 the major port trusts bill, 1962(as introdtlcbd in lok sulfa on 2310> noybmbblt, 1962)  chapter ipazrnan'art r short title, eommenc:ement and application 2 deftnitiom  chapter nboard 0  truste!'3 and commllllibs tiieridor 3 constitution of board of trustees 4: first board of trustees 5 board to be body corporate 6 disqualification for office of trustee 7 term of ofbce of trustees 8 vacation of of!lc:e of trustees 9 eligibility of trustee for ~ppointnlent or re-electioa 10 filling of vacancies in office of trustee 11 saving provision for appointment of trustee by central government after prescribed period 12 power of central government to extend time for eleetion or appointment of trustees in default at election 13 term of oftice in case of certain trustees 14 absence of chairman and deputy chairman -15 conditions of service of chairman and deputy chatrmaa 16 meetin~ of the board 17 committees of board 18 fees and allowaru:es payable to trusta!!es 19 restriction of power of trustees to vote in eertain ears 20 defflcls in a,ppointments or election not to invalidate _ ete ,-, ---"'! 2t dele~on of powel"ii 22 duties of chairman and deputy chairman " (i) 2128 (b) ls-l ,  _   chap1'er m stan' 01' the board23 schedule of bo8rd's staff 24 power to make appointments 25 power to promote, grant leave, etc, to employees of board • consulting engineer to board 2'1 sanction of central government nec:essary in, case of creation of eerta1n posts 28 power to make regulations  chap1'er ivproperty' and contracts 21 transfer of assets 'lild liabilities of the central government, etc, to the board 30 existing rates, etc, to continue until altered by board 31 repayment of capital with interest 32 procedure when immovable property cannot be acquired by agreement 33 contracts by board 34 mode of executing contracts on behalf of board  chap1'er v works ajm services to n proyidi:d at ports-35 power of board to execute works and provide applienees 36 power of board to undertake eertain works 37 sea-going vessels compelled to use docks, wharves, etc 38 if accommodation sufficient, all sea-going vessels compelled to use docks, wharves, etc _  39 power to order vessels not to come alongside of or to be removed from docks, wharves, etc --- 40 power of central government to exempt from obligation to use docks, wharves, etc -41 ali vessels other than sea-going vessel compened to ~ d~)larves, etc g, pmoman~ en s~rvi~ by bod, r"~ 43 responsibility of any board for loss, etc, of goods 44 accommodation to be provided for customs oftlcel'8 in wharves, etc, appointed under sea customs act 45 dues at customs wharves, etc 46 power to permit erection of private wharves, etc, within a port subject to c:onditions 47 compensation payable in certain cases where use of any private wharf, etc, rendered unlawful  chapter vi buosmon and recovery of rates at ports48  seales of rates for services performecj by board 49 scale of rates and statement of conditions for use of pr0-perty belonging to a board 50 consolidated rates for combination of services 51 power to levy concessional rates of charges on coastal goods 52 prior sanction of central government to such scales 53 exemption from, and remission of, rates or charges 54 power of central government to require modi1ication or cancellatioa of rates 55 refund of overcharges 56 notice of payment of charges short-levied or erroneously refunded 57 board not to lease rates without sanction 58 time for payment of rates on goods 59 board's lien for rates 60 master's lien for freight and other charges 61 sale of goods after two months if rates or rent are not paid or lien for freight is not discharged cuuua 62 diapoaal of goods not removed from premises of board -within time limit 63 ap,l~cation of sale proceeds c;i recovery of rates oand charges by distraint of veaael 65 grant of port-cleerance after payment of rates  chaptervuboilbowlng powbrs oj' iioaiid • power to raise loaoa 67 port trust aecuritiet 68 right of survivors of joint or several payees of securities 69 power of one or two or more joint holders to grant receipts 70 indorsements to be made on security itself 71 lnc10raer of security not liable for amount thereof 72 impression of signature on securities 73 issue of duplicate securities 7'- issue of converted, etc, securities 75 discharee in certain cases 76 power of board to make regulations 77 place and currency of loans raised by board 78 security fol" loans taken out by board '79 remedies of government in respect of loans made to boards 80 power of board to repay loans before due date s1 eatablilhment of sinking fund 82 investment and application of sinking fund 83 examination of sinking fund m power af board to ra~ loans on ahort-term bills 85 power of board to take temporary loans or overdrafts 86 power of board to borrow money from the internatiodl'li bank for reconstruction and development or other tonip ilwtitutiona  chapter viu rzvuru£ and 1:xi'i:nj)1tuu8'1 general aecount of port 88 application of money in ,eneral account clauses 89 power to transfer moneys from the general account to the pilotage account and vice vera 90 establishment of reserve funda 91 power to reserve port trust securities for board's own investments 92 prior sanction of central government to charge expenditure to capital 93 worb requiring sanction of the board or the central government 94 powers of chairman as to the execution of works 95 power of board to compound or compromise claims 96 writing oft of loaaes 97 powers, etc, of board as conservator or body appointed under section 36 of the indian ports act 98 budget estimates 99 preparation of supplemental estimates 100 re-appropriation of amounts and estimate 101 adherence to estimate except in emergency 102 accounta and audit 103 publication of audit report 104 board to remedy defects and irregularities pointed out in audit report and central government to pass final orders 105 central government to decide c:wference between board and auditors  chapter ix supervision and control or cen'l'ial govbrnmbnt106 admjaistration report 107 submibsion of statements of income and expenditure to central government los power of central government to order survey or examirt,ition of works of board 109 power of central government to restore or complete works at the colt ot boar4 110 power of central government to supersede board 111 power of central government to issue directions to board  chapter x penalties112 persons employed under this act to be public servants for certain purposes 113 penalty for contravention of sections 37, 38, 40 and 41 114 penalty for setting up wharves, quays, etc, without penrus sion 115 penalty for evading rates, etc 116 recovery of value of damage to property of board 117 other offences 118 cognizance of offences 119 offences by companies  chapter xi miscellaneous120 limitation of proceedings in respect of things done under the act 121 protection of acts done in good faith 122 power of central government to make rules 123 general powers of board to make regulations 124 provisions with respect to regulations 125 power of central government to direct regulatiqns to be made or to make regulations 126 power of central government to make first regulations 127 posting of certain regulations, etc 128 saving of right of central government and municipalities to use wharves etc, for collecting duties and of power of customs officers 129 application of certain provisions of the act to aircraft 130 power to evict certain persons from the premises of board 131 alternative remedy by suit 132 requirements as to publication of notifications, orders etc, in the official gazette 133 repeal 134 power to remove difficulties  (as ihtrod'o'ced in' lok sabra)a bill to make protrision for the constitution of port authorities for certain major ports in india and to vest the administration, control and management of such port, in such authorities and jot ttiiltters connected therewith be it enacted by parliament in the thirteenth year of the republic of india as follows:-  cliaptek i prl:ljm:rnarts 1 (1) ~is act may be called the major port trusts act, 1962 short title commence-(2) it shall come into force on such date as the central govern· :~~~c:~~n ment may, by notification in the official gazette, appoint (3) it applies in the first instance to the major ports of cochin, kandla and vishakbapatnam, and the central government may, by 10 notification in the official gazette,apply the provisions bf this act to such other major port (not being the major port of bombay, calcutta or madras), and with effect from such date, as may be specified in the notification definition, z in this act unless the context otherwise requires-(a) "appointed day", in relation to a port, means the date on which this act is made applicable to that port; (b) "board", in relation to a port, means the board of tj'\istm ~nstlw~ ~p~er utili act for that porti (c) "chairman" means the chairman of a board and includes the person appointed to act in his place under section 14; (d) "chief customs-oftleer" has the same meaning as in the sea customs ad, 1878;  -  of 18~' (e) "deputy chairman" means the deputy chairman of a s board and includes a person appointed to act in his plaee under section 14; (f) "dock" includes all basins, locks euts entrances, graving doeks, graving bloeks, inclined planes, slipways, gridirous mooring, transit-sheds, warehouses, tramways, railways and other 10 works and things appertaining to any doek and also the portion of the sea enclosed or protected by the arms or groynes of 0 harbour; (g) "foreshore", in relation to a port, means the area between the high-water mark and the low-water mark relating to that is port; (h) "goods" means every kind of movable property; (i) "high-water mark", in relation to a port, means a line drawn through the highest points reached by ordinary springtides at any season of the year at the port; 20 is of 1908 (j) "indian ports act" means the indian ports act, 1908; (k) "land" includes the bed of the sea or river below hi~h­water mark, and also things attached to the earth or permanently fastened to anything attached to the earth: (z) "low-water mark" in relation to a port, means a line 2s drawn through the lowest points reached by ordinary spring tides at any season of the year at that port; (m) "major port" has the same meaning as in the indian ports act; (m) "major port" has the same meanin~ as in the indian 30 making use of any port, means any person havin~ for the time being the charge or control of such vessel or such aireraft, a the case may be, except a pilot, harbour master, assistant harbour master dock master or berthing master of the port; (n) "mastertt, in relation to any vessel or any aircraft 35 consignee, shiwer or agent for the sale, custody, loadin~ or unleadin~ of such goods; and (ti) in relation to any vessel or ny aircraft making use of any port, includes any part-owner charterer, consignee or mortgagee in poiie8iion thereof: (p) "pier" includes any stage, stairs, landing place, hard, jetty, floating barge or pontoon, and any bridges or other works connected therewith; (q) "port" means any major port to which this act applies within such limits as may, from time to time, be defined by the central government for the purposes of this act by notification in the official gazette, and, until a notification is so issued, within such limits as may have been defined by the central government under the provisions of the indian ports act; 10 (r) "port approaches", in relation to a port, means those parts of the navigable rivers and channels leading to the port, in which the indian ports act is in force; (8) "port trust security" means debentures, bonds or stock certificates issued by a board in respect of any loan contracted 15 by it under the provisions of this act or issued by any other authority for the payment of which the board is liable under this act; (t) "prescribed" means prescribed by rules or regulations made under this act; 20 (u) "public securities" means-(i) promissory notes, debentures, stock or other securities of the central govel'nment or of any state government: 25 provided that securities, both the principal whereof and the interest whereon have been fully and unconditionally guaranteed by any such government shall be deemed, for the purposes of this clause, to be securities of such government (ii) debentures or other securities for money issued by or on behalf of any municipal body, improvement trust or port trust under the authority of any law for the time being in force in indi~ (including the port trust securities) j (v) "rate" includes any toll, due, rent, rate, fee, or charge leviable under this act; 35 (w) "regulations" means regulations made by the board under this act; (x) "rules" means rules made by the central government under this act; 2126(b) ls-2 (y) "trustee', in relation to a port, means a member of the board constituted for the port; (z) "vessel" includes a caisson; (za) "wharf" includes any wall or stage and any part of the land or foreshore that may be used for loading or unloading goods, 5 or for the embarkation or disembarkation of passengers and any wall enclosing or adjoining the same  chapter d board of trustees and commitrees ther~ofconstitutiod of board of trustee •• 3 (i) with effect frol!l such date as may be specified by notifica- 10 tion in the official gazette, the central government shan cause to be constituted in respect of any major port a· board of trustees to be called the board of trustees of that port, which shall consist of the following trustees, namely:-(a) a chairman to be appointed by the central government; 15 (b) a deputy chairman, if the central government deems fit to appoint one; (c) not more than ten persons to be appointed by the central government from amongst persons who are in its opinion capable of representing-20 (i) labour employed in the port; (ii) the mercantile marine department; (iii) the customs department; (iv) the government of the state in which the port is situated; (v) the defence services; (vi) the indian railways; and (vii) such other interests as, in the opinion of the central government, ought to be represented on the board: provided that before appointing any person under sub-clause 30 (i), the central government shall obtain the opinion of the trade unions, if any composed of persons employed in the port and registered under the indian unions act, 1926; , 16 of 15126 (d) not more than fifteen persons to be elected by such state or local bodies representing commercial, shipping or local 35 interests as the central government may, from time to time, by notification in the official gazette,·specify (2) a trustee appointed by t~ central government under this act may be appointed by name or -by virtue of office (3) every notification issued under clause (d) of sub-section (i) lilay also 8pccify the number of trustees that each of the bodies 5 referred to in that clause may elect (4) the election of trustees under clause (d) of sub-section (1) shall be held within such period as may, from time to time, be specified by the central government (5) the chief executive authority of every electing body shall 10 communicate forthwith to the central government the result of any election held in pursuance of sub-section (4) (6) the names of persons appointed or elected as trustees shall be notified by the central government in the official gazette 4 (1) notwithstanding anything contained in section 3, the :;rs~ board is central government may, by notification in the official gazette, 1 ru8tees constitute in respect of any major port the first board of trustees thereof consisting of- -• (a) a chairman to be appointed by the central government, (b) a deputy chairman if the central government deems fit 20 to appoint one, and (c) such number of other trust!i!es, not exceeding twenty-five, as that government may deem expedient, to be appointed by that government from amongst persons who are in its opinion capable of representing,-25 (i) labour employed in the port; (ii) government of the state in which the port is sftuated; (iii) government departments specified in sub-clauses (ii) , (iii), (v) and (vi) of clause (c) of sub-section (1) of section 3; and (iv) such other interests as, in the opinion of the central government, oug~ to be represented on the board (2) subject to the provisions of sub-section (3), the persons appointed as trustees under sub-section (1) shall hold office durtpg 35 the pleasure of the central government (3) on the constitution of the board under section 3, the first board of trustees shall cease to exist and stand dissolved , board to be body corporate 5 every board constituted under this act shall be a ,body corporate having perpetual succession and a common seal with power, subject to the provisions of this act, to acquire, hold or dispose of property and may by the name by which it is constituted, sue or be sued: provided that no acquisition or sale of immovable property and s no lease of any such property for a term exceeding thirty years shall be valid unless such acquisition, sale or lease has been made with the previous sanction of the central government ~::-:-8 a person shall be disqualified for being chosen as a trustee, if olbce of tru- he-10 itce (a) has been convicted and sentenced: to imprisonment for an offence which, in the opinion of the central government, ,involves moral turpitude: or (b) is an undischarged insolvent; or (c) holds any office of profit under the board~ 15 provided that this disqualification shall not apply to the chairman or -deputy chairman; (d) has directly or indjrectly, any share or interest in any work done by order of the board, or in any contract or employment, with, by, or on behalf of the board: ' 20 provided that no person shall be deemed to have a share or interest in such work, contract or em'ployment by reason only of his-(i) having a share in any company or firm which may contract with or be employed by or on behalf of the bo~rd, 25 or (ii) having a share or interest in any newspaper in which any advertisement relating to the affairs