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Supreme Court of India

M/S. DELTA ENGINEERSversusSTATE OF GOA & ORS.

Citation
2009 INSC 578
Decided
22 April 2009
Disposal
Case Partly allowed

Holding

The amendment rules are valid, but the power to levy rental charges on government riverine land is effective only from 3 March 1994, and no demand can be made for the period prior to that date.

Summary

The Supreme Court examined whether a barge‑repair workshop operating on private land along the Zuari River used government riverine land and could be charged rent by the Panaji Port Authority. The Court held that the workshop did use riverine land, which falls within the definition of a "landing place" and is subject to port regulation. Amendments to the Goa, Daman and Diu Ports Rules in 1992 and 1994 were upheld as valid exercises of the rule‑making power under the Indian Ports Act, 1908. However, the power to levy rental charges on government riverine land only became effective from 3 March 1994, the date of the 1994 amendment. Consequently, the Port Authority could not demand or recover any rent for the period before that date, and any amounts collected earlier must be refunded with interest or adjusted. The appeals were partly allowed, confirming the validity of the amendments but limiting their retrospective effect.

Issues considered

  • Whether the appellant's workshop used government riverine land.
  • Whether the 1992 and 1994 amendments to the Goa, Daman and Diu Ports Rules are ultra vires the Indian Ports Act, 1908.
  • Whether the original 1983 Port Rules conferred authority to levy rental charges for riverine land before the amendments.
  • Whether the Port Authority could retrospectively claim rental charges for the period 5 April 1984 to 3 March 1994.

Legislation cited

Subjects

rental chargesgovernment riverine landport authorityretrospective legislationIndian Ports Actrule‑making powerultra viresrefundestoppel

Judgment

                          [2009] 10 S.C.R. 1


                      M/S. DELTA ENGINEERS                          A
                                   v.
                       STATE OF GOA & ORS.
                   (Civil Appeal No. 5510 of 2001)
                           APRIL 22, 2009
                                                                    B
         [i::t.V. RAVEENDRAN AND LOKESHWAR SINGH
                           PANTA, JJ.]

            Goa, Daman and Diu Port Rules, 1983.:.. rr.2(ff) and 54A;
      First Schedule, Entry 21(4)(A-iv)..., Goa, Daman and Diu Ports C
      (Amendment) Rules, 1992 - Goa, Daman and Diu Ports
      (Amendment) Rules, 1994 - Amendments in 1992 and 1994
     relating to levy of rental charges for use of government riverine
     land - Challenge to - Power and authority of Port Authorities
     to demand and recover rental charges for use of government     o
     riverine land, even before the amendment i.e. with
     retrospective effect - Held: The concerned amendment of
     Entry 21(4)(A-iv) in the First Schedule, and insertion of rules
     54A and 2(ff) by the Amendment Rules, 1992 and the
     Amendment Rules, 1994 respectively, are valid - E
     Respondents however could not demand or recover any
     amount for use and occupation of govern"!ent riverine land
..   for the period prior to 3.3.1994 when the 1994 amendment to
     the Rules came into force - Indian Ports Act, 1908.

         Appellant, which was running a barge repair F
     workshop on private land on the banks of river Zuari
     within jurisdiction of Panaji Port, was called upon by the
     port authorities to pay rental charges for use of river area
     adjoining the workshop. In response, appellant stated that
     it was not using any government land to repair barges, G
     and all its activities were carried on within its own plot and
     therefore the demand was illegal.

         Subsequently, the appellant filed writ petition
                                  1                                 H
    2       SUPREME COURT REPORTS             (2009] 10 S.C.R.


A contending that it was not liable to pay any rental charges
  and the demand was illegal and challenged the validity
  of the amendments to Goa, Daman & Diu Port Rules,
  1983, providing for payment of rental charges.
  Alternatively, it contended that even if the said
B Amendment Rules W4~re valid and there was any liability
  under the said Rules, the rental charges would be
  payable only from 3.3.1994 when the 1994 amendment to
  the said rules came into force. It therefore inter alia prayed
  for a declaration that the Goa Ports (Amendment) Rules,
c 1992 and Rule 54A o1f the Goa Ports (Amendment) Rules,
  1994 were ultra vires the Indian Ports Act, 1908 and for
  quashing the demand for rental charges.

       The High Court lheld that the challenge was only to
  the 1992 and 1994 amendments and not to the
D unamended Goa, Daman and Diu Port Rules, 1983; that
  the Port Authorities were entitled to levy rental charges
  on 'open land' from the date when the said Rules came
  into force (on 5.4.1984), under Rule 64 read with Entry
  21(4)(A-iv) in the First Schedule of the said Rules; that the
E term 'open land' included riverine land and the
  amendments to the rules in 1992 and 1994 merely clarified
  the said pre-existing position; and that as the power to
  levy rental charges was not created for the first time
  under the 1992 or 'I 994 amendment to the rules, but
F existed even under tlhe unamended rules which were not
  challenged, the appellant could not avoid liability to pay,-
  the rental charges demanded and accordingly dismissed
  the writ petition filed by the appellant.

G     In appeals to this Court, the questions which arose
  for consideration were whether the appellant, whose
  workshop is situated on the banks of river Zuari, used
  government riverine land; whether the amendments to
  the Goa, Daman and Diu Port Rules, 1983, by the
H Amendment Rules, 1992 and 1994, relating to levy of
                 DELTA ENGINEERS v. STATE OF GOA & ORS.               3

              rental charges for the use of government riverine land is   A
              ultra vires the provisions of the Indian Ports Act, 1908;
              whether the Goa, Daman and Diu Ports Rules, 1983
              confers authority on the Port Authorities to demand and
              recover rental charges for the use of government riverine
              land, even before the amendment by the Amendment            B
              Rules of 1992 and 1994 and whether the Port Authorities
              have the power and authority to claim rental charges for
              the use of government riverine land, retrospectively for
              the period 5.4.1984 to 3.3.1994.

                  Partly allowing the appeals, the Court                  c
                   HELD:1.1. The Indian Ports Act,1908 applies to Panaji
              Port. The workshop of appellant falls within the port limits
              of Panaji Port, in view of the extended definition of the
      i       word 'port' in Ports Act and the notification dated D
              29.11.1967 defining the areas falling within Panaji Port.
              The barge/boat repair workshop of appellant, situated on
              the bank of river Zuari used exclusively, portion of the
              river adjoining the workshop for berthing/beaching/
              mooring the barges/boats which came for repairs. The E
              barges/boats that were repaired in appellant's workshop
              were moored (that is made fast by attaching a cable or
              rope to a fixed object on the shore or the bank of the
              river) along side the workshop during high tides. The
              barges/boats would settle down on riverbed during low F
              tide. The barges/boats remained moored for periods
              extending from few hours to even a few weeks,
              depending upon the extent and nature of repairs to be
              carried out. Consequently, that portion of the river
              surface (during high tides) and riverine land (during low
                                                                           G
              tides) alongside the workshop could not be used by
          f
              anyone else for berthing, mooring, anchoring, or
...           navigating. Thus, a portion of the river and the riverbed
              below, belonging to the government, alongside the
              appellant's workshop was regularly and exclusively used
                                                                           H
    4        SUPREME COURT REPORTS             [2009] 10 S.C.R.


