{"id":136049,"date":"2010-04-07T00:00:00","date_gmt":"2010-04-06T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/welfare-society-of-orissa-vs-unknown-on-7-april-2010"},"modified":"2014-07-03T10:18:55","modified_gmt":"2014-07-03T04:48:55","slug":"welfare-society-of-orissa-vs-unknown-on-7-april-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/welfare-society-of-orissa-vs-unknown-on-7-april-2010","title":{"rendered":"Welfare Society Of Orissa vs Unknown on 7 April, 2010"},"content":{"rendered":"
Orissa High Court<\/div>\n
Welfare Society Of Orissa vs Unknown on 7 April, 2010<\/div>\n
                         W.P.(C) No. 3352 of 2010\n\nIn the matter of an application under Articles 226 and 227 of the\nConstitution of India.\n                             ____________\n\n\nWelfare Society of Orissa,\n(represented by its Secretary,\nBhutkun Mandal),Jajpur             ...                         Petitioner\n\n                                  - versus -\n\nUnion of India                      ...                 Opposite Parties\nRepresented by its Secretary,\nDepartment of Coal,\nNew Delhi & 3 Ors.\n\n\n               For petitioner      ---   M\/s. Bhagban Mohanty,\n                                         B.Moharana,.S.Mohanty\n                                         and D.Chhotray.\n\n               For opp. parties   --     M\/s. Saktidhar Das, A.S.G.\n                                         ( For O. P. no.1 )\n\n                                         M\/s. Jagannath Patnaik,\n                                         B. Mohanty, J.K. Patnaik &\n                                         B.S. Rajgur. (For O. P. no.2)\n\n                                         Mr. Sanjit Mohanty, Sr.Adv.,\n                                         Ms. Suruchi Agrawal\n                                         M\/s. S. S. Das,\n                                         Soubhagya S. Das,\n                                         Ramakanta Sahoo &\n                                         K.C. Mohapatra.\n                                         ( For O.P.No. 3 )\n\n                                         M\/s. P.K. Mohapatra, S.K. Nayak,\n                                         and S.K. Sahu\n                                         ( For O.P. No. 4 )\n\n                           ______________\n                                               2\n\n\n              PRESENT ;\n\n                     THE HONOURABLE CHIEF JUSTICE MR V. GOPALA GOWDA<\/pre>\n
                                                AND
\n                          THE HONOURABLE MR. JUSTICE B.P. DAS
\n              ______________________________________________________________________
\n                        Date of hearing & Date of judgment – 07.04.2010
\n              ______________________________________________________________________<\/p>\n
V. Gopala Gowda, C.J.      This writ petition in the shape of Public Interest<\/p>\n
         Litigation has been filed by the Welfare Society of Orissa represented by<\/p>\n
         its Secretary seeking following reliefs urging various facts and legal<\/p>\n
         contentions.\n<\/p>\n
                                      “(1) For issuing a Rule Nisi in the nature
\n                           of writ of mandamus and\/or certiorari and\/or any
\n                           other     appropriate     writ\/writs,   order\/orders,
\n                           direction\/directions calling upon the opposite parties
\n                           to show cause as to why the allotment of 97 million
\n                           tons of coal blocks out of total 291 million tons in
\n                           Mandakini Coal Block of Mahanadi Coal Fields Ltd.
