JUDGMENT

A. K. PATNAIK, J. Leave granted.

2. These appeals are against the common judgment and order dated 27.10.2009 passed by the Division Bench of the Patna High Court in L.P.A Nos.1265 and 1266 of 2009.

3. The relevant facts very briefly are that pursuant to public advertisements issued by Coal India Limited (respondent No.2 herein) calling upon entrepreneurs to establish coal based industries on the basis of technology developed by the Central Mines, Planning and Design Institute Ltd., the appellants purchased the technology and established plants for manufacturing special smokeless fuel during 1990-1991. The subsidiary of Coal India Limited, Bharat Coking Coal Limited (for short `BCCL'), the respondent No.1 herein, recommended grant of linkage of 5,000 MT of coal to the plants of the appellants and Coal India Limited granted coal linkage to the appellants and the appellants continued to run their respective plants and manufacture special smokeless fuel by processing the coal supplied by BCCL to them. On 18.10.2007, the Government of India, Ministry of Coal discontinued the traditional linkage system and in its place adopted a new coal distribution policy under which coal was to be supplied to different consumers through a Fuel Supply Agreement (for short `FSA') at notified prices to be fixed and declared by Coal India Limited. In accordance with this new policy, BCCL entered into FSA with the two appellants for supply of coal. Clause 4.4 of FSA provided that the total quantity of coal supplied to the appellants under the agreement is meant for use in the plants of the appellants and the appellants shall not sell or divert or transfer the coal for any purpose whatsoever and in the event they engage or plan to engage into any such re-sale or trade, the BCCL shall terminate the FSA forthwith without any liabilities or damages whatsoever payable to the appellants. On 07.06.2009, the Central Bureau of Investigation (for short the `CBI') registered First Information Report (FIR) against 10 consumers including the appellants alleging inter alia that the ten consumers entered into a criminal conspiracy with Shri Udayan Bhattacharya, the then General Manager (S&M) of BCCL and in furtherance thereof, lifted 11,94,940 tonnes of coal and instead of utilizing the same in their respective plants, sold the same in the open market at higher prices and as a result BCCL has suffered a loss of Rs.4,36,15,300/- approximately and the accused have made corresponding wrongful gain to themselves. In the FIR, the CBI further stated that the facts disclosed the commission of offences punishable under Section 120-B read with Sections 420, 467, 471 of the Indian Penal Code (for short `IPC') and Section 13(2) read with Section 13(d) of the Prevention of Corruption Act, 1988 by Shri Udayan Bhattacharya and the proprietors of different consumer firms and therefore a criminal case be registered and the investigation be taken up. The Chairman of the Coal India Limited thereafter advised the Chairman-cum-Managing Director of BCCL to suspend supply of coal to the firms named in the FIR including the appellants and accordingly BCCL suspended supply of coal to the appellants by a wireless message dated 13.06.2009. BCCL also issued notices to them to explain why FSA executed in favour of the appellants should not be cancelled on the basis of the FIR lodged by the CBI containing the allegations that the appellants were involved in a criminal conspiracy leading to the breach of terms and conditions of FSA.

4. Aggrieved, the appellants filed writ petitions Nos. 8144 of 2009 and 8311 of 2009 before the Patna High Court challenging the suspension of supply of coal by BCCL to the appellants by the Wireless Message dated 13.06.2009 and the learned Single Judge, who heard the writ petitions, held in his common judgment and order dated 26.08.2009 that clause 13 of the FSA was the only clause which provided for suspension of supply of coal to the units of the appellant