of the board may be inserted, or ' (iii) being interested in any loan of money to the board, 30 or j (iv) having a share or interest in any lease, sale, exchange at purchase of immovable property or any agreement for the same, or (v) having a share or interest in any licence by the 3s board, or right by agreement or otherwise wit~ the board to the sole or preferential use of any railway siding or any berth for vessels in the docks belonging to tpe board, or (vi) having a share or interest in the occasional sale to the board, to a value not exceeding ten thousand rupees in anyone financial year, of any article in which he trades 7 (1) the chairman and: the deputy chairman shall hold office ~: ~f 5 during the pleasure of the central government trustees (2) subject to the provisions of this act,-10 (a) every person elected or appointed by name 'to be a trustee shall hold office to which he is elected or so appointed, for a term of two years commencing on the 1st day of april next following his election or appointment, as the case may be: provided that the term of office of a member elected to repre· sent any body of persons shall come to an end as s90n as he ceases to be a member of that body; is (b) a person appointed! by virtue of an office to be a trustee shall, until the central government by notification in the official gazette otherwise directs, continue to be a trustee so long as he continues to hold that office 8 (1) the central government shall remove a trustee it he-~;:t~t of 20 (a) becomes subject to any of the disqualifications mentioned trustees in section 6; or (b) refuses to act or becomes incapable of acting; or 25 (c) is, without the permission of the board previously obtained, absent from six consecutive ordinary meetings of the board; or (d) is absent from the meetings of the board for a period exceeding six consecutive months; or -(e) acts in contravention of the provisions of section 19 (2) a trustee may resign his oflice by writing under his hand addressed to the central government, and on such resignation being 30 accepted by that government he shall be deemed to have vacated his oflice 9 any person ceasing to be a trustee shall, unless disqualified eligibility'of d t' 6 b l' 'bi f  ttl t' trustee cor un er sec lon , e e igl e or re-appom men or re-e ec ion re-appointment or re-election 10 (1) in the case of a vacancy in the oflice of a trustee appoint filling of 3s ed by name or an elective trustee caused by the expiration of the ~ffi~~r' in term of office of such trustee, the appointment to fill such vacancy trustee shall be made or an election to fill such vacancy shall be completed, 8s the case may be, within two months immediately preceding the date of expiration of such term, (2) in the case of a vacancy in the office of a trustee appointed by the central government by virtue of an office, the appointment to fill such vacancy shall be made within one month of the occurrence of such vacancy (3) in the case of a casual vacancy in the office of a trustee 5 appninted by name or an elective trustee caused by the death of such trustee or by virtue of the provisions /itf section 8, such vacancy shall be filled within one month of the occurrence thereof by appointment or election, as the case may be, in the manner hereinbefore specified: provided that the trustee so appointed or elected shan retain his 10 office so long only as the vacating trustee shall have retained the same if such vacancy had not occurred 11 nothing in the foregoing provisions shall prevent 8 person being appointed by the central government to fill any vacancy in the t?ffice of a trustee appointed by the central government after is the expiration of the period specified in section 10, if for any reason it has not been possible for the central government to make the appointment within the said period saving provision for appointment of trustee by central government after prescribed period 12 (1) if the central government is satisfied that an electing body has failed to elect a trustee within the period specified therefor in 20 sub-section (4) of section 3 or section 10 for reasons oeyond its control, the central government may, by notification in the official gazette, direct that the election shall be held on or before such date as may be specified in the notification power of central government to extend time for election or appointment of trustees in default of election (2) in the event of default being made in electing any trljst<>e 25 within the period specified therefor under sub-section (4) of section 3 or under section 10, or as the case may be, on or before the date specified in the notification issued under sub-section (1), it shall be lawful for the central government to appoint a person bv notification in the official gazette and the person so appointed shall be deemed 30 to be an elective trustee '!ffi: i':: case 13 where a trustee is appointed under section 11 or under sub-0( certain section (2) of section 12 or elected in pursuance of a direction issued trultees under sub-section (1) of section 12, the term of office of such trustee shall commence on the date on which his appointment or election, 35 as the case may be, is notified in the official gazette and shall expire on the date on which his term of office would have expired if his appointment or election had been made within the period specified under sub-section (1) of section 10 or, as the case may be, under subsection (4) of section -3 14 if the chairman or the deputy chairman is, by infirmity or a=f otherwise rendered incapable of carrying out his duties or is absent ~nd deputy on leave or otherwise, in circumstances not involving the vacation chairman of his appointment, or is sent on deputation outside india for any of·  5 the puxposes of this act, the central government may appoint another person to act in his place during his absence: provided that the chairman or the deputy chairman, while on deputation outside india may, if the central government by order so directs and subject to such conditions and restrictions as may be 10 specified in that order, exercise such of the powers and perform such of the duties conferred or imposed on the chairman or the deputy chairman, as the case may be, by or under this act as he may deem necessary, and the chairman or deputy chairman while exercising such powers and performing such duties shall be deemed to be a trustee notwithstanding anything to the contrary contained in this is act 15 the chairman and the deputy chairman shall be paid such ~~::!t:1 salary and be governed by such terms and conditions of service as or chairman may, from time to time, be determined by the central government ~~i~~~~ 20 16 (1) a board shall meet at such times and places and shall, ~e~in~ of subject to the provisions of sub-sections (2), (3) and (4), observe such t e oa - rules of procedure in regard to the transaction of business at its meetings as may be provided by rules made under this act (2) the chairman or, in his absence, the  deputy chairman, and 2s in the absence of both, any person chosen by the trustees present from among themselves, shall preside at meetings of the board (3) all questions at a meeting of the board shall be decided by a majority of the votes of the trustees present and voting and, in the case of an equality of votes, the person presiding shall have 't second 30 or casting vote (4) no business shall be transacted at any meeting of the board unless not less than five trustees are present throughout such meeting 17 (1) a board may, from time to time, constitute from amongst the trustees one or more committees, each consisting of such number commi r b udccs o oaf 35 as the board may consider unecessary, for the purpose of discharging  such of its functions as may be delegated to such committee or committees by the board (2) a committee constituted under this section shall meet at such times and at such places and shall observe such rules of pro-- cedure in regard io ihe transaction of business ai its meetings (i1t eluding the quorum) as may be provided by regulations made under this act 18 the trustees shall be paid by the boa:rd such fees and allowances for attending the meetings of the board or of any of its com- 5 mittees and for attending to any other work of the board as may be fees and allowances payable to trustees provi~ed by rules made under this act: provided that no fees shall be payable to the chairman, deputy chairman or any other trustee who is a servant of the government restriction 19 no trustee shall vote or take part in the discussion of any 10 ~!j~::sr matter coming up for consideration at a meeting of the board or any  to v~te in of its committees if the matter is one in which he has any direct or certamcases indirect pecuniary interest by himself or his partner, or in which he is interested professionally on behalf of a client or as agent for any person other than the government or a local authority or a trade js union registered under the indian trade unions act, 1926 6 of 1926• 20 no act or proceeding of a board or of any of its committees shall be invalid merely by reason of-detects in appointments ot election not to invalidate acts, etc (a) any vacancy therein or any defect in the constitution thereof, or 20 (b) any defect in the election or appointment of a person as a member thereof, or (c) any trustee having acted or taken part in any proceedingsin contravention of section 19, ar (d) any irregularity in its procedure not affecting the merits 2s of the case delegation of powers 21 a board may, with the approval of the central government, specifyj (a) the powers and duties conferred or imposed uipon the board by or under this act, which may be exercised and per- 30 formed by the chairman; and (b) the powers and duties conkred or imposed on the chairman by or under this act, which may 'be exercised or performed by the deputy chairman or any officer of the board and the conditions and restrictions, if any, subject to which such 3s powers and duties may be exercised and performed: provided that any ·powers and duties conferred or imposed upon the deputy chairman or any ofticer of the board under clause (b) shall be exercised and performed by him subject to the supervision and control of the chair:rnan 5 22 (1) it shall be the duty of the chairman and the deputy du~e of chairman to attend every meeting of the board unless prevented ~tj by siclmess or other reasonable cause chairman (2) the chairman shau, as soon as possible, transmit to the central government a copy of the minutes of every meeting of the -l() board and shall furnish to that government such reports, returns, ~ocuments or other information as it may, from time to time, call for (3) the chairman shall exercise supervision and eodjtrol over the acts of all employees of the board in matters of executive adnrlnistration and any matters concerning the accounts and records is of the board p"r;' ! ,,"',7 ~'1""i'i~  chapi'er m staff of the board23 a board shall, from time to time, prepare and sanction a gcb~le of schedule of the employees of the board whom it deems necessary staff - ao and proper to maintain for the purposes of this act and such schedule shall indicate therein the deslgnations and grades of employees and the salaries, fees and allowances which are proposed to be paid to them    , ,- : ,- -,-p'", r""!i ,   me (1) subject to the provisions of the schedule for the time pcnnr to 2s pefng in force sanctioned by a board under section 23, the power of ~t appointing the employees of the board, to any posts, whether tem- meat  porary or permanent, shall-(a) ,in the case of heads of departments, be exercisable by the central government after consultation with the chairman; 30 (b) in the case of an employee (other than the head of a department), where the appointment relates tt> a post the maximum of the ,pay-scale for which (exclusive of allowances) exceeds such amount as the centml government may from time to time fix in this behalf, and where no such amount has been 35 ftxed, is not less than one thousand rupees be exercisable by the  board; (c) in the case of any other post, be exercisable by the chainnan: 2128 (b) ls-3 provided that no person shall be appointed ~ 18 pilot at any port, who ts not for the time being authorised by the central government under the provisions of the indian ports act to pilot vessels at that port :  -j (2) the central government may, by order, specify any post the incumbent of which shall, for the purposea of thjs act, be regarded as the head of a department 5 power to promote, ,rant leave ecc, to :r=-25 subject to any regulations made under section 28, the power of promoting, granting extension of service to, granting leave to, suspending, reducing, removing or dismissing or of disposing of any other question relating to the services of, the employees of a board 1 including the power of dispensing with the servlees of any sucb employee otherwise than by reason of the misconduct of such employee, shall be exerclsed-(a) in the case of an employee referred to in clause (e) of bub-section (1) of section 24, by the chainnan; and ij (b) in the oase of evf!t"j other employee, by the board: provided that every such order shall, so far as the same involves extension of service, suspension, reduclion in rank, removal or dlsmissal of any employee referred to in clause (b), be subject to the sanction of the central government zo conlllldaa 28 a board may appoint any person as consulting engineer ::!tftcv - to the board otherwise than on the basis of payment of a monthly salary, but e~ such appointment shall be subject to the sanction of the central government zs a board may make regulations, not inconsistent with this ad, to provide for anyone or more of the following matters, namely:- sa sadctlod of n notwithstanding anything contained in section 23, no poll ge:~nt other than a post referred to in clause (e) of su~ion (1) of secneceuary in tion 24 shall be c'l'eated except with the sanction of the central cue of c:readon of govemment certain poill power to make reaa-jatidlli, (4) the appointment, promotion, suspension, removal and dismissal of its employees; (b) their ieave, leave allowances, pensions, gratuities, com: passionate allowances and travelling allowances and the establishment and maintenance of a provident fund or any other fund for their welfare; s (c) any other matter which is incidental to, or necessary for, the pul'ipoh of regulating the eppointment and conditiodl of aervioe of itl employees ~  nm;:,,  "'~ ~i:on iv  property and contrac~10 n as from the appointed day in relation to any part--tranarer at isleta and d - th 1 g liabilltiel of (a) au property, assets and funds vesta m e centra ov- the central enunent or, as the case may be, any other authority for the govem- h·· i bef h da sh 11 - ment, etc, purposes of t e port unmediate yore suc y, a vest in to the the board; board is (b) all d~ts, obliptions and liabilities incurred, all con· tracts entered into and all matters and things engaged to be dode, by, with or for the central government or, as the case may be, the other authority immediately before such day, for or in cod-neetion with the purposes of the port, shall b deemed to have been incurred, entered into and engaged to be done by, with or for the board; (e) all non-recurrina expenditure incurred by the central government or any state government for or in connection with the purposes of the port up to such day and declared to be eapital expenditure by the central government shall be treated as the capital provided by the central government or, as the case may be, the state government to the board; (d) all rates, fees, rents and other sums of money due to the central government or, as the ease may be, the other authority in relation to the port immediately 'before such day shall be deemed to be due to the board; (e) all suits and other legal proceedings instituted or which might have been instituted by or against the central government or, as the case may be, the other authority immediately before such day for any matter in relation to the port may bf continued or instituted by or against the board;' <1> every employee serving under the centml government or, as the case may be, the other authority immediately before such day solely for or in connection with ,the aftairs of the port s  shall become 8jl employee of the board, shall hold his office or service therein by the same tenure and upon tthe same terms and conditions of service as he would have held the same if the board had not been established and shall continue to do so unleils and until his employment in the board is terminated or 10 until his tenure, remuneration or terms and conditions of service are duly altered by the board: provided that the tenure, remuneration and terms and cod-ditions of sefv1ce of any such employee shall not be altered to his disadvantage without the previous sanction of the central is government bldttln 30 as from the appointed day, all rates, fees and other charges ratca etc in relation to any port shall, unless and until they are vaded by the to ~n::!s competent authority in accordance with the provisions of this act, b; board contiiiue to be levied and collected at the same rate at which they 20 were being levied and collected by the central government or, as the case may be, any other authority immediately before such day repayment 31 a board shall repay, at such intervals and on such terms and :i:l:!ta1 conditions as the cenjtral government may determine, the amount teresta of capltal provided under clause (c) of section 29 with interest at 2s such rate as may be fured by that government and such repayment of capltal or payment of interest shall be deemed to be part of the expenditure of- the board ; proc:ed ure , when immovable : property caddot be iicquired by isreement 32 whenever any immovable property which is required for the purposes of the board cannot be acquired by agreement, the central 30 goyernment may at the request of the board, procure the acquisi-uon ·!thereof under the provisions of the land