\n                           made by the opposite party No.1 in favour of the
\n                           opposite party No.3 as per Annexure-5 shall not be
\n                           quashed.\n<\/p><\/blockquote>\n
                                      (2) if the opposite parties fail to show
\n                           cause and \/or show insufficient and \/or false cause,
\n                           make the said rule nisi absolute by issuing
\n                           appropriate writ\/writs, order\/orders, direction\/
\n                           directions as this Court deems fit and proper.\n<\/p><\/blockquote>\n
                                      (3) Pass such other order\/orders and
\n                           direction\/directions as this Court deems fit and
\n                           proper in the facts and circumstances of the case.”\n<\/p><\/blockquote>\n
         2.                The brief facts for the purpose of appreciating the rival<\/p>\n
         legal contentions urged on behalf of the parties are that the petitioner is a<\/p>\n
         registered Non-Government Organization (NGO) claims to be dedicated<\/p>\n
         itself for the cause of the public justice and to weeding out corruption and<\/p>\n
         other mal-practices at all levels.   It has dedicated itself to achieve the<\/p>\n
         principles enshrined in the Constitution of India, particularly, the<\/p>\n
         Directive Principles of State Policy to establish an egalitarian society to
\n                                    3<\/span><\/p>\n
bring social and economic order in the country. It was registered in the<\/p>\n
year 2009. The aim and objective of the Society is to carry out several<\/p>\n
awareness campaigns, relief and rehabilitation activity, cultural activities<\/p>\n
and to spread awareness among the under privileged and deprived<\/p>\n
sections of the society with a vision to establish a classless and casteless<\/p>\n
society.\n<\/p>\n
3.               The focus and objectives of the Society is for the social<\/p>\n
and economic upliftment of the poor masses of Orissa State.<\/p>\n
4.               The   Mandakini    Coal   Block   of   Talcher   Coalfields<\/p>\n
(Mahanadi Coalfields Ltd.) is situated in Orissa with a geological reserves<\/p>\n
of 291 million tons of coal block. The Ministry of Coal, New Delhi issued<\/p>\n
notification in the month of November, 2006 inviting application from<\/p>\n
interested parties for allocation of 38 coal blocks in various parts of the<\/p>\n
country for captive mining by Companies engaged in generation of power,<\/p>\n
production of iron and steel and cement. Out of these 15 coal blocks are<\/p>\n
earmarked for power generation and 23 coal blocks would be available for<\/p>\n
other specified end uses. As per the notification, preference will be given<\/p>\n
to the power sector and steel sector. Out of power sector, priority shall be<\/p>\n
accorded to projects with more than 500 MW Capacity so also in the steel<\/p>\n
sector, priority will be given to steel plants with more than 1 million tons<\/p>\n
per annum capacity. Copy of the notification is produced and marked as<\/p>\n
Annexure-3. It is the case of the petitioner that pursuant to the said<\/p>\n
notification many number of companies like Monnet Ispat, Tatas, Sterlite,<\/p>\n
Lanco, GMR, Reliance, Mittal Steel, Navabharat etc. having many years of<\/p>\n
experience in the coal industry which have their own power plant<\/p>\n
transmission line and coal mining business applied for the allotment of
\n                                    4<\/span><\/p>\n
the Mandakini Coal Block. It is the case of the petitioner that opposite<\/p>\n
party no.3, Jindal Photo Ltd. which has no experience in the field of<\/p>\n
mining and power generation applied for the allotment of the coal block in<\/p>\n
Mandakini Coal Block of Talcher Coalfields on 9.1.2007.<\/p>\n
5.              It is the case of the petitioner that Opposite party no.3,<\/p>\n
Jindal Photo Limited (hereinafter called as ‘JPL’) has been allotted 97<\/p>\n
million tons of coal block from the Mandakini Coal Block overlooking<\/p>\n
other experienced and reputed Companies. It is the case of the petitioner<\/p>\n
that opposite party no.2 did not scrutinize the application of opposite<\/p>\n
party No.3-JPL in accordance with the guidelines for allocation of captive<\/p>\n
blocks and conditions of allotment through the Screening Committee. The<\/p>\n
allotment of blocks which was issued in favour of the JPL is produced and<\/p>\n
marked as Annexure-5. The guidelines for allocation of captive blocks and<\/p>\n
conditions of allotment through the Screening Committee is produced and<\/p>\n
annexed as Annexure-6. It is the further case of the petitioner that two<\/p>\n
portions of the same block have been allotted to Monnet-Ispat and Tatas,<\/p>\n
who have got wide experience in the filed. The allotment of coal blocks<\/p>\n
received by other bidders such as Sterlite, Lanco, GMR, Reliance, Mittal<\/p>\n
Steel, Navabharat etc. as referred to above are comparatively very small.<\/p>\n
The aforesaid companies are allotted Greenfield blocks where the<\/p>\n
development cost is much higher than open cast blocks, though the said<\/p>\n
companies have got sufficient experience in the industries and therefore<\/p>\n
they are likely to make much better use of the highly efficient coal blocks<\/p>\n
than the JPL. Most of them had applied for allotment of the Mandakini<\/p>\n
coal block several years before the JPL has applied for the same.
