JUDGMENT :

Shree Chandrashekhar, J.

In compliance of the order dated 1st August 2022 passed in Special Leave to Appeal (C) No(s) 13078-13079 of 2022, this Letters Patent Appeal has been heard by us at an early date.

2. The Jharkhand State Mineral Development Corporation (in short, JSMDC) has taken exception to the direction contained in the order dated 7th April 2022 passed in WP(C) No.1024 of 2022, that M/s Tirupati Niryat Private Limited (in short, Company) shall be permitted to lift 75,800 MT coal within 45 days and the JSMDC shall not issue any fresh e-auction notice before releasing such quantity of coal to the Company.

3. Briefly stated, e-auction notice dated 14th December 2020 concluded in favor of the Company which was allotted 1,00,000 (One Lac) MT coal from Sikni Colliery operated by the JSMDC and pursuant thereof a sale intimation letter was issued by the JSMDC on 24th December 2020. The Company deposited Rs.19,15,60,000/-in advance besides EMD of Rs.2,00,00,000/-for price of One Lac MT coal, whereupon the JSMDC issued DO No.1843 dated 8th February 2021 in favor of the Company. In the next 12 working days, the Company lifted about 12,000 MT coal before an interim order came to be passed on 22nd February 2021 in WP(C) No.271 of 2021 restraining the Company which was arrayed as respondent no.4 to lift coal. The said writ petition was instituted by two local buyers who were registered with M/s MSTC to participate in e-auction of coal. But they were prevented from bidding in the said e-auction on account of large quantity of coal put on sale in e-auction dated 14th December 2020 in which the Company had participated. In the said writ petition, the Company filed IA No.1505 of 2021 for vacating ex-parte order dated 22nd February 2021 and to permit the Company to lift balance quantity of coal. The learned Advocate-General appearing for the JSMDC supported this application and the order was modified by the writ Court on 22nd March 2021 to the extent that the Company/Intervener was permitted to lift 12,000 MT coal – but, the stay order continued. The JSMDC provided 15 days' time to the Company to lift 12,000 MT coal and subsequently further extensions of 7 days and 15 days (during 2nd wave of COVID-19 pandemic) were provided for lifting coal allocated to the Company by virtue of the writ Court's order – 3rd extension was granted pursuant to direction issued by the writ Court in IA No.5816 of 2021. Finally, WP(C) No.271 of 2021 was dismissed on 14th December 2021 and, consequently, the stay order stood vacated. Thereafter, the Company made representations on 3rd January 2022 and 10th January 2022 to the JSMDC for issuing Delivery Orders (in short, DOs) for remaining 75,800 MT coal. These letters remained unanswered which prompted the Company to approach the writ Court by filing WP(C) No.1024 of 2022 on 5th March 2022.

4. The Company approached the writ Court complaining against arbitrary withholding of DOs for 75,800 MT coal. The JSMDC raised a question of maintainability of the writ petition and, drawing from letters written by the Company, the JSMDC pleaded that the Company admitted its incapacity to lift desired quantity of coal and the fault lies solely with the Company. Subsequently, the JSMDC put forth a plea of financial losses on account of rise in coal price which was the reason for refusing fresh DOs for 75,800 MT coal to the Company.

5. The Company took a plea that inadequate production and supply of fresh coal coupled with space crunch at Sikni Colliery, Chandwa, which did not had infrastructure and facility for loading more than 40-50 trucks, were serious handicaps which prevented the Company to lift coal. In its letters, the Company narrated various acts and omissions of the JSMDC which seriously hampered loading of coal at Sikni Colliery in consequence thereof the Company could not fulfill its commitments to the purchasers and suffered huge losses.

6. In the proceeding of WP(C) No.1024 of 2022, a counter-affidavit wa