MANOHAR LAL SHARMA Vs. PRINCIPAL SECRETARY
LAWS(SC)-2014-8-40
SUPREME COURT OF INDIA
Decided on August 25,2014

MANOHAR LAL SHARMA Appellant
VERSUS
PRINCIPAL SECRETARY Respondents





Cited Judgements :-

RAMESHBHAI UKKAD VASAVA VS. STATE OF GUJARAT [LAWS(GJH)-2016-4-254] [REFERRED TO]
COROMANDEL MINING & EXPORTS PVT. LTD. AND ORS. VS. UNION OF INDIA AND ORS. [LAWS(APH)-2015-9-31] [REFERRED TO]
GVK POWER VS. UNION OF INDIA [LAWS(DLH)-2017-3-44] [REFERRED TO]
AJAY RASTOGI VS. STATE OF JHARKHAND AND ORS. [LAWS(JHAR)-2015-7-129] [REFERRED TO]
B.L.A INDUSTRIES PVT. LTD VS. UNION OF INDIA [LAWS(SC)-2022-8-56] [REFERRED TO]
ITTIREDDY MANGAVVA VS. STATE OF TELANGANA [LAWS(TLNG)-2020-7-15] [REFERRED TO]
RAJEEV SURI VS. DELHI DEVELOPMENT AUTHORITY [LAWS(SC)-2021-1-9] [REFERRED TO]
HARYANA POWER PURCHASE CENTER VS. SASAN POWER LTD. [LAWS(SC)-2023-4-168] [REFERRED TO]
GMR WARORA ENERGY LIMITED VS. CENTRAL ELECTRICITY REGULATORY COMMISSION [LAWS(SC)-2023-4-84] [REFERRED TO]
MOHAMMAD SULTAN NAGOO VS. CUSTODIAN EVACUEE PROPERTY [LAWS(J&K)-2023-6-25] [REFERRED TO]
SAVITA RAWAT VS. STATE OF M.P. AND OTHERS [LAWS(MPH)-2016-3-86] [REFERRED TO]
KARNATAKA POWER CORPORATION LIMITED AND ORS. VS. EMTA COAL LIMITED AND ORS. [LAWS(KAR)-2016-4-111] [REFERRED TO]
RAJESH KUMAR RAGHU DAS VS. UNION OF INDIA AND OTHERS [LAWS(JHAR)-2018-3-99] [REFERRED TO]
SUMAN AGGARWAL VS. MUNICIPAL COUNCIL [LAWS(HPH)-2019-12-89] [REFERRED TO]
TATA SPONGE IRON PVT. LTD. VS. UNION OF INDIA [LAWS(DLH)-2020-5-101] [REFERRED TO]
DR. V.K. AGRAWAL VS. UNIVERSITY OF DELHI & ORS [LAWS(DLH)-2016-7-222] [REFERRED TO]
CHANDAN BORA VS. UNION OF INDIA [LAWS(GAU)-2016-9-29] [REFERRED TO]
SURESH RAM VS. THE STATE OF JHARKHAND [LAWS(JHAR)-2017-1-202] [REFERRED TO]
BIHAR OFFSET PRINTERS ASSOCIATION AND OTHERS VS. THE STATE OF BIHAR [LAWS(PAT)-2018-2-282] [REFERRED TO]
MERUGU NARSAIAH @ NARSIMHA REDDY VS. STATE OF TELANGANA [LAWS(TLNG)-2020-6-10] [REFERRED TO]
SYED AMJAD VS. STATE OF TELANGANA [LAWS(TLNG)-2021-11-176] [REFERRED TO]
GIRISH KUMAR SUNEJA VS. C.B.I. [LAWS(SC)-2017-7-5] [REFERRED TO]
DARSHAN SINGH VS. STATE OF H. P. [LAWS(HPH)-2020-11-26] [REFERRED TO]
PUNJAB STATE POWER CORPORATION LTD VS. M/S PANEM COAL MINES LTD & ORS [LAWS(NCLT)-2017-12-542] [REFERRED TO]
INDUSTRIES COMMERCE AND ASSOCIATION, JHARKHAND VS. UNION OF INDIA [LAWS(JHAR)-2019-6-77] [REFERRED TO]
SMALL SCALE BEE-HIVE HARD COKE PRODUCERS’ ASSOCIATION VS. UNION OF INDIA [LAWS(JHAR)-2019-8-60] [REFERRED TO]
JINDAL STEEL & POWER LIMITED & ANR VS. UNION OF INDIA & ORS [LAWS(DLH)-2017-1-121] [REFERRED TO]
INDRAJIT POWER PRIVATE LIMITED VS. UNION OF INDIA [LAWS(DLH)-2020-4-40] [REFERRED TO]
CENTRAL COALFIELDS LIMITED VS. SWASTIKA SMOKELESS COKE COMPANY PRIVATE LIMITED [LAWS(JHAR)-2020-4-6] [REFERRED TO]
JAM AALA AJABHAI AND ORS. VS. ESSAR POWER GUJARAT LIMITED AND ORS. [LAWS(GJH)-2015-10-137] [REFERRED TO]
ASHOK LEYLAND LIMITED VS. HIMACHAL PRADESH ROAD TRANSPORT CORPORATION AND ANOTHER [LAWS(HPH)-2017-8-89] [REFERRED TO]
