ASHOKA SMOKELESS COAL INDUSRIES PVT LTD Vs. UNION OF INDIA
LAWS(SC)-2005-12-35
SUPREME COURT OF INDIA (FROM: GAUHATI)
Decided on December 12,2005

ASHOKA SMOKELESS COAL INDUSTRIES PVT. LTD. Appellant
VERSUS
UNION OF INDIA Respondents

JUDGEMENT

- (1.) These petitions for special leave to appeal are filed by industrial undertakings which have coal linkage with Coal India Limited and its subsidiaries. The Coal India Ltd. and its subsidiaries introduced a new scheme for sale of coal through E-auction. This meant that the industrial concerns which had linkage with Coal India Ltd. and its subsidiaries for the supply of coal to them had to pay more for the coal compared to what they were paying earlier or what was known as the notified price. This led to the various undertakings approaching different high Courts challenging the E-auction scheme and seeking interim protection of their right to get coal at notified prices on the basis of the linkage with Coal India Ltd and its subsidiaries. The various High courts entertained the writ petitions and passed interim orders in regard to supply of coal at the price payable, pending the disposal of writ petitions'filed by the concerned undertakings. Some of the High courts directed the linked undertakings to furnish bank guarantees for the difference in prices or to pay cash or to furnish security for the difference while seeking supply of coal, based on linkage. Being aggrieved by the directions to furnish bank guarantee or pay the price of coal in cash, these petitions for special leave to appeal have been filed by the petitioners herein taking the stand that they are entitled to have the coal supplied at the notified price instead of the E-auction average price. This Court while entertaining the petitions for special leave to appeal had passed orders as interim measure directing that the coal would be supplied to the petitioners by Coal India ltd and its subsidiaries on the basis of linkage at the notified price on the concerned undertaking executing indemnity bonds and in addition, filing an undertaking by the concerned Managing Director or Managing partner of the company or the firm, undertaking to pay the difference, in case the petitions fail. Subsequently, a further order was passed directing the petitioners before this Court to file certificate/statement/chart showing the net worth of their respective undertaking/firm/company as on 30th October, 2005 and also work out the difference in the amount involved by working out the difference between the E-auction and the notified prices.
(2.) Two conflicting judgments have been passed; one by the Gauhati High Court and another by the M. P. High Court. Whereas the Gauhati High Court held the scheme of selling coal through E-auction as invalid, its validity has been upheld by the M. P. High court.
(3.) Meanwhile, petitions for transfer have been filed by Union of India, the respondent in these petitions for special leave, praying that the various writ petitions pending in the various High Courts be withdrawn to this Court to be heard and finally disposed of so that conflicting decisions and protracted litigation could be averted especially considering that the commodity involved is coal and what is involved is its regular supply to those undertakings which have linkage with the Coal India Ltd. and its subsidiaries. Notices have been ordered on the petitions for transfer and the petitions for special leave to appeal and a connected appeal in this Court are being posted in the month of January for final disposal.;


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