acquisition act, 1894, i of 1894-and bn payment by the board of the compensation awarded under toot act and of the charges incurred by the government in coiuiection w,ith the proceedings, the land shall vest in the board 3s conusc:tl 33 subj eel to the provisions of section 34, a board shall be' coini by board petent to enter into and perform any contract necessary for the performance of its functions under this act 34 (1) ewry contract shall on behalf of a board be made by the mode 'ilc chairman and shall be sealed with the common seal of the board: =~~~ on behalf of board provided that no contract whereof the value or amount exceeds such value or amount as the central government may from time to s time fix iil this behalf shall be made unless it has been previously approved by the board: provided further that no contract for the acquisition or sale of immovable property or for the lease of any such property for a term exceeding thirty years, and no other contract wnereof the value or 10 amount exceeds such value or amount as the central government may from time to time fix in this behalf, shall be made unless it has been previously approved! by the central government (2) subject to the provisions of sub-section (1), the form and manner in which any contract shall be made under this act shall be is such as may be prescribed by regulations made in this behalf (3) no contract which is not made in accordance with the provisions of this" act ~d the regulations made thereunder shall be binding on the board  chapter v works and services to be provided at ports20 35 (1) a board may execute such works within or without the power of limits of the port and provide such appliances as it may deem neces- boardtto execu e sary or expedient works and p'ovide (2) such works and appliances may includeappliances (a) wharves, quays, docks, stages, jetties, piers end other works within the port or port approaches or on the foreshore of the port or port approaches, wi,th all such convenient arches, drains, landing places, stairs, fences, roads, railways, bridges, tunnels and approaches and buildings required for the residence of the employees of the boardj as the board may consider necessary; 35 (b) buses, railways, locomotives, rolting stock, sheds, hotels, warehouses and other accommodation for passengers and goods and other appliances for carrying passengers and for conveying, receiving and storing goods landed, or to be shipped or otherwise; (c) moorings and cranes, scales and all other necessary means and appliances for loading and unloading vessels; (d) reclaiming, excavating, enclosing and raising any part of the foreshore of the port or port approaches which may be necessary for the execution of the works authorised by this act, or otherwise for the purposes of this act;  (e) such breakwaters and other works as may be expedient s _we protection of the port; - (1) dredgers and other machines for cleaning, deepenini and improving any portion of the port or port approaches or of the foreshore of the port or port approaches; (g) lighthouses, lightships, beacons, buoys, pilot boats and 10 other appliances necessary for the safe navigation of the port and of the port approaches; (h) vessels, tugs or other boats for use within the limits of the port or beyond those limits, whether in territorial waters or otherwise, for the purpose of towing or rendering is assis1jance to any vessel, whether entering or leaving the port or ,bound elsewhere, and for the purpose of saving or protecting life or property and for the purpose of landing, shipping or transhipping passengers or goods under sectt~n 42;' (i) the sinking of tube-wells, and the equipment, mainte-» nance and use of boats, barges and other appliances for the purpose of the supply of water at the port; (j) engines and other appliances necessary for the extinguishing of fires 38 a board may undertake to carry out on behalf of any person 25 any works or services ar any class of works or services, on such terms and conditions as may be agreed upon between the board and the person concerned sea-goinl 37 (1) when any dock, berth, wharf, quay, stage, jetty or pier vessclln d erected at any port or port approaches under the provisions of this 30 compe e ,  to ule act has been completed with sufficient warehouses, sheds and applidoc:kctl,c:whar- ances for receiving, landing or shipping goods or passengers from ve, - and upon sea-going vessels, the board may after obtaining the approval of the chief customs-officer and by notification published in three consecutive issues of the official gazette, declare that such 35 dock, berth, wharf, quay, stage, jetty or pier is ready for receiving, landing and shipping or for landing or for shipping goods or passengers from and upon sea-going vessels (2) as from the diate of the publication of such notification for the third time, it shall be lawful for the board from time to time, 40 when there is room at such dock, berth, wharf, quay, stage, jetty or pier, to order to come alongside of such dock, berth, wharf, quay, stage, jetty or pier for the purpose of landing and shipping goods or passengers or for landing or for shipping the same, any sea-going· 5 vessel within the port or port approaches which has not commenced to discharge goods or passengers, or which being about to take in goods or passengers, has not commenced to do so: provided that before making such order, the board shall have regard, as far as possible, to the convenience of such vessel and of the 10 shippers, in respect of the use of any particular dock, berth, wharf, quay, stage, jetty or pier: provided further that if the board is not the conservator of the port, the board shall not itself make the order as aforesaid but shall require the conservator of the port, or other person exercising the 15 rights, powers, and authorities of the conservator of the port, to make such order 38 when a sufficient number of docks,berths, wharves, quays, if accommostages, jetties or piers have been provided at any port or port ~c~~n~ufti­approaches as aforesaid, the board may, after obtaining the approval 8c8-i~ing ao'lf the chief customs-officer and by notification published in three ;:n~8t:= consecutive issues of the official gazette, direct that no goods or clocks, passengers shall be landed qr shipped from or upon any sea-going :~c  vessel within the port or port approaches otherwise than at such docks, berths, wharves, quays, stages, jetties or piers, except with 25 the sanction of the board and in accordance with such conditions as the board may specify 39 any officer appointed by the board in this behalf may, in cases p:;er to sell of emergency or for any reason which appears to him sufficient, by ~ot ~o v:me notice in writing, order the master or owner or agent of any sea al0tnpbidc of or 0 e  going vessel not to bring such vessel alongside of, or to remove such removed ,  vessel from, any dock, berth wharf, quay, stage, jetty or pier belong ~r:'r:c~  ing to or under the controlof the board and, if such notice is not etc complied with, the board may charge in respect of such vessel such sum as it thinks fit, not exceeding one thousand rupees for each day " of twenty-four hours, or portion of such day, during which such vessel remains at such dock, berth, wharf, quay, stage, jetty or pier: t'tovided that in the case of a vessel ordered to be removed, such charge shall not commence to be made till after the expiry of twelve hours from the sen-ice of such notice as aforesaid on the master or  ) owner or agent of the vessel power of 40, notwithstanding anything contained in sections 37 and 38, the ~~~r~ent central government may, if in its opinion it is necessary in the pubto exempt from obliga lic interest so to do, by general or sp'ecial order, from time to time, 't rt' 'fied i i i'  don to use perm! ce aln specl vesse s or c asses of vesse s to discharge or docb, what- ship goods or certain specified goods or classes of goods, at such place 5 vea, etc in a port or within the port approaches, in such manner, du'ring such period and subject to such payments to the board and on such conditions as the central government may think fit,  au vessell 41, (1) when any dock, berth, wharf, quay, stage, jetty or pier other than f "i d' h' t f oods f sea-going or :receiving, an mg or s lpmen 0 g or passengers rom or 10 elaellued upon vessels, not being sea-going vessels, has been made and; com-::: doc:jts, pleted with all proper appliances in that behalf, the board may, after "barvel, obtaining the approval of the chief customs-officer, by order pubetc iished in three consecutive issues of the official gazette,-(i) declare that such dock, berth, wharf, quay, stage, jetty or i, pier is ready for receiving, landing or shipment of goods or passengers from or on vessels, not being sea-going vessels, and hi) direct that within certain limits to be specified therein it shall not be lawful, without the express sanction of the board, to land or ship any goods or passengers out of, or into, any vessel, 20 not being a sea-going vessel, of any class specified in such order, except at such dock, berth, wharf, quay, stage, jetty or pier, (2) as from the date of the publication of the order mentioned in sub-section (1) for the third time, it shall not be lawful, without the consent of the boatd, for any vessel of such class-25 li) to land or ship any goods or passengers at any place within the limits so specified except at such dock, berth, wharf, quay, stage, jetty or pier; or  (ii) while within such limits, to anchor, fasten or lle within fifty yards of the ordinary low-water mark 30 (3) if after the publication of such order, any such vessel shall while within the limits so specified, so anchor, fasten or lie, it shall be lawful for the board to cause the same to be removed out of the ~ said limits at the expense of the master or owner or agent of the vessel 35 performance 42 (1) a board shall have power to undertake or provide the ~= 'fol1~wing services:~ (a) landing, shipping or transhipping passengers, and goods between vessels in the port and the wharves, piers, quays or d()~ks belonging to or in the possession of the board;-40 (b) receiving, removing, shifting, transporting, storing or delivering goods brought within the board's premises; (c) carrying pauengerl by rail or by other means within the limits of the port or port approaehes, sttbject to such restrie· :tions and conditions 88 the central government may think at to impose; and 5 (d) receiving and delivering, transporting and bookinc ad despat~hing goods originating in the vessel in the pen and id~ tended for carriage by the neighbouring railwaya 01' ruee verl4, 9 of 1890· as a railway administration under the indian rallways act, 1890 (2) a board may, if ito requested by the owner, take eharge cl the 10 goods for the purpose of performing the service of sentees and lb give a receipt in such formas the board may specify (3) after a'irj goods have been taken charge of and a recetpt ii'ferl for them uncler this section no liability for any ieee 01' clem, wilith may occur to them shall attach to any pel'soii to wbem  reeeipt , 15 been given or to the master or owner of the vessel from whieh thegoods have been landed or transhipped 43 (1) subject to the provisions of this act, the responsibility of actponalbiany board for the loss, destruction or deterioration of ggods of which ~ :''' it has taken charge shall,-1dss otc • of ,oad • 20 (i) in the case of goods received for earriage by railway, be 9 of 1890 governed by the provisions of the indian railways act, 1890; add (ii) in other cases, be that of a bailee undei' sectiojlls 151, 162 9 of 1872 and· 161 of the indim contract act, 1872, omitting the worcls "in the absence of any special contract" in seetion 152 of that act: 25 provided that no responsibility under this sectioft shall attach to the board until a receipt mentioned ia su~8ection (2) of section 42 is given by the board (2) a board shall not be is any way responsible for the loss, destruction or deterioration of, or damage to, goods of which it has taken 30 charge unless notice of such loss or damage has been given within such period as may be prescribed by regulations made in this behalf from the date of the receipt given for the goods under sub-seetion (2) of section 42 44 where the chief customs-ofticer has, under the provisions of accolluqo-35 any act for the levy of duties of customs, appointed any dock, berth, ~~~e': tr wharf, quay, stage, jetty pier, warehouse or shed or a portion of any cultolds warehouse or shed provided at any port under the provisions of this =rce:;~ act for the use of sea-going vessels to be a wharf for the landing or ot~, apshipping of goods or a warehouse for the storing of dutiable goods =1n 40 on the first importation ttl·ereof without payment of duty, within the ao&itollli <:t 2126 (b) ls-4 rneaning of the first-mentioned act, the board shall bet apart and maintain such place on or adjoining such dock wharf, quay, stage, jetty or pier, oriin such warehouse or shed or ~ion thereof, for the use of officers of customs as may be necessary duclat cultoml barvel, etc cs notwithstanding that any wharf, quay, stage, jetty, pier, ware-s house or shed or portion thereof,at any port has under the provisions of l'ection 44, 'been set apart for the use of the officers of customs at the part, all rates, tolls and otht!ll" charges payable under this act in lespect thereof or for the storage of goods therein, shan be payable to the board, or to such person or persons as may be appointed 10 by the boai'd to receive the same = to "' (1) no person shall make, erect or fix within the limits of a cion j erec- port or port approaches any wharf, dock, quay, stage, jettya pier, pr= erection or mooring except with the previous permission in writing :c, ~in of the board and subject to such conditions, if any, as the board may is ~ pon lubspecify ,ect to condition •• (2) if any person makes, erects or fixes any wharf, dock quay, stage, jetty, pier, erection or mooring in contravention of sub-section (1) ,the board may, by notice, require such person to remove it within such time as may be specified in the notice and if the pe-rson 20 fails so to remove it, 'the board may cause it to be removed at the expense of that person compell 47 (1) where, as a result of an order published under section 38 :~1~ ~~ror section 41, the use of any wharf, dock, quay, stage, jetty, pier, ta1n caae erectiojl or mooring made, fixed or erected by any person is rendered 25 where ~o of unlawful the board may after hearing the person concerned, by any pnvate' , whalf, order, close, remove, fill up or destroy such'wharl, dock, quay, stage, :·~~~t jetty, pier, erection or mooring or permit the use thereof to such person on payment of such dues, rates and charges as the board may, with the previous sanction of the central government, determine 30 (2) save as otherwise provided under sub-section (3) no person shall be entitled to claim compensation for any injury damage or loss caused or alleged to have been caused by an order made under sub-section (1) (3) if it is proved to the satisfaction of the board that any 35 such wharf, dock, quay, stage, jetty pier, erection or mooring was made fixed or erected by any person with the previous permission of" the authority competent to grant such permission, he shall be paid by the board compensation the amount of which shall be determined in the manner and in accordance with the principles here- <40 inafter set out, that is to say-(a) in computing the compensation, there shall not be taken into account any tolls dues, rates or charies whick such person shall be liable to pay for using any wharf, quay, stage, jetty pier, erection or mooring provided by the board; (b) the amount of compensation shall be calculated with reference to the cost of construction of such wharf quay, stage, jetty pier, erection or mooring; (e) where the amount of compensation can be fixed by agreement, it shall be paid in accordance with such agreement; 10 (d) where no such agreement can be reached, the central government shall appoint as arbitrator, a person who is or has been or is qualitled for appointment as, a judge of a high court; -(e) the central government may in any particwar case nominate a person possessing special knowledge of any matter relating to any case under inquiry to assist the arbitration in determining any question which has to be decided by him under this section, and where such nomination is made the person to be compensated may also nominate an assessor for the same purpose; (f) at the commencement of the proceeding before the ar-,bitrator, the board and the person to be compensated shall stat~_ what in their respective opinion is a fair amount of compensation: (g) the arbitrator shall after hearing the dispute, make anaward determining the amount of compensation which appears to him to be just and specify the person or persons to whom such compensation shall be paid; (h) where there is a dispute as to the person or persons who are entitled to the compensation, the arbitrator shall decide such dispute and if the arbitrator finds that more persons than one are entitled to compensation, he shall apportion the amount thereof among such persons; 10 of '940 (i) nothing in the arbitration act, 1940 shall a-pply to arbitrations under this section; 35 s oj 11108 (;) the arbitrator appointed under this section while holding arbitration proceedings under the act shall have all the powers of a civil court while trying a suit under the code of civil procedure 1908 in respect of the following ~tters,-(i) summoning and enforcing the attendance of any person and examining him on oath; ~,~, , (ii) requiring the discovery and production of documents; (iii) receivin, evidence on affidavits; , ,,~ (i-o) iuuing commissions for examination of witnesses or documents: (je) any person aggrieved by an award of the arbitrator made under this section may, within thirty days from the date of the award prefer an appeal to the high court within whose juriadi~ion the port is situated: provided that the high court may entertain the appeal io after the expiry of the said period of thirty days if it is satisfied t_t the appellant was prevented by sufficient cause from filing the ~ppeal in time: (1) ~ery award shall also state the amount of costs incurred in the arbitration proceedings under this section and by is what persons and in what proportions they are to be paid  chapter vi imposmon and recovery of rates at portsscale, of 41 (1) every board shall from time to time frame a scale of =~ per- rates at which, and a statement of the oonditions under which, any 20 foniaed br of the services specified hereunder shall be performed by itself at boercl 01' in rela$ion to the port or port approaches--(4) ,transhipping of passengers or goods between vessels if the port or port approaches; (b) landing and shipping of passengers or goods from or to 2s such vellels to or from my wharf, quay, jetty, pier, dock, berth, mooring stale or ~rection, land or building in the possession or oeeupetioft of tbeboard or at any place within the limits of the port 01' port approaches; (c) cranege ol' porterage of goods on any such place; 3() (d) wharfage, storage or demurrage of goods on any such piece; (e) any other service in respect of vessels passengers or goods, excepting the services in respect of vessels for which fees are chargeable under the indian ports act 3s (2) difterent scales and conditions may be framed for different classe of goods and vessels • (1) every board shall, from time to time, also frame a scale sc:ale of of rates on payment of which, and a statement of conditions under ~::~t of which, any property belonging to or in the possession or occupation condition of the board, or any place within the limits of the port or the port ~o~~::be_ s approaches may be used for the purposes specifted hereunder:-longing to board (4) approaching 01' lying at or alongside any buoy, mooring, wharf, quay, pier, dock, land, building or place as aforesaid by vessels; 10 (b) entering lq)on or plying for hire at or on any wharf, quay, pier, dock, land, building, road, bridge or place as aforesaid by animals or vehicles carrying passengers or goods; (c) leasing of land or sheds by owners of goods imported or intended for export or by steamer agents; - is (d) any other use of any land building, works, vessels or appliances belonging to or provided by the board (2) different scales and conditions may be framed for different classes of goods and vessels so a board may from time to time, frame a consolidated scale consolidated f t f b· t' f th  'ft d  t' 48 rates for o ra es or any com ina ion 0 e services specl e id sec ion combination 20 or for any combination of such service or services with any user of services o~ permission to use any property belonging to or in the possession " or occupation of the board, as specified in section 49 51 in framing scales under any of the foregoin~ provisions of this rower to chapter, the board may prescribe ~ lower rate of charges in res- c:ii=i ,j,s peel of,-' ratca of charles f i d· on colltll cal coastal' goods carried in a vessel rom one n ian port 100 a to another indian port: provtded that the board shall not makf>· any discrimination between one indian port and another luch port in prescribing 30 a lower rate of charges under this section; (b) other goods, in special cases 51 every ;$cale of rates an~ every ~~tement o~ conditions framed ~~~~rnc­by a board under the foregomg' provisions of this chapter shah be central submitted to the centtal government for sanction and shall have goverg menf j5 effect when 10 sanctioaedand published by the board in the official 8ca~ gazette exemption 53 a board may, in special cases and for reasons to be recorded !=~i~~~ of, in writing, exempt either wholly or partially any goods or class of rates or goods from the payment of any rate or of any charge leviable thereon charges according to any scale in force under this act or remit the whole or any portion of such rate or charge so levied , power of 54 (1) whenever the central government considers it necessary g:~r!ment in the public interest so to do, it may, by order in writing together to require with a statement of reasons therefor, direct any board to cancel modificauon f th i' f od'f th 'th' h  d or cancellaany 0 e sca es in orce or m lye same, wi in sue perla tion of ratcs as that government may specify in the order' 10 (2) if any board against whom a direction is made under subsection (1) fails or neglects to comply with such direction within the specified period, the central government may cancel any of such scales or make such modifications therein as it may think fit provided that before so cancelling or modifying any scale the is central government shall consider any objection or suggestion which may be made by the board during the specified period (3) when in pursuance of this section any of the scales has been cancelled or modified such cancellation or modification shall be published by the central government in the official gazettp ar= 20 shall thereupon have effect accordingly refund of overcharges 55 no person shall be entitled to a refund of an overcharge made by a board unless his claim to the refund bas been preferred in writing by him or on his behalf to the board within six months from the date of payment duly supported by au relevant documents: 2s provided that a board may of its own motion remit overcharges made in its bills at any time notice of payment of charges short-levied or errone-cully refunded 56 (1) when any board is satisfied that any charge leviable under this chapter has been short-levied or erroneously refunded, it may issue a notice to the person who is liable to pay such charge 30 or to whom the refund has erroneously been made, requiring him to show cause why he should not pay the amount specified in the notice provided that no such notice shall be issued after the expiry of two years,-35 (4) where the charge is short-levied, from the date'of the payment of the charge; (b) where a charge has been erroneously refunded, trom the date of the refund (2) the board may, after considering the representation, if any, made by the person to whom notice is issued under sub-section (1), determine the amount due from such person and thereupon such person shall pay the amount so determi·ned 5 57 a board shall not lease, farm, sell or alienate any power vest- board not to ed in it under this act of levying rates without the prior sanction of ::t~a:tea the central government sanction 58 rates in respect of goods to be landed shall be payable imme- time for diately on the landing of the goods and rates in respect of goods to rr,~~t of 10 be removed from the premises of a board, or to be shipped for ex- load • port, or to be transhipped, shall be payable before the goods are so removed or shipped or transhipped 59 (1) for the amount of all rates leviable by a board under this ~oard's lien  ' act in respect of any goods, and for the rent due to the board for any ,or rates, 15 buildings, plinths, stacking areas, or other premises on or in which any goods may have been placed, the board shall have a lien on such goods, and may seize and detain the same until such rates and rents are fully paid (2) such lien shall have priority over all other liens and claims, 20 except for general average and for the ship-owner's lien upon the said goods for freight and other charges where such lien exists and has been preserved in the manner provided in sub-section (1) of section 60, and for money payable to the central government under any law for the time being in force 25 60 (1) if the master or owner of any vessel or his agent, at or mlste!"s lien before the time of landing from such vessel any goods at any dock, !~~r~~t wharf, quay, stage, jetty, berth, mooring or pier belonging to or in chules the occupation of a board, gives to the board a notice in writing that such goods are to remain subject to a lien for freight or other 30 charges payable to the shipowner to an amount to be mentioned in such notice, such goods shall continue to be liable to such lien to such amou·nt (2) the goods shall be retained in the custody of the board at the risk and expense of the owners of the goods until such lien is dis-35 charged as hereinafter mentioned; and godown or storage rent shall be payable by the party entitled to such goods for the time during which they may be so retained (3) upon the production before any officer appointed by the board in that behalf of a document purporting to be a receipt for, 4- or release from, the amount of such lien, executed by the person by whom or on whose behalf such notice has-been given, the brd may permit such goods to be removed without regard to sueh lien, pr0-vided that the board shall have used rellsoll8ble care in respect to the authenticity of such document sale of 61 (1) a board may, after the expiry of two months from the s ~:"~=i time when aofty goods have pasaed into its custody or in the case of if ratee or animals and perishable or hazardous goods after the expiry 01 s\lch ~?j ~~ li!ot shorter period not being less than twenty-four hours after the landfor f~~t i'i ing of the animals or goods as the board may think fit sell by public ~dl'c ar- auction such goods or so much thereof as, in the opinion of the boarci 10 may be necessary-(a) if any rates payable to the board in respect of luch goods have not been paid, or (b) if any rent payable to the board in respect of any place on or in which such goods have b~en stored has not been paid, 's or (c) if any lien of any shipowner for freight or other charges of which notice has been given has not been discharged and if the person claiming such lien for freight or other charges has made to the board an application for such sale 20 (2) before making such sale, the board shall give ten  days' notice of the same by publication thereof in the oftieial gazette and also in at least one of the principal local daily newspapers: provided that in the case of animals and perishable or hazardous goods, the board may give such shorter notice as, in the opinion of 2s the board, the urgency of the case admits of (3) if the adtiress of the owner of the goods has been stated on the manifest of the goods or in any of the documents which have come into the hands of the board, or is otherwise known, notice shall also be given to him by letter delivered at such address, or sent by 30 post, but the title of a 'dona fide purchaser of such goods shall not be invalidated by reason of the omission to send such notice, nor shah any such purchaser be bound to inquire whether such notice has been sent (4) notwithstanding anything contained in this section, arms and ammunition and controlled goods may be sold at such time and 35 in such manner as the central government may direct explanation-in this section and section 62-(a) "arms and ammunition" have the meanings respectively assigned to them in the arms act, 19s9; (b) "controlled goods" means goods the price or disposal of which is regulated under any law for the time being in force 62 (1) notwithstanding anything contained in this act, where dilpoaal oj any goods placed in the custody of the board upon the landing there-e:sot 5 of are not removed by the owner or other person entitled thereto from from the premises of the board within one month from the date on ~remi:!rcs which such goods were placed in their custody, the board may, if ~t~l1 tidie the address of such owner or person is known, cause a notice to be limit served upon him by letter delivered at such address or sent by post, 10 or if the notice cannot be so served upon him or his address is not known, cause a notice to be published in the official gazette and also in at least one of the principal local daily newspapers, requiring him to remove the goods forthwith and stating that in default of compliance therewith the goods are liable to be sold by public auc-is tion: provided that where all the rates and charges payable under this act in respect of any such goods have been paid, no notice of removal shall be so served or published under this sub-section unless two months have expired from the date on which the goods were placed zo in the custody of the board (2) the notice referred to in sub-section (1) may also be served on the agents of the vessel by which such goods were landed (3) if such owner or person does not comply with the requisition in the notice served upon him or published under sub-section (1), 25 the board may, at any time after the expiration of two months from the date on which such goods were placed in its custody, sell the goods by pub ic auction after giving notice of the sale in the manner specified in sub-sections (2) and (3) of section 61 (4) notwithstanding anything contained in sub-section (1) or 30 sub-section (3)-(a) the board may, in the case of animals and perishable or hazardous goods, give such shorter notice under any of those sub-sections as, in the opinion of the board, the urgency of the case requires; 3s (b) arms and ammunition and controlled goods may be sold in accordance with the provisions of sub-section (4) of section 61 (5) the central government may, if it deems necessary so to do in the public interest, by notification in the official gazette, enmpt 40 any goods or classes of goods from the ~peration of this section 2126 (b) ls-5 ~iicatioll 13 (l) the proceeds of every sale under section 61 or aection 68 cced-:: proshall be applied in the following order:-(a) in payment of the expenses of the sale; (b) in payment, according to their respective priorities, of the liens and claims excepted in sub-section (2) of section 59 s from the priority of the lien of the board; (c) in payment of the rates and expenses of landing, removing, storing or warehousing the same, and of all other charges due to the board in respect thereof; (d) in payment of any charges due to the board from the 10 importer, owner or consignee of the goods under the provisions of this act in respect of any other goods belonging to him (2) the surplus, if any, shall, except in the case of goods confiscated under any law relating to customs be paid on demand to the importer, owner or consignee of the goods, or to his agents is 64 (1) if the master of any vessel in respect of which any rates or penalties are payable under this act, or under any regulations or orders made in pursuance thereof, refuses or neglects to pay the same or any part thereof on demand, the board may distrain or arrest such vessel and the tackle, apparel and furniture belonging 20 thereto, or any part thereof, and detain the same until the amount 80 due to the board, together with such further amount as may accrue for any period during which the vessel is under distraint or arrest, is paid (2) in case any part of the said rates or penalties, or of the cost 2s of the distress or arrest, or of the keeping of the same, remains unpaid for the space of five days next after any such distress or arrest has been so made, the board may cause the vessel or other thing so distrained or arrested to be sold, and, with the proceeds of such sale, shall satisfy such rates or penalties and costs, including the costs of 30 sale remaining unpaid, rendering the surplus (if any) to the master of such vess~l on demand grant of· pon de_-ranccaftcr payment of rates 65 if a board gives to the officer of the central government whose duty it is to grant the port-clearance of any vessel at the port, a notice stating that an amount therein specified is due in respect of 3s rates, fines, penalties or expenses chargeable under this act or under any regulations or orders made in pursuance thereof, against such vessel, or by ihe owner or master of such vessel in respect thereof, or against or in respect of any goods on board such vessel, such officer shall not grant such port-clearance until the amount so charge- 40 able or due has been paid  chapter vii borrowing powers of board66 (1) a board may, with the previous sanction of the central ~~:ero!: • government and after due notification in the official gazette, raise 5 loans for the purposes of this act: provided that no such notification shall be necessary if a loan is obtained from the central government or a state government (2) loans may be raised by a board in the open market on port trust securities issued by it or may be obtained from the central 10 government or a state government (3) the terms of all loans shall be subject to the approval of the central government 67 (1) a board may, with the sanction of the central govern- porttrult ment, prescribe the form in which port trust securities shall be securities is issued by it and the mode in which and the conditions subject to which they may be transferred (2) the holder of any port trust security in any form may obtain in exchange therefor, upon such terms as the board may from time to time determine, a port trust security in any other form 20 prescribed by regulations under this act (3) the right to sue in respect of moneys secured by port trust securities shall be exercisable by the holders thereof for the time being without preference in respect of priority of date t of 1173• 68 (1) notwithstanding anything contained in section 45 of the ri~t of 25 indian contract act 1872-~urvlvora of , jomt or (a) when any port trust security is payable to two or more :!;~ of persons jointly, and either or any of them dies, the port trust securities security shall be payable to the survivor or suvivors of those persons, and (b) when a·ny such security is payable to two or more persons severally and either or any of them dies, the security shall be payable to the survivor or survivors of those persons, or to the representatives of the deceased, or to any of them (2) this section shall apply whether such death occurred or 35 occurs before or after the appointed day (3) nothing herein contained shall affect any claim which any representative of a deceased person may have against the urvivor or survivors under or in respect of any security to which sub-section (j) applies 1 of ip56 2 of 1912 s (4) for the