Mr. Aparesh Kumar Singh, J. - (1.) Heard learned counsel for the parties.
(2.) Petitioner, M/s Adhunik Power and Natural Resources Limited( herein after referred to as A.P.N.R.L) has sought a declaration that the respondent-Central Coalfields Limited (herein after referred to as 'CCL') cannot adjust and / or recover the alleged outstanding amount of Rs.13,46,66,861.42 of its Group Company M/s Adhunik Alloys and Power Limited (hereinafter to be referred to as 'A.A.P.L') from the Bank Guarantee amount of the petitioner Company lying with the Respondent-CCL pursuant to the Fuel Supply Agreement and / or Memorandum of Understanding for Supply of Coal dated 22.7.2015 (Annexure-3) It has also sought quashing of the letter dated 29.7.2016 issued by the Respondent no.2 to the Respondent-Bank for encashment of the Bank Guarantees of the petitioner, as being wholly arbitrary, illegal and an act of egregious fraud. It has sought restrainment upon CCL from adjusting and / or recovering the outstanding amount of Rs. 13,46,66,861.42 being the alleged dues of its Group Company M/s Adhunik Alloys and Power Limited.
(3.) The relevant facts pleaded by the parties and necessary to be noticed for adjudication of the issue, are being referred to hereinafter in brief:- Petitioner Company has been registered under the Companies Act, 1956 as per the Memorandum of Articles of Association dated 20.4.2005. The Memorandum of Articles of Association of M/s A.A.P.L. is 9.7.2003 (Annexure-12 and 13 respectively). Petitioner was allotted Ganeshpur Coal Block by the Ministry of Coal in respect of its Power Plant. Respondent-CCL executed a Fuel Supply Agreement(F.S.A.) dated 22.7.2011 and 29.9.2011 with the petitioner in view of the ' Tapering Linkage Policy' framed by the Ministry of Coal. The Tapering Linkage Policy enabled the coal block allottees to obtain coal from subsidiaries of Coal India Limited (C.I.L.) primarily during the period when coal block of the allottees was not operational. F.S.A. was renewed for Unit-I on 26.3.2014 (Annexure-16) and in respect of Unit-II on 23.3.2014. The said agreement was valid up to 20.11.2015. Pursuant to the aforesaid F.S.A., petitioner deposited 4 Bank Guarantees (Annexure-1 series) as security deposit in terms of the relevant conditions of the F.S.A. which are as follows:- JUDGEMENT_16_LAWS(JHAR)4_2017_1.html;