A by the appellant for the mooring of barges/boats which
  come for repairs. If several such areas of the river
  adjoining the banks were demarcated and put to
  exclusive use by private workshops and Boat operators
  without any regulation, it will affect the river traffic,
B navigation and mooring of vessels in the river. The port
  authorities have to ensure that no structures are erected
  in the river, that rivernine land is not encroached, that
  siltation does not occur, and that there is no pollution by
  workshops or industries situated on the banks of the
c river. All these are incidental to the permission given by
  the port authorities to operate a workshop by berthing
  barges and other vessels in the river, alongside the
  workshop and carry out and undertake repairs. [Para 15)
  (22-B-H; 23-A]
D         1.2. The term 'landing place' is not defined in the
     Indian Ports Act, 1908 or the Goa, Daman & Diu Port
     Rules, 1983. 'Landing place' refers to a place on a river
     or other navigable water for loading and unloading of
     goods, or for receiving and delivering of passengers. The
E    term 'landing place' is used in this sense in Rules 34, 38,
     40, 41, 42, 54 and 55 of the Port Rules. But the term
     'landing place' would refer not only to places earmarked
     or designated or specified as 'landing places', but to any
    and every place which is used as a landing place.
F   Berthing of barges and other vessels in the river,
    alongside the workshop, for repairs would mean that
    there will be regular movement of men and material from
    the berthed vessel to the workshop and vice versa. Any
    area with a prepared berth in which craft can lie, can
G   properly be described as a landing place. In effect,
    therefore, the river side of every warehouse or workshop
    on the banks of a river, which has a prepared berth in
    which vessels/craft can lie, with facilities for unloading or
    loading of men and material, will be a landing space,
H   though not a designated landing place. The river surface
       DELTA ENGINEERS v. STATE OF GOA & ORS.                  5

    (during high water period) and river bed (during low water A
    period) alongside the workshop, belonging to the
    government will also b~ a part of such landing place/
    workshop. A boat/barge repairing workshop situated on
    the river bank, can therefore, be said to be using the
    government riverine land. [Para 16] [23-8-F]               B
        Black's Law Dictionary and Stroud's Judicial Dictionary,
    referred to.

         2.1. Section 6 of the Act enables the Government to
    make rules in respect of the several matters enumerated c
    therein. This includes regulation of the time and hours at
    and during which, the speed at which, and the manner
    and conditions in and on which, vessels generally or
    vessels of any class defined in the rules, may enter, leave
1   or move in any port; regulation of the berths, stations and D
    anchorages to be occupied by vessels in any such port;
    regulation of vessels whilst taking-in or discharging
    passengers, ballast or cargo, or any particular kind of
    cargo, in any such port; regulation of the manner in which
    oil or water mixed with oil can be discharged in any such E
    port; regulation of traffic and maintaining free passages
    of such width as may be deemed necessary within any
    such port and along or near to the piers, jetties, landing
    places, wharves, quays, dock moorings and other works
    in or adjoining to the same; regulation of anchoring,
                                                                    F
    fastening, mooring and un-mooring of vessels in the port;
    regulation of the moving and warping of all vessels within
    any such port and the use of warps therein; regulation
    of the use of the mooring buoys, chains and other
    moorings in the port; regulation of the iJse of piers, jetties,
                                                                    G.
    landing places, wharves, quays, warehouses and sheds
1   belonging to the Government and fixation of the rates to
    be paid for the use of any port facility or any part of the
    port. It is thus clear that the scope and ambit of
    supervision and control of the port authorities under the
                                                                   ~:
     6        SUPREME COURT REPORTS            [2009] 10 S.C.R.


A Ports Act in regard to areas declared as ports, is very
  wide. Section 6(jj} of the Act, in particular, enables the
  State Government to make rules for regulating the use
  of landing places, piers, jetties, wharves, quays,
  warehouses and sheds belonging to the Government
B and fixing the rates to be paid for the use of the same.
  [Para 17] [23-G-H; 24-A-E]

          2.2.lt is no doubt true that the landing place in the
     usual sense refers to the river bank alongside the river
     used for loading/unloading or embarking/ disembarking
C    and not any portion of the river itself. But where the bank
     of the river used for the workshop is a private land, and
     the area of river adjoiining such workshop (or riverine
     land alongside the workshop) where the vessel is moored
     and remains floating during high water period or settles
C>   on the riverbed during low water period, is also a part of
     the landing place. When the entire river and the riverbed
     belong to the government and is under the control of port
     authorities, and when exclusive use of a part of such river
     area/riverine land adjoining the river bank is permitted by
E    the port authorities, they can demand a fee for such
     regular or exclusive use, whether such use is continuous
     and intermittent. The right or authority to demand such
     charges can also be traced to the right to regulate the
     use of the port area. The port area includes the waters
F    of the river and the riverine land. The State is therefore
     empowered to make rules regulating the use of the river
     surface/riverine land alongside the workshop and also
     prescribe a rental charge for such use. [Para 18) [24-F-
     H; 25-A-B)
G         2.3.The 1992 amendment and the 1994 amendment
     to the Goa, Daman and Diu Ports Rules, 1983 which
     enable the Port Authorities to levy, charge and recover
     a fee or charge for using open Government riverine land
     from the person who is permitted to use such
H
        DELTA ENGINEERS v. STATE OF GOA & ORS.               7


     Government riverine land is within the rule making power . A
     of the State, and cannot therefore be said to be ultra vi res
     the rules making power under the Act. [Para 19] [25-F-G]

           2.4. In fact, even without specific rules, the port
     authorities in exercise of domain over riverine land and
                                                                  B
     the river, could object to or prohibit the exclusive mooring
     by vessels which call at the workshop. The port
     authorities can also enter into an arrangement of lease/
     licence with the users of such riverine land/demarcated
     river surface alongside the workshop or establishment.
     But in the absence of specific rules and in the absence C
     of stipulation of any special condition when granting
     permission, the persons permitted to have their
     establishment on private land on the banks of the river
     (falling within the port area), could well presume that the
     permission to have their establishment, included implied D
     permission to use the river:;1e land/river alongside their
     establishments. [Para 20] [25-H; 26-A-CJ

        State of Rajasthan vs. Municipal Board, Allahabad 1992
     Supp (3) sec 91, relied on.                                 E

          3.1. The term 'government riverine land' is defined

_,   under Rule 2(ff} inserted with effect from 3.3.1994. It refers
     to any land within fifty yards of high water mark (subject .
     to any right to private property therein) including (a) any
     land falling within high water mark; (b) any land falling F
     without (or alongside) the high water mark; (c) any
     portion of a shore or a bank. Even river bed which is
     covered by water during the high water period, and
     exposed during the low water period, is therefore riverine
     land. In fact several enactments have defined land G
     submerged in water as 'land' for the purposes of those
     enactments. Therefore, there is no reason why land or
     river bed which is covered by water during only a part of
     the day and exposed to the sky during the remaining
                                                                 H
    8       SUPREME COURT REPORTS             [2009] 10 S.C.R.