\n                                     5<\/span><\/p>\n
6.                It is alleged, on the basis of facts stated supra, that JPL<\/p>\n
having hand in gloves with the opposite parties is going to sell away the<\/p>\n
high grade coal which has been allotted to it by illegal means.           The<\/p>\n
purpose of allotment of coal block for the existing power projects is to<\/p>\n
combat the power scarcity prevailing in the State of Orissa. The allotment<\/p>\n
of high grade coal and that too one-third of the total reserve of Mandakini<\/p>\n
Block in favour of JPL is illegal, arbitrary and opposed to the public<\/p>\n
policy.   It is further alleged that it has reliably learnt that JPL has<\/p>\n
obtained the said allotment of coal block by influencing the authorities<\/p>\n
concerned.    It has suppressed the fact about the earlier coal linkage<\/p>\n
allotment in its favour and obtained the present allotment illegally by<\/p>\n
undue influence and on extraneous considerations.      Therefore, it is illegal<\/p>\n
and void, which would results in inappropriate and improper utilization of<\/p>\n
the coal block.\n<\/p>\n
7.                Mr. Bhagaban Mohanty, learned counsel appearing on<\/p>\n
behalf of the petitioner, contends that the opposite party No.1-Union of<\/p>\n
India was required to verify the expertise and other technical abilities of<\/p>\n
JPL before allotting such a huge quantity of coal block for captive mining.<\/p>\n
Allotment of the said coal blocks in favour of JPL, which has not<\/p>\n
possessed the experience in the power generation plant and other plants,<\/p>\n
defeats the purpose and objects of allotment of such major mineral in its<\/p>\n
favour, thereby the public interest is affected so also public injury and it<\/p>\n
is also in violation of rule of law are the relevant grounds on which the<\/p>\n
present petition is filed seeking for the aforesaid relief.     It is further<\/p>\n
contended by him that the opposite party No.1, in the matter of entering<\/p>\n
into contract of allotment of coal block, which is a major mineral, which
\n                                      6<\/span><\/p>\n
shall be used for the common good as provided in the Directive Principles<\/p>\n
of State Policy under Article 39 (b) of the Constitution, has violated in<\/p>\n
allotting the coal blocks in favour of an illegal person as it does not<\/p>\n
possess the required experience in the filed of power generation.         It is<\/p>\n
further contended that opposite party No.1 was required to exercise its<\/p>\n
jurisdiction by following the mandate of Article 14 of the Constitution,<\/p>\n
which excludes arbitrariness on its part and requires to act fairly and<\/p>\n
reasonably when the contract concerns the public interest at large.       It is<\/p>\n
urged that as the JPL is not fulfilling the legal requirement having not<\/p>\n
possessing the experience in the field of power generation for the<\/p>\n
allotment of coal blocks in its favour and it is in violation of the guidelines<\/p>\n
and the criteria required to be followed by the opposite party No.1.<\/p>\n
Therefore, the action on the part of the opposite party No.1 is arbitrary<\/p>\n
and unreasonable as it will be a loss to the State exchequer. It is further<\/p>\n
contended that the opposite party No.1 has not discharged its function<\/p>\n
properly as it has neither scrutinized the applications in proper<\/p>\n
perspective nor acted in a fair and reasonable manner in the allotment of<\/p>\n
coal blocks in favour of JPL.\n<\/p>\n
8.               Learned counsel for the petitioner in support of his<\/p>\n
submission has placed reliance upon the case of Ramana Dayaram Shetty<\/p>\n
Vrs. International Airport Authority of India, AIR 1979 SC 1628, Kasturi<\/p>\n
Lal Lakshmi Reddy Vrs. Union of India, (1980) 4 SCC 1, Fasih Chaudhury<\/p>\n
Vrs. Director General, Doordarshan, (1989) 1 SCC 89 and Sterling<\/p>\n
Computers Ltd. Vrs. M&N Publications Ltd., (1993) 1 SCC 445. By relying<\/p>\n
upon the aforesaid decisions of the Apex Court, learned counsel for the
\n                                       7<\/span><\/p>\n
petitioner prays to grant the relief as the public interest and public injury<\/p>\n
is involved in this public interest litigation.\n<\/p>\n
