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Civil · Reportable judgment

M/s. R. K. Industries (Unit-Ii) LLP vs S.C/S.T Shipbreakers Association & Ors.

Court
Supreme Court of India
Date
16 July 2019
Case No.
Civil Appeal No.5609 of 2019
Result
Allowed
Bench
R.F. Nariman, Sanjiv Khanna, Surya Kant
Citation
[2019] 10 S.C.R. 295 : 2019 INSC 768
Supreme Court Reports [2019] 10 S.C.R. 295 : 2019 INSC 768
Headnote

Gujarat Maritime Board (Conditions and Procedures for Granting Permission for Utilizing Ship Recycling Plots) Ship Recycling Regulations, 2015:

Clause 5.4 – Allocation of plots for reserved categories – Whether reservation to be given out of the total plots or only out of the plots that were sought to be auctioned – Held: If clause 5.4 is interpreted keeping in view the context of Clauses 5.1 and 5.2, the expression “the plots” contained in clause 5.4 has reference only to plots that are sought to be auctioned – Therefore, reservation is to take place out of the plots sought to be auctioned and not out of the total plots.

Allowing the appeal, the Court

HELD: 1. The marginal note of clause 5.4 of the Gujarat Maritime Board (Conditions and Procedures for Granting Permission for Utilizing Ship Recycling Plots) Ship Recycling Regulations, 2015 indicates the drift of the provision as “Allocation for the reserved categories”. If one would ask the question as to what is to be allocated, the answer is to be found in clause 5.1 and 5.2. What is to be allocated, therefore, is only plots which are newly developed; plots which are already vacant; and plots which have fallen vacant on account of cancellation/termination of the permission. Clause 5.2 is even more explicit in its language. In that it states “All such plots” are to be auctioned. Once clause 5.4 is interpreted keeping in view the context of clauses 5.1 and 5.2, it is obvious that the expression “the plots” contained in clause 5.4 has reference only to plots that are to be auctioned, which are mentioned in clauses 5.1 and

5.2. Once this is so, the expression “plots” must take colour from the context in which it is placed. Indeed, the definition clause is itself expressly subject to context to the contrary. Therefore, the opinion of the High Court that reservation is to take place only out of the total plots and not the plots to be auctioned, cannot be agreed to. [Paras 16, 17 and 18] [302-D-G]

Read the full headnote (1 more paragraph)

2. In the case of reservation of vacant plots of a smaller number that are put to auction, it is for the Board to work the reservation policy contained in the 2015 Regulations in a nonarbitrary fashion, giving effect to reservation. The judgment of the High Court is set aside. However, it is made clear that there being no challenge by any General candidate to the reservation made out of the eight plots of six plots in favour of SC and ST candidates, this reservation will continue only for the purpose of the auction of eight plots. All future tenders/auctions will abide by the interpretation given in this judgment. [Para 18][303-A-B]

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.

Full Judgment Text

The Judgment of the Court was delivered by R. F. NARIMAN, J. 1. Leave granted. 2. The challenge in the instant appeal is by a person who was not a party before the High Court. The reason why we have heard Mr. Shekhar Naphade, learned senior counsel appearing on behalf of the appellant, and why we have given his client leave to appeal, is only to set right the interpretation to The Gujarat Maritime Board (Conditions & Procedures for granting permission for Utilizing Ship Recycling Plots) SHIPBREAKERS ASSOCIATION & ORS. [R.F. NARIMAN, J.] Ship Recycling Regulations, 2015 (hereinafter referred
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