ESSAR POWER M.P. LTD VS. UNION OF INDIA [LAWS(DLH)-2019-4-309] [REFERRED TO]
RIO ENERGY PRIVATE LIMITED VS. STATE OF KARNATAKA AND ORS. [LAWS(KAR)-2016-1-209] [REFERRED TO]
INDORE DEVELOPMENT AUTHORITY & ANR VS. SANSAR PUBLICATION PVT LTD [LAWS(MPH)-2019-2-36] [REFERRED TO]
EMTA COAL LIMITED AND ORS. VS. KARNATAKA POWER CORPORATION LIMITED AND ORS. [LAWS(KAR)-2015-12-32] [REFERRED TO]
SURESHKUMAR CHOTUBHAI SALAR VS. STATE OF GUJARAT &ORS. [LAWS(GJH)-2016-6-462] [REFERRED TO]
M/S INDUS TECHNICAL EDUCATION SOCIETY VS. STATE OF U.P. AND 5 ORS. [LAWS(ALL)-2016-12-158] [REFERRED TO]
RELIANCE POWER LIMITED VS. STATE OF U.P. [LAWS(ALL)-2019-4-168] [REFERRED TO]
GVK POWER (GOINDWAL SAHIB)LIMITED VS. UNION OF INDIA [LAWS(DLH)-2017-3-236] [REFERRED TO]
CSEPDI - TRISHE CONSORTIUM VS. TAMILNADU GENERATION AND DISTRIBUTION CORPORATION LIMITED (TANGEDCO) AND ORS. [LAWS(MAD)-2015-9-91] [REFERRED TO]
C S E P D I VS. TAMIL NADU GENERATION AND DISTRIBUTION CORPORATION LIMITED [LAWS(MAD)-2015-4-1] [REFERRED TO]
EMIL MATHEW VS. UNION OF INDIA [LAWS(MAD)-2015-1-2] [REFERRED TO]
ASIAN RESURFACING OF ROAD AGENCY PVT. LTD. & ANR. VS. CENTRAL BUREAU OF INVESTIGATION [LAWS(SC)-2018-3-73] [REFERRED TO]
MULAKH RAJ DHAMIJA VS. STATE OF HARYANA [LAWS(P&H)-2015-3-506] [REFERRED TO]
KARNATAKA EMTA COAL MINES LIMITED VS. CENTRAL BUREAU OF INVESTIGATION [LAWS(SC)-2024-8-59] [REFERRED TO]
JAYALAKSHMI MINING COMPANY VS. STATE OF ANDHRA PRADESH [LAWS(APH)-2022-4-98] [REFERRED TO]
PRAKASH INDUSTRIES LIMITED VS. SOUTH EASTERN COALFIELDS LIMITED A COMPANY REGISTERED UNDER COMPANIES ACT, 1956 [LAWS(CHH)-2019-5-83] [REFERRED TO]
J.S. LUTHRA ACADEMY & ANOTHER VS. STATE OF JAMMU AND KASHMIR & OTHERS [LAWS(SC)-2018-10-94] [REFERRED TO]
SULEKHAN SINGH & CO. & ORS. VS. STATE OF U.P. & ORS. [LAWS(SC)-2016-1-11] [REFERRED TO]
MAHARASHTRA STATE ELECTRICITY DISTRIBUTION COMPANY LIMITED VS. ADANI POWER MAHARASHTRA LIMITED [LAWS(SC)-2023-4-71] [REFERRED TO]
INDOCIL SILICONS PVT. LTD VS. UNION OF INDIA [LAWS(KAR)-2022-5-25] [REFERRED TO]
BIHAR OFFSET PRINTERS ASSOCIATION VS. UNION OF INDIA [LAWS(PAT)-2022-3-4] [REFERRED TO]
MANGAL SAI ARMO S/O LATE SUKRIT RAM VS. UNION OF INDIA [LAWS(CHH)-2022-5-19] [REFERRED TO]
EMTA COAL LTD & ANR VS. WEST BENGAL POWER DEVELOPMENT CORPORATION [LAWS(CAL)-2016-5-145] [REFERRED TO]
AMMA LINES PRIVATE LTD VS. STATE OF WEST BENGAL [LAWS(CAL)-2015-7-14] [REFERRED TO]
GOVINDA PRASAD LADIA VS. WBHIDC LIMITED [LAWS(CAL)-2015-5-37] [REFERRED TO]
RELIANCE POWER LTD. & ORS. VS. UNION OF INDIA & ORS. [LAWS(DLH)-2018-6-9] [REFERRED TO]
PUNJAB STATE POWER CORPORATION LIMITED VS. EMTA COAL LIMITED [LAWS(SC)-2021-9-63] [REFERRED TO]
GOA FOUNDATION VS. M/S SESA STERLITE LTD. [LAWS(SC)-2018-2-102] [REFERRED TO]
PRAFULLA BHAISAL AND OTHERS VS. STATE OF ORISSA AND OTHERS [LAWS(ORI)-2018-4-28] [REFERRED TO]
JHARKHAND STATE MINERAL DEVELOPMENT CORPORATION LIMITED VS. UNION OF INDIA [LAWS(JHAR)-2021-11-15] [REFERRED TO]


