S.B.Sinha, J. - (1.) THESE appeals are directed against the Order of a learned Single Judge of the Jharkhand High Court dated 9.7.1999, an Order dated 9.8.1999, Order dated September, 1999, an Order dated 23.9.1999 as also Order of a Division Bench 14.10.1999 passed in LPA No. 415 of 1999 (R) refusing to interfere with the order impugned in the writ petition passed by the learned Single Judge of the said Court allowing the writ petition filed by the respondent. The basic fact of the matter is not in dispute. Respondent herein has set up a unit for production of smokeless fuel. The said Industry was set up by the respondent allegedly on a representation made by the appellant herein by way of an advertisement inviting new entrepreneurs to set up new smokeless fuel units wherefor supply of coal to them was assured, which is to the following effect: JUDGEMENT_787_TLPRE0_2007Html1.htm
(2.) RESPONDENT applied for grant of linkage facility for obtaining supply of coal in its industrial unit situated in the District of Aurangabad in the State of Bihar. It was given coal linkage with the collieries belonging to Bharat Coking Coal Ltd, (BCCL) a subsidiary of Coal India Ltd. On or about 17.11.1993 in a meeting wherein the authorities of the Coal India Ltd., a subsidiary of BICICO and the Secretary of the Assessing Manufactures Association participated, it was decided. "(a) SOURCE OF COAL LINKAGE It was decided that the linkage of the SSF plants will be reviewed by CIL keeping in view the present availability of coal suitable for SSF production and rationalization of linkage would be considered to the extent possible so that the units get their supplies from the nearest suitable sources containing SSF grade coal. In this connection, BICICO would submit a statement to CIL giving their suggestions for linkage of coal to the new SSF units in Bihar." Respondent applied for transfer of his linkage from BCCL to Central Coalfields Ltd.(CCL) in terms of the said decision taken in the aforementioned meeting dated 17.11.1993, pointing out that construction of the factory was taken up only on the basis of the assurances made by the Coal India Ltd. in that behalf. Although, some industries allegedly similarly situated, were given the benefit of transfer of their linkage from BCCL to Central Coalfields Ltd., by the appellant, the request of the respondent was not acceded to despite a "No objection" to the change given by the CCL. Coal India Ltd. referred to the purported policy decision in regard to linkage to the effect that, once it is accorded, the same would be permanent in nature. However, temporary transfer of linkage to the extent of 50% of the quantity were given both to the respondent as also one M/s. Pushpanjali Coal and Coke.
(3.) COAL India Ltd., however, issued a direction on or about 9.10.1999 that the respondent would be given 50% of its supply for three months from BCCL and 50% from CCL. The legality of the said decision was questioned by the respondent in a Writ Petition filed before the High Court of Jharkhand praying therein that the appellant be directed to release full quota of coal by grant of change of linkage from BCCL to CCL. Pending Writ Petition, however, CIL granted permanent change of linkage in favour of M/s. Pushpanjali COAL and Coke but not to the respondent, despite the fact that CCL had given "No Objection" to both the units by a common letter dated 17.7.1998. The said Writ Petition was allowed by a learned Single Judge of the High Court inter-alia directing; "Now the respondent - CIL came out with a case in the counter affidavit that the officers of the CIL in its meeting held on 3.9.98 took a policy decision that linkage once granted, cannot be transferred from one subsidiary to another subsidiary of CIL. 9. After going through the entire facts of the case and the documents referred to hereinabove, it is manifest that non-acceptance of the request of the petitioner by CIL is arbitrary and not reasonable particularly when no valid reason has been assigned for not accepting the request of the petitioner, more so, when the case of M/s Pushpanjali Coal and Coke Pvt. Ltd. was considered and his linkage was transferred from BCCL to CCL. Nowhere in the counter affidavit the respondent-CIL has denied the difficulty that the petitioner-unit is facing and will have to face and the loss which the petitioner-unit will sustain in procuring coal from BCCL which is far away from the place where the Plant has been established. Moreover, after considering the recommendation from the State Government and the BICICO and after obtaining no objection from the C.C.L., there is no reason for the respondents to ignore the request of the petitioner. It is well settled that when the industries are established the Central Government or the State Government and its instrumentalities while framing industrial policies and taking policy decisions in the matter in the matter supply of raw materials or granting different incentives, the objective must be to encourage the unit." ;