ORDER:

1. Petitioners being the companies incorporated under the provisions of erstwhile Companies Act, 1956, are complaining before the Writ Court against the letter dated 12.12.2011 issued by the first respondent-KPCL demanding from them a sum of Rs. 52,63,00,000/- by way of penalties.

2. The relevant part of the impugned letter reads as under:

“......Please refer to our letters cited above, with regard to the recovery of penalties on the following issues:

(a) ‘Non-commencement of supply of coal to BTPS’ - amounting to 33 crores as per clause 10.2 of the Article 10 of Fuel Supply Agreement executed on 09.05.2007. As discussed in the 38th Board Meeting held on 19.11.2010 of KECML, the issue of recovery of penalty amounting to 33 crores, was referred to the Advocate General, Karnataka, who has opined for imposition of the penalty as per the terms and conditions of the Fuel Supply Agreement, which was informed vide our letter cited at ref (1) above.

(b) ‘Recovery of difference in cost for arranging supply of coal from alternate sources’ - amounting to 16.44 crores as per clause 10.5