A hours of the day cannot be treated as land or riverine
  iland for purposes of thE! Act. But in the absence of a
  1special or deeming definition, the term 'open plot' cannot
  be read as referring to the river bed which is covered by
  water for part of the day and exposed for remaining part
B of the day. 'Open plot' refers to a plot of land which is
  open to $ky. A land which is covered by any construction
  or water, cannot obviously be termed as an open plot.
  [Para 21] [26-C-G]

       3.2. When the Rules were brought into force on
C 5.4.1984, there was no provision for levy of any fee or
  charge for use of riverine land. The Rules only provided
  for a fee for the occupation of open plots. Only by the 1992
  amendment, the words 'open riverine land' was added
  under Entry 21(4) (A-iv) of the First Schedule so as to
                                                                   -
D subject the occupation of open riverine land to payment
  of fees. Prior to the 1992 ame.1dment, the First Schedule
  to the Rules did not p1rovide for levy of any fees for
  <><:cupation of riverine land. However, it was only by the
  1994 amendment, with effect from 3.3.1994, the Rules
E were amended by inserting clause(ff) in Rule 2 containing
  the definition of 'government riverine land' and by
  inserting Rule 54A specifically providing that no
  government riverine land shall be used, without prior
  written permission of the Captain of Ports and without
F making advance payment of rental charges at the
  prescribed rate.Therefore, prior to the said amendment to
                                                                   -
  the Rules in 1994, neither the Act nor the Rules authorized
  or enabled the Government to levy any fee/charge for use
  of government riverine land. It is true that ever since 1989,-
G Port Authorities were making sporadic demands from the
  workshops and other units situated on the banks of the
  river and making use of the river/riverbed for payment of
  some fee. Some users also paid the amounts demanded.
  But several users did not pay the amount and refused to
H
                       DELTA ENGINEERS v. STATE OF GOA & ORS.                  9
.
'
          ""       pay the amount on the ground that the Port Authorities           A
~.                 had no right to demand the same. Some of course, paid
                   the amount without prejudice or under protest, when
                   threatened with cancellation or withdrawal of NOC fQr
                   running the workshop. Therefore, the fact that the Port
                   Authorities were demanding a fee for use of riverine land        B
                   even prior to 1992/1994 or that some workshop owners
          -I·
                   were paying such amount, did not mean that the demand
                   was lawfully made in pursuance of authority vested in
                   them to make such demand, or that the persons on
                   whom the demands were made, were bound to pay the                c
                   same. [Para 22) [26-G-H; 27-A-G]

                         3.3. When various workshop owners on whom
                    demand was made for such payment refused, pointing
                    out the absence of authority for demand thereof, the State
             ·1                                                                     D
                    thought itfit to amend the Rules. Initially, it amended the
                    Rules by adding the words "'and/or open riverine land"
                    in Entry 21(4)(A-iv) with effect from 13.7.1992. The
                   addition of the words "and/or open riverine land" to
                    "open plots" clearly implies that open plots did not
                   include open riverine land. At all events, any riverine land     E
                   which is covered by water for nearly half the day, cannot
                   obviously be referred to as an open plot. Therefore, it is
     ,.. .     ~
                   evident that before the 1992 amendment, there was no
                   provision in the rules for demanding any fee/charge for
                   use of the riverine land. Even after the 1992 amendment,         F
                   it was found that there was some confusion as 'open
                   riverine land' had not been defined. The normal meaning
                   of 'riverine land' is riparian land, that is, land adjacent to
                   along the banks of the river. Whether the riverbed itself
                   which was not covered by water during a part of each             G
               ~   day, could be considered as riverine land, was obviously
                   still an issue. Therefore, the Rules were again amended
    ...            in 1994 inserting the definition of 'government riverine
                   land' which included not only the portion of the bank
                   within fifty yards of high-water-mark but also the land
                                                                                    H
    10       SUPREME COURT REPORTS             [2009] 10 S.C.R.

                                                                             ....
A fallling within the high-water-mark. The 1994 amendment
    also made a special provision under section 54A for use
    of government riverine land. [Para 23] [27-G-H; 28-A-D]              ·"'

         4. The amendment rules do not provide that they are
  retrospective in operation. Nor do the circumstances
B
  warrant such an inference. The amendment rules of 1992
  and 1994 are not clarificatory, but are provisions investing
  the port authorities with the power to levy and collect
  charges for occupation of government riverine land.
  Therefore, the demand for charges for use of government
c riverine land is valid only from 3.3.1994. Therefore the
  Port Authorities could not demand or recover any amount
  f<1>r the period prior to 3.3.1994. The Port Authorities are
  therefore liable to refund any amount recovered within
  three years prior to the date of the writ petition. Obviously,
D a:ny amount paid during a period beyond three years from
  the date of the writ petition, i~ not recoverable as barred
  by delay and laches. [Para 24] [29-A-E]

         life Singh vs. State of Haryana, 2004 (8) SCC 1, relied
E on.
      5.1. The amendment of Entry 21(4)(A-iv) in the First
  Schedule, and insertion of Rule 54A and clause 2(ff) by
  the Goa, Daman and Diu Ports (Amendment) Rules, 1992
  and Goa, Daman and Diu Ports (Amendment) Rules, 1994,
                                                                         "
F ~re upheld. [Para 25] [29-E-F]

      5.2. It is declared that the respondents could not
  demand or recover any amount for the use and
  cpccupation of government riverine land for the period
G prior to 3.3.1994. [Para 25] [29-F-G]
                                                                   \.,

        5.3. Any charge recovered by the respondents from
    the appellant, towards occupation of government riverine
    land for the period prior to 3.3.1994, shall be refunded to

H
       DELTA ENGINEERS v. STATE OF GOA & ORS.                    11


    the appellant, if such amount has been received by the             A
    Port Authorities within three years before the date of filing
    of the writ petition. The amount, if any, so due shall be
    refunded with six per cent interest from the date of receipt
    till date of repayment. Alternatively, the amount paid by
    the appellant for the period prior to 3.3.1994 in entirety         B
    (even amounts paid prior to three years from the date of
    petition) may be adjusted at the option of the port
    authorities towards future dues, without any obligation
    to pay interest. [Para 25] [29-G-H; 30-A-BJ

                          Case Law Reference:                          c
         1992 Supp (3) sec 91 relied on                  Para 19
         2004 (8) sec 1            relied o"n            Para 25

1       CIVIL APPELLATE JURISDICTION : Civil Appeal No.                D·
    5510 of 2001.

        From the Judgment & Order dated 11.04.2001 of the High
    Court of Bombay at Panaji Bench, Goa in Writ Petition No. 131
    of 1996.
                                                                       E
                                 WITH

        C.A. Nos. 5511, 5512, 5513 & 5515 of 2001.

         Dhruv Mehta, Yashraj Singh Deora, Harshvardhan Jha and
                                                                       F
    T.S. Sabrish (for K.L. Mehta & Co.) for the Appellants.

        Shyam Devan, A. Subhashini and D.M. Nargolkar for the
    Respondents.

