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SANJAYA KUMAR MISHRA, ANANDA SEN
Gautam Coal Works Private Limited – Appellant
Versus
Central Coalfields Limited (CCL) – Respondent
JUDGMENT :
Ananda Sen, J.
In this writ petition, the petitioner has prayed for quashing the office order dated 28.5.2022 contained in reference No. CCL/HQ/C-4/2022-23/1142 (Annexure-19) whereby the respondent reiterated their decision to terminate the Fuel Supply Agreement dated 30.4.2008 and also to forfeit the security deposit. A further prayer has also been made to direct the respondents to not to treat the order of termination of agreement and order of forfeiture of security deposit as stigma upon the petitioner.
2. We have heard learned counsel appearing for the petitioner through Video Conferencing and learned counsel for the respondent-CCL, who was present in the Court. The learned lawyers had no objection with regard to the proceeding, which has been held through hybrid mode on 08.12.2023. They had no complaint in respect to the audio and video clarity and quality.
3. During course of argument, learned counsel for the petitioner submits that his client is only interested in refund of the security deposit, which has been illegality forfeited and his client does not seek revival of the Fuel Supply Agreement.
4. To consider whether petitioner is entitled for the refund of security
The main legal point established in the judgment is that physical verification of the factory premises is not mandatory under Clause 4.4 of the FSA to conclude whether the coal is being diverted.
The respondent-CCL must satisfy itself regarding the authenticity of the end use of coal by calling for/inspecting the documents and by physical verification as per Clause 4.4 of the FSA. The princip....
Retrospective termination of Fuel Supply Agreements is lawful under the Indian Contract Act, provided it follows the terms of the agreement, and contractual disputes are generally not suitable for wr....
Proper adherence to termination clauses in contracts is essential; refusal to act on notices can validate claim for refunds.
Approval by the Ministry of Coal for modification and change in coal distribution policy influenced the court's decision to direct the return of the bank guarantee amount to the petitioner.
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 the appellant did not have an accrued right to lift coal under the Scheme as it did not exercise the option to avail the benefit during the pe....
Writ jurisdiction can be invoked in contractual matters involving public law elements. Principles of natural justice apply to contracts with public law elements. The penalty mentioned in the agreemen....
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