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2011 Supreme(Online)(SC) 76

SUPREME COURT
A.K. Sikri, J
Eastern Coalfields Ltd v. M/s Tetulia Coke Plant(P)Ltd. and Others
Appeal



Court upheld prior ruling declaring e-auction scheme invalid, ordering refunds for excess payments collected by coal companies.

Headnote:The judgment addresses the legality of an e-auction scheme adopted by the Union of India, quashing it as ultra vires Article 14 of the Constitution of India. The court affirms prior judgments that mandated refunds by coal companies for excess payments received. The issue of unjust enrichment is raised but deemed inapplicable due to procedural grounds. Final orders are directed to effectuate refunds with interest if not complied within two months.

Table of Content
1. challenge to e-auction scheme by writ petition. (Para 2 , 3 , 4)
2. issue of unjust enrichment raised but dismissed. (Para 8 , 12)
3. court affirmed refund due to invalidity of the auction scheme. (Para 10 , 11 , 13 , 14)

1. Leave granted.

2. This appeal is directed against the judgment and order dated 4.10.2010 passed by the Calcutta High Court whereby the Division Bench of the High Court dismissed the appeal of the Appellant herein and while doing so, affirmed the findings and conclusions arrived at by the learned Single Judge.

3. A writ petition was filed by the respondents herein before the Calcutta High Court which was registered as Writ Petition No. 1279 of 2005. In the said writ petition the respondents challenged the legality of the e - auction scheme introduced by the Union of India and adopted by the Appellant herein. In the said writ petition, an interim order was also passed on 08.08.2005 with regard to the liability for payment of price for purchasing coals under e - auction scheme and for furnishing bank guarantee in connection thereof.

4. During the pendency of the said writ petition in the High Court, some other writ petitions involving similar issues and also pending before the Calcutta High Court and also other High Courts were transferred to this Court. This Court passed certain interim orders. However, finally the said cases were taken up for final hearing and were disposed of by a judgment and order rendered on 01.12.2006 in the matter of Ashoka Smokeless Coal India (P) Ltd. and Others v. Union of India and Others reported in 2007 (2) SCC 640 . By the said judgment and order this Court upheld the challenge of the writ petitioners therein to the scheme of e - auction. This Court in the said judgment further held that the said scheme of e - auction was invalid. Consequently, this Court declared the same as ultra vires of Art.14 of the Constitution of India and quashed the said e - auction scheme.

5. Contempt petitions were filed by some of the parties thereto in which several orders came to be passed by this Court whereby this Court directed the coal companies for refunding the excess amount paid by the purchasers who were petitioners before this Court in those cases.

6. The writ petition filed by the respondents, however, was pending consideration before the High Court. After the disposal of the cases involving similar issues which were raised and also disposed of by the aforesaid decision, which is now reported in 2007 (2) SCC 640 . The writ petition of the respondents herein also was taken up for consideration and a judgment and order was passed by the learned Single Judge disposing of the said writ petition on 25.03.2010. By the said order the High Court followed the decision of this Court in Ashoka Smokeless Coal India (P) Ltd. (supra) and passed orders and certain directions. The respondents were directed to furnish all documents to the counsel for coal company showing actual payments made by the respective applicants during the period from May, 2005 to December, 2006 and the difference between the amount paid and the amount notified by April 30, 2010. Another direction which was passed was that the documents furnished shall be verified by the concerned coal companies and in case of any difference, the parties to deliberate upon the matter so as to enable them to come to an accepted solution.

7. The legality of the aforesaid judgment and order came to be challenged by filing an appeal before the Division Bench of the High Court which was dismissed, as stated hereinbefore. Still aggrieved, the Appellants have filed the present appeal on which we have heard the learned counsel appearing for the parties.

8. Mr. P.P. Malhotra, learned Additional Solicitor General has submitted before us that the respondents herein were not parties when the matter was heard by this Court nor were they parties when the interim orders were passed by this Court and, therefore, the respondents cannot get the bene








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