        The Judgment of the Court was delivered by                     G
         R.V. RAVEENDRAN, J. 1. The appellant runs a barge
    repair workshop on a private land at Oudossim, Cortalim on
    the banks of river Zuari within the jurisdiction of Panaji Port.

                                                                       H
    12        SUPREME COURT REPORTS                [2009] 10 S.C.R.

                                                                                             ....
A According to the appellant, there are two types of barge
  workshops: one is dry dock workshop, and the second is where
  the bar~es anchored in the river along side the workshop are
                                                                                        ...
  repaired. Appellant's workshop falls under the second category
  as it undertakes repair of barges only when the barge is floating
B above the waterline. About 130( sq. mtrs. of the river area
  adjoining the workshop is used by the anchored barge under
  repair. The Zuari being a tidal river, the water level therein                             )>-

  recedes during low tide and rises back during high tide.                      .....

  Consequently, the barge under repair moored alongside the
c river bank, would settle on the riverbed during low tide and rise
  with th13 water during high tide.

          2. Appellant opened its workshop in the year 1983, after
    securing a NOC dated 25.7.1983 from the Captain of Ports,
    Govermment of Goa. The said NOC was renewed every year.
D   On 29~8.1989, the appellant sought an amendment to NOC
    seeking permission to manufacture fishing trawlers etc. The
    Captain of Ports sent a reply dated 15.11.1989 calling upon
    the appellant to settle the outstanding dues (rental charges for
    use of river area adjoining the workshop) before considering
E   the request for issue of a modified NOC. Appellant replied on
    27.11.1989 stating that it was not using any government land                            ..,.
    to repair barges, and all its activities were carried on within its
    own plot and therefore the question of any dues did not arise.
    Some years later, the Captain of Ports issued a show cause             '
                                                                                        "
F   notice1 dated 15.5.1992 alleging that the appellant was using
    government riverine land for the workshop without paying the
    prescribed rental charges, in spite of demand letter dated
    15.11.1989, and therefore, the appellant should show cause
    why the NOC issued to it on 25. 7.1983 for setting up the
G   workshop, which was being renewed ever; year, should not be
    revok13d or withdrawn for non-payment of the outstanding rental
    chargbs for use of the government riverine land from 1983. The
    demand was reiterated on 13. 7.1992. By letter dated
                                                                          \.-

                                                                                        -
    1.11.1993, the Captain of Ports informed the appellant that
H   unless there was compliance with the demand, action will be
                   DELTA ENGINEERS v. STATE OF GOA & ORS.                    13
•                           [R.V. RAVEENDRAN, J.]
     ")-        taken to revoke the NOC and evict the appellant. In view of the    A
                said threat, the appellant, without prejudice to its rights and
                under protest, sent a payment of Rs.145000/- on 25.9.1995
                stating that the amount paid was calculated with reference to
                the use of 1000 sq.m. of river area.
                                                                                   B
                     3. The appellant filed W.P. No.131/1996 contending that
                it was not liable to pay any rent and the demand was illegal. It
      ~.
                challenges the validity of the amendments to Goa, Daman &
                Diu Port Rules, 1983, providing for payment of rental charges.
                Alternatively, it contended that even if the said. Amendment
                Rules were valid and there was any liability under the said        c
                Rules, the rental charges would be payable only from 3.3.1994
•,              when the 1994 amendment to the said rules came into force. It
                therefore prayed (a) for a declaration that the Goa Ports
                (Amendment) Rules, 1992 and Rule 54A of the Goa Ports
       --i      (Amendment) Rules, 1994 were ultra vires the Indian Ports Act,     D
                1908; (b) for quashing the demand for rental charges by letter
                dated 1.11.1993; and (c) for a direction to the respondents to
                refund the amounts paid by appellant towards rental dues.

                      4. The High Court by a common order dated 11.4.2001,         E
                dismissed the appellant's writ petition and other similar
                petitions. It found that the challenge was only to the 1992 and


-          t.
                1994 amendments and not to the unamended Goa, Daman and
                Diu Port Rules, 1983; that the Port Authorities were entitled to
                levy rental charges on 'open land' from the date when the said
                Rules came into force (on 15.4.1984), under Rule 64 read with
                                                                                   F
                Entry 21 (4)(A-iv) in the First Schedule of the said Rules; that
                the term 'open land' included riverine land and the amendments
                to the rules in 1992 and 1994 merely clarified the said pre-
                existing position; and that as the power to levy rental charges
                                                                                   G
                was not created for the first time under the 1992 or 1994
           .J
                amendment to the rules, but existed even under the unamended
                rules which were not challenged, the appellant could not avoid
                liability to pay the rental charges demanded. The said judgment
                is challenged in this appeal by special leave.
                                                                                   H
    14        SUPREME COURT REPORTS                [2009) 10 S.C.R.
                                                                                    I-

A Relevant Legal Provisions                                                     *
        5. Before adverting to the contentions of the parties, it will
    be useful to refer to the relevant provisions of law.

        (5.1.) The Indian Ports Act 1908 ('Act' for short) extends
B (i) to the ports mentioned in the Hrst Schedule to the Act; (ii)
  to the ports/navigable rivers/channels covered by previous
  enactments relating to ports; and (iii) to other ports or parts of            ~



  navigable rivers and channels to which the Act is extended by
  the Government in exercise of the power conferred under the
c Act (vide section 1(2) of the Act). Section 3 contains the
  definitions and clause (4) thereof defines 'port' as including
  also any part of a river or channel in which the said Act, for the
  time being, is in force. Section 4 relates to power of the
  Government to extend or withdraw the Act or certain provisions
D thereof.  It reads as under :

         "4. Power to extend or withdraw the Act or certain portions
         thereof: (1) Government may, by notification in the Official
         Gazette, -
E        (a) extend this Act to any port in which this Act is not in
         force or to any part of any navigable river or channel which
         leads to a port and in which this Act is not in force;
                                                                         ,
F
         (b) specially extend the provisions of section 31 or section
         32 to any port to which they have not been so extended;
                                                                                    -
         (c) withdraw this Act or section 31 or section 32 from any
         port or any part thereof in which it is for the time being in
         force.

G        (2) A notification under clause (a) or clause (b) or sub-
         section (1) shall define the limits of the area to which it     \,..


         refers.

         (3) Limits defined under sub-section (2) may include any
H
         piers, jetties, landing-places, wharves, qu€lys, docks and
         DELTA ENGINEERS v. STATE OF GOA & ORS.                       15
                  [R:V. RAVEENDRAN, J.]
           other works made on behalf of the public for convenience         A
"'         of traffic, for safety of vessels, or for the improvement,
           maintenance or good government of the port and its
           approaches whether within or without high-water-mark, and,
           subject to any rights of private property therein, any portion
           of the shore or bank within fifty yards of high-water-mark.      B
                                     '-

           (4) In sub-section (3) the expression "high-water-mark'
-o/        means the highest point reached by ordinary spring tides
           at any season of the year."

      Section 5 enabled the Government to alter the limits of any port      c
      in which the Act is in force.

