The Tamil Nadu Maritime Board Act, 1995

(1) This Act may be called the Tamil Nadu Maritime Board Act, 1996. (2) It extends to the whole of the State of Tamil Nadu. (3) It shall come into force on such date, as the Government may, by notification, appoint. (4) It applies to all the minor ports in the State to which the Indian Ports Act applies on the date of the commencement of this Act and the Government may, by notification, apply the provisions of this Act with effect from such date, as may be specified in the notification, to any other minor ports in the State to which the Indian Ports Act is extended by the Government under that Act.

(1) As from the appointed day, in relation to any port,— (a) all property, assets and funds and all rights to levy rates vested in the Government for the purposes of the port immediately before such day, shall vest in the Board ; (b) all debts, obligations and liabilities incurred, all contracts entered into, and all matters and things engaged to be done by, with or for the Government immediately before such day, for or in connection with the purposes of the port, shall be deemed to have been incurred, entered into and engaged, to be done by, with, or for the Board ; (c) all non-recurring expenditure incurred by the Government for or in connection with the purposes of the port upto such day and declared to be capital expenditure by the Government shall be treated as the capital provided by the Government to the Board ; (d) all rates, fees, rents and other sums of money due to the Government 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 by or against the Government immediately before such day for any matter in relation to the port, may be continued by or against the Board. In section 19 of the principal Act, the figure "(1)" shall be omitted.

(1) (a) As soon as may be after the appointed day, the Government may, after consulting the Board, direct, by general or special order, that such of the employees of the Government who immediately before the appointed day were serving under the Government solely or mainly for or in connection with the affairs of the port shall stand allotted to serve in connection with the affairs of the Board with effect on and from such date as may be specified in such order : Provided that no such order shall be issued in respect of any such employee without his consent. (b) With effect on and from the date specified in the order under clause (a), the persons specified in such order shall become employees of the Board and shall cease to be employees of the Government. (2) Every person referred to in sub-section (1) shall hold office under the Board by the same tenure, at the same remuneration and upon the same rights and privileges as to pension or gratuity, if any, and other matters as he would have held the same on the date specified in the order under clause (a) of sub-section (1), as if this Act had not been passed. (3) The liability to pay pension and gratuity to the persons referred to in sub-section (1) shall be the liability of the Board. (4) The sums at the credit of the provident fund accounts of the persons referred to in sub-section (1) as on the appointed day shall be transferred to the Board and the liability in respect of the said provident fund accounts shall be the liability of the Board. (5) There shall be paid to the Board out of the accumulations in the superannuation fund and other like funds, if any, of the Government, such amounts as have been credited to the superannuation fund or other like funds, if any, on behalf of the persons referred to in sub-section (1). The amounts so paid shall form part of the superannuation fund or other like funds, if any, that may be established by the Board for the benefit of its employees.

21. As from the appointed day, all rates, fees, and other charges in relation to any port shall, unless and until they are varied by the competent authority in accordance with the provisions of this Act, continue to be levied and collected at the same rate at which they were being levied and collected by the Government before such day.

22. The Board shall repay, at such intervals and on such terms and conditions as the Government may determine, the amount which is treated under clause (c) of sub-section (1) of section 19 as capital provided by the Government, with interest at such rate as may be fixed by the Government and such repayment of capital or payment of interest shall be deemed to be a part of the expenditure of the Board.

23. Any land or any interest therein required by the Board for the purposes of this Act, may be acquired under the provision of the Land Acquisition Act, 1894, or by agreement.

(1) The contracts or agreements shall be made or executed in accordance with such rules as may be prescribed. (2) A contract or agreement made or executed in contravention of the provisions of this Act or the rules or regulations made thereunder shall not be binding on the Board.

(1) The Board may, subject to any other law, execute such works within or outside the limits of the port as it may deem necessary or expedient. (2) Such works and appliances include: (a) wharves, quays, docks, stages, jetties, piers and other works within the port or port approaches or on the foreshore of the port or port approaches, with all such convenient arches, drains, landing places, stairs, fences, roads, bridges, tunnels and approaches and buildings required for the residence of the employees of the Board as the Board may consider expedient; (b) buses, locomotives, rolling stock sheds, hotels, warehouses and other accommodation for passengers and goods and other appliances for conveying passengers and for conveying, receiving and storing goods landed or to be shipped or otherwise; (c) mooring and cranes, scales and all other necessary means and appliances for loading and un-loading of 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 break waters and other works as may be expedient for the protection of the port; (f) dredgers and other machines for cleaning, widening, deepening and improving any portion of the port or port approaches or of the foreshore of the port or port approaches; (g) light-houses, light-ships, beacons, buoys, pilot boats and other appliances necessary for the safe navigation of the port and the port approaches in so far as it relates to State functions; (h) vessels, tugs, boats, barges and launches and lighters for the use within the limits of the port or beyond these limits, whether in territorial waters or otherwise, for the purpose of towing or rendering assistance 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 section 34; (i) maintenance 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; (k) lands abutting the sea coast including creeks; (l) ferry boats and other works and equipment appertaining to the running ferry service at or between the ports; (m) construction of models and plans for carrying out hydraulic studies: and (n) dry docks, slipways, boat basins and workshops to carry out repairs or overhauling of vessels, tugs, boats, machinery or other appliances.

(1) The board may undertake to carry out on behalf of any person any works or services or any class of works or services, on such terms and conditions as may be agreed upon between the Board and the persons concerned. (2) The Board may, if it considers it necessary or expedient in the public interest so to do, lend any of its vessels or appliances or the service of any of its employees to any person for such period not exceeding three months and on such terms and conditions as may be agreed upon between the Board and the persons concerned.

(1) When any dock, berth, wharf, quay, stage, jetty, pier or place of anchorage erected at any port or port approaches under the provisions of this Act has been completed with sufficient warehouses, sheds and appliances for receiving, landing or shipping goods or passengers from and upon sea going vessels, the Board may, after obtaining the approval of the Collector of Customs and by notification published in three consecutive issues of the Tamil Nadu Government Gazette, declare that such dock, berth, wharf, quay, stage, jetty, pier or place of anchorage 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 date of the publication of such notification for the third time, it shall be lawful for the Board from time to time, when there is room at such dock, berth, wharf, quay, stage, jetty, pier or place of anchorage to order to come along side of such dock, berth, wharf, quay, stage, jetty, pier or place of anchorage, for the purpose of landing and shipping goods or passengers or for landing or for shipping the same, any sea going 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 shippers, in respect of the use of any particular dock, berth, wharf, quay, stage, jetty, pier or place of anchorage: 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 rights, powers and authorities of the conservator of the port to make such order.

When a sufficient number of docks, berths, wharves, quays, stages, jetties or piers have been provided at any port or port approaches, the Board may, after obtaining the approval of the Collector of Customs and by notification published in three consecutive issues of the Tamil Nadu Government Gazette, direct that no goods or passengers shall be landed or shipped from or upon any sea going vessel within the port or port approaches otherwise than at such docks, berths, wharves, quays, stages, jetties or piers, except with the sanction of the Board and in accordance with such conditions as the Board may specify.

Any officer appointed by the Board in this behalf, may, in case of emergency or for any reason which appears to him sufficient, by notice in writing, order the master or owner or agent of any sea going vessel not to bring such vessel alongside of, or to remove such vessel from any dock, berth, wharf, quay, stage, jetty, pier or place of anchorage belonging to or under the control of the Board and if, such notice is not complied with, the Board may charge in respect of such vessel such sum as it thinks fit, not exceeding Rs. 1,000 for each day or portion of such day, during which such vessel remains at such dock, berth, wharf, quay, stage, jetty, pier or place of anchorage: Provided 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 service of such notice on the master or owner or agent of the vessel.

