1960 (2) TMI 78 - HC - Indian Laws

Summary

Issues Involved:
1. Jurisdiction of the Port Trust to exercise monopoly in handling export cargo.
2. Violation of Article 19(1)(g) of the Constitution of India.
3. Validity of the resolution passed by the Port Trust Board.
4. Pecuniary interest of a trustee in the resolution.

Issue-wise Detailed Analysis:

1. Jurisdiction of the Port Trust to exercise monopoly in handling export cargo:
The main contention was whether the Port Trust had the authority under the statute to monopolize the handling of export cargo. The Court referred to Section 39 of the Madras Port Trust Act, which empowers the Board to undertake services such as receiving, removing, shifting, transporting, storing, or delivering goods within the Board's premises. The Court concluded that the Board has the power to undertake these services and exclude others from performing them within the Port's premises. The provisions of Section 39(1) and Section 95(4) of the Act, which allow the Board to make by-laws for the exclusive conduct of operations, were deemed sufficient to validate the Board's actions. The Court distinguished the case from English precedents cited by the petitioner, noting the absence of a provision similar to Section 33 of the Harbours, Docks, and Piers Clauses Act, 1847, in the Madras Port Trust Act.

2. Violation of Article 19(1)(g) of the Constitution of India:
The petitioners argued that the resolution violated their right to carry on their business under Article 19(1)(g) of the Constitution. The Court held that this right does not extend to carrying on business on another's premises without permission. Even if Article 19(1)(g) conferred such a right, Article 19(6) allows the State or a State-controlled corporation to carry on any trade, business, industry, or service to the exclusion of citizens. The Port Trust, being a State-controlled corporation, falls within this provision, and thus the resolution does not violate Article 19(1)(g).

3. Validity of the resolution passed by the Port Trust Board:
The resolution in question was challenged on the grounds that it was beyond the Board's statutory powers. The Court found that the resolution was within the Board's powers as conferred by Section 39 and Section 95(4) of the Madras Port Trust Act. The Board has the authority to undertake and exclusively conduct operations within the Port's premises. The Court also noted that the resolution did not conflict with the Sea Customs Act, which pertains to the levy of customs duties and does not grant any right to private agents to operate within the Port.

4. Pecuniary interest of a trustee in the resolution:
A minor issue was raised regarding Section 23-A of the Madras Port Trust Act, which prohibits trustees with a pecuniary interest from voting on related matters. It was argued that one trustee, being the President of the Port Trust Employees' Union, had a pecuniary interest. However, this contention was abandoned, and the Court did not find it necessary to address this issue in detail.

Conclusion:
The Court dismissed the writ petitions, holding that the Port Trust had the jurisdiction to exercise monopoly in handling export cargo within its premises, and the resolution did not violate Article 19(1)(g) of the Constitution. The resolution was found to be valid and within the statutory powers of the Board. There was no order as to costs.