             5.2. By notification dated 29.11.1967, issued in exercise
      of the power conferred under section 4 of the Act, the
      government extended the Act to several ports in Goa, Daman,           D
-{    Diu, including the Port of Panaji and also specified the areas
      comprised in the said port and limits thereof. As per the
      notification, the Panaji Port would include not only the port; but
      all the waters of rivers Mandovi, Mapusa and Naroa as also
      the waters of river Zuari eastward of the Agassaim - Cortalim
                                                                            E
      ferry.

           5.3. Section 6 enabled the Government to make such
      rules, consistent with the Act, as it thinks necessary, for any of
      the following purposes :
                                                                            F
          "(a) for regulating the time and hours at and during which,
          the speed at which, and the manner and conditions in and
          on which, vessels generally or vessels of any class defined
          in the rules, may enter, leave or be moved in any port
          subject to this Act;                                              G
          (b) for regulating the berths, stations and anchorages to
          be occupied by vessels in any such port;
          )()()()()()(

                                                                            H
    16       SUPREME COURT REPORTS                (2009] 10 S.C.R.


A        (e) for regulating vessels whilst taking-in or discharging
         passengers, ballast or cargo, or any particular kind of
         cargo, in any such port, and the stations to be occupied
         by vessels whilst so engaged;

         (ee) for regulating the manner in which oil or water mixed
B
         with oil shall be discharged in any such port and for the
         disposal of the same;

         xxxxx
c        (f) for keeping free passages of such width as may be
         deemed necessary within any such port and along or near
         to the piers, jetties, landing-places, wharves, quays, docks
         moorings and other works in or adjoining to the same, and
         for marking out the spaces so to be kept free;
D        (g) for regulating the anchoring, fastening, mooring and un-
         mooring of vessels in any such port;

         (h) for regulating the moving and warping of all vessels
         within such port and the use of warps therein;
E
         (i) for relating the use of the mooring buoys, chains and
         other moorings in any such port;

         xxxxxx
F        Qj) for regulating the use of piers, jetties, landing p!aces,
         wharves, quays, warehouses, and sheds, when belonging
         to the government and for fixing the rates to be paid for
         the use of the same.

         (m) for enforcing and regulating the use of signals or
G
         signal-lights by vessels by day or by night in any such port;

         (n) for regulating the number of the crew which must be on
         board any vessel afloat within the limits of any such port;

H        '(o) for regulating the employment of persons engaged in
          DELTA ENGINEERS v. STATE OF GOA & ORS.                       17
                   [R.V. RAVEENDRAN, J.]
           cleaning or painting vessels, or in working in the bilges,        A
'p
           boilers or double bottoms of vessels in any such port."

           [Note : By Amendment Act 1511997, clause (jj) was
           substituted by clauses (jj) and (jja) which read as follows]:
           ~




           UD for regulating the use of piers, jetties, landing places, B
           wharves, quays, warehouses and sheds when belonging
           to the government;

           Oja) for fixing the rates to be paid for the use of piers,
           jetties, landing places, wharves, quays, warehouses and           c
           sheds of any port, other than a major port, when belonging
           to the government;

            5.4. In exercise of the powers conferred under section 6
       read with sections 33, 35, 46 and 47 of the Indian Ports Act,
                                                                             D
 ~.    1908, the Lieutenant Governor of Goa, Daman and Diu made
      the Goa, Daman and Diu Ports Rules, 1983 ('Rules' for short).
       Rule 64 relates to levy of port dues and other fees and provides
       : 'Port dues and other fees shall be levied at all the ports at the
      rates specified in the Schedule." The First Schedule to the said
      rules prescribes the schedule of fees and dues chargeable              E
      under the said rules. Entry (21) relates to fees chargeable for
      occ~pation of godowns, sheds, platforms and open plots. Item
      (A-tv) prescribed a fee of Rs.10 per sq.m. for occupation of
 ••   "open plots". Note F thereto provided that the occupation of
      open space shall be subject to the conditions imposed by the           F
      Port Authority under the Rules. The Rules were amended by
      the Amendment Rules, 1992, whereby item (4) (A-iv) of Entry
      21 of the First Schedule relating to open plots, was amended
      to include the words "and/or open riverine land" after the words
      "open plots".                                                          G

 7        5.5. The Rules were next amended by the Amendment
      Rules, 1994 whereby the following Rule 54A was inserted :

           "54.A Use of Government riverine land - (1) No
                                                                             H
    18       SUPREME COURT REPORTS                   [2009] 10 S.C.R..

                                                                                  i'
A        Government riverine land shall be used for any purpose by
         any person without prior written permission of the Captain
         of Ports and without making advance payment of rental
                                                                                  ,1
         charges at the rate of Re.1/- per sq. metre per month.

B        (2) Whoever uses the Government riverine land in
         contravention of the provision of sub-rule (1) shall be
         punishable with fine which may extend to Rs.1500/- or.
         imprisonment of one year or both.

         (3) Whoever continues to use Government riverine land as
c        aforesaid and fails to restore it to its pristine condition after
         receipt of a written order to that effect form the Port
         Authority, shall, in addition to the fine specified in sub-rule
         (2), be liable to pay an amount of Rs. 150/- per day till such
         use stopped and such land restored to its pristine
D        condition." .

  Simultaneously, clause {ff) was inserted in Rule 2 contain.ing
                                                                             ·-
  definitions, by the Amendment Rules 1994, whereby the term
  'Government riverine land' was defined as meaning "any land
E falling within or without high-water mark and, subject to any
  rights of private property therein, any portion of a shore or
  bank, within 50 yards of high water mark."

         5.6. The Goa Barge Tax Act, 1973 was enacted to impose
                                                                      '
    a tax on barges in Goa, Daman and Diu. Section 3 of the said
F   Act provides that a tax at the rates fixed by the government shall
    be levied and collected on all barges used or kept for use in
    Goa, Daman and Diu.

    Contentions of the respondents
G
       6. The demand for rental charges was authorized, legal
  and justified. Rule 64 of the Rules read with Entry 21 (4)(A-iv)
  of the First Schedule thereto enabled and authorized the port
  authorities to levy and collect charges for occupation of any
  open land at all ports. The term 'open land' includes 'riverine
H land' also. The amendment to the Rules in 1992 and 1994,
             DELTA ENGINEERS v. STATE OF GOA & ORS.                          19
                      [R.V. RAVEENDRAN, J.]
          expressly providing for levy of charges for use of open riverine         A
          land, were merely clarificatory. The appellant having voluntarily
          paid the rental charges demanded, is estopped from
          challenging the validity of the levy of rental charges.

                7. The term 'port' extends to the part of river Zuari as
          notified and the riverbed of such part of the river when exposed         B
          for whatever period during a day, on account of low tide,
          becomes 'open land' under the control of the port and therefore,
          anyone using such land for whatsoever purpose, is liable to pay
          the charges as prescribed under Entry 21(4)(A-iv) of the First
          Schedule to the Rules.                                                   c
                8. When 'Government riverine land' forms part of any
          'landing place' mentioned in clause Ui) of section 6 of the Act,
          the government has the power to regulate the use of government
     ~.   riverine land and levy fees/charges for use of such government           D
          riverine land.

