitions are stated hereinafter. On or about 14th March, 1984 Scindia advertised in the Times of India for sale of M. V. Jalatarang 'as is where is basis' for further trading. An advertisement was also inserted on 20th Dec., 1983 by Scindia in the Statesman for sale of M. V. Jalagirija for plying purpose subject to the permission of the Government of India. In the case of sale of M. V. Jalatarang no time limit was fixed for receiving the offers but in the case of M. V. Jalagirija, 31st Dec., 1983 was fixed as the last date for receiving the offers.

(3.) By two several letters dated 20th April, 1984 the writ petitioner intimated Scindia that he intended to purchase the aforesaid two vessels, namely, M. V. Jalatarang at a price of Rs. 80 lakhs and M. V. Jalagirija at a price of Rs. 70 lakhs for scrapping purpose only. He would also pay the usual custom duty based on international trade price and also 4% charges payable to MSTC subject, inter alia, to the permission from the Director General of Shipping and "No Objection Certificate" from MSTC.