The proper recourse for ascertaining loss under the Scheme was through arbitration as per Clause 11.12, and the Petitioner was entitled to interest on the deposited coal value.

JUDGMENT :

1. The four petitioners in the instant writ petition have conjointly challenged the Spot e-Auction Scheme, 2007 and more particularly Clause 9.1 and 10 by way of the instant writ petition. Individually, the Petitioner No.1 has sought for compensation from the Respondents in respect to non-delivery of coal in spite of receipt of the coal value deposit in relation to e-Auctions held on 12.03.2013 and 28.06.2013.

2. At the outset, it is relevant to take note of that the Spot e-Auction Scheme, 2007 as on date have been replaced by the e-Auction Scheme, 2022 which has been made effective from 01.03.2023 onwards. Under such circumstances, the question of any adjudication in respect to a scheme which is no longer in existence does not arise. However, the question remains as to whether the Petitioner No.1 would be entitled to compensation for non-delivery of coal in spite of the deposit of the coal value pursuant to the e-Auctions held on 12.03.2013 and 28.06.2013.

3. For a better understanding, it is relevant to take note of the Spot e-Auction Scheme, 2007 under which Scheme coal distribution through e-Auction was introduced. From a perusal of the Spot e-Auction Scheme, 2007 (for short “the Scheme”), it is mandated in Clause-2 that a prospective buyer is required to get himself registered with M/s MSTC Ltd. and M/s MJunction Services Ltd. for Road and Rail dispatches respectively who have been appointed by the Respondent No.1. It is relevant to take note of that for the purpose of registration, various formalities are required to be complied with as stated in Clause 2.1, 2.2, 2.3 and 2.4. Clause 2.5 stipulates that all buyers having been registered with the service providers shall also have to furnish a non-interest bearing Earnest Money Deposit (EMD) @ Rs.500/- per tonne for coal having GCV more than 4300 Kcal/Kg and @ Rs.400/- per tonne for coal having GCV of 4300 Kcal/Kg. The manner in which the bidding process have to be carried out is stipulated in Clause-4. It is relevant to take note of that as per Clause 4.1, the registered Bidders shall be required to record their acceptance after login to the terms and conditions of the e-Auction before participation in the actual Bidding Process. Clause 4.2 mandates that before participating in an e-Auction, the bidders are to satisfy themselves with the quality of coal being offered from source. The manner in which the bid is to be submitted has been further stipulated in Clause 4.3, 4.4, 4.5, 4.6 and 4.7. Clause 4.8 and 4.9 stipulates that as to how the bidding process shall be conducted.

4. Clause-5 stipulates the post e-Auction process. In terms with Clause 5.1, each successful bidder would be intimated through e-mail/SMS by M/s MSTC Ltd. and M/s MJunction Services Ltd. on the same date after the closure of the e-Auction. However, it shall be the responsibility of the buyer/bidder to personally see and download results displayed on the website on the same date after the close of the e-Auction. Clause 5.2 is of significance taking into account the issue involved. In terms with Clause 5.2, the successful bidders after e-Auction would be required to deposit the coal value at the respective offices mentioned in the said Clause within a period of 7 (seven) days after the date of closing of the e-Auction. Clause 5.3 mandates that the equivalent of the EMD of the successful bidder corresponding to the successful bid quantity shall be blocked and would be transferred to the Respondent No.1 by the M/s MSTC Ltd. and M/s MJunction Services Ltd. along with the bid sheet in respect of the successful bidders.

5. Clause-6 stipulates the terms of payment. In terms with Clause 6.1, the coal value is to be deposited in advance by the successful bidders and while computing the 100% of the coal value to be deposited, the EMD already deposited shall be taken into consideration or in other words, the bidders has to pay the remaining portion of the coal value after adjusting with the EMD. Clause 6.6 st