IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
PRASHANT KUMAR MISHRA, VIMLA SINGH KAPOOR, JJ.
PRAKASH INDUSTRIES LIMITED A COMPANY INCORPORATED UNDER COMPANIES ACT, 1956 - Appellant
Vs.
SOUTH EASTERN COALFIELDS LIMITED A COMPANY REGISTERED UNDER COMPANIES ACT, 1956 - Respondent
Writ Petition (Civil) No. 1657 of 2016, 254 of 2018
Decided on : 17-05-2019
National Coal Distribution Policy, 2007 - Constitution of India,1950 - Article 136 - Claim of Compensation - Order of suspension - Original allocation letter and related documents - Writ petitions are that respondent/SECL is a subsidiary of CIL who has been delegated the power to allocate coal supplies to various users depending on the nature of use of coal (fuel) either on long term linkage popularly known as normal linkage or short term linkage i.e. tapering linkage - To decide the nature of linkage to a user for supply of coal Linkage Committees have been formed by the Government of India (GOI). Under the National Coal Distribution Policy GOI decided to supply coal through FSAs at the notified price fixed by CIL - According to petitioner it was granted linkage categorized as normal linkage at all relevant times for which the orders were passed by the GOI. Pursuant to the said order - Held, In case of petitioner normative date of commencement of coal production from Coal Block is however concededly coal production never started from this coal block and eventually allocation of this coal block has subsequently been cancelled by Supreme Court in Principal Secretary and Other treating the same as illegal and arbitrary - If allocation of coal block has been set aside by Supreme Court and otherwise also production of coal never started from the said coal block applying tapering policy subsequent to normative of commencement of production which has never occurred is wholly illegal and arbitrary - Tapering policy cannot be fastened on petitioner on the basis of allocation of coal block which has never seen the light of day - Writ petition allowed.
Prashant Kumar Mishra, J.
The petitioner, who is engaged in diverse business activities including the manufacturing of Sponge Iron, has filed these two writ petitions. In WPC No.1657/2016, the petitioner has sought quashment of the communication dated 03.05.2014 of the respondent/SECL offering supply of coal to the petitioner at the current price under the tapering linkage as per the tapering policy. The petitioner would further pray for a direction to the respondent to renew the Fuel Supply Agreements (FSAs) with the petitioner as per the normal linkage policy with further prayer to resume coal supply on the basis of normal linkage in compliance with the reasoned order dated 24.03.2011 passed by the Director (Marketing), Coal India Limited (CIL) under the orders of the High Court of Calcutta.
2. In the second writ petition i.e. WPC No.254/2018, the petitioner has sought quashment of the Final Order dated 31.07.2017 of the Ministry of Coal, Government of India together with other reliefs which are the same as prayed in the first writ petition.
3. Facts of the case, as projected in the writ petitions, are that the respondent/SECL is a subsidiary of CIL, who has been delegated the power to allocate coal supplies to various users depending on the nature of use of coal (fuel) either on long term linkage, popularly known as normal linkage or short term linkage i.e. tapering linkage. To decide the nature of linkage to a user for supply of coal, Linkage Committees have been formed by the Government of India (GOI). Under the National Coal Distribution Policy, 2007 the GOI decided to supply coal through FSAs at the notified price fixed by the CIL. According to the petitioner, it was granted linkage categorized as normal linkage at all relevant times for which the orders dated 21.06.2002 and 07.10.2003 (Annexure P-7) were passed by the GOI. Pursuant to the said order FSA/Coal Supply Agreement was executed between the SECL and the petitioner on 31.07.2008 (Annexure P-8). On 26.02.2010 (Annexure P-9) the GOI issued Guidelines/Policy relating to issuance of Letter of Assurance (LOA)/allocation of coal on “tapering basis” to various consumers of Power, Cement and Sponge Iron. This is popularly known as tapering policy. By Notice dated 09.03.2010 (Annexure P-10) the SECL informed that pursuant to the tapering policy released by the GOI, for the period subsequent to normative date of commencement of production from coal block, supplies would be on tapering basis and Coal Controller shall be responsible for quantification and regularization of tapering linkage in consultation with CIL.
4. Pursuant to the above notice dated 9.3.2010 of SECL, the petitioner represented to the GOI stating that they have been granted long term linkage by the GOI for its 15 MW and 50 MW Captive Power Plant (CPP), however, the SECL has issued notice on 09.03.2010 withholding further booking on the basis of long term linkage mentioning that the petitioner has been allocated Chotia and Madanpur North Coal Blocks, which is not true because petitioner has not been allocated any of the coal blocks for the existing capacity of 65 MW (50+15 MW) of CPP for which it is obtaining coal from SECL against long term linkage & FSA signed with SECL. It was the categorical stand of petitioner that its linkage for CPP is normal linkage and not tapering linkage. Similar representations were made on 12.06.2010, 02.07.2010 and thereafter on 12.11.2010.
5. The petitioner, thereafter, filed writ petition before the High Court of Calcutta bearing WP No.57/2011 for issuance of direction to treat the coal linkage of CPP of the petitioner company as normal linkage and not to discontinue supply of coal. The Calcutta High Court vide its order (Annexure P-14) disposed of the writ petition directing the Director (Marketing), CIL to give a decision dealing with the petitioner's grievanc
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