Notwithstanding anything contained in section 27 or 28, the Government may, if in their opinion, it is necessary in the public interest so to do, by general or special order, from time to time, permit certain specified vessels or classes of vessels to discharge or ship goods or certain specified goods at such place in a port or within the port approaches, during such period and subject to such payments to the Board and on such terms and conditions as the Government may think fit.

(1) When any dock, berth, wharf, quay, stage, jetty, pier or place of anchorage for receiving, landing or shipment of goods or passengers from or upon vessels, not being sea going vessels, has been made and completed with all proper appliances for this purpose, the Board may, after obtaining the approval of the Collector of Customs and by notification published in the Tamil Nadu Government Gazette, (a) declare that such dock, berth, wharf, quay, stage, jetty, pier or place of anchorage is ready for receiving, landing or shipment of goods or passengers from or upon any vessel not being sea going vessels; and (b) 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 into, or from any vessel, not being sea going vessels of any class specified in such notification, except at such dock, berth, wharf, quay, stage, jetty, pier or place of anchorage. (2) As from the date of the publication of the order mentioned in sub-section (1), it shall not be lawful, without the consent of the Board, for any vessel specified in sub-section (1), (a) 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, pier or place of anchorage; and (b) while within such limits, to anchor, fasten or lie within fifty yards of the ordinary low-water mark. (3) If, after the publication of such order, any such vessel, anchors, fastens or lies, within the limits so specified, 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.

(1) The Board shall have power to undertake the following services namely:— (a) stevedoring, landing, shipping or transhipping passengers and goods between vessels in port and the wharves, piers, quays or docks belonging to or in the possession of the Board; (b) receiving, removing, shifting, transporting, storing or delivering goods brought within the Board's premises; (c) carrying passengers within the limits of the port or port approaches, by such means and subject to such restrictions and conditions as the Government may think fit to impose; and (d) piloting, hauling, mooring, re-mooring, hooking or measuring of vessels or any other service in respect of vessels. (2) The Board may, if so required by the owner, perform in respect of the goods for the purpose of performing the services take charge of the goods and give a receipt in such form as the Board may specify. (3) Notwithstanding anything contained in this section, the Board may authorise any person to perform any of the services mentioned in sub-section (1) on such terms and conditions as may be agreed upon. (4) No person authorised under sub-section (3) shall charge or recover for such service any sum in excess of the amount leviable according to the scale framed under sections 38, 39 or 40. (5) Any such person shall, if so required by the owner, perform in respect of the goods any of the services and for that purpose take charge of the goods and give a receipt in such form as the Board may specify. (6) The responsibility of any such person for the loss, destruction or deterioration of goods of which he has taken charge shall, subject to the other provisions of this Act, be that of a bailee under sections 151, 152 and 161 of the Indian Contract Act, 1872. (7) After any goods has been taken charge of and a receipt given for them under this section, any liability for any loss or damage which may occur to them shall attach to the person to whom a receipt has been given or to the master or owner of the vessel from which the goods have been landed for transhipment.

(1) Subject to the provisions of this Act, the responsibility of the Board for the loss, destruction or deterioration of goods of which it has taken charge shall— (a) in the case of goods deemed for carriage by railway, be governed by the provisions of the Railways Act, 1989; and (b) in other cases, be that of a bailee under sections 151, 152 and 161 of the Indian Contract Act, 1872, as if the words "in the absence of any special contract" in section 152 of that Act had been omitted: Provided that no responsibility under this section shall attach to the Board— (i) until a receipt mentioned in sub-section (2) of section 32 is given by the Board; and (ii) after the expiry of such period as may be prescribed by regulations from the date of taking charge of such goods by the Board. (2) The Board shall not be in any way responsible for the loss, destruction or deterioration of, or damage to, the goods of which it has taken charge, unless notice of such loss, destruction or deterioration of or damage has been given within such period as may be prescribed by regulations made in this behalf from the date of taking charge of such goods by the Board under sub-section (2) of section 32.

(1) Where the Collector of Customs has, under the provisions of any Act for the levy of duties of customs, appointed any dock, berth, wharf, quay, stage, jetty, pier, place of anchorage, warehouse or shed or a portion of any warehouse or shed provided at any port under the provisions of this Act for the use of sea-going vessels to be an approved place for the landing or shipping of goods or a warehouse for the storing of dutiable goods on the first importation thereof without payment of duty, within the meaning of the first mentioned Act, the Board shall set apart and maintain such place on or adjoining such dock, wharf, quay, stage, jetty, pier or a place of anchorage or in such warehouse or shed or portion thereof, for the use of officers of Customs as may be necessary. (2) Notwithstanding that any dock, berth, wharf, quay, stage, jetty, pier, place of anchorage, warehouse or shed or portion thereof at any port has, under the provisions of sub-section (1), been set apart for the use of the officers of Customs at the port, all rates and other charges payable under this Act in respect thereof, or for the storage of goods therein, shall be payable to the Board, or to such person or persons as may be appointed by the Board to receive the same.

(1) No person shall make, erect or fix, within the limits of the port or port approaches, any wharf, dock, quay, stage, jetty, pier, place of anchorage, erection or mooring or undertake any reclamation of foreshore within the said limits except with the previous permission in writing of the Board and subject to such terms and conditions as the Board may specify. (2) If any person makes, erects or fixes any wharf, dock, quay, stage, jetty, pier, place of anchorage, erection or mooring or undertakes reclamation of foreshore 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 person fails to remove it, the Board may cause it to be removed at the expense of that person.

(1) Where, as a result of an order published under section 31, the use of any wharf, dock, berth, quay, stage, jetty, pier or place of anchorage, made, fixed or erected by any person is rendered unlawful, the Board may, after hearing the person concerned by order, close, remove, fill up or destroy such wharf, dock, berth, quay, stage, jetty, pier or place of anchorage or permit the use thereof to such person on payment of such rates and charges as the Board may, with the previous sanction of the Government, determine. (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 such wharf, dock, berth, quay, stage, jetty, pier or place of anchorage 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 of the amount which shall be determined in the manner and in accordance with the principles hereafter set out, that is to say-- (a) in computing the compensation, there shall not be taken into account any rates or other charges which such person shall be liable to pay for using any wharf, dock, berth, quay, stage, jetty, pier or place of anchorage, provided by the Board ; (b) the amount of compensation shall be calculated with reference to the cost of construction of such wharf, dock, berth, quay, stage, jetty, pier, or place of anchorage ; (c) where the amount of compensation can be fixed by agreement, it shall be paid in accordance with such agreement ; (d) where no such agreement can be reached, the Government shall appoint as arbitrator, a person who is, or has been, or is, qualified for appointment as a Judge of a High Court ; (e) the Government may, in any particular case, nominate a person possessing special knowledge of any matter relating to any case under inquiry to assist the arbitrator 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 arbitrator, the Board and the person to be compensated shall state what in their respective opinion is a fair amount of compensation ; (g) the arbitrator shall, after hearing the dispute, make an award 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, shall apportion the amount thereof among such persons; (i) nothing in the Arbitration Act, 1940 shall apply to arbitrations under this section; (j) the arbitrator appointed under this section, while holding arbitration proceedings under this 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 matters, namely :- (i) summoning and enforcing the attendance of any person and examining him on oath ; (ii) requiring the discovery and production of documents; (iii) receiving evidence on affidavits ; (iv) issuing commissions for examination of witnesses or documents. (4) Every award shall also state the amount of costs incurred in the arbitration proceedings under this section and by what persons and in what proportions they are to be paid. (5) 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 jurisdiction the port is situated : Provided that the High Court may entertain the appeal after the expiry of the said period of thirty days if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time.

