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HIGH COURT OF CHHATTISGARH AT BILASPUR
Shri Ramesh Sinha, CJ, Shri Ravindra Kumar Agrawal, J
Sutlej Taxtiles And Industries Limited – Appellant
Versus
South Eastern Coal Fields Limited – Respondent
Order :
(Ramesh Sinha, CJ.)
Heard Mr. Ankit Singhal, learned counsel for the petitioner. Also heard Ms. Astha Shukla, learned counsel appearing on behalf of respondents No.1 to 6 as well as Mr. Ramakant Mishra, learned Deputy Solicitor General, appearing on behalf of respondent No.7.
2. By way of this writ petition, the petitioner has prayed for following reliefs:
“10.1 Issue a writ of certiorari to quash and set aside the impugned order dated 13.10.2023 (Annexure P-1) passed by Respondent No. 1, which rejected the Petitioner's representations concerning the (refund of bank guarantees, advance payments, the illegal retrospective termination of the Fuel Supply Agreements (FSAs), and related matters.
10.2 Issue a writ of mandamus or certiorari, or any other writ, order or direction of like nature and direct the respondents to complete the financial reconciliation proceedings entered into with the petitioner, in terms of their undertaking provided on 13.07.2022, and thus inclusive of the dispute raised by the petitioner vide its letter dated 15.12.2021; and direct the respondents not to impose any penalties on petitioner on account of seller' fault.
10.3 Issue a writ of mandamus or certiora
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....
The court held that the respondent's demand for compensation was unjustified as no loss was incurred due to short lifting of coal. The court restrained the respondent from invoking the bank guarantee....
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....
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....
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.
Proper adherence to termination clauses in contracts is essential; refusal to act on notices can validate claim for refunds.
A writ petition can be dismissed for lack of maintainability if an arbitration clause exists; however, constitutional violations may warrant judicial review.
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.
Writ jurisdiction can be invoked in contractual matters involving public law elements. Principles of natural justice apply to contracts with public law elements. The penalty mentioned in the agreemen....
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