9.                Learned Assistant Solicitor General has filed notes of<\/p>\n
preliminary submission on behalf of the opposite party No.1 by referring<\/p>\n
to various facts pleaded in the writ petition. It is stated that the Ministry<\/p>\n
had advertised 38 coal blocks on 6th November, 2006 inviting application<\/p>\n
for allocation of the said blocks for captive mining for specified end uses,<\/p>\n
namely, power generation, production of iron & steel and production of<\/p>\n
cement as per the provisions of Coal Mines (Nationalization) Act, 1973<\/p>\n
(hereinafter called “the Act, 1973”) as amended from time to time.        In<\/p>\n
response to the said advertisement, more than 1400 applications were<\/p>\n
received for allocation of said blocks, out of which 744 applications were<\/p>\n
for power sector blocks.      In all, about 207 companies had applied for<\/p>\n
power sector coal blocks. Notice along with details of blocks, guidelines<\/p>\n
indicating procedure for submission of application, criteria for allocation<\/p>\n
etc. were placed on the Ministry’s website as well. As per the procedure<\/p>\n
laid down in the guidelines, allocation of coal\/lignite blocks was made<\/p>\n
through the Screening Committee as the said applications were sent to<\/p>\n
the Central Ministries of Power, Commerce and Industry (Department of<\/p>\n
Industrial policy & Promotion) Steel as well as the State Governments<\/p>\n
concerned, where the blocks were located and where the end use projects<\/p>\n
were proposed to be located for their comments.     The first meeting of the<\/p>\n
Screening Committee was held from 20.06.2007 to 23.06.2007. All the<\/p>\n
applicants were invited to make their representations individually outlying<\/p>\n
the salient features of their respective cases. Altogether, 193 companies<\/p>\n
came and made presentation before the Committee.           Ministry of Coal
\n                                       8<\/span><\/p>\n
could not finalise the recommendation since the Ministry of Power<\/p>\n
informed that they had not been able to examine the applications.<\/p>\n
Subsequent thereto another meeting of the Screening Committee was<\/p>\n
convened on 30.07.2007.        Ministry of power had furnished their views<\/p>\n
with the observation that authenticity of data\/comments submitted need<\/p>\n
to be verified separately.    Accordingly, the Committee decided that the<\/p>\n
State Governments may be asked to carry out a quick verification of the<\/p>\n
data used by the Ministry of power for techno-economic evaluation of end<\/p>\n
use projects.   The next Committee meeting was convened on 13.9.2007.<\/p>\n
The verification reports from the State Government as requested were<\/p>\n
received and placed before the screening committee. Financial strength of<\/p>\n
applicants was scrutinized independently with the help of financial<\/p>\n
experts from Coal India Ltd.    Taking cognizance of the advice given by the<\/p>\n
Ministry of Power that in view of the capacity constraints in transmission<\/p>\n
network, power producers should limit plant capacity to 500 to 1000 MW,<\/p>\n
the Committee agreed that this should be taken as the guiding principle.<\/p>\n
Therefore, 1000 MW was taken as the maximum limit for allocation of coal<\/p>\n
blocks and the shares of geological reserves in the block, in case the<\/p>\n
capacity indicated in the application is higher than the maximum limit<\/p>\n
suggested by the Ministry of Power.\n<\/p>\n
10.              Based   on     the   recommendation    of   the   Screening<\/p>\n
Committee as approved by the Government, the Mandakini captive coal-<\/p>\n
blocks have jointly been allocated to M\/s. Monnet Ispat & Energy Ltd., M\/<\/p>\n
s. Jindal Photo Ltd and M\/s. Tata Power Company Ltd., for their<\/p>\n
respective power plant. It is specifically asserted that Ministry of Power<\/p>\n
and Ministry of Coal have applied uniformly the guidelines before deciding
\n                                     9<\/span><\/p>\n
the allocation of coal blocks and consequent equitable proportionate<\/p>\n
distribution of shares of geological reserves in favour of the allottee.<\/p>\n
Therefore, the allegation of not following the guidelines, so also the<\/p>\n
