VISHNU COAL TRADERS LTD Vs. COAL INDIA LTD

JUDGEMENT

(1.) The petitioners, by these writ petitions, have challenged the notice dated 27.03.2009 issued by the General Manager, North Eastern Coal Fields, Coal India Limited (respondent No. 3 in both the writ petitions) cancelling the Spot - e-Auction for sale of the coal from source TIKAK, initiated vide notice dated 16.03.2009, by invoking Clause 11.9 of the general terms and conditions of such auction and releasing the earnest money deposit and also praying for issuance of a direction to the respondent authorities to deliver the allotted quantities of coal to them pursuant to the Spot e-Auction held on 27.03.2009. Since in both the writ petitions identical reliefs have been claimed based on identical facts, those are taken up for hearing and disposal together, as agreed to by the learned Sr. Counsel for the parties.

(2.) The Area Sales Manager of North Eastern Coal Fields, Coal India Limited issued a notice dated 16.03.2009 offering 18 (eighteen) rakes of coals for sale, of which 10(ten) rakes of UHV exceeding 7099 Kcal/kg grade from source TIRAP and 8 (eight) rakes of UHV 6200-6299 Kcal per/kg grade from the source TIKAK, through online Spot e-Auction, for despatch by Railway, fixing reserve price of Rs. 3345/- and Rs. 3280/-, respectively. The date of online Spot e-Auction was initially fixed on 23.04.2009, which was subsequently refixed as 27.03.2009. By the said notice, it has also been informed that the online e-Auction will be conducted by the service provider, namely, M. Junction Services Limited. The terms and conditions of Spot e-Auction Scheme, 2007 are also applicable in respect of the Spot e-Auction, notice for which has been issued on 16.03.2009. The petitioners desire to participate in the auction in respect of one rake each, deposited requisite earnest money in favour of the service provider and being eligible, participated in such process. The petitioner in WP(C) No. 1434/2009 has offered the price of Rs. 2280/- per MT and the petitioner in WP(C) No. 1436/2009 offered Rs. 2300/- per MT, grade UHV 6200-6299 Kcal/kg from the source TIKAK. On the date of the auction, the General Manager, the respondent No. 3, issued a notice dated 27.03.2009 cancelling the Spot e-Auction for the sale of coal from the source TIKAK invoking Clause 11.9 of the terms and conditions of Spot e-Auction Scheme, 2007, which according to the petitioner was issued giving a back date and after publication of the result of such e-Auction on the website of the service provider on 27.03.2009 showing allotment of 1 (one) rake in favour of the petitioner in WP(C) No. 1434/2009 and 2(two) rakes in favour of the petitioner in WP(C) No. 1436/2009 at the rates offered by them. The petitioners, therefore, have challenged the said notice dated 27.03.2009 issued by the respondent No. 3 basically on the ground that the cantract for allotment of coal in favour of the petitioners having been completed on publication of the result of such e-Auction showing allotment of rakes in their favour, there cannot be any cancellation of such Auction. The petitioners, therefore, also prays for a direction to the respondent authorities to deliver the allotted quantities of coal to them pursuant to such completed Auction held on 27.03.2009 for the sale of coal from source TIKAK.

(3.) I have heard Mr. D.K. Misra, the learned Sr. Counsel appearing for the petitioner in WP(C) No. 1434/2009, Mr. G.N. Sahewalla, the learned Sr. Counsel appearing on behalf of the petitioner in WP(C) No. 1436/2009 and Mr. M.Z. Ahmed, the learned Sr. Counsel appearing for the respondents.