purposes of this section, a body incorporated under the companies act, 1956, or the co-operative societies act, 1912 or any other enactment for the time -being in force, whether within or without india, shall be deemed to die when it is dissolved power of 69 where two or more persons are joint holders of any port one or two trust security, anyone of those persons may give an effectual reor more  f  joint holden celpt or any mterest payable in respect of such security unless no-~~~: tice to the contrary has been given to the board by any other of the 10 holders iddorae-70 notwithstanding anything in section 15 of the negotiable in-:u to be struments act, 1881, no indorsement of a port trust security, which 26 of 1881 urit; i:e~ is transferrable by endorsement, shall be valid unless made by the signature of the holder inscribed on the back of the security itself 15 indoner of 71 notwithstanding anything in the negotiable instruments act, =ty not 1881, a person shah not by reason only of his having indorsed any 25 of 1181 amount for port trust security be liable to pay any money due, either as printhereof cipal or as interest, thereunder !mpreaaion 72 (1) the signature of the person authorised to sign port trust 20 of iptut:e securities on behalf of the board may be printed, engraved or lithoon lecurl- h h' 1 b d tiel graphed or impressed by such ot er mee amca process, as the oar may direct, on such securities (2) a signature so printed, engraved, lithographed or otherwise impressed shall be as valid as if it had been inscribed in the proper 25 handwriting of the person so authorised luu_ duplicate lecuritiel of 73 (1) when any port trust security is alleged to have been lost, stolen or destroyed either wholly or in pact, and a person claims to be the person to whom but for the loss, theft or destruction it would ber payable, he may, on application to the board and on pro- 30 ducing proof to its satisfacoon of the loss, theft or destruction and of the justice of the claim and on payment of such fee, if any, as may be prescribed by regulations, obtain from the board an order for-(a) the payment of interest in respect of the security said 35 to be lost, stolen or destroyed, pending the issue of a duplicate security; bnd (b) the issue of a duplicate security payable to the applicant (z) an order shall not be passed under sub-section (1) until after the issue by the board of the prescribed notification of the loss, theft or destruction - (3) a list of the securities in respect of which an order is passed s under sub-section (j) shall be published in such manner as the board may prescribe (4) if at any time before the board becomes discharged under the provisions of this act from liability in respect of any security the whole of which is alleged to have been lost, stolen or destroyed, such 10 security is found, any order passed in respect thereof under this lection shall be cancelled 74 (1) a board may, subject to such conditions as it may pre&- bauo of cod-cribe, on the application of a person claiming to be entitled to a :=d:~  port trust security or securities issued by it, on being satisfied of the i s justice of the claim and on delivery of the security or securities receipted in such manner and on payment of such fee, if any, as it may prescribe, convert, consolidate or sub-divide the secudty or securities, and issue to the applicant a new security or securities accordingly 20 (2) the conversion consolida:tion or sub-division referred to in sub-section (1) may be into a security or securities of the same or different classes or of the same or different loans 9 of 1901 35 75 notwithstanding anything contained in the indian limitation ~ i act, 1908-(i) on payment of the amouillt due on a port trust security on or after the date on which payment becomes due, or (ii) when a duplicate security has been issued under section 73, or (iii) when a new security or securities has or have been issued upon conversion, consolidation or sub-division under section 74, the board shall be discharged from all liability in respec't of the security or securities so paid or in place of which a duplicate or new security or securities has or have been issued-(a) in the case of payment-after the lapse of six years from the date on which payment was due; (b) in the case of a duplicate security-after the lapse of six years from the date of the publication under sub-section (3) of section 73 of the list in which the security is first mentioned or from the date of the last payment of interest on the original licurity, whichever date is later; - (c) in the case of a new security issued upon conversion, consolidation or sub-division-after the lapse of six years froin the date of the issue thereof  ,=: ~! 16 a board may, from time to time, make regulations to provide ~te rep- for all or any of the following matters, namely:-s uoo  (a) the person, if any, authorised to sign, and the mode of affixing the corporate seal and of attestation of documents relating to port trust securities issued or to be issued by the board; (b) the manner in which payment of interest in respect of 10 such port trust securities is to be made, recorded and acknowledged; (c) the circumstances and the manner in which such port trust securities may be renewed; (d) the circumstances in which such securities must be 1:5 renewed before further payment of interest thereon can be claimed; (e) the form in which such secudties delivered for renewal, conversion, consolidation or sub-division are to be receipted; (f) the proof which is to be produced by a person applying 20 for duplicate securities; (g) the form and manner of publication of the notification mentioned in sub-se<:tion (2) of section 73 'and the manner of publication of the list mentioned in sub-section (3) of that section; 25 (h) the nature and amount of indemnity to be given by a person applying for the payment of interest on port trust securities alleged to have been wholly or partly lost, stolen or destroyed, or for the issue of duplicate port trust securities; (i) the conditions subject to which port trust securities 30 may be converted, consolidated or sub-divided; (;) the amounts for which stock certificate may be issued; (k) generally, all matters connected with the grant of duplicate, renewed, converted, consolidated and sub-divided securities: 3s (1) the fees to be paid in respect of the issue of duplicate securities and of the renewal conversion, consolidation and subdivision of port trust securities: (m) the fees to be levied in respect of the issue of iitock certificates 40 71 all loans contracted by a board under this act shall be raised place and in india, and in indian currency, unless the central government, by furrency, ~ notification in the omcial gazette, otherwise directs b:nsb~:rd 78 all loans raised by a board under this act shall be a first security for h roana taken , c arge onout by (4) the property vested or which may hereafter during the board currency of the loans become vested in ,the board other than any sum set apart by the board as the sinking fund for the purpose of paying oft' any loan; and 10 (b) the rates leviable by the board under this act 79 (1) the central govermnent or a state government shall remedies of have in respect of loans made by it to a board, or of loans made to gove~~::: any other authority for the repayment ot which the board is legal- of loan ly liable the same remedies as holders of port trust securities :::~i to is issued by the board; and such government shall not be deemed to possess any prior or· greater rights in respect of such loans than holders of such port trust securities: provided that where the terms of any such loan made before , the appointed day expressly provide that the loan shall have priority 20 over all other loans in the matter of repayment by the board, such loan shall have priority 80 a board may, with the previous sanction of the central power of government, apply any sums, out of moneys which may come into ~ec;a~ loan~o its hands under the provisions of this act and which can be so before due :15 applied without prejudicing the security of the other holders of date port trust securities, in repaying to the government any sum which may remain due to it in respect of the principal of any loan although the time fixed for the repayment of the same may not have arrived: 30 provided that no such repayment shall be made of any sum less than ten thousand rupees; and that, if such repayment is made the amount of interest in each succeeding instalment shall be so adjusted as to represent exactly the interest due on the outstanding principal 35 81 (1) in respect of every loan raised by a board under this act, establish· which is not repayable before the expiration of one year from the =ki~~nd date of the loan, the board shall set apart half-yearly out of its income as a sinking fund a sum sufficient to liquidate the loan with~ in a period which shall not in any case, unless the previous con-40 sent of the central government has been obtained, exceed thirty years; but the maximum perioci shall not in any case excefd sixty years: provided that a sinking fund need not in the absence of 'any stip~tion to that effect be established in ,the case of loans taken by the board from the central government or any state government s (2) where any sinking fund has, before tbeappointed day, been established by any authority in respect of a loan raised by it for which loan the board is liable under this act, the sinking fund so esta~lished by that authority shall be deemed to have been establish- ed by the board under this section 10 idvettmc!lt 82 (1) the sums so set apart by a board under sub-section (1) of = ~~- section 81 and the sums forming part of any sinking fund referred to kida fwl4 in sub-section (2) af that section shall be invested in public securltiea or in such other securities'rs the central government may approve in this behalf, and shall be held in trust for the purposes of this act is by two trusteees, one being the board and the other a person appointed by the central government (2) a board may apply the whole or any part of the sums accumulated in any sinking fund in or towards the discharge of the moneys for the repayment of which the fund has been established 2(\ provided that it pays into the fund in each year, and accumulates until the whole of the moneys borrowed are discharged, a sum equivalent to the interest which would have been produced by the sinking fund, or the part of the sinking fund so applied lbamination 83 (1) a sinking fund established for the liquidation of any loan 2s of linkina shall be subject to annual examination by such person as may be t'g4 appointed by the central government in this behalf, and the person so appointed shall ascertain whether the cash and the current market value of the securities at the credit of the fund are actually equal to the amount which would have been accumulated had in- 30 vestments been regularly made and had the rate of interest as originally estimated been obtained thereon (2) a board shall pay forthwith into the sinking fund any amount which the person appointed under sub-section (1) to conduct the annual examination of the fund may certify to be deficient, 3s unless the central government specifically sanctions a gradual readjustment (3) if the cash and the current market value of the securities at the credit of a sinking fund are in excess of the 8mowlt which -, should be at its credit, the person appointed under bub-section (1) 40 shall certify the amount of this excess, and the board may, with the previous sanction of the central government,- (a) withdraw the whole or any part of the certified excess in which case the trustees in whose names the sinking fund is ' invested tinder sub-section (1) of seetion 82, shall forthwith transfer securities of the requisite current market value, or ca!lh and securities of the requisite current market value, to the board, or (b) reduce or discontinue the half-yearly contributions to 10 the sinking fund required under section 88, or (c) adopt a combination of these measures 9 of 191" , 84 nothing contained in this act shall be deemed to affect the power of power of the board to raise loans under the local authorities loans ~l:~c: act, 1914 on shonterm bills is 85 notwithstanding anything contained in this act, a board power of may borrow moneys by means of temporary overdraft or othel"wise ~e:~~::;ke by pledging the securities held by the board in its reserve funds or loana or on the security of the fixed deposits of the board in its banks: overdrafts prov,ided that such temporary overdrafts or other loans-20 (a) mall not at any time have a longer curren,cy than six months; and (b) shall not be taken, withou,t the previous sanction of the central government, if at any ume in any year the amount of such overdrafts or other loans exceeds such amount not exceed-2s ing ten lakhs or rupees, as the central government may fix in this behalf: provided further, that all moneys so borrowed by temporary overdrafts or otherwise shall be 'expended for the purposes of this act 30 86 notwithstanding anything contained in this act or any oth~r power of law for the time being in force, a board may, with the previous :~::!to sanction of the central govermnent and on such tenns and condi- money from tions as may be approved by that government, raise for the pur- ~~!r~!:: poses of this act loans in any currency or currencies from the in- for r:econb-3s ternational bank for reconstruction and development or from a~y ~~~~=d  other bank or institution in any country outside india; and no other or other nt provision of this chapter shall apply to or in relation to any such r:tit:a~iona loan unless the terms and conditions of the loan or the approval thereof by the central government otherwise provide  chapter vol revenub and expendltt1uqederal ac-coudt of port , " of 1901 87 all moneys received by or on behalf of a board under the prov islons of this act, and all moneys received by it as the conservator of the port and of the port approaches or as the body appointed under sub-section (1) of section 36 of the indian ports act excluding all fees and all fines and penalties creditable to the pilotage account of the port under sub-section (5a) of that section, shall be credited to a fund called the general account of the port ~~d, 88 (1) the money credited to the general account under 10 ae::'" - section frt, shall, subject to the provisions of section 89 of this act account and of section 36 of the indian ports act, be applied by the board in payment of the following charges, namely:-(<<) the interest and instalments of principal due in respect of any loan that may have been raised or obtained by the 15 board or for the repayment of which the board may be liable, and payments to the sinking fund established for such loan; (b) the salaries fees, allowances, pensions, gratuities, compassionate allowances or other moneys due to-(i) the chairman, deputy chairman and other trus- 30 tees; (ii) the employees of the board; and (iii) the surviving relatives, if any, of such employees; (c) the contributions, if any, payable to the central government or any state government on account of the pension 2s and leave allowance of any officer lent to the board by such government; (d) the cost and expenses, if any, incurred by the board in the con~uct and administration of any provident or welfare fund or loan or special fund established by the board; 30 (e) the contributions, if any, duly authorised to be made by regulations made under this act to any such fund as is referred to in clause (d); (f) any charges for which the board may be liable under section 108 or section 109: 3' (g) such sums as may, frjlm time to time, be agreed upon by the board and a state government as a reasoll4lble contribution payable by the board towards the expenses in connection wlul the watch and ward functions 01 the pollce force which the state government may establish and maintain fqr the protection of the port and the docks, warehouses and other property of the board; s (h) the cost of repairs and maintenance of the property belonging to or vested in the board and all charges upon the same and all working expenses; (i) the cost of ,the execution and provision of any new work or appliance specified in section 35 which the board may 10 determine to charge to revenue; (j) any expenditure incurred under section 36; (k) any other expenditure which xnay be incurred by the board i~nerally for the purposes of this act; (1) any other charge which may on the application of the i, board be specially sanctioned by the central government or for which the board may be legally liable (2) all moneys standing at the credit of the board which cannot immediately be applied in the manner or tor the purposes specified in lub-sectoion (1) shall-20 (4) be deposited in the state bank of india or in such scheduled bank or banks and subject to such conditions as may, from time to time, be specified by the central qovemment; or (b) be invested in public securities or in such other securities as the central government may approve in this behalf; 2s and the said securities shall 'be held in trust by the board for the purposes of this act 89 a board may, with the previous sanction of the central gov- power to ernment, apply any sum out of the moneys credited to the general :nr:un: tram account of the port towards meeting deficits, if any, in the pilotage the general 30 account of the port maintained under section 36 of the indian ports ~~~o:~ act or transfer the whole or part of any surplus funds in such pilo- a~cwnt ad4 tage account to the general account of the port vic' wr,a 90 (1) a board may, from time to time, set apart iluch sums out batabllahof its surplus income as it thinks fit, as a reserve fund or funds for ment of re-3~ the purpose of expanding exi8ting facilities or creating new facilities lerve t\mdl at the port or for the purposes of providing against any temporary decrease of revenue or increase of expenditure from transient causes or for purposes of