allegation of arbitrariness, unreasonableness and illegality on the part of<\/p>\n
the opposite party No.1 in allotting the coal blocks in favour of JPL is<\/p>\n
specifically denied by Mr. Das, learned Assistant Solicitor General.<\/p>\n
11.              It is further stated that based on the recommendation of<\/p>\n
the Screening Committee as approved by the Government, an offer letter<\/p>\n
was issued on 09.01.2008 intimating the option for allocation of<\/p>\n
Mandakini captive coal block jointly to M\/s. Monnet Ispat & Energy Ltd.,<\/p>\n
M\/s. Jindal Photo Ltd and M\/s. Tata Power Company Ltd. with equal<\/p>\n
shares of the geological reserves for their power plants of 1000 MW<\/p>\n
capacity.     Further it is contended that the allottees were asked to<\/p>\n
intimate their option and form a Joint Venture Company by entering into<\/p>\n
a joint venture agreement within four weeks from the date of the aforesaid<\/p>\n
offer letter, failing which appropriate action would be taken by the<\/p>\n
Government.    Accordingly, they entered into a joint venture agreement<\/p>\n
and submitted the required bank guarantee and purchased the geological<\/p>\n
report from CMPDIL within the prescribed time limit. The mining plan in<\/p>\n
respect of the coal block was approved by the Ministry under the MC<\/p>\n
Rules of Mines and Minerals (Regulation and Development) Act, 1957<\/p>\n
(hereinafter called “MMRD Act”).        Therefore, the contention of the<\/p>\n
petitioner that the coal block has been allotted illegally and arbitrarily in<\/p>\n
favour of JPL is not correct.\n<\/p>\n
12.              Opposite party No.3 has filed the counter affidavit raising<\/p>\n
certain preliminary objections regarding maintainability of the writ
\n                                    10<\/span><\/p>\n
petition to the effect that the petitioner-Society was registered in the year<\/p>\n
2009, but the allotment of coal blocks was made in the year 2008. It is<\/p>\n
further alleged that the present writ petition has been filed to abuse the<\/p>\n
process of the Court and so also to sub-serve some private interest and for<\/p>\n
harassing the opposite party No.3. Therefore, it deserves to be dismissed.<\/p>\n
13.              Further, with regard to the allegation made for allotment<\/p>\n
of coal blocks, the petitioner is unable to show anything by furnishing<\/p>\n
relevant material facts that the opposite party No.3 was allotted the coal<\/p>\n
block by using influence or on extraneous consideration.       The allegation<\/p>\n
with regard to illegal allotment of coal block in its favour for power<\/p>\n
generation and so also to sell it outside the State is not supported by any<\/p>\n
other factual foundation is vague and lacks material particulars.<\/p>\n
14.              Mr. Sanjit Mohanty, learned Senior Counsel appearing<\/p>\n
for opposite party No.3, placed strong reliance upon the counter affidavit<\/p>\n
by referring to the judgment of the Apex Court in the case of State of<\/p>\n
Uttaranchal Vs. Balwant Singh Chaufal, reported in JT 2010 (1) SC 329,<\/p>\n
wherein it has been held that frivolous and vexatious petitions in the garb<\/p>\n
of public interest litigation must be discouraged by the Court in exercise<\/p>\n
of its Constitutional power.     He has placed reliance on the relevant<\/p>\n
guidelines laid down in the aforesaid case in justification of allotment of<\/p>\n
coal block in favour of JPL and the Joint Venture Companies (JVC).<\/p>\n
15.              The relevant guidelines enumerated in the said case are<\/p>\n
extracted hereunder for better appreciation of rival contentions in this<\/p>\n
matter:\n<\/p>\n
                 “(a) Verification of the credentials of the P.I.L. petitioner.\n<\/p><\/blockquote>\n
                 (b) Satisfaction of correctness of the contents of the
\n                     petition,
\n                                        11<\/span><\/p>\n<\/blockquote>\n
                     (c) Substantial public interest is involved.\n<\/p><\/blockquote>\n
                     (d) Petition should involve larger public interest, gravity
\n                         and urgency,\n<\/p><\/blockquote>\n
                     (e) The PIL is aimed at redressal of genuine public harm
\n                         or public injury and that there should be no personal