(1) The Board shall, from time to time, frame a scale of rates at which and a statement of the conditions under which any of the services specified hereunder shall be performed by itself or any person authorised under section 32 at or in relation to the port or port approaches-- (a) transhipping of passengers or goods between vessels in the port or port approaches ; (b) stevedoring, landing and shipping of passengers or goods from or to such vessels, to or from any wharf, quay, jetty, pier, dock, berth, mooring stage, or erection, land or building in the possession or occupation of the Board or at any place within the limits of the port or port approaches; (c) cranage or porterage of goods on any such place ; (d) wharfage, storage or demurrage of goods on any such place ; (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. (2) Different scale of rates and conditions may be framed for different classes of goods and vessels and for different ports.

(1) The Board shall, from time to time, also frame a scale of rates on payment of which, and a statement of conditions under which, any property belonging to, or in the possession or occupation of, the Board or any place within the limits of the port or port approaches may be used for the purposes specified hereunder :- (a) approaching or lying at or alongside any buoy, mooring, wharf, quay, pier, dock, land, building or place as aforesaid by vessels ; (b) entering upon or plying for hire at or any wharf, quay, pier, dock, land, building, road, bridge, approach 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 agent ; (d) any other use of any land, building, works, vessels or appliances belonging to or provided by the Board. (2) Different scale of rates and conditions may be framed for different classes of goods and vessels and for different ports.

The Board may, from time to time, frame a consolidated scale of rates for any combination of the services specified in section 37 or for any combination of such service or services with any user or permission to use any property belonging to or in the possession or occupation of the Board, as specified in section 38.

In framing scales of rates under any of the foregoing provisions of this Chapter, the Board may prescribe a lower rate in respect of- (a) coastal goods, that is to say, goods other than imported goods as defined in the Customs Act, 1962, carried in a vessel from one Indian Port to another Indian Port : Provided that the Board shall not make any discrimination between one Indian Port and one another such port in prescribing a lower rate under this section; (b) other goods in special cases.

Every scale of rates and every statement of conditions framed by the Board under the foregoing provisions of this Chapter shall be submitted to the Government for sanction and shall have effect when so sanctioned and published by the Board in the Tamil Nadu Government Gazette.

(1) Whenever the Government consider it necessary in public interest so to do, they may, by order in writing together with a statement of reasons therefor, direct the Board to cancel any of the scales in force or modify the same within such period as the Government may specify in the order. (2) If the Board to whom a direction is given under sub-section (1) fails or neglects to comply with such direction within the specified period, the Government may cancel or make such modifications therein as they may think fit: Provided that before so cancelling or modifying any scale, the 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 Government in the Tamil Nadu Government Gazette, and shall, thereupon, have effect accordingly.

The Board may, in special cases, and for reasons to be recorded in writing, exempt, either wholly or partly, any goods, vehicles, or vessels or class of goods, vehicles, or vessels from the payment of any rate or of any charge leviable in respect thereof according to any scale of rates in force under this Act or remit the whole or any portion of such rate or charge so levied.

No person shall be entitled to refund of an overcharge made by the Board unless his claim to the refund has been preferred, in writing, by him or on his behalf to the Board within six months from the date of payment duly supported by all original relevant documents: Provided that the Board may, of its own motion, remit overcharges made in its bills at any time.

(1) When the 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 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 three years— (a) when the charge is short-levied, from the date of the payment of the charge; (b) where a charge has been erroneously refunded, from 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 determined.

Rates in respect of goods to be landed shall be payable immediately on the landing of the goods and rates in respect of goods to be removed from the premises of the Board or to be shipped for export or to be transhipped shall be payable before the goods are removed, shipped or transhipped.

(1) For the amount of all rates leviable by the Board under this Act in respect of any goods and for the rent due to the Board for any building, plinth, 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) Said lien shall have priority over all other liens and claims, 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 48 and for money payable to the Central Government under any law for the time being in force, relating to customs other than by way of penalty or under any law for the time being in force.

(1) If the master or owner of any vessel or his agent at or before the time of landing from such vessel any goods at any dock, wharf, quay, stage, berth, mooring or pier belonging to or in the occupation of the Board gives to the Board a notice in writing that such goods are to remain subject to a lien for freight or other charges payable to the ship owner to an amount to be mentioned in such notice, such goods shall continue to be liable to such lien and said rate. (2) The goods shall be retained in the custody of the Board at the risk and expense of the owners of the goods. Maintenance, and storage rent shall be payable by the party entitled to such goods for the time during which they may be so detained. (3) Upon the production to or before any officer appointed by the Board in that behalf of a document purporting to be a receipt for, or release from, the amount of such lien, executed by the person by whom or on whose behalf such notice has been given, the Board may permit such goods to be removed without regard to such lien, provided that the Board shall have used reasonable care in respect of the authenticity of such document.

(1) The Board may, after the expiry of two months from the time when any goods have passed into its custody, or in the case of any animal or of any goods which are perishable or hazardous in the opinion of the Board, after the expiry of such shorter period not being less than twenty four hours, after the landing of the animals or goods, as the Board may think fit, sell by public auction or in such cases as the Board considers it necessary so to do, for reasons to be recorded in writing, sell by tender, private agreement or in any other manner such goods or so much thereof as in the opinion of the Board may be necessary- (a) if any rates payable to the Board in respect of such goods have not been paid, or (b) if any rate payable to the Board in respect of any place on or in which such goods have been stored has not been paid, or (c) if any lien of any ship owner 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. (2) Before making such sale, the Board shall give ten days notice of the same by publication thereof in the Tamil Nadu Government Gazette and also in at least one of the principal local daily news papers: Provided that in the case of animals and perishable or hazardous goods, the Board may give such shorter notice and in such manner as, in the opinion of the Board, the urgency of the case admits of. (3) If the address of the owner of the goods has been stated in the manifest of the goods or in any of the documents which have come into the possession of the Board or is otherwise known, notice shall also be given to him by letter delivered at such address or sent by post but the title of a bona fide purchaser of such goods shall not be invalidated by reason of the omission to send such notice, nor shall any such purchaser be bound to inquire whether such notice has been sent. (4) Notwithstanding anything contained in this section, controlled goods may be sold at such time and in such manner as the Government may direct.

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 section unless two months have expired from the date in which goods were placed 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), the Board may, at any time after the expiration of two months from the date of which such goods were placed in its custody, sell the goods by public auction, or, in such cases as the Board considers it necessary so to do, for reasons to be recorded in writing sell by tender, private agreement or in any other manner such goods or so much thereof in the opinion of the Board may be necessary after giving notice of the sale in the manner specified in sub-sections (2) and (3) of section 49. (4) Notwithstanding anything contained in sub-section (1) or sub-section (3)- (a) the Board may in the case of animals and perishable or hazardous goods give notice or removal of such goods although the period of one month or as the case may be, of two months specified in sub-section (1) has not expired or give such shorter notice of sale in such manner as in the opinion of the Board the urgency of the case admits of, and (b) controlled goods may be sold in accordance with the provisions of sub-section (4) of section 49. (5) The Government may, if they deem necessary so to do in the public interest, by notification, exempt any goods or classes of goods from the operation of this section.

(1) The proceeds of every sale under section 49 or section 50 shall be applied in the following order, namely:-(a) in payment of the expenses of the sale; (b) in payment, according to their respective priorities, of the liens and claims except in sub-section (2) of section 47 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 all other charges due to the Board in respect thereof including demurrage (other than the penal demurrage) payable in respect of such goods for a period of four months from the date of landing; (d) in payment of any penalty or fine due to the Central Government under any law for the time being in force relating to customs; (e) in payment of any other sum due to the Board. (2) The surplus, if any, shall be paid to the importer, owner or consignee of the goods or to his agent, on an application made by him in this behalf within six months from the date of the sale of the goods. (3) Where no application has been made under sub-section (2), the surplus shall be applied by the Board for purposes of this Act.

