Public sector undertakings are bound by prior commitments to supply resources, arising from the doctrine of promissory estoppel due to previous assurances and negotiations.

JUDGMENT :

SUDHIR KUMAR JAIN, J.

1. The present petition is filed under Articles 226/227 of the Constitution for issuance of direction for quashing, (i) the letter dated 22.08.2008 issued by the respondent No.4/Steel Authority of India Ltd. (hereinafter referred as “SAIL”), (ii) the letter dated 31.10.2008 issued by the Respondent No.3/ Ministry of Steel, Government of India (hereinafter referred “Ministry of Steel”) D.O. no. 14/8/88/S-CIP-Vol.X and (iii) the letter dated 12.11.2008 issued by the Ministry of Steel to the petitioner whereby the respondents have turned back on their promises and denied supply of iron ore to the petitioner. The petitioner has made the following prayers:-

a. Issue a Writ in nature of mandamus or any other writ, order or direction against the Respondents commanding them to produce before this Hon‟ble Court the entire files and records in their possession, power and custody with regard to the issuance of the notifications dated 16.07.2002, 03.12.2004 and 20.07.2006 issued by the Ministry of Mines, Government of India in exercise of its powers under sub-section (1A) of Section 17A of the Mines and Minerals (Development and Regulation) Act, 1957;

b. Issue a Writ in nature of certiorari or any other writ, order or direction quashing, (i) the letter issued by the Steel Authority of India Ltd. to the petitioner no.1-company dated 22.08.2008, (ii) the letter issued by the Ministry of Steel, Government of India D.O. no. 14/8/88/S-CIP-Vol.X dated 31.10.2008 to the petitioner no.1-company; and (iii) the letter issued by the Ministry of Steel, Government of India dated 12.11.2008 to the petitioner no.1-company;

c. Issue a Writ in nature of mandamus or any other writ, order or direction against the Respondents commanding them to ensure supply of iron ore by the Steel Authority of India Limited and/or Bhilai Steel Plant to the Petitioner no. 1-company as per its commitment for a period of one and half years from the date of grant of mining lease on a cost plus 5% basis from the existing mines with the Bhilai Steel Plant within the State of Chhattisgarh till the development of mines in the „F‟ Block of Rowghat iron deposits situated in Kanker and Bastar District of the State of Chhattisgarh and thereafter, to continue supply of iron ore from the said „F‟ Block of Rowghat iron deposits situated in Kanker and Bastar District of the State of Chhattisgarh for a total period of 30 years;

d) Issue a Writ in nature of mandamus or any other writ, order or direction against the Respondents commanding the Ministry of Mines, Government of India and the State Government of Chhattisgarh to impose a condition under Rule 27(3) of the Mineral Concession Rules, 1960 in the mining lease to be granted in favour of Respondent no. 4 for supply of iron ore by the Steel Authority of India Limited and/or Bhilai Steel Plant to the Petitioner no. 1- company as per its requirement on a cost plus 5% basis from the existing mines with the Bhilai Steel Plant within the State of Chhattisgarh till the development of mines in the „F‟ Block of Rowghat iron deposits situated in Kanker and Bastar District of the State of Chhattisgarh and thereafter, to continue supplying iron ore from the said the F‟ Block of Rowghat iron deposits situated in Kanker and Bastar District of the State of Chhattisgarh for a total period of 30 years;

2. The factual background of the case is that the Government of Madhya Pradesh (as was then, before creation of Chhattisgarh as an independent State) on 27.6.1992 announced special incentive scheme for establishment of new Integrated Steel Plants with an investment of more than Rs.1000 crores. The State Government on 20.01.1993 in consultation with the Central Government constituted a Task Force to identify suitable locations of captive iron ore mines for the proposed steel plants to be setup inter alia by the petitioner and registered under the Promotional Scheme. The respondent no.1/Ministry of Mines, Government of India on 05.