Local authority status of port trustees secured exemption from the Bombay Rent Act under the statutory definition and local fund control test.

The Board of Trustees of the Port of Bombay was treated as a "local authority" within section 3(26) of the Bombay General Clauses Act, 1904, because that definition expressly includes a "body of port trustees". On that construction, no further inquiry into general attributes such as autonomy was required. In the alternative, the Board was held to control and manage a local fund under the Major Port Trusts Act, 1963, since it could levy rates, credit receipts to the port's general account, and apply those funds for statutory purposes. The Central Government's supervisory control did not negate that statutory control. The premises were therefore exempt from the Bombay Rent Act under section 4.

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Issues: Whether the Board of Trustees of the Port of Bombay is a "local authority" within section 3(26) of the Bombay General Clauses Act, 1904, so as to attract the exemption in section 4 of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947.

Analysis: The expression "local authority" in section 3(26) specifically includes a "body of port trustees". On that construction, once the respondent board answers that description, no further enquiry into generic attributes such as autonomy is required. Even on the alternative footing that control or management of a local fund must be shown, the Major Port Trusts Act, 1963 empowers the board to levy rates, credit receipts to the general account of the port, and apply those moneys for statutory purposes, which constitutes control and management of a local fund. The supervisory control retained by the Central Government does not negate the board's statutory entitlement to control and manage that fund.

Conclusion: The Board of Trustees of the Port of Bombay is a local authority within section 3(26) of the Bombay General Clauses Act, 1904, and the premises in question are exempt from the Bombay Rent Act under section 4 thereof.

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