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2017 (3) TMI 695 - SC - Companies LawOver-charge towards wharfage claim from the Board of Trustees - refund of the amount allegedly paid in excess - Period of limitation - revival of extinguished claim - Held that:- Section 120 of Major Port Trusts Act stipulates six months from the date of “accrual of the cause of action” whereas Section 55 stipulates “six months from the date of the payment”. Proviso to Section 55 authorises the Board to remit the over-charge made in its bill on its own motion and at any time. In other words, notwithstanding the declaration contained under Section 55 of the extinguishment of the right of the claimant for refund, the BOARD is authorised to remit the over-charges in its discretion. It goes without saying that the BOARD being public body, the discretion must be exercised rationally in accordance with some known principles and policy. In view of the authority of the BOARD under the proviso to Section 55, we do not propose to interfere with the directions issued by the High Court in the judgment under appeal though such directions came to be issued on an erroneous appreciation of the law i.e., Section 55 of THE ACT. We undertook the exercise of examining the scope and amplitude of Section 55 only for the purpose of declaring the law as we are informed that a number of claims for refund similar to the claim of the respondent are pending and also likely to arrive in future, therefore, there is need to have clarity on the true meaning and scope of Section 55. Apart from the appellant, we are sure, number of applications under Section 55 must be pending with various other major ports.
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