(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 thereto or any part thereof and detain the same until the amount 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 of the distrain or arrest or the keeping of the same, remains unpaid for a period of five days next after any such distrain 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 cost of sale remaining unpaid, rendering the surplus (if any), to the master of such vessel, on demand.

If the Board gives to the officer of the Central Government whose duty is to grant the port clearance to any vessel at the port, a notice stating- (a) that an amount specified therein is due in respect of rates, fines, penalties or expenses chargeable under this Act or under any regulations or orders made in pursuance thereof, against such vessel or by the owner or master of such vessel in respect thereof, or against or in respect of any goods on board such vessel; or (b) that an amount specified therein is due in respect of any damage referred to in section 100 and such amount together with the cost of the proceedings, for the recovery thereof before a Magistrate under that section has not been realised, such officer shall not grant such port clearance until the amount so chargeable or due has been paid, or, as the case may be, the damage and cost have been realised.

(1) The Board may raise loans with the previous sanction of the Government on such terms and conditions as may be prescribed by the Government for the purposes of this Act. (2) Loans may be raised by the Board in the open market on Board securities issued by it or may be obtained from the Government or any Bank or any financial institutions like All India financial Corporations and State Finance Corporations approved by the Government. (3) The terms of all loans shall be subject to the approval of the Government.

(1) The Board may, with the sanction of the Government, prescribe the form in which the securities of the Board shall be issued by the Board and the mode in which, and the conditions subject to which, they may be transferred. (2) The holder of any Board security in any form may obtain in exchange therefor, upon such terms as the Board may, from time to time, determine a Board security in other form prescribed by regulations. (3) The right to sue in respect of money secured by the Board securities shall be exercisable by the holders thereof for the time being without preference in respect of priority of date.

(1) Notwithstanding anything contained in section 45 of the Indian Contract Act, 1872— (a) when the Board security is payable to two or more persons jointly and either or any of them dies, the Board security shall be payable to the survivors of those persons, and (b) when any such security is payable to two or more persons severally and all 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 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 survivor or survivors under or in respect of any security to which sub-section (1) applies. (4) For the purposes of this section, a body incorporated or deemed to be incorporated under the Companies Act, 1956 or the Tamil Nadu Co-operative Societies Act, 1983 or any other enactment for the time being in force, whether within or outside India, shall be deemed to die when it is dissolved.

Where two or more persons are joint holders of any Board security, any one of those persons may give an effectual receipt for any interest payable in respect of such security unless notice to the contrary has been given to the Board by any other holder.

Notwithstanding anything in section 15 of the Negotiable Instruments Act, 1881, no endorsement of a Board security which is transferable by endorsement shall be valid unless made by signature of the holder inscribed on the back of the security itself.

Notwithstanding anything in the Negotiable Instruments Act, 1881, a person shall not by reason only of his having endorsed any Board security be liable to pay any money due either as principal or as interest thereunder.

(1) The signature of the person authorised to sign Board securities on behalf of the Board may be printed, engraved or lithographed or impressed by such other mechanical process as the Board 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 hand writing of the person so authorised.

(1) When any Board security is alleged to have been lost or stolen or destroyed, either wholly or in part, and a person claims to be the person to whom but for the loss or theft or destruction it would be payable, he may, on application to the Board and on producing proof to its satisfaction of the loss or theft or destruction and of the genuineness 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 to be lost or stolen or destroyed, pending the issue of a duplicate security; and (b) the issue of a duplicate security payable to the applicant. (2) An order shall not be passed under sub-section (1) until after the issue by the Board of the notification of the loss or theft or destruction in the manner prescribed by regulations. (3) A list of securities in respect of which an order is passed under sub-section (1) shall be published in such manner as the Board may prescribe by regulations. (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 or stolen or destroyed, such security is found, any order passed in respect thereof under this section shall be cancelled.

(1) The Board may, subject to such conditions as it may prescribe, on the application of a person claiming to be entitled to a Board security or securities issued by it, on being satisfied of the genuineness 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 security or securities, and issue to the applicant a new security or securities accordingly. (2) The conversion, consolidation or sub-division referred to in sub-section (1) may be into security or securities of the same or different classes or of the same or different loans.

Notwithstanding anything contained in the Indian Limitation Act, 1963— (i) on payment of the amount due on a Board security on or after the date on which payment becomes due to, or (ii) when a duplicate security has been issued under section 61, or (iii) when a new security or securities has or have been issued upon conversion, consolidation or sub-division under section 62, the Board shall be discharged from all liabilities in respect 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 duplicate security after the lapse of six years from the date of the publication under sub-section (3) of section 61 of the list in which the security is first mentioned or from the date of the last payment of interest on the original security, whichever date is later; (c) in the case of a new security issued upon conversion, consolidation or sub-division, after a lapse of six years from the date of the issue thereof.

All loans raised by the Board under this Act shall be a first charge on— (1) the property vested or which may, hereafter during the currency of the loans, become vested in the Board other than— (i) any sum set apart by the Board— (a) as the sinking fund for the purpose of paying off any loan; or (ii) for the payment of pension to its employees; or (b) the provident or pension fund established by the Board; and (2) the rates leviable by the Board under this Act.

The Government shall have in respect of loans made by it to the Board the same remedies as holders of Board securities issued by the Board; and the Government shall not be deemed to possess any prior or greater rights in respect of such loans than holders of such Board securities: Provided that when the terms of any such loan made before the appointed day expressly provide that the loan shall have priority over all other loans in the matter of repayment by the Board, such loan shall have priority.

The Board may, with the previous sanction of the Government, apply any sums out of moneys which may come into its hands under the provisions of this Act and which can be so applied without prejudicing the security of the other holders of the Board securities, in repaying to the Government any sum which may remain due to them in respect of the principal of any loan although the time fixed for the repayment of the same may not have arrived: Provided that no such repayment shall be made of any sum less than Rs. 10,000 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.

(1) If, in respect of a loan raised by the Board under this Act, the Government so direct, then the Board shall set apart half-yearly out of its income as a sinking fund, a sum sufficient to liquidate the loan within a period which shall not in any case, unless the previous consent of the Government has been obtained, exceed twenty five years; but the maximum period shall not, in any case exceed forty years: Provided that a sinking fund shall not, in the absence of any stipulation to that effect, be established in the case of loans taken by the Board from the Central Government or any State Government. (2) If any sinking fund has, before the appointed 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 established by that authority shall be deemed to have been established by the Board under this section.

(1) The sums so set apart by the Board under sub-section (1) or the sums forming part of any sinking fund referred to in sub-section (2) of that section shall be invested in public securities or in such other securities as the Government may approve in this behalf and shall be held by the Board in trust for the purposes of this Act. (2) The 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: 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.

(1) A sinking fund established for the liquidation of any loan shall be subject to annual examination by such person as may be appointed by the Government in this behalf and the person so appointed shall ascertain whether the cash and current market value of the securities at the credit of the fund are actually equal to the amount which should be at the credit of the fund. (3) If the cash and current market value of the securities at the credit of a sinking fund are in excess of the amount which should be at its credit, the person appointed under sub-section (1) shall certify the amount of the excess and the Board may, with the previous sanction of the Government, reduce or discontinue the half-yearly contributions to the sinking fund required under section 67. (3) If the cash and current market value of the securities at the credit of a sinking fund are in excess of the amount which should be at its credit, the person appointed under sub-section (1) shall certify the amount of the excess and the Board may, with the previous sanction of the Government, reduce or discontinue the yearly contributions to the sinking fund required under section 67.