replacement or for meeting expenditure arising from loss or damag~ from fire, cyclones, shipwreck or other accident 40 or for any other emergency arising in the ordinary conduct of its work wlder this act: ' provided that the sums set apart annually in respect of, and the aggregate at any time of, any such reserve fund or funds shall not exceed such amounts as may, from time to time, be fixed in that behalf by the central government (2) any such reserve fund or funds may be invested in public' 5 securities or in such other securities as the central government m87 approve in this behalf  power to 81 (1) ,for the purposes of any investment which a board is l'etlerve port authorised to make by this act, it shall be lawful for every board rult aecu-- ritle_ for to reserve and set apart any se<:urlties to be issued by it on account 10 m== of any loan to which' the consent of the central government has been given, provided that the intention to so reserve and set apart such securities has been notified as a condition to the issue of the loan (2) the issue by any board of any such securities direct to and 15 in the name of the board shall not operate to extinguish or cancel such securities, but every security so issued shall be> valid in all respects as if issued to, and in the name of, any other person (3) the purchase by a board, or the transfer, assignment or indorsement to a board or to the trustees of the sinking fund set up 20 by a board, of any security issued by the board, shall not operate to extinguish or cancel any such security but the same shall be valid and negotiable in the same manner and to the same extent as if held by, or transferred or assigned or indorsed to, any other person 92 (1) no expenditure shall be charged by a board to capital 2s without the previous sanction of the central government: prior  nction of central government to c:harge ex~fture to capital provided that a board may without such sanction charge to capital expenditure not exceeding such limit as may be specified, and subject to such conditions as may be imposed, by the central government 30 (2) nothing in sub-section (1) shall be deemed to require the further sanction of the central government in any case where the actual expenditure incurred as a charge to capital exceeds the expenditure sanctioned in this behalf by the central government unless the excess is more than ten pw cent of the p,xpenditure so 35 sanctioned works 93 (1) no rew work or appliance, the estimated cost of which requiring exceeds such amou'nt as may be fixed by the ce~tral government in ::~ofor this behalf,··shall be commenced or provided by a board, nor shall" the cenull any contract be entered 41to by a board in respect of any inch new 40 goycfnjdcdt work or appliance until a plan of, and estimate for, such work or appliance has been submitted to, and approved by, the board; and, in case the estimated cost of any such new work or appliance exceeds such amount as may from time to time, be fixed by the central s government in this behalf, the sanction 'of the central government to the plan and estimate shall be obtained before such work is commenced or appliance provided (2) nothing in sub-section (1) shall be deemed to require the further sanction of the central government in any case where the 10 actual expenditure incurred does not exceed by more than ten per cent, the estimated cost so sanctioned 94 notwithstanding anything contained in section 93, t}1e p~ra of chairman may direct the execution of gny work the cost of which ~t~~~c:~ does not exceed such maximum limit as may be fixed by the central don of is gove~ment in this behalf, and may enter into contracts' for the workl execution of such works but in f!very such case the chairman shall, as soon as possible, make a report to the board of any such directions given or contracts entered into by him 95 every board may compound or compromise any claim or ~owd of 20 demand or any action or suit instituted by or against it for such sum c=pourui ~~ of money or other compensation as it deems sufficient: cojj1ia• promise elm •• provided that no settlement shall be made uilder this s~tion without the previous sanction of the central government if such settlement mvolves the payment 'by the board of a sum exceeding 25 such amount as may be specified by the central government in this behalf 96 (1) subject to such conditions as may be specified by the writing off central government, where a board is of opinion that any amount of lolsel due to or any loss, whether of money or of property, incurred by, 30 the board is irrecoverable, the board may, with the previous approval of the central government, sanction the writing off finally cyf the said amount or loss: provided that no such approval of the central government shall be necessary where such irrecoverable amount or loss does not 35 exceed, lin any individual case, five thousand rupees or in the aggregate in any year, one lill of rupees  (2) notwithstanding anything contained in sub-section (i), where the chairman is of opinion that any amount due to, or any loss,· whether of money or of property, incurred by, the board is ir-40 recoverable, the chairman may sanct~on the writing off finally of ~rich amount or loss provided that such amount or loss does not exceed, in any individual case, one thousand rupees or in the aggregate in anyone year, twenty thousand rupees; rnd in every such case the chairman shall make a report to the board giving reasons for such sanction pr:::~ etc 97 all the powers, authorities and restrictions contained in this  s ~onerva~ act in respect of the works of a board by this act authorised, shall ~b:f p- apply to the works which may be executed by the board as the under iec- conservator of the port or as the body appointed under sub-section t n l:cti~ (1) of section 36 of the indian ports act, not being works the cost por" act of which is chargeable to the pilotage account of the port under 10 sub-section (5b) of that section and also to the sanction of such works, the estimates therefor, and the expenditure thereunder budaet eltl· 98 (1) a board shall, on or before the tbiiq-ftrst day of january matel in each year, hold a special meeting at which the chainnan of the board shall submit an estimate of the income and expenditure of the is board for the next financial year, in such form as the central qovemment may specify (2) a copy of sucb- estimate shall be sent by post or otherwise to each trustee so as to reach him not less than ten clear days prior to the date appointed for the special meeting referred to in sub- 20 section (1)  (3) the board shall consider the estimate at su('h meeting and may provisionally approve of it with or without modifications (4) the board shall, on or before the tenth day of february, cauli~ a copy of such estimate as provisionally approved by it, to be sent to 25 the central government (5) the central government may sanction the estimate or may return it with remarks and may call for such additional information as it may deem necessary (6) when an estimate is returned under sub-section (5), the 30 board shall proceed to reconsider the estimate with reference to such remarks and shall furnish such additional information as the central government may call for and shau, if necessary, modify or alter the estimate and resubmit it to the central government (7) the central government shall sanction the estimate with or 35 without modifications (8) where any such estimate is not sanctioned by the central government before the commencement of the financial year to which it relates, the central government may authorise the board to incur such expenditure as may be necessary in the opinion of the central government until such time as the approval of the estimate by the central government is communicated to the board 99 a board may in the 'course of lany year for which an estimate preparauod s has been sanctioned by the central government cause one or more of aupp!csupplemental estimates for the residue of such year to be prepared, ::~~ eau-and the provisions of section 98 shall, so far as may be, apply to such estimate as if it were an original estimate 100 subject to any dire!c?tions which the central government lte-appro-10 may give in this behalf, any sum of money or part thereof of which priauod of the expenditure has been authorised in an estimate for the time ~':: ao4 being in force sanctioned by the central government and which has not been so spent, may at any time be reappropriated by the board to meet any excess in any other expenditure authorised in the said is estimate: provided that no such reappropriation shall be made from one major head of expenditure to another such head without the pre--vious sanction of the central government 101 (1) subject to the provisions of section 100, no sum exceeding adber:tc: 20 such amount as the central government may fix in this behalf shall, !~ce;: in save in cases of pressing emergency, be expended by, or on behalf emer,edcy of, any board unless such sum is included in some estimate of the board at the time in force which has been finally sanctioned by the central government 2s (2) if any sum exceeding such limit as may have been fbc:ed in this behalf under sub-section (1) is so expended by any board on a pressing emergency, the circumstances shall be forthwith reported by the chairman to the central government, together with an explanation of the way in which it is proposed by the board to cover 30 such extra expenditure 102 (1) a board shall maintain proper accounts and other rele- account vant records and prepare the annual statement of accounts including idci audit the balance-sheet in such form as may be specified by the central government in consultation with· the comptroller and auditor-35 general of india (2) the accounts of the board shall be audited once in every year by the comptroller and auditor-general of india or such ('ther persons as may be appointed by him in this behalf and he shall in respect of such audit be paid by the board such amount as ~e 40 central government may detennine and such amount shall be debit able to the general account of the board (3) the comptroller and audittor-general of india or any person appointed by him in connection with the audit of the accounts of a board shall have the same rights, privileges and authority in connection with such audit as the comptroller and auditor-general of india has in connection with the audit of government accounts and, s in particular, shall have the right to demand the production of books of accounts, connected vouchers and other documents of the board publication 103 (1) within fourteen days after the audit and examination of of audit th f  , report e accounts 0 a board have been completed, the comptroller and auditor-general of india shall forward copies of the audit report to 10 the central government and to the board (2) the central government shall cause every audit report to be laid for not less than thirty days before each house of padiamentas soon as may be after such report is received by that government is board to 104 every board shall forthwith take into considerati<m any de::j and defects or irregularities that may be pointed out by the comptroller irregularities and auditor-general of india, in the audit report on the income and r::~~ out expenditure of the board and shall pass such orders thereon as the repon and board may think fit and shall also send a report of the action taken 20 central 1 go gq\remment by the board to the centra vernment to pass ftnal orden central government to decide difference between board and auditors 105 if there is a difference of opinion between any board and the comptroller and auditor-general of india on any point included in the audit report, and the board is unable to accept and implement the recommendatlons, if any, made by him on such point, the 2s matter shall forthwith be referred to the central govel'nn;lent which shall pass final orders thereon and the board shall be bound to give effect to such orders  chapter ix s'o'p\i:rvision and control of central govebnmel'ft' 30 106 as soon as may be after the first day of april in every year ~~~~~ and n~t later than such date as may be fixed in ~his behalf by the c ntral government, every board shall submit to the central gov,'-e~ent a detailed report of the administration of the port during the preceding year ending on the thirty~ftrst day of march, i1) such 35 form as the central government may direct 107 (1) every board shall annually, or oftner if din!cted by the submi •• lon central government so to do, submit statements of its income and ~ta\== expenditure in such form and at such time as that government may and expendi    ture to direct central govern-s (2) a copy of all such statements shall be open to the inspection ment of the public at the office of the board during office hours on payment of such fee for each inspection as may from time to time be fixed by the board 108 the central government may, at any time, order a local power of 10 surveyor examination of any works of a board, or the intended site g::!ment thereof and the cost of such survey and examination shall be borne to order d mrve, or and paid by the board from and out of the moneys cre lted to the exammatlon general account of the port w'o:f' of 109 if, at any time, any board-(a) allows any work or appliance constructed or provided power of central by, or vested in, the board to fall into disrepair; or government to retor or (b) does not, within a reasonable time, complete any work c:ompleut th  worb c commenced by the board or included in any estimate sanctioned colli of by the central government; or board 20 (c) does not, after due notice in writing, proceed to carry out effectually any work or repair or to provide any appliance which is necessary in the opinion of the central government for the purposes of this act, the central government may cause such work to be restored or com-25 pleted or carried out, or such repairs to be carried out or such appliance to be provided, and the cost of any such restoration, com· pletion, construction, repair or provision shall be paid by the board from and out of" the moneys credited to the general account of the port 30 110 (1) if, at any time, the central gov~rnment is of opinion- power of (a) that on account of a grave emergency, any board is un· ~t able to perform the duties imposed on it by or under the provi- : :rnedc sions of this act or of any other law, or oa - (b) that the board has persistently made default in the 35 performance of the duties imposed upon it by or under the provisions of this act or of any other law and as a result of such 2128(b) ls-7 default, the financial position of the board or the adniinistrauon of the port has greatly deteriorated, the central government, may, by notification in the official gazette, !supersede the board for such period, not exceeding six months at a time, as may be specified in the notification: s provided that before issuing a notification under this sub-section for the reasons mentioned in clause (b), the central government shall give a reasonable time of not less than three months to the board to show cause why it should not be superseded and shall consider the explanations and objections, if any, of the board 10 (2) upon tlie publication of a notification under sub-section (1) superseding the board,-(a) all the trustees shall as from the date of supersession, vacate their offices as such trustees: (b) all the powers and duties which may, by or under the is provisions of this act or of any other law, be exercised or performed by or on behalf of the board shall until the board is reconstituted under clause (b) or clause (e) of sub-eection (3) be exercised and performed by such person or persons as the central government may direct; 20 (e) all property vested in the board shall until the board is reconstituted under clause (b) or clause (e) of sub-section (3), vest in the central governmrent (3) on the expiration of the period of supersession specified in the notification issued under sub-section (1), the central government 2s may-(a) emnd the period of supersession for such further term, not exceeding six months, as it may consider necessary, or (b) reconstitute the board by fresh appointment and fresh election, and in such case, any persons who vacated their oftlces 30 under claub'e! (a) of sub-section (2) shall not be deemed disqualified for appointment or election as the case may be, or (e) reconstitute the board by appointment only for such period as it may consider necessary and in such a case, the persons who vacated their offices under clause (a) of sub-section (2) shall 35 not be deemed disqualified for such appointment merely because they were trustees when the board was superseded: l'rovided that the central government may, at any time before the - expiration of the period of supersession, whether as originally apecifieci under sub-section (1) or as extended under this sub-section take action under clause (b) or clause (c) of this sub-section s (4) the central government shall cause a notification issued under sub-section (1) and a full report of any action taken under this section and the circumstances leading to such action to be laid before each house'of parliament at the earliest possible opportunity ill (1) without prejudice to the foregoing provisions of this power of 10 chapter, every board shall, in the discharge of its functions under g:,~:!mcllt this act be bound by such directions on questions of policy as the to issue central government may give in writing to it from time to time: ~~rb= provided that the board shall be given opportunity to express its views before any direction is given under this sub-section   is (2) the decision of the central government whethe'r a question is one of policy or not shall be final  chapter x penalties112 every person employed by a board under this act, shall, for penolls 20 the purposes of sections 161 to 171 (both inclusive), 184, 185 and 409 =s~: 45 of 1860 of the indian penal code and for the purposes of the prevention a:: be a of 1947· of corruption act, 1947 be deemed to be a public servant within the ~t8l:t meaning of section 21 of the said code - certain purpoicl 113 whoever contravenes the provisions of any order issued under penalty for 2s section 37 or section 38 or section 41 or fails to comply with any condi- ti:':intion imposed under section 40 shall be punishable with fine which scctiodl37'd , d h d' d h h  38, 40 an may exten to one t ousan rupees, an were t e contravention 41 or failure is a continuing one, with further fine which may extend to one hundred :rupees for every day after the first during which such 30 contravention or failure continues 114 any person who contravenes the provisions of section 46 shall pe~ty for be pun,ishable with fine which may extend to one thousand rupees :=~i~p for the first contravention, and with a further fine which may extend ~yb, etc, to oj:l,e hundred rupees for every day after the first during which the ;:::uo::iod 35 contravention continues rates, etc " 115 any person who removes or attempts to remove or abets the removal of, any vessel or goods with the intention of evading payment of the rates lawfully due in respect thereof to any board, shall be punishable with fine which may extend to twice the amount of the rates so due subject to a minimum of fifty rupees s 116 if, through the negligence of any pe'rson having the guidance or command of any vessel, or of any of the mariner, or persons recovery of value of damqeto ~of ~ployed on such vessel, any damage is caused to any dock, wharf, quay, mooring, stage, jetty, pier or other work in the possession of any board, the amount of such damage shall, on the application of 10 the board be recoverable, togethe~ with the cost of such recovery, by distress and sale, under a magistrate's warrant, of a sufficient portion of the boats, masts, spares, ropes, cables, anchors or stores belonging to such vessel:  provided that no magistrate shall issue such a warrant untn the is master of the vessel has been duly summoned to appear before him and, if he appears, until he has been heard; and provided also that no such warrant shall issue if the vessel was at the time under the orders of a duly authorised employt!e of the board and the damage caused was attributable to the order, act or improper omission of such 20 employee  ~ ~ _ _ ~'1 other offen-117 any person who contravenes any of the provisions of this act eel or of any rule, regulation or order made thereunder, for the contravention of which no penalty is expressly provi<k!d thereunder, shall be punishable with fine which may extend to two hundred rupees ~s ~~::!