Supreme Court Calls for Expert Appellate Body for Major Port Tariff Disputes

The Supreme Court has recommended that an expert appellate body be constituted to hear appeals arising from orders of the Tariff Authority for Major Ports (TAMP) or the adjudicatory board under the Major Port Authorities Act, 2021, so as to make the remedy of appeal in tariff disputes “more effective and meaningful.”

A bench of Justices M.M. Sundresh and Rajesh Bindal observed that fixation of tariff is a highly technical exercise involving financial and economic considerations and that neither the High Courts nor the Supreme Court were appropriate forums for a first appeal against such orders.

“This Court may not have the expertise to examine the accounts in detail for the purpose of fixation of tariff. While deciding appeal against an order of an expert body, all issues of law and fact are required to be considered. Whether the process providing for the first appeal against the order of the adjudicatory board is reasonable, is an issue,” the bench observed.

The Court drew parallels with other specialised regulatory frameworks, noting that similar expert appellate bodies exist under statutes governing securities, telecom, competition, electricity and company law.

Referring to precedents precisely, W.B. Electricity Regulatory Commission v. CESC Ltd. (2002) 8 SCC 715, it reiterated that tariff disputes are best adjudicated by technical fora.

The judgment also cited Rojer Mathew v. South Indian Bank Ltd. (2020) 6 SCC 1, where a Constitution Bench had urged the Union to reconsider provisions providing for direct statutory appeals from tribunals to the Supreme Court, and to reroute them instead to High Courts or specialised appellate bodies to reduce the Court’s burden and enhance access to justice.

The present dispute arose out of tariff fixation by Paradip Port Authority, formerly Paradip Port Trust, in relation to Paradeep Phosphates Ltd. The respondent had entered into an agreement in 1985 for use of a captive berth at Paradip Port, with mutually agreed tariff rates.

When the Port Authority sought to unilaterally revise charges from October 1993, the dispute was referred to arbitration under a supplementary agreement in 2001.

The arbitrator’s award dated 27.12.2002 directed refund of excess charges collected till 31.03.1999 and left later disputes to be decided by TAMP.

The appellate authority under the in-house procedure upheld the award, and the Orissa High Court in January 2023 dismissed writ petitions filed by the Port Authority challenging both the arbitral award and the TAMP’s order of 22.11.2011 which had rejected its proposal for tariff revision for the period 1999-2010.

The Supreme Court found that the arbitrator, the appellate authority, and the High Court had failed to adequately examine the legal and factual matrix, particularly the rising costs and successive tariff notifications issued under the Major Port Trusts Act, 1963.

It noted that tariff fixation could not be frozen at 1985 levels and that ignoring statutory provisions in favour of private agreements was impermissible.

Holding that the proper forum for deciding such disputes is the specialised tariff authority, the Court set aside the award of the arbitrator, the orders of the appellate authority, and the High Court’s judgment. It remitted the matter back to TAMP for fresh adjudication of the tariff revision disputes for the period October 1993 to March 2010, directing that both parties be afforded full opportunity of hearing.

The bench also highlighted the rapid growth of major ports in India, which handled 819.227 million tonnes of cargo in FY 2023–24, with a compound annual growth rate of 7.5% over the past decade. With more ports being established, including the recently approved Vadhavan Port in Maharashtra, the Court underscored the increasing importance of robust tariff adjudication mechanisms.

Recommending legislative intervention, the Top Court asked the Secretary, Legislative Department, Ministry of Law and Justice, to examine the issue of constituting an expert appellate body for TAMP and the adjudicatory board, akin to tribunals under other regulatory statutes

Case Title: Paradip Port Authority v. Paradeep Phosphates Ltd. 

Date of Judgment: 12 August 2025

Bench: Justices M.M. Sundresh and Rajesh Bindal