IN THE HIGH COURT OF JHARKHAND AT RANCHI
Shree Chandrashekhar, Ratnaker Bhengra, JJ.
Jharkhand State Mineral Development Corporation Limited and another - Appellants Versus
M/s Tirupati Niryat Private Limited and another - Respondents
LPA No. 229 of 2022
Decided On : 14-07-2022
Constitution of India, 1950 – Article 226 – Application has been filed by Jharkhand State Mineral Development Corporation Limited seeking condonation of delay in filing LPA – Held, To controvert the argument by learned counsel for respondent no. 1 that was available to lift coal against each delivery order, our attention has been drawn by learned counsel for appellant-Corporation to statements made in paragraph no. 7 by respondent no. 1 in WP(C) wherein it is admitted that delivery order MT coal was issued by Corporation – It is stated that to respondent no. 1 expired and, therefore, acting upon direction of writ Court separate delivery order – Arguments raised by both parties criticising conduct of each other and other factual aspects of matter cannot be gone into at this stage, but, least we can observe is that appellant-Corporation has been able to make out a strong prima-facie case in its favour and if its interests are not secured at this stage irreparable loss would be suffered by Corporation – Observation of writ Court, that Company also suffered because its money was blocked for a long time and therefore appellant-Corporation must issue delivery order(s) and permit Company , prima-facie appears to be flawed – Ordered accordingly.
ORDER :
I.A No. 4732 of 2022
This application has been filed by the Jharkhand State Mineral Development Corporation Limited (in short, Corporation) seeking condonation of delay in filing LPA No. 229 of 2022.
2. WP(C) No. 1024 of 2022 was preferred by M/s Tirupati Niryat Private Limited which is the respondent no. 1 before us for a direction upon the Corporation to issue delivery orders permitting the Company to lift 75,800 MT coal allotted to it in e-Auction held on 14th December 2020.
3. This Letters Patent Appeal has been filed taking exception to the order dated 7th April 2022 by which the writ Court issued a direction to the Corporation to permit the respondent no.1 to lift 75,800 MT coal within 45 days and till that time the Corporation shall not conduct any e-Auction of coal.
4. On 29th June 2022 time was granted to the respondent no. 1 to file its reply to I.A No. 4732 of 2022.
5. In the affidavit dated 4th July 2022 sworn by Sanjay Agarwal claiming himself authorised signatory of respondent no. 1, it is stated that the statements made by the Corporation in the application seeking condonation of delay are vague and, therefore, on the basis of the explanation offered by the Corporation delay of 22 days cannot be condoned. Another plea which seems to have been taken by the respondent no. 1 in opposition to I.A No. 4732 of 2022 is that the Corporation was not serious in preferring the present Letters Patent Appeal, because in terms of the undertaking given by the Chief Secretary, Government of Jharkhand before the contempt Court it was contemplating to comply with the direction of the writ Court.
6. In support of the aforesaid plea, the order dated 13th May 2022 passed in Contempt Case (Civil) No. 252 of 2022 and the letters dated 18th May 2022 and 25th May 2022 have been produced. These communications also indicate undertaking of the Chief Secretary, Government of Jharkhand, and the meetings between the Company and Corporation.
7. From the aforesaid, we gather that there is no serious opposition by the respondent no. 1 to the application seeking condonation of delay vide I.A No. 4732 of 2022. It seems to us that the affidavit dated 4 th July 2022 has been filed by the respondent no. 1 merely for the sake of opposition. The issue raised by the appellant-Corporation in the present Letters Patent Appeal is a contentious issue pertaining to powers of the writ Court to issue mandamus in contractual matters and, that too, seeking compliance of its own order by stopping the entire e-Auction process till the time 75,800 MT coal is released in favour of the respondent no. 1 within 45 days' period.
8. Therefore, we are inclined to condone the delay in filing the present Letters Patent Appeal and, accordingly, I.A No. 4732 of 2022 is allowed.
I.A No. 4734 of 2022 and I.A No. 5699 of 2022
9. I.A No. 4734 of 2022 for stay and I.A No. 5699 of 2022 for direction upon the Corporation to issue delivery order for 50,000 MT coal are taken up together.
10. In support of the application for stay, Mr. Sumeet Gadodia, the learned counsel for the appellant-Corporation submits that (i) there is prima-facie case in favour of the Corporation (ii) balance of convenience is in favour of the Corporation and (iii) irreparable loss would visit the Corporation if direction issued by the writ Court vide order dated 7th April 2022 is not stayed during pendency of the present Letters Patent Appeal.
11. The learned counsel for the appellant-Corporation would submit that the writ Court exceeded its jurisdiction in granting specific performance of contract between the parties and inspite of disputed questions of fact involved in the matter proceeded to interfere in contractual matter by directing the Corporation to issue delivery order for 75,800 MT coal in favour of the respondent no. 1.
12. In support of the aforesaid submissions, reliance has been placed upon the judgments in “Municipal Council Gondia v. Divi Works & Suppliers, HUF and Others” 2022 SCC OnLin
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Parties must comply with court orders regarding coal supply agreements, with confirmed entitlements based on established judicial mandates rather than disputed interpretations.
The main legal point established in the judgment is that an undertaking given to the court remains effective until the next hearing, and appropriate legal proceedings can be initiated for breaches of....
The obligation of the state to act fairly and reasonably in contractual disputes, and the importance of respecting the specific terms of a contract.
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