M/S ASHIRWAD STEELS AND INDUSTRIES LTD. Vs. THE UNION OF INDIA
LAWS(JHAR)-2016-8-55
HIGH COURT OF JHARKHAND
Decided on August 05,2016

M/S Ashirwad Steels And Industries Ltd. Appellant
VERSUS
THE UNION OF INDIA Respondents

JUDGEMENT

- (1.) Heard counsel for the parties.
(2.) Petitioner's request for change of grade of coal from B/C to C/D/E under the Fuel Supply Agreement entered into with the Respondent Central Coalfields Limited (Annexure -2/1) dated 29.04. 2008, on a direction passed in the writ petition WPC No. 2823/2011 dated 21.09.2011, has been rejected by the impugned order dated 25.06.2012 (Annexure -18 to the writ petition) for the following reasons. "It is regretted that you have submitted the process description on the letter pad of M/s A.V.R. Engineering and Consultancy Limited which does not establish that there is a change of technology, thereby requiring a change of grade in coal being supplied / agreed to be supplied in the Fuel Supply Agreement. In view of above, your request for change of grade from B/C to C/D/E is hereby rejected. It may kindly be noted that the erstwhile system of gradation based on UHV has been replaced by GCV based system."
(3.) During pendency of the writ application, the Fuel Supply Agreement itself was terminated with effect from 30.04.2013. Prayer to challenge the termination order through I.A. No. 3082/2013 was allowed by order dated 15.05.2013. Respondent had indicated however on the said date that they are not going to invoke the Bank Guarantee in view of the interim order passed earlier on 22.01.2013. However, an amount of Rs. 1,14,09,500.81 was adjusted towards dues payable to the Central Coalfields Ltd. before order dated 21.01.2013 itself. The letter of termination dated 30.04.2013 and other letter dated 21.01.2013 are part of I.A. No. 3082/2013. Petitioner has therefore pursued the original prayer and the amendment allowed subsequently during pendency of the case. He has also made a prayer to direct the Respondent to supply C/D/E grade of coal to him as it would be economical and financially viable to the petitioner's Sponge Iron Plant which has suffered due to sharp increase in input costs, power costs, increased burden of higher salary, wages and other operating expenses, etc. It has also made a prayer to allow him to lift the back log quota of c 0oal upon such change of grade of coal being permitted.;


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