               9.. Under the Act, the port authority has very wide powers
          of supervising and regulating the affairs of the port and all
          activities in the areas falling within the jurisdiction of the port
          including movement of crafts, licencing of crafts, loading and           E
·~



          wharfage and other related matters. Clause Uj) of section 6 of
          the Act enabled the government to make rules for the use of
      ~
          and fixing the rates to be paid for the use of piers, jetties, landing
          places, wharves, quays, warehouses and sheds. In view of it,
          the government could make rules regulating the use of                    F
          government riverine land and also fix and recover the charges
          for use of such government riverine land.

               10. The amount sought to be recovered is neither a tax nor
          a fee, but a charge levied for use of government property. The           G
     ~·   source of authority for levy of such a charge is derived in part
          from the ownership and partly with reference to the statutory
          rules. While levy of tax and fee would require express authority
          or .sanction of law, claiming rental charges for permitting user
          does not require such express authority as it is incidental to the       H
     20        SUPREME COURT REPORTS                 [2009] 10 S.C.R.

 A right of ownership and supervision. Therefore, even without
   reference to the Rules, the port authority was entitled to demand
   and recover rental charges for use of government property

    Contentions of the appellant
B         11. Open land does not refer to river, riverbed or river
   surface. Nor is it a 'riverine land'. Therefore, under the Rules
   as originally made and brought into effect on 5.4.1984, there
   was no power to levy any rental charges in regard to riverine
   land. Section 6 is specific about the matters in regard to which
C rules could be made by the government. Clause GD of section
   6 specifically authorizes the government to make rules
   regulating the use of piers, jetties, landing places, wharves,
   quays, warehouses and sheds of any port, when belonging to
   the government and for fixing the rates for the use thereof.
D Riverine land which is part of riverbed which gets exposed
   during low tide, is neither a pier, nor a jetty, landing-place, wharf,
   quay, warehouse or shed. Therefore, the Government has no
   power to make rules either for regulating the use of Government
 · riverine land or for fixing the rates to be paid for the use of such
E Government riverine land. The amendment to the Rules in 1992
   and 1994, providing for levy of a charge or fee for the use of
   riverine land is therefore ultra vires the provisions of the Act.

          12. All barges using the river pay a barge tax. Therefore,
  no separate fee or charge can be levied for use of any river
F space for anchoring or mooring any barge in any part of the
  river. 'Landing place' refers to a land abutting the river or other
  navigable water, used for loading and unloading of goods or
  for embarking or disembarking of passengers or the terminus
  of a road on a river or other navigable water for the purpose of
G loading, unloading, embarking or disembarking. In short,
  'landing place', is a place where people can embark/disembark
  and/or where goods can be loaded/unloaded, from or into a
  vessel. The term 'landing place' is used along with the words
  piers, jetties, wharves, quays, warehouses and sheds which are
H all associated with loading, unloading and storing of goods or
    DELTA ENGINEERS v. STATE OF GOA & ORS.                       21
             [R.V. RAVEENDRAN, J.]
embarking and disembarking of passengers. Clause OD of                 A
section 6 authorizes the State Government to make rules
regulating the piers, jetties, landing places, wharves, quays,
warehouses and sheds, and not government riverine land which
is a part of the river bed which gets partially exposed for a few
hours in a day during the low tide period.                             B

     13. Alternatively, even assuming that the amendments to
the Rules, made in 1992 and 1994 were valid, and therefore,
there was power to levy charges on Government riverine land,
such levy could be only be prospective when the rules were
specifically amended in 1994 (with effect from 3.3. 1994)              C
authorizing and enabling the Port Authorities to levy charges
for use and occupation of such Government riverine land.
Therefore, the demands and forcible recovery under threat and
coercion, of such charges for the period 1983 to 3.3.1994 was
wholly illegal and consequently any amount recovered in                D
respect of such period is liable to be refunded.

Questions for decision

   __ 14. On the contentions raised, the following questions arise     E
for our consideration :

      (i)     Whether the appellant, whose worksh.op is situated
              on the banks of river Zuari, used government
              riverine land.
                                                                       F
      (ii)    Whether the amendments to the Goa, Daman and
              Diu Port Rules, 1983, by the Amendment Rules,
              1992 and 1994, relating to levy of rental charges
              for the use of government riverine land is ultra vires
              the provisions of the Indian Ports Act, 1908?            G

      (iii)   Whether the Goa, Daman and Diu Ports Rules,
              1983 confers authority on the Port Authorities to
              demand and recover rental charges for the use of
              government riverine land, even before the
              amendment by the Amendment Rules of 1992 and             H
     22           SUPREME COURT REPORTS             [2009] 10 S.C.R.


A                  1994.

           (iv)    Whether the Port Authorities have the power and
                   authority to claim rental charges for the use of
                   government riverine land, retrospectively for the
                   period 5.4.1984 to 3.3.1994?
B
    Re : Question (i)

          15. The Indian Ports Act applies to Panaji Port. It is not
    disputed that the workshop of appellant falls within the port limits
c of Panaji Port, in view of the extended definition of the word
    'port' in Ports Act and the notification dated 29.11.1967 defining
   the areas falling within Panaji Port. The barge/boat repair
   workshop of appellant, situated on the bank of river Zuari used
   exclusively, portion of the river adjoining the workshop for
   berthing/beaching/mooring the barges/boats which came for
0
   repairs. The barges/boats that were repaired in appellant's
   workshop were moored (that is made fast by attaching a cable
   or rope to a fixed object on the shore or the bank of the river)
   alopg side the workshop during high tides. The barges/boats
E would settle down on riverbed during low tide. The barges/boats
   remained moored for periods extending from few hours to even
   a few weeks, depending upon the extent and nature of repairs
   to be carried out. Consequently, that portion of the river surface
   (during high tides) and riverine land (during low tides) alongside      '
  the workshop could not be used by anyone else for berthing,
F mooring, anchoring, or navigating. Thus, a portion of the river
  and the riverbed below, belonging to the government, alongside
  the appellant's workshop was regularly and exclusively used by
  the appellant for the mooring of barges/boats which come for
  repairs. If several such areas of the river adjoining the banks
G were demarcated and put to exclusive use by private workshops
  and Boat operators without any regulation, it will affect the river


                                                                               -
  traffic, navigation and mooring of vessels in the river. The port
  authorities have to ensure that no structures are erected in the
  river, that rivernine land is not encroached, that siltation does
H not occur, and that there is no pollution by workshops or
               DELTA ENGINEERS v. STATE OF GOA & ORS.                       23
                        [R.V. RAVEENDRAN, J.]
     ..,,   industries situated on the banks of the river. All these are          A
.
•           incidental to the permission given by the port authorities to
            operate a workshop by berthing barges and other vessels in
            the river, alongside the workshop and carry out and undertake
            repairs.
                                                                                  B
                  16. The term 'landing place' is not defined in the Act or
             the Rules. 'Landing place' refers to a place on a river or other
             navigable water for loading and unloading of goods, or for
             receiving and delivering of passengers. The term 'landing place'
             is used in this sense in Rules 34, 38, 40, 41, 42, 54 and 55 of
                                                                                  c
_,           the Port Rules. But the term 'landing place' would refer not only
             to places earmarked or designated or specified as 'landing
             places', but to any and every place which is used as a landing
             place. Berthing of barges and other vessels in the river,
             alongside the workshop, for repairs would mean that there will
             be regular movement of men and material from the berthed             D
            vessel to the workshop and vice versa. Any area with a
            prepared berth in which craft can lie, can properly be described
            as a landing place. (See - Black's Law Dictionary, Stroud's
            Judicial Dictionary). In effect, therefore, the river side of every
            warehouse or workshop on the banks of a river, which has a            E
            prepared berth in which vessels/craft can lie, with facilities for
            unloading or loading of men and material, will be a landing
            space, though not a designated landing place. The river surface
        "   (during high water period) and river bed (during low water
            period) alongside the workshop, belonging to the government           F
            will also be a part of such landing place/workshop. A boaU
            barge repairing workshop situated on the river bank, can
            therefore, be said to be using the government riverine land.

