New Delhi, Aug 19 (UNI) The Supreme Court today recommended that the Union Government consider setting up a specialised appellate body to hear appeals from orders of the Tariff Authority for Major Ports (TAMP) or the adjudicatory board under the Major Port Authorities Act, 2021.
A Bench comprising Justice M.M. Sundresh and Justice Rajesh Bindal said tariff fixation is a technical exercise involving financial and economic issues.
The judges observed that neither the High Courts nor the Supreme Court are the right forums for a first appeal against such technical orders.
The Court explained, “This Court may not have the expertise to examine accounts in detail for tariff fixation. Appeals against orders of an expert body involve both questions of law and fact. An expert appellate body would make the remedy of appeal more effective and meaningful.”
The Court pointed out that there may be parallels with other regulatory laws in many fields, such as securities, telecom, competition, electricity, and company law. Parliament has created expert appellate tribunals to handle complex disputes.
Referring to earlier rulings like WB Electricity Regulatory Commission v. CESC Ltd (2002) and Rojer Mathew v. South Indian Bank (2020), the Bench said tariff-related matters should ideally go before specialised fora instead of coming directly to the Supreme Court.
The case related to tariff fixation by Paradip Port Authority (formerly Paradip Port Trust) in its dispute with Paradeep Phosphates Ltd.
In 1985, the company signed an agreement with the Port for use of a berth at agreed rates.
In 1993, the Port tried to revise the charges. The dispute eventually went to arbitration under a 2001 agreement.
The arbitrator’s award (2002) ordered a refund of excess charges till March 1999 and left later disputes to TAMP.
TAMP, in its 2011 order, rejected the Port’s proposal for tariff revision (1999–2010).
The Orissa High Court in Jan 2023 upheld both the arbitral award and TAMP’s order, dismissing the Port’s challenges.
The Supreme Court, however, found that the arbitrator, appellate authority, and High Court had failed to properly consider the rising costs and successive tariff notifications issued under the Major Port Trusts Act, 1963.
It said tariff fixation cannot remain frozen at 1985 rates and that statutory provisions override private contracts.
The Court therefore set aside the arbitrator’s award, the appellate authority’s order, and the Orissa High Court judgment.
It remitted the case back to TAMP for a fresh hearing on tariff disputes from October 1993 to March 2010, giving both sides a full opportunity to present their case.
The Bench noted India’s major ports handled 819.227 million tonnes of cargo in FY 2023–24, with a 7.5% CAGR over the past decade, and highlighted the Government’s approval of new projects such as the Vadhavan Port in Maharashtra.
Calling tariff disputes an increasingly critical issue for India’s growing port sector, the Court recommended legislative intervention. It asked the Secretary, Legislative Department, Ministry of Law and Justice, to examine creating a special appellate body for tariff matters, similar to tribunals under other regulatory laws.
