Major Port Trusts Act, 1963 – ss.48-50 – Notification – Anchorage fees – Calculation of – Appellant purchased a Vessel in an auction conducted in a Commercial Admiralty Suit – Bill of Sale stated that the Vessel was sold free from all encumbrances however, the successful bidder would be liable to pay the costs, charges, fees and expenses involved in removing the Vessel – When the appellant was going to remove the Vessel, disputes arose inter alia w.r.t anchorage charges claimed by respondent no.1 – Application filed by appellant seeking directions to raise revised bills – Allowed by Single Bench – Order set aside by Division Bench – On appeal, held: As per notification issued by Tariff Authority for Major Port, the anchorage fees is calculated as per the formula depending on the period of stay of the Vessel at the harbour – Rates vary depending on the duration for which the Vessel remains at the anchorage – In the present case, more than 30 days had elapsed since the Vessel had been brought to the anchorage – At the time of sale, the Vessel was paying anchorage fees at the rate applicable when a vessel is docked for more than 30 days – Appellant purchased the Vessel on ‘as is, where is’ basis free from encumbrances, anchorage charges have been levied from the date of the sale – Rates were payable on the basis of the number of days for which the Vessel was docked – Division Bench rightly set aside the order of Single Bench – Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017 – s.8.
Major Port Trusts Act, 1963 – s.50-B – Appellant purchased a Vessel in an auction – Bill of Sale inter alia stated that the Vessel was sold free from all encumbrances – Disputes arose w.r.t anchorage charges claimed by Respondent No.1-Port Trust – It charged approx. Rs.15,00,000/- per day on the basis that the Vessel had been docked at the anchorage for more than 30 days which would be approx. Rs.5,00,000/- per day if the vessel were to be docked for less than
30 days – Plea of appellant that that anchorage charges fall within the ‘port dues’ u/s.50-B, port dues not having been defined in the Act, all charges payable within the premises of the Port fall within the broad expression ‘port dues’ – Held : Whether port dues within the meaning of s.50-B of the Major Port Trust Act include other charges leviable within the port premises i.e., charges other than Port Entry charges, is not in issue in this case – The issue was whether the rate would be approximately Rs.5,00,000/- per day or Rs.15,00,000/- per day.
Dismissing the appeal, the Court
HELD: In exercise of powers under Sections 48, 49 and 50 of the Major Port Trusts Act, 1963, the Tariff Authority for Major Port (TAMP) issued a notification notifying the scales of rate for major ports. Clause 2.15 of this notification provides a schedule of anchorage fees. As per the said Clause, the anchorage fees is calculated as per the formula depending on the period of stay of the Vessel at the harbour. The rates vary depending on the duration for which the Vessel remains at the anchorage, herein anchorage points V-1 and Y. The rate of anchorage for a foreign going vessel is USD $ 0.0047 GRT (Gross Registered Tonnage) per hour or any part thereof from the first day on wards till the 30th day. If the Vessel is docked at the anchorage for over 30 days, the applicable rate beyond the 30th day is USD $ 0.0118. In this case, the vessel was at V-1 anchorage with effect from 13th June 2020. It is not in dispute that more than 30 days had elapsed since the Vessel had been brought to the anchorage. At the time of sale, the Vessel was paying anchorage fees at the rate applicable when a vessel is docked for more than 30 days. As held by the Division Bench, it is far-fetched to suggest that prior anchorage was of the Vessel under sale and the rate that it attracts as a result of such prior anchorage are in the nature of encumbrances for the purposes of anchorage fees to be applied after the date of Bill of Sale and till the Vessel sells at the instance of the purchaser. As held by the Division Bench, NKD purchased the Vessel on ‘as is, where is’ basis free from encumbrances in the instant case, anchorage charges have been levied from the date of the sale. The rates were payable on the basis of the number of days for which the Vessel was docked. Under Section 50-B, when a Vessel enters a port but does not discharge or take in any cargo or passengers, she is charged with port dues at a rate to be determined by the Authority, which, in any event, should not exceed half the rate with which she otherwise would be chargeable. Whether port dues within the meaning of Section 50-B of the Major Port Trust Act include other charges leviable within the port premises, i.e., charges other than Port Entry charges is not in issue in this case as held by the Division Bench. The issue was whether the rate would be approximately Rs.5,00,000/- per day or Rs.15,00,000/- per day. The Division Bench rightly allowed the appeal and set aside the order of the Single Bench. [Paras 13, 14, 23-25][290-E-H; 291-A; 294-C-G]
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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