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2003 Supreme(Pat) 667

PATNA HIGH COURT
Aftab Alam, J.
Gramin Gool Udyog
Versus
C.I.L.
Civil Writ Jurisdiction Case No. 4863 of 2002 ; 5503 of 2002 ; 13251 of 2002 ; 13311 of 2002 ; 13394 of 2002 ; 13369 of 2002 ; 14505 of 2002 ;
Decided On : JULY 07, 2003

Headnote:Government Contract-Coal linkage facility-Stoppage of supply of coal under the linkage facility on the status report of Industries Department-Supply of Coal under Linkage Scheme is not a right but a concession subject to certain conditions-Inconsistencies found between the status report of Industries Departments and the inspection report by the Coal Vigilance Department-Coal Company is directed to restore the supply of linkage coal subject to normal conditions-The resumption of supply of coal shall not stand in the way of Coal Company or State Govt. to make a reverification with regard to the bonafides of these units.

       CWJC Nos. 10066/2002 and 10124/2000;

       LPA Nos. 847, 848, 852 and 857 of 2002-Referred.

       L.P.A. Nos. 701 and 710 of 2002-Relied.

       CWJC Nos. 2750/97(R); C.A. No. 6317/98; CWJC Nos. 4337 and 4339 of 2001; L.P.A.

       No. 86/2001-Distinguished.

       

Judgment

Aftab Alam, J.

1. All the eighteen writ petitions in this batch, some filed by a single petitioner and others filed by several petitioners (twenty five in all), are at the instance of coal based small scale industrial units in different districts of the State. For a regular and smooth supply of coal each of the petitioner unit enjoyed Linkage Facility on the basis of the orders issued by the Coal India Limited in their favour. But the supply of coal to the petitioner unit is stopped under the Linkage Scheme since all these units were included in the list of 981 industrial units that were found suspect as bona fide consumers of coal in the status report, dated 25-7-2002 by the Industries Department, Government of Bihar. In regard to six units, petitioners in C.W.J.C. Nos. 13369, 4863 and 5503 of 2002 there is also the inspection report of the Vigilance Department of the Coal company. The stoppage of supply of coal under the Linkage Scheme has brought the petitioner units to this Court seeking direction(s) to the respondent coal companies to restore their supplies under the Linkage System. The validity of the status report/inspection report is assailed and in some cases it is even said that no team from the Industries Department or the Coal company ever visited the units in question and the findings/remarks in the reports were incorrect and unfounded. It is further submitted that the action of the respondent Coal company is stopping the supply of coal even though in most of the cases large sums of money were already deposited by the petitioner units for the supply of the next months quota, on the basis of unreliable reports and even without giving the petitioners an opportunity to show the incorrectness of the report(s), was quite unreasonable and arbitrary.

2. After lengthy arguments were made at the bar, the parties seem to be more or less in agreement that each of the petitioner units to which the supply of coal under the Linkage Scheme was stopped on the basis of the status report of the Industries Department of the Government and/or the inspection report by the Coal Company Vigilance Department was entitled to an opportunity to satisfy the concerned authorities that the unit was in fact running and the quota of linkage coal received by it was not diverted to the black market but was consumed for bona fide industrial purpose. And in fact, in fairness to the Industries Department, it may be noted that after preparation of the status report, a general notice was issued in the news papers giving a list of 759 units all over the State. The notice directed the owners of all the units included in that list to file their show cause and produce materials in support of their claim of being genuine industrial establishments and bona fide consumers of linkage coal. Out of twenty five units, petitioners before this Court, sixteen are included in the list of 759 units put under show-cause.

3. But there is a great dispute as to what direction should be issued till the enquiry in case of each of the individual units is completed on the basis of the respective show cause filed by them. The stand of the respondent coal company is that the supply of coal under the Linkage Scheme can be made only subject to the final result of the enquiry. But the petitioners, insist that the stoppage of supply was quite arbitrary and illegal and, therefore, the monthly supply of coal must be restored immediately and without waiting for the final result of the enquiry. The controversy in this batch of cases is, thus, reduced to this narrow and limited issue.

4. This controversy between the parties is to be examined in the back ground of some brief and undisputed facts and in the light of certain orders passed by this Court from time to time on the issue of supply of coal to the coal based industrial units.

5. The petitioner units are small scale industrial establishments engaged in the manufacture of smokeless fuel and other similar articles using coal
























































































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