Proper adherence to termination clauses in contracts is essential; refusal to act on notices can validate claim for refunds.

ORDER :

Sujit Narayan Prasad, J.

Prayer

1. The present writ petition under Article 226 of Constitution of India has been filed seeking therein the following reliefs:

(i) For issuance of an appropriate writ(s)/order (s)/direction(s) or a writ in nature of mandamus commanding upon the respondents to refund/return the bank guarantee amounting to Rs.36,50,000/- (Rupees Thirty-Six lakhs Fifty thousand) forthwith which the petitioner has submitted as security money while executing the Fuel Supply Agreement with the respondent CCL along with 18% interest.

(ii) For issuance of an appropriate writ(s)/ order(s)/ direction(s) or a writ in nature of mandamus commanding upon the respondents release/refund forthwith a sum of Rs. 4,69,656.36/- (Rupees four lakhs, Sixty nine thousand, six hundred fifty six and thirty six paise) which has been deducted from the credit balance of the petitioner maintained with the CCL for Rs.1,21,81,611.64/- (Rupees One crore, Twenty one lakhs, Eighty one thousand, Six hundred eleven and sixty four paise), out of which only a sum of Rs. 1,17,11,955.28/-(Rupees One crore, Seventeen lakhs, Eleven thousand, Nine hundred fifty five and twenty eight paise) was refunded to the petitioner withholding the aforesaid amount i.e. Rs.4,69,656.36/- (Rupees Four lakhs, Sixty nine thousand, Six hundred fifty six and thirty six paise) along with interest at the rate of 18% per annum.

(iii) For issuance of an appropriate writ(s)/order (s)/direction(s) or a writ in nature of mandamus commanding upon the respondents to treat the Fuel Supply Agreement (FSA) terminated/cancel since the petitioner has invoked the provision of Clause 15 of the Fuel Supply Agreement (FSA) and defaulting period i.e. C.C.L. failed to cure/rectify the breach within the prescribed thirty days’ time rendering the F.S.A. terminated.

(iv) For issuance of an appropriate writ(s)/order (s)/direction(s) or a writ in nature of certiorari for quashing of the letter dated 27.4.2016 bearing Reference No. CCL/HQ/C- 4/2016/4272-74 Annexure-13) issued under the signature of Senior Manager (S&M), C.C.L. whereby and whereunder it has been informed by the CCL to the petitioner that the matter in regard to suspension of coal to the petitioner's unit has been considered by the respondent authorities and the matter has been resolved, and therefore it was requested by the respondents to start the lifting of coal immediately in terms of Fuel Supply Agreement (FSA) which is nonest in the eyes of law taking into consideration the fact that at the time of issuance of this letter/communication, no Fuel Supply Agreement (FSA) was existence in between the petitioner and the respondent CCL as the Fuel Supply Agreement (FSA) dated 16.8.2013 stands terminated at the instance of the petitioner by invoking the Clause 15.1.8 of the Fuel Supply Agreement (FSA).

(v) For further issuance of an appropriate writ(s)/order(s)/ direction(s) as Your Lordships may deem fit and proper in the facts and circumstances of the case and in the interest of justice.

Factual Matrix

2. The brief facts of the case as per the pleading made in the writ petition needs to refer herein which reads as under:

3. The petitioner is a company incorporated under the Company' Act, 1956 carries on the business as manufacturer of Sponge Iron and having its factory inter-alia at Raniganj, Dist- Burdwan in the State of West Bengal.

4. It is stated that the New Coal Distribution Policy implemented in