Vibhu Bakhru, J. - (1.) Tata Sponge Iron Ltd. (TSIL) has filed the present petition, inter alia, impugning an order dated 23.11.2012 passed by the Ministry of Coal, Government of India (hereafter MoC), whereby the MoC accepted the recommendations made by the Inter Ministerial Group (hereafter 'IMG') and decided to invoke the bank guarantee submitted by TSIL to the extent of Rs.32.50 crores. In terms of the order passed by this Court in Writ Petition (C) No. 7142/2012, the said impugned order was made effective after a period of one week from the date of the said order (that is, one week after 23.11.2012). TSIL challenges an order dated 28.12.2015, whereby the aforesaid decision was reiterated. TSIL impugns the power of the Government of India to raise a demand in respect of Radhikapur (East) Coal Block including its right to invoke a bank guarantee furnished by TSIL pursuant to the letter of allocation dated 07.02.2006 (hereafter 'the Allocation Letter').
(2.) Tsil is, essentially, aggrieved by the decision of the MoC to invoke its bank guarantee furnished pursuant to the Allocation Letter. TSIL contends that since the said allocation has been declared to be illegal by the Supreme Court in Manohar Lal Sharma v. Principal Secretary, 2014 9 SCC 516 [hereafter 'Manohar Lal Sharma(I)'], the bank guarantee furnished by TSIL pursuant to the said allocation also does not stand and cannot be encahsed by the MoC. It is further submitted on behalf of TSIL that the delay in meeting the milestones for development of mine in question and production of coal was for reasons solely attributable to the Government of India, State Government or other Government Agencies and, therefore, TSIL could not be penalized for the same. Factual context
(3.) Tsil is a subsidiary of Tata Steel Limited and has its manufacturing facility at Bilaipadain Keonjhar District in Odisha. TSIL had applied for allocation of a coal block to meet the coal requirements for production of sponge iron and for captive power generation. On 07.02.2006, MoC allotted Radhikapur (East) Coal Block under Option II (the 'Leader-Associate' model) to TSIL as the leader and M/s SCAW Industries Ltd. (now known as 'Narbheram Power & Steel Pvt. Ltd.') and M/s SPS Sponge Iron Ltd. (now known as 'M/s Concast Steel and Power Ltd.') as associates. It is stated that the said coal block also included certain forest lands. The allocation of coal block was subject to various conditions as set out in the Allocation Letter. The said conditions included the condition that the coal production from the captive block would commence within a period of forty two months. The mining lease would be executed in favor of the leader (TSIL); TSIL was required to make the entire investment and carry out the mining operations. A milestone chart was also enclosed along with the said Allocation Letter setting out the milestones to be achieved by the allottee (TSIL) and the timeframes in which to achieve them. In addition, the leader (TSIL) was also required to submit a bank guarantee of a sum of Rs.32.50 crores, which was equal to one year's royalty amount based on the mine capacity. The Allocation Letter expressly provided that the mining lease of the coal block may be cancelled in the event of unsatisfactory progress in the development of the coal mine project or for any breach of the conditions mentioned in the Allocation Letter.;