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ARUP KUMAR GOSWAMI, PARTH PRATEEM SAHU
Prakash Industries Limited Through Its Assistant Vice President (Corporate Affairs) Shri Arun Kumar Singh, S/o Late Shri Shiv Dayal Singh – Appellant
Versus
South Eastern Coalfields Limited Through Its Chairman - Cum Managing Director – Respondent
JUDGMENT :
Arup Kumar Goswami, J.
1. Heard Mr. Shashank Thakur, learned counsel for the appellant. Also heard Mr. Vaibhav Shukla, learned counsel, appearing for the respondents.
2. This appeal is presented against an order dated 29.03.2022 passed by the learned Single Judge in Writ Petition (C) No.1811 of 2021, dismissing the writ petition.
3. The appellant is a Company registered under the Companies Act, 1956. For supply of Grade G6 category coal, the appellant had entered into three Fuel Supply Agreements (‘FSA’) being No. FSA No.A-276, executed on 08.08.2017, FSA No. A-368, executed on 29.12.2017 and FSA No. A-370, executed on 29.12.2017. As per Clause 2.2 of the FSAs, the agreements were for a period of five years Under Clause 17.1, there is a locking period of two years. Notice of 90 days for termination could be given as per Clause 17.2. The appellant submitted notice of termination in respect of all the three FSAs on 01.07.2020. Pursuant to the decision of 232nd Functional Directors meeting held on 27.06.2020 on dispensation of Non-power sector consumers to re-validate shortfall quantity and lift coal to the extent of Annual Contracted Quantity (for short, ACQ) under FSAs, a le
The main legal point established in the judgment is that the appellant did not have an accrued right to lift coal under the Scheme as it did not exercise the option to avail the benefit during the pe....
The respondent-CCL must satisfy itself regarding the authenticity of the end use of coal by calling for/inspecting the documents and by physical verification as per Clause 4.4 of the FSA. The princip....
Retrospective termination of Fuel Supply Agreements is lawful under the Indian Contract Act, provided it follows the terms of the agreement, and contractual disputes are generally not suitable for wr....
Parties must comply with court orders regarding coal supply agreements, with confirmed entitlements based on established judicial mandates rather than disputed interpretations.
Approval by the Ministry of Coal for modification and change in coal distribution policy influenced the court's decision to direct the return of the bank guarantee amount to the petitioner.
The demand for compensation for short lifting of coal was impermissible as no loss was incurred by the respondent. The court restrained the respondent from encashing the bank guarantee, as it would r....
The main legal point established in the judgment is that physical verification of the factory premises is not mandatory under Clause 4.4 of the FSA to conclude whether the coal is being diverted.
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