JUDGEMENT

- (1.)Coal is king and paramount Lord of industry is an old saying in the industrial world. Industrial greatness has been built up on coal by many countries. In India, coal is the most important indigenous energy resource and remains the dominant fuel for power generation and many industrial applications. A number of major industrial sectors including iron and steel production depend on coal as a source of energy. The cement industry is also a major coal user. Coal's potential as a feedstock for producing liquid transport fuels is huge in India. Coal can help significant economic growth. India's energy future and prosperity are integrally dependant upon mining and using its most abundant, affordable and dependant energy supply which is coal. Coal is extremely important element in the industrial life of developing India. In power, iron and steel, coal is used as an input and in cement, coal is used both as fuel and an input. It is no exaggeration that coal is regarded by many as the black diamond.
(2.)Being such a significant, valuable and important natural resource, the allocation of coal blocks for the period 1993 to 2010 is the subject matter of this group of writ petitions filed in the nature of Public Interest Litigation, principally one by Manohar Lal Sharma and the other by the Common Cause. The allocation of coal blocks made during the above period by the Central Government, according to petitioners, is illegal and unconstitutional inter alia on the following grounds:
(a) Non-compliance of the mandatory legal procedure under the Mines and Minerals (Development and Regulation) Act, 1957 (for short, '1957 Act').

(b) Breach of Section 3(3)(a)(iii) of the Coal Mines (Nationalisation) Act, 1973 (for short, 'CMN Act').

(c) Violation of the principle of Trusteeship of natural resources by gifting away precious resources as largesse.

(d) Arbitrariness, lack of transparency, lack of objectivity and non- application of mind; and

(e) Allotment tainted with mala fides and corruption and made in favour of ineligible companies tainted with mala fides and corruption.

(3.)The first of these writ petitions was filed by Manohar Lal Sharma. When that writ petition was listed for preliminary hearing on 14.09.2012, the Court issued notice to Union of India and directed it to file counter affidavit through Secretary, Ministry of Coal dealing with the following aspects:
(i) The details of guidelines framed by the Central Government for allocation of subject coal blocks.

(ii) The process adopted for allocation of subject coal blocks.

(iii) Whether the guidelines contain inbuilt mechanism to ensure that allocation does not lead to distribution of largesse unfairly in the hands of few private companies?

(iv) Whether the guidelines were strictly followed and whether by allocation of the subject coal blocks, the objectives of the policy have been realised?

(v) What were the reasons for not following the policy of competitive bidding adopted by the Government of India way back in 2004 for allocation of coal blocks?

(vi) What steps have been taken or are proposed to be taken against the allottees who have not adhered to the terms of allotment or breached the terms thereof?



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