~ 118 no court inferior to that of a magistrate of the first class shall try any offence punishable under this act or any rule or regulation made thereunder offencel b, companies 119 (1) if the person committing an offence under this act is a company, every person who, at the time the offence was committed 30 was in charge of, and was responsible to the company for the conduct of business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: provided that nothing contained in this sub-section shall render 3s any such person liable to such punishment provided in this act if he proves that the offence was committed without his knowledge ar that he exercised all due c:liligence to prevent the commission of such offence (2) notwithstanding aqything contained in sub-section (1), where an offence under this act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, 01' that the commission of the offence is attributable 5 to any negligence on the part of, any director, m~nager, secretary or other officer of the company, such director, manager, secretary, or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against· and punished accordingly explanation-for the purposes of this section,-10 (a) "company" means a body~corporate and includes a firm or other association of individuals; and (b) "director", in relation to a finn, means a partner in the firm  chapter xiis miscellaneous 120 no suit or other proceeding shall be commenced against a limitation board or any employee thereof for anything done, or purporting to ~riar:~e­have been done, in pursuance of this act until the expiration of one relpect of month after notice in writing has been given to the board or him !t:::: t~~ne 20 stating the cause of action, or after six months after the accrual of act the cause of action 121 no suit or other legal proceeding shall lie against a board or protection of any employee thereof in respect of anything which is in good faith ~d:ithin done or intended to be done under this act or any rule or regulations - 2s made thereunder, or for any damage sustained by any vessel in consequence of any defect in any of the moorings, hawsers or other things belonging to or under the control of the board 122 (1) the central government may, by notification in the power of official gazette, make rules for all or any of the following purposes, &~~nt 30 namely:-to make (a) the procedure to be followed for the transaction of busi- rulea ness at the meetings of a board; (b) the fees and allowances payable to the members of a board or of its committees 3s (2) the power to make rules under this section is subject to the condition of the rules bei~g made after previous publication (3) every rule made under this act shall be laid as soon as may be after it is made before each house of parliament while it is in !iession for-a total period of thirty days which may be comprised in 40 one session or in two successive sessions, and if before the expiry of the session in which it is so laid or the session immediately following, both houses agree in making any modification in the rule or both house agree that the rule should not be made, the rule shall thweafter have effect only in such modified form or be ofno effect, as the case may be; so, however, that any such modification or annulment ·5 shall be without prejudice to the validity of anything previously done under that il"ule 123 without prejudice to any power to make regulations contained elsewhere in this act, a board may make regulations consistent with this act for all or any of the following purposes, namely:-10 general ,owen of boudto  ereau-iatlodi (a) for the procedure to be followed for the transaction of business at the meetings of its committees; (b) for the form and manner in which contracts shall be made by the board; (c) for the form of receipt to be given under sub-section is (2) of section 42;  (d) for the period within which notice may be given under sub-section (2) of section 43; (e) for the guidance of person employed by the board under this act; 20 (i) for the safe and convenient use of the docks, wharves, quays, jetties, sheds, warehouses, rail!ways, tramways end other works constructed by or vested in the board under this actj (g) for the reception, porterage, storage and removal of goods brought within the premises of the board, for the exclusive 2s conduct of these operations by the board or persons employed by the board; and for declaring the procedure to be followed for taking charge of goods which may have been damaged before landing, or may be alleged to have been so damaged; (h) for keeping clean the port, river or basins or the bank 30 of the river and the works of the board, and for preventing:filth or rubbish being thrown thereijl or thereon; (i) for the mode of payment of rates leviable by the board under this act; (j) for regulating, declaring and defining'the docks, wharves, 3s quays, jetties, ages and piers vested in the board' on which loads shall be landed from vessels and shipped on board vessels; (k) for regulating the manner in which, and the conditions under which, the loading and unloading of all vessels within the port or port approaches shall be carried out; s (l) for regulating the lighterage of cargo between ships or between sh~ps and shore or between shore and ships; (m) for the exclusion from the premises of the board of disorderly or other undesirable persons and of trespassers; (n) for ensuring the safety of the port; 10 (0) generally, for the efficient and proper administration of the port 1m (1) no regulation made under this act shall have effect p~viiod' until it has ,been approved by the central governmenrt and until such :l~~ct approval has been published in the official gazette tion  (2) no regulation other than a regulation framed under section 28 '5 shall be approved by the central government until the same hu been published by the board for two weeks successively in the official gazette and until fourteen days have expired from the date on which the same had been first published in that gazetie (3) any regulation made under this act may provide that a 20 breach thereof shall be punishable with fine which may extend to two hundred rupees, and where the breach is a continuing one, with further fine which may extend to fifty rupees for every day after the first during which such breach continues 125 (1) whenever the central government considers necessary power of as in the public interest so to do, it may, by order in writing together=:!:,-with a statement of reasons therefor, direct any board to make any direct :s:: regulations for all or any of the matters specified in section 28 or !::to:' ~~ section 76 or section 123 or to amend any regulations made by the to idib reo-board, within such period as the central government may specify sujatjonl 30 in this behalf (2) if any board against whom a direction is issued by the central government under sub-section (1), fails or neglects to comply with such direction within the specified period, the central government mey make the regulations or amend the regulations· 3s made by the 13oard, as the ease may be, either in the form specifted in the direction or with such modifications thereof as the central government may think fit: provided that before so making or amending the regulations the  central government shall consider any objection or suggestion made 40 by the board within the said period (3) where in pursuance of sub-section (2), any regulations have been made or amended, the regulations so made or amended shall be published by the central governmenlt in the official gazette add shall thereupon have effect accordingly ~w~o~ 126 notwithstanding anything contained in this act, the first 5 ~t ~ regulations under this act shall be made by the central government dm!tti fint and shall have effect on being published in the official gazette re~ on  ~::r o~ 127 the text of the regulations made under clauses (e) to (m) lationl,:: of section 123 and the scale of rates together with a statement of conditions framed by any board under chapter vi shall be proml- 10 nently posted by the board in english, in hindi and in the regional language on special 'boards to he maintained for the purpose at the wharves, docks, piers and other convenient places on the premises of the board 128 nothing in this act shall affect-(i) ,the right of the central government to collect customs duties or of any municipality ,to collect town duties ail; any dock, berth wharf, quay, stage, jetty or pier in the possession of 8 board, or (2) any power or authority vested in the customs author!- 20 ties under any law for the time being in force savina of riaht of ccntralgovernment and jd1idicipalitie to usc wharves, etc, for collecting duties and ofpower of cutom ofticen 129 the provisions of sections 35, 37, 38, 39,40,41,42,48,49,50,64, 65, 115, 121, 123 and 124 shall apply in relation to all aircraft making use of any port while on water as they apply in relation to vessels application ofcertain proviliol1' of the act to ai rcraft power to 130 (1) notwithstanding anything contained in any other law, 35 evict:rtaid if a board in exercise of the powers conferred on it by regulations ~ the made under this act cancel the allotment of any premises made to v:::r1of any employee of the board, the board may, by notice in writing, order such allottee or any other person who may be in occupation of the whole or any part of the premises to vacate them and deliver 30 the same to the board or a person appointed by the board in that behalf within such period as may be specified in the notice explanation-for the purposes of this section, iipremises" meads any building or part of a building and includes-(i) the gardens, grounds and outhouses, if any, appertaining 5s to such building or part of a building; (ii) any fittings aftlxed to such building or part of a building for ~ more beneficial enjoyment thereof; and (iii) any furniture, books or other things belonging to the boatd and found in such puilding or part of a building s (2) if any allottee or other person refuses or fails to comply with an order made under sub-eeotion (1), any magistrate of the first class may, on application made by or on behalf of the board, order any police officer, with proper assistance, to enter into the premises and evict any person from, and take posseuion of, the premises and to 10 deliver the same to the board or a person appointed by the board in that behalf and the police officer may, for the purpose, use such force as may be necessary (3) any such notice as is referred to in sub-6ection (/) may be served-is (a) by delivering or tendering it to the allottee or eny other person who may be in occupation of the whole or any part of the premises, or (b) if it cannot be so delivered or tendered, by affixing it on the outer door or some other conspicuous part of the premises, or 20 (c) by registered post 131 without prejudice to any other action that may be taken alternative' under this act, a board may recover by suit any rites, damages, ~cdy by expenses, costs, or in the case of sale the balance thereof, when the iult, 2s proceeds of sale are insufficient, or any penalties payable to, or recoverable by, the board under this act or under any regulations iil6de in pursuance thereof 132 (1) any requirement in this act that a notification, order, requirerule or regulation issued or made by a board or by the central gov- menta ~ to 30 ernrnent shall be published in the ofticia1 gazette, shall, unless other- gr~== wise expressly provided in this act, be construed as a requirement tions, that the notification, order, rule or regulation shallf:'::' etc • official (a) where it is issued or made by the board, be published gazette in the official gazette of the state in which the port is situated 3s and (b) where it is issued or made by the central government, be published in the gazette of india 2128 (b) ls-8 (2) any nowlcation, order, rule or regulation issued or made by the central government shall, for general infonnation, be 'a1so republished in the official gazette of the state in which the port is situated repeal 133 (1) on the applicatipn of this act to the port of kandla, the s bombay landing and wharfage fees act, 1882 shall cease to h81'e bombay aci force in relation to that port  7 of 1882 (2) on the application of this act to the paris of coohin end visbakhapaltnam, the madras outports landing and shipping fees act, 1885 shall cease to have force in relation to those ports 10 ~:~:~ct (3) if immediately before the application of this act to any other port, there is in force in that port any law which corresponds to this act or to any provision iflhereof, that corresponding law shall, on such application, cease to have force in relation to that port power to remove ditilc:ultiel 134 if any difficulty arises in giving effect to the provisions of 15 this act, particularly in relation to the tninsition from the enactments repealed by this act to the provisions of this act, the centml government may, by general or special order, do anything not inconsistent with such provisions which appears to it to be necessary or expedient for the purpose of removing the difficulty 20 at present, there are six major ports in the country, namely, calcutta, bombay, madras, vishakhapatnam, cochin and kandla the first three ports are administered by port trusts while the other three ate administered direct by the government of india 2 the port trusts at the three major ports of calcutta, bombay and madras are statutory bodies they consist of a chairman (and a deputy chairman at calcutta) appointed by the central government, elected representatives of commercial, shipping and trade interests, representatives of central government departments concerned w1ith the working of the port, ie customs, defence and railways, representatives of the state government and the local municipal corporations or municipalities concerned and the representatives of labour employed in the port the port trusts administer the ports subject to the control of the central government in respect of certain specified matters only, for example, creation of, and appoint to, certain senior posts, acquisition and sale of immoveable property, fixation of rates and charges, fioating loans, annual budgets etc 3 the remaining three major ports of vishakhapatnam, cochin and kandla are under the immediate charge of a port administrative officer appointed by the central government who has been vested with powers similar to those of a head of a department these powers are limited in nature and the port administrative officer has, therefore, to obtain the orders of the central government on many matters which would normally be disposed of at local level in the port :£'rusts commercial and trade interests, especially at vishakbapatnam and cochin, have also been agitating for some time that they should have a direct voice in the administration of those ports 4; in the circumstances and in view of the fact that statutory port trusts have successfully administered the three older ports of calcutta, bombay and madras for many years, it is proposed to constitute port trusts at vishakhapatnam, cochin and kandla also t provision has also been made for the extension of the act, by notification, to any other port which may be declared as a major port in future the bill seeks to give e1ject to these proposals notes on clauses explain in detail the various provisions of the bill