            Re : Questions (ii) & (iii)
                                                                                  G

--     ~         17. Section 6 of the Act enables the Government to make
            rules in respect of the several matters enumerated therein. This
            includes regulation of the time and hours at and during which,

 -          the speed at which, and the manner and conditions in and on
            which, vessels generally or vessels of any class defined in the       H
    24        SUPREME COURT REPORTS               [2009] 10 S.C.R.


A rules, may enter, leave or move in any port; regulation of the          "
   berths, stations and anchorages to be occupied by vessels in                _.-
                                                                               •
   any such port; regulation of vessels whilst taking-in or
   discharging passengers, ballast or cargo, or any particular kind
   of cargo, in any such port; regulation of the manner in which oil
B or water mixed with oil can be discharged in any such port;
   regulation of traffic and maintaining free passages of such width
  as may be deemed necessary within any such port and along              ,._
  or near to the piers, jetties, landing places, wharves, quays,
  dock moorings and other works in or adjoining to the same;
c regulation of anchoring, fastening, mooring and un-mooring of
  vessels in the port; regulation of the moving and warping of all
  vessels within any such port and the use of warps therein;
  regulation of the use of the mooring buoys, chains and other
  moorings in the port.; regulation of the use of piers, jetties,
  landing places, wharves. quays, warehouses and sheds
                                                                               --
D
  belcPnging to the Government and fixation of the rates to be paio
  for the use of any port facility or any part of the port. It is thus
  clec;ir that the scope and ambit of supervision and control of the
  port authorities under the Ports Act in regard to areas declared
  as ports, is very wide. As noticed above, section 6(jj) of the Act,
E
  in particular, enables the State Government to make rules for
  regulating the use of landing places, piers, jetties, wharves,
  quays, warehouses and sheds belonging to the Government
  and fixing the rates to be paid for the use of the same.

F       18. It is no doubt true that the landing place in the usual
  sense refers to the river bank alongside the river used for
  loading/unloading or embarking/ disembarking and not any
  portion of the river itself. But where the bank of the river used
  for the workshop is a private land, and the area of river adjoining
G such workshop (or riverine land alongside the workshop) where
  the vessel is moored and remains floating during high water            t-    ,,
  period or settles on the riverbed during low water period, is also
  a part of the landing place. When the entire river and the
  riverbed belong to the government and is under the control of
H port authorities, and when exclusive use of a part of such river             -
                  DELTA ENGINEERS v. STATE OF GOA & ORS.                     25
                           [R.V. RAVEENDRAN, J.]
       )".
               area/riverine land adjoining the river bank is permitted by the A
~              port authorities, they can demand a fee for such regular or
               exclusive use, whether such use is continuous and intermittent.
               The right or authority to demand such charges can also be
               traced to the right to regulate the use of the port area. The port
               area as noticed above includes the waters of the river and the B
               riverine land. The state is therefore empowered to make rules
               regulating the 1Jse of the river surface/riverine land alongside
               the workshop and also prescribe a rental charge for such use.

                     19. We may in this context refer to the decision of this Court
                in State of Rajasthan vs. Municipal Board, Allahabad [1992
                                                                                    c
     Jy'
               Supp (3) SCC 91] where the question whether a Municipality
""'            which had a right to regulate user of public street, had the right
               to realize Tehbazari or ground rent from hawkers, shopkeepers
               and other squatters on the patri on the public street, was
               considered. Section 220 of the UP Municipalities Act, 1916 D
               which governed the issue pro.tided that no itinerant, vendor or
               other persons shall be entitled to use or occupy any public street
               ot place for the sale of articles or for exercise of any calling or
               f,br setting up any booth or stall without the permission of the
               Municipal Board given in accordance with the bye-laws, E
               notwithstanding any right or privilege previously acquired, or
               accrued or enjoyed. This Court held that the non obstante clause
               superimposed the right of the municipality to regulate the user
               of public street by venders and other persons and consequently,
               the municipality has the right to realize ground rent from them. F

               We therefore hold that the 1992 amendment and the 1994
               amendment to the Goa, Daman and Diu Ports Rules, 1983
               which enable the Port Authorities to levy, charge and recover a
               fee or charge for using open Government riverine land from the
                                                                                G
           ~
               person who is permitted to use such Government riverine land
'"
               is within the rule making power of the State, and cannot
               therefore be said to be ultra vires the rules making power under
               the Act.
                                     /



                   20. In fact, even without specific rules, the port authorities   H
    26         SUPREME COURT REPORTS               [2009] 10 S.C.R.


A  in exercise of domain over riverine land and the river, could           v

   objeC!:t to or prohibit the exclusive mooring by vessels which call         ,,.
   at the workshop. The port authorities can also enter into an
  arrangement of lease/licence with the users of such riverine land/
  demarcated river surface alongside the workshop or
B establishment. But in the Jbsence of specific rules and in the
  absence of stipulation of any special condition when granting
  permission, the persons permitted to have their establishment
  on private land on the banks of the river (falling within the port
  area), could well presume that the permission to have their
c est::lblishment,   included implied permission to use the riverine
  lan1..111iver alongside "their establishments. Be that as it may.

    Re : Question (iv)

        21. The term 'government riverine land' is defined under
D Rule 2(ff) inserted with effect from 3.3.1994. It refers to any land    .
  within fifty yards of high water rnark (subject to any right to
   private property therein) including (a) any land falling within high
  water mark; (b) any land falling without (or alongside) the high
  water mark; (c) any portion of a shore or a bank. Even river bed
E which is covered by water during the high water period, and
  exposed during the low water period, is therefore riverine land.
  In fact several enactments have defined land submerged in
  water as 'land' for the purposes of those enactments. Therefore,
  we do not see why land or river bed which is covered by water
F during only a part of the day and exposed to the sky during the
  remaining hours of the day cannot be treated as land or riverine
  land for purposes of the Act. But in the absence of a special or
  deeming definition, the term 'open plot' cannot be read as
  referring to the river bed which is covered by water for part of
  the day and exposed for remaining part of the day. 'Open plot'
G
  refers to a plot of land which is open to sky. A land which is
  covered by any construction or water, cannot obviously be
                                                                          ..   '

  termed as an open plot.