Nothing contained in this Act shall be deemed to affect the power of the Board to raise loans under the Local Authorities Loans Act, 1914.

Notwithstanding anything contained in this Act, the Board may— (i) borrow moneys by means of temporary overdraft or otherwise by placing the securities held by the Board in its reserve fund or on security of the fixed deposits of the Board in its banks; (ii) obtain advances from such banks on pledge or hypothecation of its current assets without the previous sanction of the Government: Provided that such temporary overdrafts or other loans— (a) shall not at any time have a longer currency than six months; and (b) shall not be taken, without the previous sanction of the Government, if at any time in any year the amount of such overdrafts or other loans exceeds such amount not exceeding Rs. 10,00,000, as the Government may fix in this behalf: Provided further that all moneys so borrowed by overdrafts or otherwise shall be expended for the purposes of this Act.

Notwithstanding anything contained in this Act but subject to any other law for the time being in force, the Board may, with the previous sanction of the Government and on such terms and conditions as may be approved by the Government, raise, for the purposes of this Act, loans in any currency or currencies from the International Bank for Reconstruction and Development or from any other Bank or Institution in any country outside India, and no other provision of this Chapter shall apply to or in relation to any such loan unless the terms and conditions of the loan or the approval thereof by the Government otherwise provide.

All moneys received by or on behalf of the Board under the provisions of this Act and all moneys received by it as the conservators of the ports and of their approaches or as the body appointed under section 36 of the Indian Ports Act, shall be credited to a fund called the General Account of the ports.

(1) The moneys credited to the General Account under section 73 shall be applied by the Board in payment of the following charges, namely:- (a) the interest and instalments of principal due in respect of any loan that may have been raised or obtained by the 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, remunerations, allowances, pensions, gratuities, compassionate allowances or other moneys due to— (i) the Chairman, and other members of the Board, (ii) the employees of the Board, and (iii) the surviving relatives, if any, of such employees; (c) the contribution, if any, payable to the Central Government or any State Government on account of the pension 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 conduct and administration of any provident or welfare fund or loan or special fund established by the Board; (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) such sums as may, from time to time, be agreed upon by the Board and the Government or the Central Government or any other authority, as a reasonable contribution payable by the Board towards the expenses in connection with the watch and ward functions of the Police Force or the Central Industrial Security Force or any other Force which the Government or the Central Government or any other authority as the case may be, may establish and maintain for the protection of the port and the docks, warehouses and other property of the Board; (g) 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; (h) the cost of the execution and provision of any new work or appliance specified in section 25 which the Board may determine to charge to revenue; (i) any expenditure incurred under section 26; (j) any other expenditure which may be incurred by the Board generally for the purposes of this Act; (k) any other charge which may, on the application of the Board or otherwise, be specifically sanctioned by the 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 for the purposes specified in sub-section (1) shall— (a) be deposited in the State Bank of India or in any corresponding new bank as defined in clause (d) of section 2 of the Banking Companies (Acquisition and transfer of Undertaking) Act, 1970 as the Board may decide, or (b) be invested in such public securities as may be determined by the Board and the said securities shall be held in trust by the Board for the purposes of this Act.

The Board may, with the previous sanction of the Government, apply any sum out of the money credited to the General account of the Port towards meeting deficits, if any, in the particular or specific account such as pilotage account or maintain or transfer the whole or part, of any surplus funds in such particular account to the General account of the Port.

The Board may, from time to time, set apart such sums out of its surplus income as it thinks fit as a reserve fund or funds, for the purpose of expanding existing facilities or creating new facilities at the ports or for the purpose of providing against any temporary decrease of revenue or increase of expenditure from transient causes or for purpose of replacement or for meeting expenditure arising from loss or damage from fire, cyclone, ship wrecks or other accident or for any other emergency arising in the ordinary conduct of its works under 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 amount as may, from time to time, be fixed in that behalf by the Government.

(1) For the purposes of any investment which the Board is authorised to make under this Act, it shall be lawful for the Board to reserve and set apart for Board's own investments any securities to be issued by it on account of any loan to which the consent of the 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 the Board of such securities direct to and 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 the Board or the transfer, assignment or endorsement to the 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 endorsed to any other person.

(1) No expenditure shall be charged by the Board to capital without the previous sanction of the Government: Provided that the 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 Government. (2) Nothing in sub-section (1) shall be deemed to require the further sanction of the Government in any case where the actual expenditure incurred as a charge to capital exceeds the expenditure sanctioned in this behalf by the Government unless the excess is more than ten per cent of the expenditure so sanctioned.

(1) No new work or appliance the estimated cost of which exceeds such amount as may be fixed by the Government in this behalf, shall be commenced or provided by the Board, nor shall any contract be entered into by the Board in respect of any such new work or appliance until a plan of an estimate for such work or appliance has been submitted to and approved by the Board, and in each case where the estimated cost of any such new work or appliance exceeds such amount, as may from time to time, be fixed by the Government in this behalf, sanction of the 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 Government in any case where the actual expenditure incurred does not exceed by more than ten per cent of the estimated cost so sanctioned.

Notwithstanding anything contained in section 79, the Chairman may order or direct the execution of any work the cost of which does not exceed such maximum limit as may be fixed by the Government in that behalf and may enter into contracts for the execution of such works, but in every 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.

(1) The Board may compound or compromise any claim or demand or any action or suit instituted by or against it for such sum of money or other compensation as it deems sufficient: Provided that no settlement shall be made under this section without the previous sanction of the Government if such settlement involves the payment by the Board of a sum exceeding such amount as may be specified by the Government in this behalf.

(1) Subject to such conditions as may be specified by the Government where the Board is of opinion that any amount due to or any loss, whether of money or of property incurred by the Board is irrecoverable, the Board may, with the previous approval of the Government, sanction the writing off finally of the said amount or loss: Provided that no such approval of the Government shall be necessary where such irrecoverable amount or loss does not exceed, in any individual case, five thousand rupees or in the aggregate in any year, one lakh rupees. (2) Notwithstanding anything contained in sub-section (1), 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 irrecoverable, the Chairman may sanction the writing off finally of such amount or loss, provided that such amount or loss does not exceed, in an individual case, one thousand rupees or in the aggregate in any year, twenty thousand rupees and in every such case, the Chairman shall make a report to the Board giving reasons for such sanction.

The authorities and sanctions contained in this Act in respect of works to be constructed by the Board shall apply to the works which may be executed by the Board as the Conservator of the Port or as the body appointed under sub-section (1) of section 36 of the Indian Ports Act and also to the sanction of such works, the estimate thereof and the expenditure incurred.

(1) The Board shall, on or before the thirty first day of January in each year, hold a special meeting at which the Chairman shall submit an estimate of the income and expenditure of the Board for the next financial year, in such form as may be prescribed. (2) A copy of such estimate shall be sent to each member of the Board so as to reach him not less than ten clear days prior to the date appointed for the special meeting referred to in sub-section (1). (3) The Board shall consider the estimate at such meeting and may provisionally approve of it with or without modification. (4) The Board shall, on or before the tenth day of February, cause a copy of such estimate as provisionally approved by it, to be sent to the Government. (5) The Government may sanction the estimate or may return it with remarks and may call for such additional information as they may deem necessary. (6) When an estimate is returned under sub-section (5), the Board shall proceed to reconsider the estimate with reference to such remarks and shall furnish such additional information as the Government may call for and shall, if necessary, modify or alter the estimate and resubmit it to the Government. (7) The Government shall sanction the estimate with or without modifications. (8) Where any such estimate is not sanctioned by the Government before the commencement of the financial year to which it relates, the Government may authorise the Board to incur such expenditure as may be necessary in the opinion of the Government until such time as the approval of the estimate by the Government is communicated to the Board.

