High Court Jharkhand High Court

M/S.Basic Fuels Pvt.Ltd. vs Bharat Coking Coal Ltd. & Ors on 16 January, 2009

Jharkhand High Court
M/S.Basic Fuels Pvt.Ltd. vs Bharat Coking Coal Ltd. & Ors on 16 January, 2009
               In the High Court of Jharkhand at Ranchi

                     W.P.(C) No.5578 of 2007

               M/s. Basic Fuels Pvt. Ltd................................Petitioner

                     VERSUS

               Bharat Coking Coal Limited through its
               Chairman-cum-Managing Director and others.... Respondents

               CORAM: HON'BLE MR. JUSTICE R.R.PRASAD

               For the Petitioner : Mr. Mukesh Kumar Sinha
               For the Respondent : Mr. Anoop Kumar Mehta

7.   16.1.09

This writ application has been filed for quashing the order as

contained in letter no. BCCL/S&M/PS/F-19 points/2409 dated

31.7.2007 as contained in Annexure 10 whereby Bharat Coking

Coal Limited has refused to allocate the coal to the petitioner’s

firm, namely, M/s. Basic Fuels Pvt. Ltd.. Further prayer is to direct

the respondents to allocate the coal to the petitioner’s unit on the

terms and conditions of the linkage.

It is the case of the petitioner that under the consultation of

CMPDI, Special Smokeless Fuel (S.S.F) plant was established at

Badgunda, District- Giridih. Thereafter the officials of CMPDI as

well as Bharat Coking Coal Limited made inspection of the plant

and when everything was found in order for commissioning of the

said plant, Coal India Limited started supplying coal to the tune of

5000 M.T under the scheme of coal linkage. While everything was

going on smoothly, Bharat Coking Coal Limited issued a notice

dated 30.11.2004, whereby detailed informations pertaining to 19

points indicated therein were sought from the consumers including

the petitioner’s unit which was complied with. Moreover, when

certain deficiencies were pointed out, those deficiencies were

removed by submitting rest of the documents. In spite of that,

petitioner was surprised to find that supply of coal has been

discontinued to 140 units including to petitioner’s unit.
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Subsequently, when Bharat Coking Coal Limited did find that coal

supply has wrongly been stopped to the petitioner’s firm, it started

supplying coal to the petitioner’s unit. But again in the year 2007,

Bharat Coking Coal Limited stopped supplying the coal to the

petitioner’s unit. Thereupon, it was intimated to the officials of the

Bharat Coking Coal Limited that all the documents relating to

petitioner’s firm which were sought to be produced, have already

been submtted still supply of coal has been stopped. Meanwhile, it

was informed by the officials of the Central Coalfield Limited to the

Bharat Coking Coal Limited that on verification, petitioner’s unit was

found to be established. Thereupon, Bharat Coking Coal Limited

again resumed supply of coal to the petitioner’s unit.

Further case is that other day notice was published in the

newspaper whereby consumers were asked to submit documents

relating to 19 points/ 13 points in order to ascertain the working

condition of the units. Pursuant to the said notice, all the

documents relating to petitioner’s unit were submitted before the

officials of the Bharat Coking Coal Limited. Thereupon, General

Manager (S & M), Bharat Coking Coal Limited, vide its letter

no.2409 dated 3.8.2007 (Annexure 10) intimated that the

committee constituted by Bharat Coking Coal Limited has found

certain deficiencies in the documents pertaining to two items and

as such, status of unit has been declared as ‘not established’ and

therefore, Bharat Coking Coal Limited would not be allocating coal

to the petitioner’s unit.

Being aggrieved with that, this writ application has been

field.

Learned counsel appearing for the petitioner submitted that

by merely finding deficiencies in some of the documents, the firm
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cannot be said to be non-functional or not established and hence,

action of the respondents can certainly be said to be arbitrary.

It was further submitted that almost in similar nature of

case, certain direction has been given to the respondents and,

therefore, this writ application be disposed of in terms of the

direction given by this Court in W.P.(C) 5522 of 22006, W.P.(C)

No.3055 of 2007, W.P.(C) No.1228 of 2008 and several other

cases.

Mr. Mehta, learned counsel appearing for the Bharat Coking

Coal Limited though submitted that when certain deficiencies were

found, supply of coal has been suspended. But agreed to the

suggestion given by learned counsel appearing for the petitioner

that the writ application be disposed of in the terms of the cases

disposed of earlier.

Accordingly, this writ application is disposed of directing the

respondents to consider the petitioner’s claim by affording him

reasonable opportunity to bring on record all the documents in

support of his claim which will be considered by the authorities

along with reply already given on each points by recording findings

with reason. For that purpose, the respondents shall fix the date

and communicate the same to the petitioner in writing. In case of

doubt about the existence of the units, the respondents shall make

spot verification by fixing a date with prior notice to the petitioner

and after taking into consideration the entire matter including the

explanations submitted, documents filed and the report of

verification/inspection, if any, the respondent shall take final

decision on each points by recording reasons. The entire exercise

should be completed within a period of three months from the date

of receipt/production of a copy of this order.

ND/                                                (R. R. Prasad, J.)