         22. When the Rules were brought into force on 5.4.1984,
H   there was no provision for levy of any fee or charge for use of
          DELTA ENGINEERS v. STATE OF GOA & ORS.                    27
                   [R.V. RAVEENDRAN, J.]

       riverine land. The Rules only provided for a fee for the            A
"      occupation of open plots. Only by the 1992 amendment, the
       words 'open riverine land' was added under Entry 21(4) (A-iv)
       of the First Schedule so as to subject the occupation of open
       riverine land to payment of fees. Prior to the 1992 amendment,
       the First Schedule to the Rules did not provide for levy of any     B
       fees for occupation of riverine land. However, it was only by the
       1994 amendment, with effect from 3.3.1994, the Rules were
.,.'
       amended by inserting clause (ff) in Rule 2 containing the
       definition of 'government riverine land' and by inserting Rule
       54A specifically providing that no government riverine land shall   c
       be used, without prior written permission of the Captain of Ports
       and without making advance payment of rental charges at the
       prescribed rate. Therefore, prior to the said amendment to the
       Rules in 1994, neither the Act nor the Rules authorized or
       enabled the Government to levy any fee/charge for use of
                                                                           D
       government riverine land. It is true that ever since 1989, Port
       Authorities were making sporadic demands from the
       workshops and other units situated on the banks of the river and
       making use of the river/riverbed for payment of some fee.
       Some users also paid the amounts demanded. But several
                                                                           E
       users did not pay the amount and refused to pay the amount
       on the ground that the Port Authorities had no right to demand
       the same. Some of course, paid the amount without prejudice
       or under protest, when threatened with cancellation or
       withdrawal of NOC for running the workshop. Therefore, the fact
       that the Port Authorities were demanding a fee for use of           F
       riverine land even prior to 1992/1994 or that some workshop
       owners were paying such amount, did not mean that the demand
       was lawfully made in pursuance of authority vested in them to
       make such demand, or that the persons on whom the demands
       were made, were bound to pay the same.                              G
  -~
           23. It is clear that when various workshop owners on whom
       demand was made for such payment refused, pointing out the
       absence of authority for demand thereof, the State thought it fit
       to amend the Rules. Initially, it amended the Rules by adding       H
    28         SUPREME COURT REPORTS                [2009] 10 S.C.R. .


A  the words "and/or open riverine land" in Entry 21 (4)(A-iv) with
  effect from 13. 7.1992. The addition of the words "and/or open               •
   riverine land" to "open plots" clearly implies that open plots did              ..,.
   not include open riverine land. At all events, any riverine land
  which is covered by water for nearly half the day, cannot
B obviously be referred to as an or~n plot. Therefore, it is evident
  that before the 1992 amendment, t:1ere was no provision in the
  rules for demanding any fee/charge for use of the riverine land.
  Even after the 1992 amendment, it was found that there was
  some confusion as 'open riverine land' had not been defined.
c The normal meaning of 'riverine land' is riparian land, that is,
  land adjacent to along the banks of the river. Whether the
  riverbed itself which was not covered by water during a part of



D
  each day, could be considered as riverine land, was obviously
  still an issue. Therefore, the Rules were again amended in 1994
  inserting the definition of 'g9vernment riverine land' which
                                                                                   -
  included not only the p9J1ibn of/ll}!lbank within fifty yards of high-
  water-mark but also'(he land fl:itling within the high-water-mark.
  The 1994 amendment also made a special provision under
  section 54A for use of government riverine land.
E       24. We may next consider whether the 1992 and 1994
    amendments to the rules were retrospective in operation. In Zile
    Singh vs. State of Haryana - [2004 (8) SCC 1], this Court held

                                                                           ~

F         "It is a cardinal principle of construction that every statute
          is prima facie prospective unless it is expressly or by
          necessary implication made to have a retrospective
          operation. But the rule in general is applicable where the
          object of the statute is to affect vested rights or to impose
          new burdens or to impair existing obligations. Unless
G
         ·there are words in the statute sufficient to show the
          intention of the legislature to affect existing rights, it is
         deemed to be prospective only."

                                                 [emphasis supplied]
H
                          DELTA ENGINEERS v. STATE OF GOA & ORS.                    29
                                   [R.V. RAVEENDRAN, J.]
                       The amendment rule\> do not provide that they are retrospective A
\~
 ,          ,:
                       in operation. Nor do the circumstances warrant such an
                       inference. In fact, the contention of the respondents is not that
                       power to levy fees/charges for use of riverine land was created/
 ,,                    vested in the port authorities, by virtue of the amendment rules
                       and that such power was -given to levy fees/charges B
                       retrospectively. The contention has been that the power to levy
                       fees/charges existed ever since the Rules came into force on
            ....       5.4.1984 and that position was merely clarified by the
                       amendment rules in 1992 and 1994. We have already held that
                       the amendment rules of 1992 and 1994 are not clarificatory, c
                       but are provisions investing the port authorities with the power
                       to levy and collect charges for occupation of government
                        riverine land. Therefore, the demand for charges for use of
---..                  government riverine land is valid only from 3.3.1994. Therefore
                        the Port Authorities could not demand or recover any amount
                                                                                           D
                 ~     for the period prior to 3.3.1994. The Port Authorities are
                        therefore liable to refund any amount recovered within three
                       years prior to the date of the writ petition. Obviously, any amount
                        paid during a period beyond three-years from the date of the
                        writ petiiiofr,-is1TI5t recoverable as barred by delay and !aches.
                                                                                           E
                              25. We therefore allow these appeals in part as follows:
                                                       .
                             (a) The amendment of Entry 21(4)(A-iv) in the First
                   ~         Schedule, and insertion of Rule 54A and clause 2(ff) by
                             the Goa, Daman and Diu Ports (Amendment) Rules, 1992         F
                           . and Goa, Daman and Diu Ports (Amendment) Rules, 1994,
                             are upheld.

                            (b) It is declared that the respondents could not demand
                            or recover any amount for the use and occupation of
                            government riverine land for the period prior to 3.3.1994. G

        '          4        (c) Any charge recovered by the respondents from the
                            appellant, towards occupation of government riverine land
                            for the period prior to 3.3.1994, shall be refunded to the
                            appellant, if such amount has been received by the Port       H
    30        SUPREME COURT REPORTS               [2009) 10 S.C.R.


A        Authorities within three years before the date of filing of
         the writ petition. The amount, if any, so due shall be.
         refunded with six per cent interest from the date of receipt
         till date of repayment within three months from today.
         Alternatively, the amount paid by the appellant for the               '
B        period prior to 3.3.1994 in entirety (even amounts paid
         prior to three years from the date of petition) may be
         adjusted at the option of the port authorities towards future
         dues, without any obligation to pay interest.

C CA Nos. 5511, 5512, 5513 & 5515 of 2001
        26. These appeals are allowed in part in terms of the
    judgment in CA No. 5510/2001.

    B.B.B.                                 Appeals partly allowed.
                                                                         ...
                                                                               -


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