\n                         gain, private motive or oblique motive behind filing the
\n                         public interest litigation.\n<\/p><\/blockquote>\n
                     (f) Petitions filed by busybodies for extraneous and
\n                         ulterior motives must be discouraged by imposing
\n                         exemplary costs or by adopting similar novel methods
\n                         to curb frivolous petitions and the petitions filed for
\n                         extraneous considerations.”\n<\/p><\/blockquote>\n
16.        Further it is contended by Mr. Mohanty that no substantial public<\/p>\n
interest are involved in the present case and it does not amount to redressal<\/p>\n
of genuine public interest or public injury. Therefore, it is requested that the<\/p>\n
writ petition should be dismissed with exemplary costs, as the same has<\/p>\n
been filed with ulterior motive and on extraneous consideration. It is further<\/p>\n
alleged that the attempt of the petitioner to challenge the allotment of<\/p>\n
Mandakini Coal Block of Talcher coal fields in favour of JPL, which has got<\/p>\n
only 33% shareholding does not involve redressal of any public injury and no<\/p>\n
public interest is shown to be served by filing the present writ petition as<\/p>\n
observed by the Hon’ble Supreme Court in Balwant Singh Chaufal (supra)<\/p>\n
and also in a catena of decisions on PIL matter. Further, as the petitioner<\/p>\n
has no grievance against M\/s. Monnet Ispat & Energy Ltd and M\/s. Tata<\/p>\n
Power Company Ltd. who are the JVC of JPL and as JPL has got only 33%<\/p>\n
share in the project, it cannot be said that there will be any public injury<\/p>\n
even if the JPL is having no experience in the filed of power generation. It is<\/p>\n
contended that this Court having regard to the facts and circumstances of<\/p>\n
the case, as the petitioner is unable to show to this Court that neither public<\/p>\n
interest nor any public injury or any violation of rule of law is involved in this<\/p>\n
case, this Court should decline to exercise its Constitutional power under
\n                                       12<\/span><\/p>\n
Article 226 of the Constitution of India. Mr. Mohanty further seeks to justify<\/p>\n
the allotment in favour of opposite party No.3 and its status contending that<\/p>\n
opposite party No.3 is a flagship company of the B.C. Jindal Group which is<\/p>\n
one of the well reputed industrial groups in the country known for its multi-<\/p>\n
product on multi location manufacturing establishment for the last five<\/p>\n
decades, such as Jindal Photo Ltd., Jindal Poly Films Ltd., Jindal India Ltd..<\/p>\n
                    However, we do not feel it necessary to elaborate the<\/p>\n
details about the company in this judgment, which are given in the counter<\/p>\n
affidavit.\n<\/p>\n
17.                 It is further submitted that opposite party No.3 is acting<\/p>\n
in the interest of public and a Memorandum of Understanding (MOU) has<\/p>\n
been entered into with Govt. of Orissa for establishment of a power project of<\/p>\n
1200 MW by using coal as fuel. Several measures involving huge financial<\/p>\n
investment and stake have been taken for establishment of the Thermal<\/p>\n
Power Plant in Angul district in the State of Orissa. It is duty bound to act in<\/p>\n
terms of the undertakings given to the Govt. of Orissa with regard to the<\/p>\n
establishment of its Thermal Power Plant. The conditions include supply of<\/p>\n
generated power to the State of Orissa in the proportion as stipulated under<\/p>\n
the MOU at concessional rate. The opposite party No.3 has to utilize the coal<\/p>\n
from assured captive coal mines \/coal linkages by the Govt. of Orissa for End<\/p>\n
Use Projects, namely, the power plant alone, to be located in the State of<\/p>\n
Orissa and to provide employment to local people in terms of the allotment<\/p>\n
letter as well as MOU.      Therefore, the allegation made in the PIL that<\/p>\n
allotment of coalmines in its favour will hamper the public at large is<\/p>\n
certainly a wrong understanding of the petitioner with the concept of public<\/p>\n
interest or injury. Rather it will sub-serve the public interest by generating