The Board may in the course of any year for which an estimate has been sanctioned by the Government cause one or more supplemental estimates for the residue of such year to be prepared and the provisions of section 84 shall, so far as may be, apply to such estimate as if it were an annual estimate.

Subject to any directions which the Government may give in this behalf, any sum of money or part thereof of which the expenditure has been authorised in an estimate for the time being in force sanctioned by the 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 estimate.

(1) Subject to the provisions of section 86, no sum exceeding such amount as the Government may fix in this behalf shall, save in cases of emergency, be expended by, or on behalf of, the Board unless such sum is included in some estimate of the Board at the time in force which has been finally sanctioned by the Government. (2) If any sum exceeding such limit as may have been fixed in this behalf under sub-section (1) is so expended by the Board on a pressing emergency, the circumstances shall be forthwith reported by the Chairman to the Government, together with an explanation of the way in which it is proposed by the Board to cover such extra expenditure.

(1) The Board shall maintain proper accounts and other relevant records and prepare the annual statement of account including the balance sheet in such form as may be approved by the Government. (2) The accounts of the Board shall be audited once in every year and if so required by the Government concurrently with the compilation of such accounts, by an auditor appointed by the Government in consultation with the Comptroller and Auditor-General of India (hereinafter referred to as "the Auditor") and any amount payable to such Auditor by the Board in respect of such audit shall, be debitable to the general account of the Board. (3) The Auditor shall have the same rights, privileges and authority in connection with the audit of the accounts of the Board as the Comptroller and Auditor-General of India has in connection with the audit of the Government accounts and in particular shall have the right to demand production of books of accounts, connected vouchers and other documents of the Board.

(1) Within fourteen days after the audit and examination of the accounts of the Board have been completed, the auditor shall forward copies of the audit report to the Government and to the Board. (2) The Government shall cause every audit report to be laid for not less than thirty days, before the Legislative Assembly as soon as may be after such report is received by the Government.

The Board shall forthwith take into consideration any defects or irregularities that may be pointed out by the Auditor, in the audit report on the income and expenditure of the Board and shall take such action thereon as the Board may think fit; and shall also send a report of the action so taken to the Government.

If there is a difference of opinion between the Board and the Auditor on any point included in the audit report, and the Board is unable to accept and implement the recommendations, if any, made by him on such point, the matter shall forthwith be referred to the Government which shall pass final orders thereon and the Board shall be bound to give effect to such orders.

As soon as may be after the first day of April in every year and not later than such date as may be fixed in this behalf by the Government, the Board shall submit to the Government a detailed report of the administration of the ports during the preceding year ending on the thirty first day of March, in such form as the Government may direct.

(1) The Board shall annually or often or if directed by the Government so to do, submit statements of its income and expenditure in such form and at such time as the Government may direct. (2) A copy of all such statements shall be open to inspection 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.

(1) If, at any time, the Government are of opinion- (a) that on account of a grave emergency, the Board is unable to perform the duties imposed on it by or under the provisions of this Act or of any other law, or (b) that the Board has persistently made default in the 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 default, the financial position of the Board or the administration of the ports has greatly deteriorated, the Government may, by notification, supersede the Board for such period, not exceeding six months at a time, as may be specified in the notification: Provided that before issuing a notification under this sub-section for the reasons mentioned in clause (b), the Government shall give a reasonable opportunity to the Board to show-cause why it should not be superseded and shall consider the explanations and objections, if any, of the Board. (2) Upon the publication of the notification under sub-section (1) superseding the Board,- (a) all the members of the Board shall, as from the date of supersession, vacate their offices as such members of the Board; (b) all the powers and duties which may, by or under the 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 (c) of sub-section (3), be exercised and performed by such person or persons as the Government may direct; (c) all property vested in the Board shall, until the Board is reconstituted under clause (b) or clause (c) of sub-section (3), vest in the Government. (3) On the expiration of the period of supersession specified in the notification issued under sub-section (1), the Government may- (a) extend the period of supersession for such further term not exceeding six months, as they may consider necessary, or (b) reconstitute the Board by fresh appointment and in such case, any person who vacated their offices under clause (a) of sub-section (2) shall not be deemed disqualified for appointment, or (c) reconstitute the Board by appointment only for such period as they may deem necessary and in such a case, the persons who vacated their offices under clause (a) of sub-section (2) shall not be deemed disqualified for such appointment merely because they were members of the Board when the Board was so superseded: Provided that the Government may, at any time before the expiration of the period of supersession, whether as originally specified under sub-section (1) or extended under this sub-section, take action under clause (b) or clause (c) of this sub-section. (4) The 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 the Legislative Assembly at the earliest possible opportunity.

(1) Without prejudice to the foregoing provisions of this Chapter, the Board shall, in the discharge of its functions under this Act, be bound by such directions on question of policy, as the Government may give in writing to it from time to time. (2) The decision of the Government, whether a question is one of policy or not, shall be final.

All members, officers and other servants of the Board shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code.

(1) Whoever contravenes any order made under section 27 or section 28 or section 29, or fails to comply with any condition imposed under section 30, shall be punishable with fine which may extend to one thousand rupees. (2) Whoever after having been convicted of an offence under sub-section (1) continues to contravene the said order or neglects to comply with the said condition, shall, on conviction, be punishable, for each day after the previous date of conviction during which he continues so to offend, with fine which shall not be less than one hundred rupees and not more than two hundred rupees.

(1) Any person who contravenes the provisions of section 35 shall be punishable with fine which may extend to one thousand rupees. (2) Whoever after having been convicted of an offence under sub-section (1) continues to contravene the said provisions in section 35, shall, on conviction be punishable, for each day after the previous date of conviction during which he continues so to offend, with fine which shall not be less than one hundred rupees and not more than two hundred rupees.

Any person, who with the intention of evading payment of the rates lawfully due under this Act in respect of any goods or vessels carrying any goods,- (a) understates or incorrectly gives the weight, quantity, value or description of such goods, or the tonnage of such vessel in any document, presented to any employee of the Board for the purpose of enabling him to determine such rates, or (b) removes or attempts to remove or abets the removal of such goods or such vessel, shall be punishable with fine which may extend to twice the amount of rates so due subject to a minimum of fifty rupees.

If, through the negligence of any person having the guidance or command of any vessel, or of any of mariners or persons employed on such vessel, any damage is caused to any dock, wharf, quay, mooring, stage, jetty, pier or other work in the possession of the Board or any movable property belonging to the Board the amount of such damage shall, on the application of the Board, be recoverable together 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 until the master of the vessel has been given a reasonable opportunity of being heard: Provided further that no such warrant shall issue if the vessel was at the time under the orders of a duly authorised employee of the Board and the damage caused was attributable to the order, act or improper omission of such employee.

Any person who, being a member or an employee of the Board, acquires, directly or indirectly, any share or interest in any contract or employment with, by or on behalf of the Board, shall be deemed to have committed an offence under section 168 of the Indian Penal Code: Provided that nothing in this section shall apply to a person who is deemed not to have a share or interest in any contract or employment under the proviso to clause (d) of section 4.

Save as otherwise provided in sections 97, 98, 99 and 100 any person who contravenes any of the provisions of this Act or of any rule, regulation or order made thereunder for the contravention of which no penalty is expressly provided thereunder, shall be punishable with fine which may extend to two hundred rupees.

No court inferior to that of a Metropolitan Magistrate or Judicial Magistrate of the first class shall try any offence punishable under this Act or any rule or regulation made thereunder.

