IN THE HIGH COURT OF JHARKHAND AT RANCHI W.P.(C)No.5835 of 2009 Om Sri Sai Traders. ... ... ... ...Petitioner Versus 1.
B.C.C.L. a subsidiary of Coal India Limited having
its Head Office at Koyla Bhawan, P.O. Koyla Nagar, P.S.
Saraidhella, Dist. Dhanbad through its Chairmancum
2. The ChairmancumManaging Director, B.C.C.L., Koyla
Bhawan, P.O. Koyla Nagar, P.S. Saraidhella, Distt. Dhanbad.
3. The General Manager (Sales), B.C.C.L., Koyla Bhawan,
P.O. Koyla Nagar, P.S. Saraidhella, Distt. Dhanbad.
... ... ... ... ... ... ... ...Respondents CORAM: HON'BLE MRS. JUSTICE POONAM SRIVASTAV For the Petitioner: M/s Mukesh Kumar Sinha & Ajit Kumar, Advocates. For the Respondents: Mr. Anoop Kumar Mehta, Advocate. 03/ 19.08.2011 The petitioner is aggrieved on account of the reason that the
respondents have stopped supply of coal for the reason that the linkage
stands lapsed as on today. The prayer is for an appropriate direction to
resume the coal supply in favour of the petitioner forthwith.
The petitioner established a manufacturing unit at Phoolpur,
Varanasi (U.P.) and the unit was registered under the Industries
Department. The respondents granted coal linkage in favour of the unit
for quantity of 2400 M.T. per month. Since the coal being the rawcoal to
run the Industry, the petitioner used to lift coal from the respondents.
The Deputy Commissioner, Varanasi on the basis of certain enquiries
cancelled the permanent registration of 33 units including the petitioner
vide order dated 31st July, 1999. Subsequently, the petitioner
approached the Industries Department by way of appeal and the Joint
Director, Industries (Eastern Region) Varanasi Division after being
satisfied that the petitioner’s unit was bona fidely utilizing the coal,
restored the registration of the unit vide order dated 17th December,
1999 (Annexure4 to this writ petition). Consequent to the revival of the
registration, the petitioner approached the Sales and Marketing
Department of M/s B.C.C.L. for resumption of coal supply. This was not
done and finally W.P.(C)No.5618 of 2001 was preferred for restoration of
the linkage. The Writ Petition was finally disposed of with the direction
that the petitioners may approach the Coal Company and repeat their
prayer before the competent authority such as the Chief General
Manager (Sales) or any other Officer delegated with the power, who
shall look into the matter and pass necessary orders restoring fresh
linkage. The order in the Writ Petition is dated 10th September,
2002(Annexure8 to the Writ Petition). The petitioners submitted the
aforesaid order of the Writ Petition before the concerned authority but
the revival of the coal supply was refused on account of the reason that
the linkage had already lapsed and there was no rule for revival of the
linkage at that point of time and it can be considered only after the new
policy comes into effect. The claim of the petitioner is that though the
respondents refused linkage with the petitionerCompany but
consequently restored the linkage of 7 different units in the month of
June, 2003 whereby they claimed that they have been discriminated. It is
further stressed that clause 3 of the terms and conditions of the linkage
provide that in the event of failure to lift coal by the unit for consecutive
12 months or more, the linkage will be treated as snapped. In the event
any consumer desires to draw coal after the linkage of the coal is
snapped, he will have to apply for restoration of linkage and only
thereafter the consumer will be entitled to lift the coal. Several
representations were filed before the respondents, which were finally
rejected by means of order dated 1st June, 2009 (Annexure19 to the
Writ Petition) passed by the General Manager, ( S & M). This order is
impugned in the instant Writ Petition.
I have gone through the entire order and the main ground
for declining resumption of linkage is that the Ministry of Coal,
Government of India has framed New Coal Distribution Policy (N.C.D.P.
in short) in October, 2009 superseding the previous linkage system and
all earlier decisions in respect of release of coal whether linked or non
linked at any point of time can also source its requirement of coal
through eAuction which is being regularly being conducted by
respondent BCCL and other subsidiaries of Coal India Limited engaged in
raising and selling of coal. Since the old system of linkage has been done
away with on coming into force of NCDP, the revival of the linkage was
After giving careful consideration to the argument advanced
by Mr. Anoop Kumar Mehta, appearing on behalf of the respondents as
well as the Counsel appearing on behalf of the petitioner, I am of the
considered view that the respondents had no other option but to decline
the revival of the linkage on account of advent of the new policy.
However, it is also noteworthy that the petitioner could not lift coal for a
period of continuous 12 months which consequently resulted into in
snapping of the linkage which was for the reasons beyond his control.
After revival of petitioner’s unit, he is not able to function only because of
nonsupply of coal, and this is evidently resulting in heavy loss to the
petitioner. In view of all these circumstances, I do not think that
pendency of this writ petition is going to yield any fruitful result.
In the circumstances, I dispose of this Writ Petition with the
direction to the respondents to consider the petitioner’s supply of coal, if
a fresh application for supply is made under the New Policy and looking
into the entire history of the case and also that the petitioner was
prevented from lifting the coal for certain circumstances which was not
within his control. The respondents shall examine the matter and
consider the case of the petitioner on a priority basis. A fresh agreement
may be entered into, suitable steps shall be taken to revive supply of
coal, expeditiously, to enable the petitioner to start his unit as early as
With these observations and directions, this writ petition is
The petitioner may approach the respondents with the
certified copy of this order which shall be looked into and examined
within a period of 4 weeks from the date the application is made to avoid
any further delay and final order for supply of coal, shall be passed in
accordance with law within the period of four weeks.