\n                                        13<\/span><\/p>\n
large number of employment and also supply of power directly to the<\/p>\n
consumer in the rural parts of the Orissa State as well as in the town and<\/p>\n
urban areas and will certainly augment the per capita income of the people of<\/p>\n
the State of Orissa. Therefore, the allotment of the coal block in its favour is<\/p>\n
in the public interest and it definitely subserves the interest of the common<\/p>\n
man of the State. Hence, the petition is wholly untenable in the eye of law<\/p>\n
and deserves to be rejected.\n<\/p>\n
18.                 Mr. Mohanty, further referred to the allotment of the coal<\/p>\n
blocks in favour of the JVC on the basis of the recommendation of the State<\/p>\n
of Orissa and submits that the coal block allocation is subject to terms and<\/p>\n
conditions related to performance and the opposite party No.3 is bound by<\/p>\n
the terms and conditions of utilization of coal block allotted in its favour for<\/p>\n
the purpose of End Use. If the same is not used for that purpose and is sold<\/p>\n
in the public market it has to face the consequence of cancellation of the<\/p>\n
allotment as per the condition enumerated in the MOU.            Therefore, the<\/p>\n
apprehension of the petitioner’s society that the JPL will not utilize the<\/p>\n
material resources of coal block and sale it in the open market is also<\/p>\n
without any factual foundation and is devoid of any merit.<\/p>\n
19.                 Justifying the stand taken by the learned Assistant<\/p>\n
Solicitor General with regard to non violation of any guideline for allocation of<\/p>\n
Coal Blocks in favour of JPL, it is contended that strictly in conformity with<\/p>\n
the guidelines the allocation has been made. Further, huge investments has<\/p>\n
already been made by the company for setting up of the power plant, several<\/p>\n
measures have already been taken and infrastructural facilities have been<\/p>\n
obtained from the State Government, for acquiring 1055 acres of land (both<\/p>\n
Government and private) investment to the tune of Rs. 72 crores have been
\n                                          14<\/span><\/p>\n
made, water commitment for 40 cusecs of water has been obtained from the<\/p>\n
State Government and various other approvals, namely, clearance from the<\/p>\n
Ministry of Environment and Forest, Pollution control Board, Airport<\/p>\n
Authority etc. have already been obtained and financial closures for 1200<\/p>\n
MW for first and second unit has been completed and it is almost ready for<\/p>\n
manufacturing \/ production activities by establishing the plant but on<\/p>\n
account of the status quo order passed by this Court, further steps as<\/p>\n
required to be taken are stalled.\n<\/p>\n
20.                 Mr. Mohanty placing reliance upon the guidelines under<\/p>\n
Annexure-6 sought to justify the allocation of coal blocks in favour of JPL<\/p>\n
and its JVC and further submitted that the company has fulfilled all the<\/p>\n
criteria prescribed in the guidelines.    In order to fortify his submission, he<\/p>\n
has relied upon the provisions of Sub-Section (3) to Section 3 of the Act,<\/p>\n
1973 which reads thus :\n<\/p>\n
                    “(iii) a company engaged in :\n<\/p><\/blockquote>\n
                    (1) the production of iron and steel,
\n                    (2) generation of power
\n                    (3) washing of coal obtained from a mine, or
\n                    (4) such other end use as the Central Government may
\n                         by notification specify
\n                    xxx xx xxx xxx”<\/p><\/blockquote>\n
                    Clause (iii) of Sub-section (3) came by way of amendment<\/p>\n
to the aforesaid provision of the Act,1973 with effect from 9.6.1993.        By<\/p>\n
careful reading of the aforesaid provisions of the Act and the guidelines, Mr.<\/p>\n
Mohanty, learned Senior Counsel on behalf of the JPL submits that the<\/p>\n
exclusively power generation is not the criteria for allotment of coal blocks as<\/p>\n
contended by the learned counsel for the petitioner.      He submits that the<\/p>\n
Screening Committee has verified the application of the applicants, examined<\/p>\n
each one of the application on merit, applying its mind after procuring