(1) Where an offence against any of the provisions of this Act or any rule made thereunder has been committed by a company, every person who at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the 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 any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he has exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1) where any such 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, or is attributable to any negligence on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer of the company shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation.—For the purpose of this section,— (a) "company" means a body corporate and includes a trust, a firm, a society or other association of individuals; and (b) "director" in relation to— (i) a firm means a partner in the firm; (ii) a society, a trust or other association of individuals, means the person who is entrusted under the rules of the society, trust or other association with the management of the affairs of the society, trust or other association, as the case may be.

(1) The Government may, by notification, constitute a State Ports Consultative Committee (hereafter in this section called the "Consultative Committee") consisting of members of the Board and such other persons, being not less than ten and not more than twenty as the Government may appoint from amongst persons who are in the opinion of the Government, representing the interests of the Chamber of Commerce, Shipping, Sailing Vessels, Customs, Railways, Road Transport, Labour, Communications, Fisheries and Industries, so however that, there shall be atleast one member from each of the aforesaid interests. (2) The Chairman of the Board shall be the ex-officio Chairman of the Consultative Committee. (3) Such officer of the Board as the Government may appoint in this behalf shall act as Secretary to the Consultative Committee. (4) The functions of the Consultative Committee shall be as follows :- (a) to advise the Board on all general questions pertaining to the ports; (b) to advise the Board in respect of any scheme pertaining to development of any port; (c) to review the administration of ports and to suggest ways and means of improving their work; (d) to suggest ways and means to remove any difficulty experienced by the Board in the administration of ports; (e) to make suo-moto recommendation to the Board in regard to any matter relating to administration of the ports; (f) to report to the Government, or as the case may be to the Board, on such matters as may be referred to it either by the Government or by the Board for its opinion. (5) The Government may, by general or special order, provide— (a) the calling of the meetings of the Consultative Committee and the procedure of meetings; (b) the duties of the Secretary of the Consultative Committee; (c) the term of the office of persons appointed to be members of the Consultative Committee to represent any of the aforesaid interests, travelling allowance and daily allowance to the members of the Consultative Committee and rate thereof. (6) Any person appointed to the Consultative Committee to represent any of the aforesaid interest may resign from the membership by tendering his resignation in writing to the Chairman and the resignation shall take effect from the date on which it is received by the Chairman, who shall give intimation of the vacancy to the Government.

(1) The Government may, from time to time, constitute a Local Advisory Committee for any port, consisting of such number of members as they may think fit in each case and on such terms and conditions as may be prescribed, by regulations. (2) The Board may, if it thinks fit, consult the Local Advisory Committee concerned on any business coming before it, and shall do so in respect of such business as the Government may, by general or special order in this behalf, specify or when required by the regulations so to do. (3) The Port Officer concerned shall be the ex-officio Chairman of the Local Advisory Committee. (4) The Local Advisory Committee shall meet at such intervals as may be prescribed and for the transaction of urgent business on such other occasions as Chairman of the Board may require. (5) The number of members necessary to constitute a quorum at a meeting of a Local Advisory Committee shall, as the Government may specify. (3) The Port Oflicer co;lcerned shall be the: ex-c,fjcio Chai~ m s I I o!' 1 1 1 ~ Loc~I'~ Advisory Committee. (4) 711e Local Advibcry Comnlittee shall muat at \uch ~i~tcrval\ III:~) be presribed and for tile tr,i;l\acLlon of urgent bl.si ~zbs on huch cjtllc: ,'cc~l\!an> as Chairman of the Bo ~ s d may require. (51 Tne number of ~nembers necessary to const;tute a q\ioiulll at a m e ~ i n g ~f a Local Adv15ory Committee shall, as the Go~elnmnent may spec11.y.

NO bull, prosrcutios, or other proceedi!lg shall bc 1!15tii~1t~ d .iyallil lix respect of !kings Board or any member or emgloyee thereof for any act done, or purport~~lg to he don:: done. in pursuance of this Act unless the suit, prosecution or otbar procecd~ng is li?btItU- ted uithin six months fro111 tlie date of the act cc)mpiained of.

NO suit or prosecution or other proceeding shall 11e agalnst thc Board or Gomrnittee or Chairman, Member, chief Executive Officer or other officers and servants of the Board, anything which is in good faith done 01 intended to be done under this Act or any rulc or regulation made thereunder, or for any damage sustained by any vessel in consequence of any defect in any of the mooring, hawsers or other things belonging to or under the control of the Board.

(1) The Government may make rules for carrying out the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely :- (a) fees and allowances payable to the members of the Board or any of its committees for attending meetings of the Board or its committee or for attending any work of the Board, under section 12; (b) the mode of executing contracts under section 24; (c) factors to be taken into consideration for determining the just and reasonable compensation under sub-section (3) of section 36; (d) the terms and conditions of appointment of persons as members of a Local Advisory Committee under sub-section (1) of section 106; and (e) any other matter which is to be or may be prescribed by rules. (3) The power to make rules conferred by this section is subject to the condition of the rules being made after previous publication. (4) Every rule or order made or notification issued by the Government under this Act shall, as soon as possible after it is made or issued, be placed on the table of the Legislative Assembly, and if before the expiry of the session in which it is so placed or the next session, the Legislative Assembly makes any modification in any such rule or order or notification, or the Legislative Assembly decides that the rule or order or notification should not be made or issued, the rule or order or notification shall thereafter have effect only in such modified form or be of no effect as the case may be, so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or order or notification. In section 109 of the principal Act, sub-section (3) shall be omitted.

