I.P.MUKERJI,J - (1.) Tata Sponge Iron Ltd., ("the writ petitioner") is engaged in the business of manufacture sponge iron. It has a manufacturing unit at Joda. For this manufacturing process they need a steady supply of coal. At the material point of time, in or around 1997 they used to obtain a particular quantity of coal from Eastern Coalfields Ltd. (ECL), a subsidiary of Coal India Limited, the respondent no. 1. This was referred to as their 'linkage'. This word 'linkage' refers to the source from where the coal is obtained. It is identified by the mine or mines of a particular organisation which supply this coal. In early 1997 the writ petitioner wanted to change this source of coal. For this purpose they wrote to the respondent no.1 the holding company on 23rd February, 1997. On 5th March, 1997 Coal India replied. It said that according to the "previous linkage", the writ petitioner was to obtain a quantity of 1.70 lakh tonnes of a particular grade of coal from the source, ECL. They would now receive the same quantity from three sources, ECL, HCL/Talcher, CCL/Raibachra @ 14,000 tonnes per month. This letter constituted a contract between the parties and was acted upon by them.
(2.) On and from 1st April, 2001 CCL decided to charge a premium on 10% from the writ petitioner on this contracted quantity of coal. A document, described as an "undertaking", given by the petitioner to Central Coalfields Ltd. (CCL) and dated 10th April, 2001 is most interesting. The petitioner stated that they would enter into a fuel supply agreement or a Memorandum of Understanding with CCL. They would pay the additional amount as premium over and above the basic coal price from 1st April, 2001 which would be adjustable in the final decision taken in the Memorandum of Understanding. This undertaking was signed on behalf of the writ petitioner by their General Manager.
(3.) On 22nd September, 2001 there was a meeting between various sponge iron units and CCL. The minutes were signed on behalf of the writ petitioner. In the list of participants annexed to these minutes another officer was said to be also present, as a participant. It was recorded that 30% source specific charges would be made for Churi and Raibachra mines of CCL with effect from 1st September, 2001.;