Parties must comply with court orders regarding coal supply agreements, with confirmed entitlements based on established judicial mandates rather than disputed interpretations.

JUDGMENT

S.V.N. BHATTI, J.

1. On 19.08.2025, the Special Leave Petition Nos. 3529-3530 of 2020 were dismissed by this Court. The Court observed as follows:

“11. The petitioner is directed to report compliance of the order dated 17.05.2019 passed by the High Court and the various orders referred to therein after taking into confidence the relevant parties including the respondents, The compliance affidavit in this regard be filed within a period of one month, failing which the Court may be constrained to take appropriate action against the erring officers, may be in the nature of contempt, if necessary.”

The parties to the present Judgment are referred to as arrayed in the said Special Leave Petitions.

2. On 17.09.2025, the Union of India filed an affidavit purporting to be a Compliance Affidavit in terms of the Order dated 19.08.2025 in S.L.P. Nos. 3529-3530 of 2020. On 27.09.2025, the Miscellaneous Application Nos. 2111- 2112 of 2025 were filed by the Respondent/Prakash Industries Limited (for short, “PIL”). The prayers in these applications are excerpted hereunder:

“PRAYER

That in the facts and circumstances enumerated hereinabove it is humbly prayed that this Hon’ble Court may be pleased to:-

a) direct SECL to pay the compensation immediately as per Annexure A-11 and within a period of 2 weeks from the date of order on the present application.

or in the alternative;

Direct SECL to give credit of the amount of compensation to M/s Prakash which may be adjusted against supply of coal in the existing FSA bearing Number A-1369 & A- 1370;

b) Pass any other order as may be deem fit and proper.”

3. We have heard Learned Senior Counsel, Mr. S.D. Sanjay, ASG, for Southern Eastern Coal Fields Limited/SECL and Mr. Kapil Sibal, for the Respondent/PIL.

4. To appreciate the Affidavits dated 17.09.2025 and 04.11.2025, on the one hand, and the availability of prayers in M.A. Nos. 2111-2112 of 2025, briefly, a few antecedent dates and events are adverted.

5. On 13.01.2006, the Ministry of Coal, Government of India, allocated the Madanpur (North) Coal Block to the Respondent, specifying the end use for the Sponge Iron Plant and a Captive Power Plant of the Respondent. On 14.10.2011, the Ministry of Coal issued an Order based on an Inter- Ministerial Committee’s finding that the Respondent had diverted the coal from its Chotia Block, meant for the Sponge Iron Plant, to its Captive Power Plants. Southern Eastern Coal Fields Limited/SECL, on 09.11.2011, referring to the alleged diversion of coal, suspended the coal supplies to the Respondent de hors the arrangement. To wit, the arrangement was for a period of five years. The first round of litigation between the parties commenced with the filing of Writ Petition No. 7413 of 2011 before the High Court of Chhattisgarh, challenging the suspension Order dated 09.11.2011. The Writ Petition was allowed on 13.02.2012, and the High Court quashed the suspension Order dated 09.11.2011 passed by SECL. The Union of India and SECL filed Writ Appeal No. 127 of 2012, and the Division Bench, vide order dated 31.01.2013, dismissed the Writ Appeal. The relevant portion of the order of the Division Bench reads thus:

“23. We are informed that the Prakash-Industry was not supplied coal from 1st of October, 2011 till today and contempt application No.420/2011 is pending for wilful disobedience of the order passed by the single judge.

24. The counsel for the Prakash-Industry informs that during the aforesaid period, the Prakash-Industry has purchased coal from E-auction from coal India Ltd. However, it was for the price higher than it had to pay under the Agreements. In view of same, we deem appr