JUDGEMENT
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(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?