(1) The Board may make regulations not inconsistent with the provisions of this Act and the rules made thereunder with reference to all or any of the following matters, namely :- (a) the times and places of the meeting of the Board or its committees, the procedure to be followed for the transaction of business at such meetings and the number of members necessary to constitute a quorum at such meetings; (1) Th? h a r d may make ~gulations I-of incons~stent \krtll rm provisio~:~ of ths-a~t itnd the wits nl:~Je tkrrmadzr with rraWr tc, dl or an) cf the toiiowing matters, il.?mciy :- (a) the times anti places of the; m:eti.le of the Boara or its committees, the procedure to be followed for the tramaction of business at such meetings a474 the rl.lrnhr of members necessary to constitue a quorum at such nleetiap ; (b) the appintmelt, pioinotion, suspension, removal. and dir-lu~al of ifs employees ; (c) leavt, leave allowanu3s, p:.liioix, gratuitie?, c~mpassionate allowances and travr,lling allowances of the employeas and the establishme ~t and maintenance o f a nrovident fu:ld or any 0 t h fund for th:ir wdfare ; (d) the time withi!l which and the mlrrner in which review and appeal may be preferred under sub-ssotion (2) of section I.) a.~d the procedure for de- ciding such revie* and app :a1 ; (e) the terms and conditions of service of persons wno become employees of the Board under clause ( b ) of sub-section (1) of section 20 ; (f) any other matter which is incidental to, or necessary for, the purpose .of ragt~latl~~g the app~intrnent and conditions of service of its enlployees ; (g) the torm ot raaalpt to b3 given under sub-ssctioll (2) of seation 32 ; (h) the psriod within which notiaa may b3 given undar subsecLion (2) of seation 33 ; (i) tho fautors to ha taken into aonsiderlition in respeot of payment of fair aaJ roaaonab\a aompaiuation .undar sub-section (3) of seation 36 ; (j) rho guidance of pjrsond emrloydd b~ th3 h a r d under this Gat ; (k) the, wLe, efficient id c ~nveniene t i d ~ , ,n~;dgem~nt and aontrol of the docks, wharve;, quays, jottias, buildings and other works aonstructed or aonquired by, or vg~tud in, the Board, or of anJi land or fora~hore aoqked by, .d veated in tha noard under this Aat ; (l) the reoeption, portarage, storage and removal of goods brought *in tila premises of the Board, for the eaalusiva aonduot of these oparatioo the Baard or p:rsons em;lloyed by the Board, and for halaring the proaedurr to be follawe3 for taking aharg3 of goods whioh may have beau damaged More landing, or mry be allegad to have bean so damaged ; (m) keeping alean the port, river or basins or the bank d the river and %he aorks oh the Board, and for pravonting filth and rubbish baing thrown therein or thareon ; (n) the mode of payrnsnt of rates leviable by tho Board under this Aat ; (o) rapulating, da~laring and detining the doirks, wharves, quays, jattiesi .sta as aiid piars vaitei in thz B~srd on whiah goads shall be landed from v r d a apt! hippad on Board vasrek ; (p) regulating the manner in which and tho a jndirions under whiah , the .loading and unloading ot all rzsssl~ within the port c r port approaohes shA be aarried out; (q) ragulating the lighterage of aargo between ship3 or between shipa and .ahore or batween shore and ships ; (r) the exclusion from the premisso of the Board of disorderly or 0 t h adesirabla parsono and of trajpaspers ; (s) ensuring the slfoty of the port ; (t) generally for the eniaisnt and propsr administration of the ports ; (u) the parson, if any, aut6orirrcd to sign and the mode of afRxing the oorporate sesl and of atte3tation of dooumentq relating to Board s~uriti3s issued or to b3 iwed by the Board ; (v) the qar\qor in which gaymeat of. intarsvt in respot st ; oxh$30;~1d yaouritien is to be mmda, raoaraad lind aoknowledgsd ; (w) tbe circumstances and the manner in which %oar6 secu~illes may be rimevied ; (x) the circumstanccs in which such sccur~ ties may be renewed bcfcre fuit'frer payment of interest thereon can be claimed ; (y) the form in which such securities delivered for renewal, con~ersion, consolidation or sub-division are to be receipted ; (z) thepfoof whicb is to be prcduced by a person applying for duplicate swurities ; (aa) 't'he'fdrm and manner of publication of the notificiation mentioned in SUP-section (2) of section 61 and the manlier of publication of the list mentioned is sub-section (3) of that section. (ab) the r!ature and amount of indehin~ty to be given by a person applying for the payment of interest in the Board securities alleged to have been wholly or partly lost, stolen or destroyed, or for the issue of dl plicate Board securi- des ; (ac) the conditions subject to which Boald securities may be converted, eansolidated or sub-divided ; (ad) tke amovnts for wh~ch stock certificate may he issued ; (ae) werally all matters connected with a g .ant of duplicate, rene~ed, converted, consolidated and sub.divided securities ; (af) @o fees to 'be paid' in r b p t of ihe issue of duplicate securities slid of tlie ie4xiOIi1, CoriJersion, consolidat~on and .sub-division of Board securities ; (ag) the fees to be levied in rospect of tho issue of stock certificate; (ah) 'any'otlsr matter which is'to be or may be prescribed by rcgula- ~oa. (2) Any regdation made under this section may provide that a breach thereof shall be punishable with fine which may extend to two hundred rupees and where tkr %reach is a continuing one, with further fine which may extend to fisty rupees for eirery daycafter the first day, during ihich sucb breach continues. (1) (w) the circumstances and the manner in which Board securities may be renewed; (x) the circumstances in which such securities may be renewed before further payment of interest thereon can be claimed; (y) the form in which such securities delivered for renewal, conversion, consolidation or sub-division are to be receipted; (z) the proof which is to be produced by a person applying for duplicate securities; (aa) the form and manner of publication of the notification mentioned in sub-section (2) of section 61 and the manner of publication of the list mentioned in sub-section (3) of that section. (ab) the nature and amount of indemnity to be given by a person applying for the payment of interest in the Board securities alleged to have been wholly or partly lost, stolen or destroyed, or for the issue of duplicate Board securities; (ac) the conditions subject to which Board securities may be converted, consolidated or sub-divided; (ad) the amounts for which stock certificate may be issued; (ae) generally all matters connected with a grant of duplicate, renewed, converted, consolidated and sub-divided securities; (af) the fees to be paid in respect of the issue of duplicate securities and of the renewal, conversion, consolidation and sub-division of Board securities; (ag) the fees to be levied in respect of the issue of stock certificate; (ah) any other matter which is to be or may be prescribed by regulation. (2) Any regulation made under this section may provide that a 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 day, during which such breach continues. In section 110 of the principal Act, in sub-section (1), clause (d) shall be omitted.

(1) NO regulation made by the Board under this Act shall have effect until the same has been approved by the Government and published by the Board in the Tamil Nadu Government Gazette. (2) The Government may, by notification, rescind any regulation made under section 110, and thereupon the regulation shall cease to have effect.

(1) Whenever the Government consider necessary, in the public interest to do, it may, ay older in writing together with a statement of reasons there- for, direct the Boald to make regulation for all or ally of the matters specified in seetion 110 or to amend any regulation, with~n ~ U L , A peri& as tIbc. G~vernment may spcify in 'tkis behalf : Provided that the Government may' extend ihe pericd specified by them tc make such regulation by srcb period or periods as tEcv may consider necessary. (2) If the Board fails or neglects to con~plj witb such c'irections bitbin tk period allowed under sub-sctction (1), the Government may, notn ithst anding anything contained in section 110, make the regvlations or amend the rekulations, as the case may be, either in the for& specifid in tbe direction or with such modi- firation thereof as the Government m a y think fit : Provided that before making or amending the reflation, the Government slrfll eonaidor any abjection or suggestion, if any, #made by the' Board within the ' oatd. penod.

Notwithstanding anything contained in this Act, the regulations under this Act shall be made by the Government and shall have effect on being published in the Tamil Nadu Government Gazette.

The text of the regulations made under clauses (10) to (19) of section 110 and the scale of rates together with a statement of conditions framed by the Board under Chapter VI shall be prominently posted by the Board in English and Tamil on special boards to be maintained for the purposes at the wharves, docks, piers and other convenient places on the premises of the Board. In section 114 of the principal Act, for the expression " clauses (10) to (19)", the expression " clauses (j) to (r) " shall be substituted.

Nothing in this Act shall affect,-(1) the right of the Central Government to collect customs, duties or of any municipality to collect any duties at any dock, berth, wharf, quay, stage, jetty or pier in the possession of the Board, or (2) any power of authority vested in the Customs authorities under any law for the time being in force.

The provisions of this Act shall also apply to all air crafts making use of any port while on water in the same manner as they apply in relation to vessels.

(1) If any difficulty arises in giving effect to the provisions of this Act, the Government may, by general or special order, not inconsistent with the provisions of this Act, do anything which appears to them to be necessary or expedient for the purpose of removing the difficulty: Provided that no such order shall be made in respect of a port after the expiry of a period of two years from the appointed day. (2) Every order made under sub-section (1) shall, as soon as may be after it is made, be laid before the Legislative Assembly.

On the application of this Act to any port, the Tamil Nadu Minor Ports Landing and Shipping Fees Act, 1885 shall stand repealed in relation to that port: Provided that such repeal shall not affect-(a) the previous operation of the Act so repealed, or anything duly done or suffered thereunder; (b) any right, privilege, obligation or liability acquired, accrued and incurred under the Act so repealed; (c) any penalty, forfeiture, or punishment incurred in respect of any offence committed under the Act so repealed; or (d) any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid; and any such investigation, legal proceeding or remedy may be instituted, continued or enforced, and any such penalty, forfeiture and punishment may be imposed, as if this Act had not been passed: Provided further that subject to the preceding proviso, anything done or any action taken under the repealed Act, shall, in so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provisions of this Act and shall continue to be in force accordingly unless and until superseded by anything done or any action taken under this Act.