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2025 Supreme(Online)(Kar) 36019

THE HIGH COURT OF KARNATAKA
E.S.INDIRESH
M/S KARAM CHAND THAPAR – Appellant
Versus
KARNATAKA POWER CORPORATION LIMITED – Respondent
WP 12853/2018



IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE E.S.INDIRESH WRIT PETITION NO.12853 OF 2018 (GM-RES)

BETWEEN:

M/S. KARAM CHAND THAPAR AND BROTHERS (COAL SALES)

LIMITED A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, 1956 HAVING ITS LOCAL HEAD OFFICE AT BUX RANKA HOUSE, N.R. SQUARE OTC ROAD, BENGALURU - 560002.

REPRESENTED BY ITS DEPUTY GENERAL MANAGER.

…PETITIONER (BY SRI. DHYAN CHINNAPPA, SENIOR COUNSEL FOR SRI. PUTTEGOWDA K., ADVOCATE &

SMT. M.L. SUVARNA LAKSHMI, ADVOCATE)

AND:

Digitally signed by ARUNKUMAR M S Location: H IGH COURT OF KARNATAKA POWER CORPORATION LIMITED KARNATAKA SHAKTHI BHAVAN, 3RD FLOOR BENGALURU - 560 001 REPRESENTED BY ITS MANAGING DIRECTOR.

…RESPONDENT (BY SRI. AJAY J. NANDALIKE, ADVOCATE)

THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH COMMUNICATIONS ISSUED BY THE RESPONDENT IN (I) NO.A1 M1 B3/KCT/1367 DATED 23.01.2018 (UNDER ANNEXURE-D TO THE WRIT PETITION) (II) NO.CE(FM)/MCL-RSR-KCT/309 DATED 10.02.2018 (UNDER ANNEXURE-F TO THE WRIT PETITION) AND (III) NO.A1 M1 B3/KCT/1476 DATED 14.02.2018 (UNDER ANNEXURE-G TO THE WRIT PETITION) BY ISSUE OF A WRIT IN THE NATURE OF CERTIORARI AND GRANT ALL CONSEQUENTIAL BENEFITS.

THIS WRIT PETITION HAVING BEEN RESERVED FOR ORDERS, COMING FOR PRONOUNCEMENT THIS DAY, E.S. INDIRESH J., MADE THE FOLLOWING:

CORAM: HON'BLE MR. JUSTICE E.S. INDIRESH

CAV ORDER

1. In this Writ Petition, petitioner is assailing the communications dated 23.01.2018 (Annexure-D), 10.02.2018 (Annexure-F) and 14.02.2018 (Annexure-G), issued by the respondent.

2. The facts in nutshell for the purpose of adjudication are that, the petitioner claims to be in the business of liaisoning, movement, handling and delivery of raw coal from coal fields to thermal power stations and has been awarded with several contracts by the respondent - Corporation. In this regard, the petitioner and the respondent - Corporation had entered into a contract agreement dated 05.02.2016 (Annexure-A) for a period of one year and thereafter, the contract was extended on 06.02.2017 (Annexure-B). It is also stated that, the aforementioned contract agreement was extended for further six months as per letter dated 05.02.2018 (Annexure-C). It is further stated in the writ petition that, as per the terms and conditions mentioned in Clause 3.0.1, the coal transportation agency - petitioner herein shall supply raw coal as invoiced by the Mahanadi Coalfields Limited, Talcher, Odisha and same has to be carried out at the Raichur Thermal Power Station by the respondent - Corporation and the petitioner - agency. It is further stated that if the Grade/Gross Calorific Value (for short, 'GCV') band of coal falls below invoice grade, the difference of cost of coal between the invoice Grade and the Grade determined in sample and analysis at Raichur Thermal Power Station by the respondent was to be deducted from the coal transportation agency bills i.e., the bill raised by the petitioner. It is also stated that, the aforementioned method was adopted to process the bill of the petitioner by recording the results at the loading point and the end point of unloading. It is also stated that, the respondent - Corporation has entered into an agreement with the Central Institute of Mining and Fuel Research (CIMFR), on 20.07.2017 to carryout the sampling and analysis, on behalf of the respondent - Corporation as per the communication addressed to the petitioner dated 23.01.2018 (Annexure-D). In this regard, the petitioner has addressed letter dated 07.02.2018 (Annexure-E) to the respondent informing that the results of CIMFR are not binding on the petitioner as the agreement by the respondent with the CIMFR was subsequent to the contract agreement with the petitioner as per Annexure-A. It is stated in the writ petition that, the petitioner has received the communication dated 10.02.2018 (Annexure-F), wherein, the respondent - Corporation

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