Judgment

S.B. SINHA, J. -

Introduction

1. Leave granted in all the special leave petitions.

2. The validity and/or legality of a scheme framed by Coal India Limited for sale of coal by electronic auction (e - auction) is in question in these appeals and transferred applications.

3. "Coal" indisputably plays an important role in the development of b economy of the country. It had been the subject - matter of regulatory measures even under the Defence of India Rules. Production, distribution, supply and price of coal were controlled and regulated under the Colliery Control Order, 1945 (the 1945 Order) framed under the said Rules. The said Order was continued under the Essential Commodities Act, 1955. Under the Colliery Control Order, the Coal Controller was even authorised to allot quotas of coal to the Central Government as well as the State Governments; C although the said procedure is now not in vogue in view of decontrolling notifications issued there under by the Central Government from time to time. The quality as well as quantity of coal required by all consumers used to be regulated by the Coal Controller. Coal was the only mineral which was subjected to nationalisation, in terms of the Coking Coal Mines (Nationalisation) Act, 1972 and the Coal Mines (Nationalisation) Act, 1973. d Even coal - mining leases granted to the lessees stood terminated by reason of Section 4 - A of the Mines and Minerals (Regulation and Development) Act, 1957 in the year 1976.

4. Coal is used as a primary raw material in many core sectors which are vital for the economy of the country e.g. power, steel, oil, etc. Fixation of price of coal by the Central Government, regarding the quality thereof, had e all along been subjected to statutory orders. The gradation of coal dependent upon the quality thereof was to be determined by the "Coal Board" constituted under the Coal Mines (Conservation and Development) Act. Quality of coal may depend not only on the location of the coal mines but also on the particular seams wherefrom it is extracted. Requirement of maintenance of fixed price of coal on an all - India basis, as far as practicable f had all along been considered to be imperative in the economic and industrial development of the country.

Control over coal

5. Coal indisputably is an essential commodity. Its importance is widely accepted. The Essential Commodities Act, 1955 was enacted inter alia for securing equitable distribution and availability of essential commodities at g fair price. Coal despite partial deregulation having regard to the Colliery Control Order, 2000 (the 2000 Order) is still a regulated commodity.

6. The 1945 Order made provisions for regulating production, supply and distribution of coal. It dealt with class of coal, grade of coal, size of coal and price of coal. Clause (3) empowered the Central Government to prescribe classes, sizes, grades, etc. into which coal may be categorised as also the h specifications thereof on the said basis.

7. Whereas coking coal having inherent property of swelling on heating is essentially used for metallurgical purposes in the steel plant for production of steel, all other categories of coal are non - coking coals. Non - coking coal is used as a raw material in manufacturing processes such as cement, graphite, soft coke, domestic fuel and for production of various products such as glass, food processing, ceramics, chemicals, re - rolling mills, salt glazed stoneware pipes, refractory used for steel - making, etc. The different sizes of the coal are inter alia known as "Run of the Mine", "Steam" and "Slack". The price of coal depends not only with reference to the grade but size as also the seams situated in the coking coal mines or coal mines, as the case may be.

8. Clauses 12 - Band 12 - E of the 1945 Order were, however, invoked by the Central Government from time to time by issuing notifications as a result whereof controls over price and distribution of coal were withdrawn. However,