new delm; jagjiv an ram the 18th november, 1982 clame 1-on the commencement of the act, it will apply to the major ports of cochin, kandla and vishakhapatnam the clause also empowers the central government to apply the act to any other major port (other than bombay, calcutta and madras) clame 2 'contains definitions of the various expressions occurring in the bill the definitions generally follow the pattern of those adopted in section 3 of the calcutta port act, 1890, section 3 of the bombay port trust act 1879 and section 5 of the madras port trust act, 1905, with some modifications in the light of the experience gained in the working of the existing acts clame 3 deals with the constitution of a board of trustees of each major port the provisions of this clause correspond to sections 4, 5 and 6 of the calcutta and bombay acts and sections 7, 8 and 9 of the madras act except that there is a slight increase jn the total number of trustees of the board clause 4 seeks to empower the central government to constitute, as an interim measure, the first board of trustees for a mrjoi port upon the extension of the act to that port, pending the completion of the necessary arrangements for the constitution of a regular board of trustees as provided for in clause 3 the composition of the first board will 'be the same as that of tj:1e regular board under clause 3, but all the members will be appointed by the central government clause 5 corresponds to sections 4 and 55 of the calcutta act, sections 4 and 26 of the bombay act and sections 6 and 32 of the madras act claube 6 corresponds to section 17 of the calcutta act, section 14 of the bombay act and section 10 (1) of the mras act clame 7 follows the provisions of section 10 of the calcutta act, sections 9 and 11 of the bombay act and section 11 of the madras act; a provision has, however, been added that the term of office of a trustee electecil to represent any body of persons would automatically come to an end as soon as he ceases to represent ,that body clause 8 corresponds in substance to sections loa and 17 (2) of the calcutta act, sections 11a and 14a of the bombay act and aections 11a and 10 (2) of the madras act clau8e 9 corresponds to section 12 of the bombay and madras acts clause 10 generally corresponds to sections 14 and 16 of the calcutta act, section 10 of the bombay act and section 11b of the madras act clause 11 is identical with section 16a (1) of the calcutta act and section 13a(i) of the bombay and madras acts clause 12 corresponds to sections 7 and 16 a (2) of the calcutta act, sections 6(4) and 13a(2) of the bombay act and sections 13a (2) and 18 of the madras act clause 13 corresponds to the proviso to sections 16 and 16a (3) of the calcutta act, sections 13 (2) and 13a (3) of the bombay act and section 13a (3) and the proviso to section 13 of the madras act clause 14 generally corresponds to section 12 ~f the calcutta act, section 20 of the bombay act, and section 19 of the madras act a new provision has been added in the bill empowering the central government to appoint a person in place of a chairman or deputy chairman while on deputation outside india it will also enable the chairman or depuiy chairman, while on such deputation, to exercise his powers under the act to the extent directed by the central government clause 15 corresponds to section 11 of the calcutta act, sectiqn 15(1) of the bombay act and section 21 of the madras act clause 16 and 17-the existing acts themselves set out in detail the procedlqre for the transaction of business at a meeting of the board and of its committees as such matt!rs are matters of procedure, it is proposed to leave them to be regulated by rules or regulations, as the case may be (see sections 29 and 40 to 45 of the calcutta act, section 16 of the bombay act and section 23 of the madras act) clau8e, 18 to 20 and 22 generally ce>rreiponci to sections 11 (3) , 17a, 28, 42(1), and 46 of the calcutta act, sections 15(2), 14b, 16(7) and 19 of the bombay act and sections 22, 23a, 24 112 and 26 (2) of the madras act clause 21-sections47 and 47a of the calcutta act and section 25 of the madras act envisage delegation of powers to the chairman to the extent prescribed in those acts clause 21 is wider in scope and enables such delegation being made to the chairman, deputy chairman or any other officer in order to facilitate more efficient administration clauses 23 to 28 correspond to sections 30, 31, 32 and 34 of the calcutta act, sections 21, 22, 23 and 24 of the bombay act and sections 27 to 30 of the madras act the important differences, however, are:-(i) the distinction between the scheduled and non-scheduled staff in the existing acts has been done away with (ii) in the existing acta, where the appointment relates to a post the maximum pay scale of which is below one thousandl rupees, the appointment can be made by the chairman, but if it is over rupees one thousand, the appointment requires the sanction of the central govermnent the bill, however, would enable the central government to exceed the limit of one thousand rupees so that the chairman can make the appointments in a larger number of cases further, the sanction of the central government will not be required for higher appointments except in the case of heads of departments clauses 29 to 31 are new clauses for which there are no corresponding provisions in the existing acts they provide for the transfer of assets and liabilities of the central government or other authority responsible for the administration of the ports concerned to the port trust boards on the application of the act to those ports provision has also been made for the continuance of the existing i'8tes until they are altered by the board it has also been provided that the capital expenditure that might have been incurred by the government prior to the application of this act to any port would form the capital debt 01 the port trust board for that port, to be repaid to that government claule 82 eoneepollda to section 58 of the calcutta act, section 27 of the bo\nbay act and lection 83 of the madras act claue 33 ccllespoada to section 48 of the calcutta act, section 16a of the bombay act lind sedion 87 of the madras act clause 34 corresponds to section 53 of the calcutta act, section 17 of the bombay act and section 88 of the madras act under the existing acts, codtracts beyond a certain limit have to ·be executed on behalf of the board by the chairman and two other trustees  it is felt that, the chainnan being the chief executive officer, it is not necessary for two other trustees to sign the contract alio clave 36 coiteaponds to sections 49 and 35 of the calcutta act, section 68 of the bombay act and sections 35 and 36 of the madras act clause 36 is a new provision empowering the port trust boards to undertake works on behalf of other authorities clauses 37 to 41-these correspond to sections 92, 93, 95, 100, 101, 102 and 97 of the calcutta act clause 42 corresponds to sections 90 and 91 of the calcutta act and section 39 of the madras act clause 43 is similar to sections 112 (1) and 113 ,of the calcutta act, sections 61a and 61b of the bombay act and section 40 of th'e madras act, except that the period of notice of loss, damage, etc has been left to be prescribed by the respectiw port trust boards clauses 44 and 45 correspond to sections 87 and 88 of the calcutta act and section 70 of the bombay act clause 46 corresponds to sections 83 and 84 of the calcutta act, section 81 of the bombay act and section 104 of the madras act clause 47 corresponds to section 85 of the calcutta act under that act, where any private wharf, etc was erected lawfully but the use thereof is subsequently declared unlawful, the party concerned has to go to the court for award of compensation the bill provides for the settlement of compensation by agreement and, failing which, for reference of the dispute to an arbitrator pro~lon has also ·been made for an appeal against the award of the arbitrator clause 48 cmd 49 correspond to sections 103, 104, 104a, 105 and 105a of the calcutta act, seetions 43, 43a and 45 of the bombay act and sectlons ganci 43 of the madras act ' clause 50 is on the lines of section 43a of the 'madras act: clause 51 is similar to secti'o'il 107 (la) of the calcutta act, section 43c of the bombay act and section 43b of the madras act the proviso is an addition c14u8es s2 to 54 correspond to sections 107 (1), 109 and l09a of the calcutta act, section 43b of the bombay act and sedtion 44 of the madras act clause 65 corresponds to section 44a of the madras act clause 56 is new clause enabling the port trust boards to recover charges shortlevied or erroneously refunded, from the parties concerned clause 57 corresponds to section 56 of the calcutta act and section 47 of the mardas act clauses 58 to 65 correspond to sections 111,116(1),113(2), 117, 118, 119, 119a, 120, 121, and 122 of the calcutta act, sed ions 61, 62, 63, 64, 64a, 65, 66 and 67 of the bombay act and sections 50 to 61 of the madras act some new provisions have, however, been included in the bill for instance, clauses 61 (4) and 62(4) provide for the disposal of arms, ammunition and controlled goods in such manner as the central government may directj this has been provided to remove certain practical difficulties experienced by the port administrations in the disposal of such goods it has also been proposed that the surplus of any sale proceeds should be paid on demand to the importer, owner or consignee of the goods or his agents only in cases where the goods have not been confiscated under any law relating to customs clauses 66 to 86 correspond to the following provisions of the existing acts:-sections 18-27l of the calcutta act, secions 39-42l of the bombay act, and sections 63-73 of the madras act clauses 87 to 91 correspond to sections 123 (1) , 24b and 24c of the calcutta act, sections 48, 49, 60a, 49a, 51, sia and 72a of the bombay act and sections 49, 74, 74a, 74b, 74c of the madras act the only notable variation is to be found in clause 90(1) under which the port trust board will be enabled to establish a development fund also for the purposes of expanding existing facilities or creating new facilities at the port clauses 92 to 97 correspond to the following provisions of the existing port trust acts: - calcutta act: sections 75a, 49 51, 50, 52, 75b, 123 (2) bombay act: sections 56a, 68a, 18, 56b and 72a(2) madras act: sections 75, 76, 76a, 89, 89a and 3ba 2126(b) ls-9 under the existing acts, no expenditure can be charged to capital without the prior sanction of the central government however, under clause 92 (1) of the bill, it is proposed to fix a limit upto which capital expenditure can be sanctioned by the board without the sanction of the central government, in order to eliminate references to government in respect of minor works   in respect of other matters such as works requiring the sanction of the board or the central government, powers of the chairman relating to the execution of works, power of board to compound or compromise claims, it is proposed to fix a higher limit than provided for in the existing acts it is also proposed to enhance the powers of the board and the chairman to write-off losses the above proposals aim at facilitating quicker and better working of the day-ta-day administration of the port and are in accord with the accepted policy of government to decentralise powers to the extent possible clauses 98 to 101 correspond to sections 69 to 74 of the calcutta act, sections 52 to 56 of the bombay act and sections 82 to 86c of the madras act a new provision has, however, been made in clause 98 (8), to enable the central government to sanction "on account" expenditure in cases where an estimate cannot be sanctioned by the central government before the commencement of the financial year to which it relates clauses 102 to 105 similar provisions exist in sections 76 to 78 of the calcutta act, sections 58 and 58a of the bombay act and sections 79, 80, 80a and 81 of the madras act the existing acts do not require the audit reports on the accounts of the port trusts being laid before parliament such requirement has, however, been included in the bill, in pursuance or a recommendation of the public accounts committee clauses 106 to 110 are similar in substance'to sections 134b, 80a, 36, 37 and 38 of the calcutta act, sections 89, 58b, 68b, 68c and 90 of the bombay act and -sections ll1b, 86b, 37, 38 and 113 of the madras act clause iii is a new provision, enabling the centrai government to issue directions to port trust boards on matters of policy it has been provided that the board shall be given an opportunity to express its views before any direction is given under this clause clauses 112 to 118 correspond to sections 136, 94, 127, 96, 99, 83, 84 and 89 of the calcutta act; sections 79, 81, 83, 84 and 85 of the bombay act and sections 101, 104, 106, 107 and 108 of the madras act  the penalties have, however, been enhanced in some cases because the existing penalties which were fixed ~ars back are considered too low clause 119 deals with offences by companies and has been added on the lines of similar provisions in other acts clauses 120 and 121 correspond to sections 142 and 135 of the calcutta act, section 87 of the bombay act and sections 110 and 111 of the madras act clause 122 is self-explanatory clause 123 corresponds to section 126(1) of the ca1cutta act, section 73 of the bombay act and section 95 of the madras act clause 124 is similar in substance to sections 126 (3) and 126 (4) of the calcutta act, section 74 of the bombay act and section 96 of the madras act clause 125-this is a new provision enabling the central govern-  ment to direct any board to make new regulations or to amend any regulations made by the board within such period as the central government may specify it also empowers the central government to make or amend the regulations themselves in the event of failure or non-compliance by the board of the directions issued by the cen~ tral government in this behalf clause 126 enables the central government to frame the first regulations so that the administration of the port could be carried on in accordance with those regulations until such time as new regulations are framed, if necessary, by the board in accordance with the procedure laid down in the act; clause 127 corresponds to section 128 of the calcutta act, section 76 of the bombay act and section 98 of the madras act clause 128 corresponds to section 69 of the bombay act and section 109 of the madras act clause 129 is similar to section 143 of the calcutta act, section 86a of the bombay act and section l09a of the madras act clause 130 is similar to section 136a of the calcutta act, section 88 of the bombay act and section uia of the madrq act clause 131 corresponds to sectiob 122d of the calcutta act, section 67a of the bombay act and section 62 of the madras act clause 132 is similar in substance to section 3a of the calcutta and bombay acts and section 5a of the madras act clause 133 repeals certain existing enactments clause 134-this is the usual provision regarding the removal of difucultiea in giving effect to the provisione of the new law ,  clause 29 of the bill seeks to transfer all the property, assets and funds vested in the central government for the purposes of the ports, before the commencement of the act, to the respective port trust boards to be constituted thereunder as on 31st march, 1962 the amounts in the funds standing to the credit of the three ports are shown below:-rs 2 '32 crores rs 1'32 crores rs 1'50 crores vishakhapatnam cochin kandla 2 the capital expenditure inculted by the government for the ports of vtshakhapatnam, cochin and kandla upto 31st march, 1962, amount to rs 8'79 crores, 3'36 crores and 16'7 crores respectively clauses 31 and 88 of the bill provide for the repayment by the port trusts of the above capital expenditure together with interest thereon to government at the same time, government loans will not have any precedence over the holders of port trust securities which might be issued by the boards unless the terms of any such loan so stipulate (clause 79 of the bill) 3 after the port trusts come into being, it may be necessary for :he central government to advance loans to them to finance approved schemes involving capital outlay it is not possible to indicate at present the amounts of the loans that may be so advanced proposals for such loans will be submitted to parliament in the normal c9urse as bud~et demands,  memorandum regarding delegated legislationclause 122 gives powers to the cen·tral government to make rules for the procedure to be followed for the transaction of business at the meetings of a port trust board and the fees and allowances payable to the members of the board or of its committees 2 clauses 28, ·76 and 123 confer on a board the power to make regulations for the day-to-day administration of the port in respect of matters specified in those clauses such matters, inter alia, relate to the procedure to be followed for the transaction of business at the meetings of committees constituted by the board, the terms and conditions of service of employees of the board, the form and manner in which contracts shall be made by the board, the port trust securities, the mode of payjdellt of rates leviable by the board and the safety of the port 3 the rules and regulations that may be made would relate to matters which are of a procedural or administrative character the delegation of legislative power is thus of a normal character a bill to make provision for the constitution of port authorities for certain major ports in india and to vest the administration, control and management of such ports in such authorities and for matters connected therewith the president has, in pursuance: of clauses (i) and (3) of article 117 of the constitution of india, recomnlended to lok sabha the introduction and consideration of the bill mnkaul, secretary (shrijagjifjan ram, minister of transport and communications) 