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SHREE CHANDRASHEKHAR, RATNAKER BHENGRA
Jharkhand State Mineral Development Corporation Limited – Appellant
Versus
Tirupati Niryat Private Limited – Respondent
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
The court held that unilateral actions by a public authority that violate contractual obligations are arbitrary and subject to judicial review, allowing for refunds of deposits and payments.
A writ petition can be dismissed for lack of maintainability if an arbitration clause exists; however, constitutional violations may warrant judicial review.
Revision of contract price by a governmental entity under mutual terms is permissible and does not violate constitutional rights if conducted fairly and within the agreed terms.
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