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2023 Supreme(Raj) 530

IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
PUSHPENDRA SINGH BHATI, J.
M/s Agarwal Distributors – Appellant
Versus
Rajasthan State Mines And Minerals Limited – Respondent
S.B. Civil Writ Petition No. 10996 of 2022
Decided on : 24-07-2023

Advocates:
Advocate Appeared:
For the Appellant : Mr. Manish Shishodia, Sr. Adv. assisted by Mr. Jaideep Singh Saluja. Mr. Vikas Balia, Sr. Adv. assisted by Mr. Yogendra Singh Charan. Mr. C.S. Kotwani. Mr. Vinay Kothari. Mr. Pradeep Khichi. Mr. Ayush Goyal. Mr. Mehul Kothari. Mr. Punit Singhvi.
For the Respondent: Mr. Sandeep Shah, Sr. Adv. & AAG assisted by Ms. Akshiti Singhvi & Mr. Nishant Bapna. Mr. Indu Shekhar Pareek.

Headnote:

Constitution of India,1950 - Article 226 - Run of Mine (ROM) Lignite produced - E-auction - Cancelled - Held, Court has kept into consideration fact that sole ground of terminating e-auction is rise in price of the mineral in question, which could have fetched more revenue for respondents; but at same time, respondents have failed to point out any exceptional circumstance of variations in price of mineral - Reply and impugned orders do not indicate any such remarkable reason, which could impact strong and vital parameters of the public interest - Impugned orders and record including reply do not show that there was any extraordinary parameter, which could significantly create an economic impact upon decision-making of respondents - Argument of learned counsel for respondents merely indicates ordinary market variations, which are a normal perspective in contractual obligations - Petitions allowed

JUDGMENT :

1. Since all the instant petitions involve a common controversy, though with marginal variation in the contextual facts, therefore, for the purposes of the present analogous adjudication, the facts and the prayer clauses are being taken from the above-numbered S.B. Civil Writ Petition No.12367/2022, while treating the same as a lead case.

2. The prayer clauses read as under:

    “In the aforesaid circumstances, the Petitioners most humbly pray before your Lordship and by way of an appropriate writ, order or direction:

a. The office order dated 22.08.2022 (Annex.12) passed by the Respondent No.3 on behalf of Respondent No.1 may kindly be quashed and set aside;

b. The Respondents may kindly be directed and stopped to not announce the conclude a fresh e-auction;

c. Respondents may kindly be directed to continue their dispatches on the same sale consideration as agreed between the parties pursuant to the purchase order dated 17.01.2022 (Annex.4) immediately;

d. Further, the respondents may kindly be directed not to change any of the conditions of the purchase order dated 17.01.2022 as initially raised by the petitioner firm and accepted by the respondent corporation;

e. To issue order(s), direction(s), writ(s) or any other relief(s) as this Hon’ble Court deems fit and proper in the facts and circumstances of the case and in the interest of justice;

f. To award Costs of and incidental to this application be paid by the Respondents; And for this act of kindness, the Petitioners shall, as in duty bound, ever pray.”

3. Brief facts of the case, as placed before this Court by learned counsel for the petitioner, are that the petitioner-Firm is engaged in the trading of Lignite. The respondent-Rajasthan State Mines and Minerals Limited (RSMML) issued a notice for sale (through e- auction) of Run of Mine (ROM) Lignite produced from the Matasukh Mines, Nagaur, for a period of two years from the date of closure of the e-auction, for the maximum quantity of 15,00,000 Metric Tonnes (MT) and the said e-auction was conducted by MSTC Ltd., as appointed by the RSMML for the said purpose. The respondents also introduced the Special Terms and Conditions of e-auction for sale of ROM from the Mine in question.

3.1. The petitioner-Firm participated in the e-auction, which was held on 14.01.2022, and was awarded the e-auction No. MSTC/JPR/RAJASTHAN STATE MINES & MINERALS LIMITED/2/KHANIJ BHAWAN, C-SCHEME/21-22/26538 dated 14.01.2022. The petitioner started lifting the lignite w.e.f. 15.01.2022; a detailed purchase order dated 17.01.2022 towards purchase of 1,60,000 MT ROM Lignite was also issued by the respondents, in favour of the petitioner-Firm.

3.2. Subsequently however, the respondents vide order dated 24.03.2022 increased the basic selling price of Lignite, in respect of the mine, by Rs. 500/-PMT w.e.f. 25.03.2022. The petitioner-Firm filed a detailed representation dated 19.07.2022 before the respondents, with a request to re-look the said order dated 24.03.2022.

3.3. Thereafter, against the aforementioned order dated 24.03.2022, the petitioner preferred the above-numbered S.B. Civil Writ Petition No. 10996/2022 before this Hon’ble Court. Despite pendency of the litigation, the respondents passed another office order dated 22.08.2022, cancelling the whole e-auction with immediate effect.

4. Mr. Manish Shishodia, learned Senior Counsel assisted by Mr.Jaideep Singh Saluja; Mr. Vikas Balia, learned Senior Counsel assisted by Mr. Yogendra Singh Charan, and other learned counsel appearing on behalf of the petitioners, submitted that the respondents passed the impugned order of cancellation of the whole e-auction, which is illegal and arbitrary.

4.1. It was further submitted that the increase in the basic price by Rs.500 per MT, comes around 25% increase in the price, and that, the said order was made effective on the physical dispatches from 25.03.2022 and the buyers concerned were directed to give their consent to the same in a unilateral manner; the same w

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