M.M. Dutt, J. - (1.) These four appeals, two by the writ petitioner Ramniwas Chaudhary and the remaining two by the Metal Scraps Trade Corporation, hereinafter referred to as MSTC have been preferred against the judgment and order dated July 17, 1984 of a learned single Judge of this Court disposing of the writ petitions filed by the appellant, Ramniwas Chaudhary.
(2.) Shorn of all details, it may be stated that Scindia Steam Navigation Company Limited, hereinafter referred to as the Company, advertised for the sale of two old ships named M.V. Jaltaranga and M.V. Jalagirija for the purpose of plying. As there was no response for the purchase of the vessels for plying, the appellant, Ramniwas Chaudhary, a ship breaker, offered to purchase the same for breaking up and converting the same into scraps at a price of Rs. 80 lakhs and Rs. 70 lakhs respectively. The company by two letters both dated March 15, 1984, asked for the approval of the Director-General of Shipping for the sale of the said two vessels for the purpose of scrapping as required under Section 42(1) of the Merchant Shipping Act, 1958, as both the vessels had lost their sea-worthiness. The Assistant Director-General of Shipping by two separate letters dated April 10, 1984 replied to the company in identical terms. One of such letters is set out below : Government of India Ministry of Shipping and Transport Directorate General of Shipping 'Jahar Bhavan' Walchand Hirachand Marg No. 7-SDB (11)/84 April, 1984. The Scindia Steam Navigation Co. Ltd., Bombay. Subject : Permission for sale of M.V. Jalatarang for scrapping. Dear Sirs, I am to refer to your letter No. OP/Tech/4240, dated 15th March, 1984 on the above subject and to convey the approval of the Director General, in principle, for the sale of your vessel 'Jalatarang' for scrapping in India subject to the following conditions : (i) Formal sanction as required under Section 42(1) of the M.S. Act, 1958 will be issued on hearing from you the name of the buyer and sale price; (ii) The vessel should be free from all encumbrances at the time of sale, including satisfactory settlement of wages of officers/crew of the vessel and loans from any financial institutions etc. (iii) The sale proceeds should be remitted to the SDFC for adjustments against your dues, if any, to them ; (iv) All documents including Naval should be returned to the authorities concerned before delivering the vessel to scrappers. You may as usual approach the MSTC for getting their clearance before acting on the sanction. Yours faithfully, Sd/-A.P. Ramakrishnan Asstt. Director General of Shipping for Dy. Director General of Shipping."
(3.) Apart from the four conditions mentioned in the letter, the company was asked to approach the MSTC for getting the clearance before acting on the sanction. The Company accepted the said offer of the appellant on condition that the appellant was to obtain 'no objection certificates' from MSTC. The appellant tried to get 'no objection certificates' from the MSTC, but the latter did not grant any such certificates. Although in the letter dt. April 10, 1984, the obtaining of 'no objection certificates' from the MSTC was not one of the conditions to be fulfilled by the company for the grant of sanction of the Central Government, yet the company and the appellant were under the belief that unless such certificates were granted by the MSTC, the Central Government would not grant approval to the transfer of the said vessels by the company to the appellant for scrapping purpose. Accordingly, the appellant filed two writ applications in respect of the said two vessels M.V. Jaltaranga and M.V. Jalagirija.;