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Civil · Reportable judgment

Paradip Port Authority vs Paradeep Phosphates Ltd.

Court
Supreme Court of India
Date
12 August 2025
Case No.
Civil Appeal No. 10542 of 2025
Bench
M.M. Sundresh, Rajesh Bindal
Citation
[2025] 8 S.C.R. 1695 : 2025 INSC 971
Acts & Sections
Major Port Trusts Act, 1963 Major Port Authorities Act, 2021
Supreme Court Reports [2025] 8 S.C.R. 1695 : 2025 INSC 971
Issue for consideration
The issue pertains to fixation of tariff by the Paradip Port Authority (Earlier Paradip Port Trust). Whether it would be appropriate if an expert appellate body is constituted to hear appeals against the orders passed by the adjudicatory board/Tariff Authority for Major Ports (TAMP).
Headnote

Major Port Trusts Act, 1963 – Major Port Authorities Act, 2021 – In C.A. No.10542 of 2025, an agreement was executed between the parties, namely appellant-Paradip Port Trust and respondent-Paradeep Phosphates Ltd on 03.08.1985 for use of ‘captive berth’ in terms of the conditions laid down in the Agreement – Appellant revised scale of rates for use of various facilities at the Ports – Respondent sought waiver of interest for delayed payment of certain dues from October 1993 to January 1996 – Proposal rejected by the appellant – Dispute arose between the parties – Arbitral award was passed – The Arbitrator held the appellant liable to refund the enhanced amount of port services from October 1993 till 31.03.1999 – As the period of dispute for determination for the Arbitrator was from October 1993 till 31.10.2001, for the period from 01.04.1999 till 31.10.2001, the parties were given option to approach the TAMP for resolution of their dispute – Appellate Authority upheld the arbitral award – The award and appellate order were subject matter of challenge in the Writ Petition – The High Court dismissed the petition, upholding the impugned award and the appellate order – Correctness: Held: The issues required to be considered for revision of rates applicable to the respondent for use of various facilities, have not been considered in the manner these were required to be considered – The TAMP being an independent authority consisting of experts, will be the right authority for resolution of dispute between the parties, which is pending for more than two decades – The Award of the Arbitrator, the order of the Appellate Authority and also the order passed by the High Court are set aside – Matter remitted to TAMP for adjudication of the dispute regarding revision of tariff applicable to the respondent for the period from October 1993 till 31.03.1999. [Paras 33 and 34]

Read the full headnote (2 more paragraphs)

Major Port Trusts Act, 1963 – Major Port Authorities Act, 2021 – In C.A. No. 10543 of 2025, the order dated 11.01.2023 passed by the High Court is under challenge – Before the High Court, an order passed by TAMP on 22.11.2011 was the subject matter of challenge – Vide aforesaid order, tariff proposal for the financial year 1999-2000 to 2009-10 was determined: Held: Further, once this Court set aside the award of the Arbitrator, order of the Appellate Court and also of the High Court pertaining to the revision of the tariff for the period from October 1993 to 31.03.1999, and remitted the matter to be decided by TAMP, in opinion of this Court, even the order pertaining to the period in question also deserves to be set aside as the base for revision of tariff for subsequent periods is yet to be determined – The impugned order passed by the TAMP and also the High Court are set aside – The matter is remitted to the TAMP for decision afresh along with the matter for the period prior thereto. [Paras 46, 47] Major Port Authorities Act, 2021 – Constitution of Appellate Authority:

Held: The process for fixation of tariff presently by the TAMP or the adjudicatory board, as constituted and provided for under the 2021 Act, is the job of experts in the field – Direct appeals have been provided against the order passed by the TAMP or the adjudicatory board to this Court – Section 60 of the 2021 Act provides for remedy of appeal against the order passed by the adjudicatory board to this Court – Meaning thereby, first appeal against the order passed by the adjudicatory board and at present in its absence the TAMP, would lie to this Court – It cannot be denied that fixation of tariff would involve consideration of various factual aspects, especially figures involved – This Court may not have the expertise to examine the accounts in detail for the purpose of fixation of tariff – While deciding appeal against an order of an expert body, all issues of law and fact are required to be considered – There are other similar expert bodies which are headed by technically qualified persons along with persons with knowledge of accounting and economics – Therefore, it would be appropriate if an expert appellate body is constituted to hear appeals against the orders passed by the adjudicatory board/TAMP. [Paras 48, 52, 54, 58, 60]

Keywords: Fixation of tariff · Expert appellate body · Constitution of Appellate Authority · Revision of rates applicable · Revision of tariff

As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Ankit Gyan. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.

Full Judgment Text

Judgment Rajesh Bindal, J. Table of Contents* S. No. I. II. 2. Heading Preliminary arising out of S.L.P.(C) No.9751 of 2023 Factual Aspects Arguments for the Appellant Arguments for the Respondent 5. Conclusion III. 5. IV. V. 1-3 C.A. No.____ of 2025 4. Paras Discussion 4-16 arising out of S.L.P.(C) No.9870 of 2023 Factual Aspects 2-3 3-9 9-13 13-17 28-29 19-33 C.A. No.____ of 2025 Page 17-28 29-30 Arguments for the Appellant 36-38 Discussion 40-46 33-35 Constitution of Appellate Authority 48-58 36-47 Arguments for the Respondent Conclusion Relief 1.
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