BISHWANATH FERRO ALLOYS LTD Vs. UNION OF INDIA THROUGH ITS SECRETARY, MINISTRY OF COAL
LAWS(JHAR)-2018-7-145
HIGH COURT OF JHARKHAND
Decided on July 12,2018

Bishwanath Ferro Alloys Ltd Appellant
VERSUS
Union Of India Through Its Secretary, Ministry Of Coal Respondents

JUDGEMENT

Anubha Rawat Choudhary, J. - (1.) Heard Mr. Mukesh Kumar Sinha, Advocate assisted by Ms. Sneh, Advocate appearing for the petitioner.
(2.) Heard Mr. Anoop Kumar Mehta, Advocate assisted by Ms. Saumya Pandey, Advocate appearing on behalf of the respondents.
(3.) This writ petition has been filed for the following reliefs: "(a) For issuance of appropriate writ(s)/ order(s)/ direction (s) commanding upon the respondent authorities to amend/modify the existing Fuel Supply Agreement executed between the Petitioner and the Respondent CCL on 30.04.2008 to the extent of changing the Grade of Coal from B/C to C/D/E being supplied to the petitioner, while considering the requirement of the Petitioner's Industry and the heavy financial burden, which the petitioner is being forced to bear on account of unprecedented 130% increase in the price of A/B grades of coal by the respondents and such steep increase in single stroke is unheard in the whole world and particularly never expected from Government owned coal companies which came into being upon nationalization of this industry with a view to provide coal to Indian domestic consumers at reasonable rates. (b) The petitioner further prays for issuance of appropriate direction/command upon the Respondents to supply Grade C/D/E of coal to the petitioner as per its requirement under the Fuel Supply Agreement and which would be economical/financially viable to the Petitioner's Sponge Iron Plant at a point of time when the secondary domestic Iron & Steel Industry is suffering due to the sharp increase in the input costs, power costs and increased burden of higher salary and wages and other operating expenses and general demand depression for finished products and the petitioner is facing economical crisis. (c) The petitioner further prays for quashing of the letter dtd. 12/15.12.2012 as contained in letter no. CCL/HQ/C-4/14270 and issued under the signature of G.M (S&M), CCL, whereby and whereunder the said authority instead of taking any decision on petitioner's representation and Ministry's guideline contained in letter dated 06.03.2012 with regard to change of grade of coal illegally and arbitrarily issued notice for termination of agreement (FSA), though the petitioner has responded to the said notice but the said authority has not responded back till date. (d) The petitioner further prays for issuance of appropriate direction upon the Respondent authorities not to calculate any compensation and serve any compensation bill upon the petitioner in the facts and circumstances of the case and further during pendency of the case the Respondents directed to release at lease Grade-C Coal to the petitioner. (e) For quashing the letter dated 30.04.2013 contained in letter CCL/HQ/C-4/FSA/termination/5684-90 and issue under the signature of G.M. (S&M), CCL whereby and whereunder the said authority instead of taking any decision with regard to petitioner's requests for change of grade of coal in the light of recommendation by the Ministry of Coal and during pendency of the writ petition terminated the FSA signed between the Petitioner and CCL and further forfeited the bank guarantee for realizing the compensation/P-1 amount. (f) The petitioner further prays to this Hon'ble Court for issuing necessary direction upon the Respondents to forthwith take a decision with regard to change of grade of coal as per the clauses of the FSA as due to non allotment of desired grade of coal, the petitioner has been suffering irreparable loss and injury. (g) The petitioner further prays for issuance of appropriate direction upon the Respondents restraining them from encashing the bank guarantee as the author of the impugned letter while terminating the FSA has asked the Manager Finance (S&M) to encash the relevant bank guarantees of the unit. (h) For a direction upon the Respondents CCL to refund Rs. 29,50,000/- i.e. the value of B.G. No. 4 dated 30.04.2008 and Rs. 14,50,000/- of B.G. No. 30331GPER001309 dated 20.10.09 both issued by Bank of Baroda, Giridih deposited by the Petitioner as per Fuel Supply Agreement dated 30.04.2008 executed between the Petitioner and Respondent CCL under the New Coal Distribution Policy, which now has been encashed by the Respondent CCL during pendency of the writ petition. (I) The Petitioner further prays for issuance of appropriate direction upon the Respondents CCL restraining them from encashing the bank guarantee no. 1568ILG000308 dated 29.04.2008 for Rs. 10,85,000/- and another B.G. No. 1568ILG000408 dated 20.06.08 for Rs. 3,65,000/-, both issued by Punjab National Bank, Bhorandiha, Giridih in favour of Respondent CCL as per the clauses of the FSA." ;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.