\n                                        15<\/span><\/p>\n
reports from the respective State Governments and keeping in view the<\/p>\n
public interest of the State, the contract is awarded in favour of opposite<\/p>\n
party no.3 for a period of 30 years for generating power.         Therefore, he<\/p>\n
submits that there is no public interest involved in this matter.    Further, it<\/p>\n
is contended that after lapse of two years from the date of allocation, when<\/p>\n
the company has already invested huge amounts of money and obtained all<\/p>\n
necessary permission from different Authorities as required under the<\/p>\n
various Statutory enactments, at this stage petitioner has come up before<\/p>\n
this Court seeking to quash the allocation of coal block in favour of JPL<\/p>\n
contending that it is bad in law and as there is delay and latches on the part<\/p>\n
of the petitioner, the petition is devoid of any merit and deserves to be<\/p>\n
dismissed.\n<\/p>\n
21.                 Mr.     P.K.Mohapatra,   learned    counsel   appearing   for<\/p>\n
opposite party no.4 submits that he has no submission to make for the<\/p>\n
reason that opposite party no.4 is neither a proper or necessary party to this<\/p>\n
proceeding as no relief is sought against it. The same is placed on record.<\/p>\n
22.                 With regard to the above rival contentions, the following<\/p>\n
questions are framed for consideration of this Court.<\/p>\n
                    (i)     Whether the JPL, in whose favour award of the
\n                            contract of coal blocks was made for establishment
\n                            of power generation plant, is a eligible person to
\n                            submit the application pursuant to the notification
\n                            under Annexure-3 ?<\/p>\n
                    (ii)    Whether the allotment of coal blocks in favour of
\n                            opposite party no.3-JPL, for establishment of
\n                            power plant for generation of power by using the
\n                            coal blocks which are end uses, is vitiated on
\n                            account      of    illegality, arbitrariness   and
\n                            unreasonableness as contended by the petitioner ?\n<\/p>\n
                    (iii)   Whether there is any public interest involved by
\n                            allotting Mandakini Coal Block of Talcher
\n                            Coalfields in favour of JPL and its consortium
\n                                       16<\/span><\/p>\n
                          companies or it will affect either any public interest
\n                          or injury or is in violation of Rule of Law ?\n<\/p>\n
23.                 To answer the first question, it is necessary for us to refer<\/p>\n
the guidelines at Annexure-6 and the same are considered in the backdrop of<\/p>\n
the statutory provisions of Sub-Section (3) to Section 3 of the Act, 1973. On<\/p>\n
careful reading of the notification and guidelines, it appears that the<\/p>\n
applications were invited by opposite party No.1 for the purpose of allotment<\/p>\n
of coal blocks for generating power by establishing the plant.           In our<\/p>\n
considered view, the contention urged by the petitioner’s counsel that the<\/p>\n
JPL is ineligible as it did not have engaged itself in any power generation as<\/p>\n
on the date of filing the application, cannot be accepted by this Court for the<\/p>\n
reason that the guidelines are read with the statutory provisions referred to<\/p>\n
supra, did not provide anywhere that a person must have the experience in<\/p>\n
the field of power generation at the time of submission of its application.<\/p>\n
Such type of interpretation of the notification by the learned counsel for the<\/p>\n
petitioner cannot be accepted. If such an interpretation is given, the same<\/p>\n
would be contrary to the statutory provisions and the guidelines. As long as<\/p>\n
the statutory provision and the guidelines are intact, this Court cannot go<\/p>\n
beyond the same and fix a criteria that if a person not having existing power<\/p>\n
generation plant cannot submit the application as contended by the<\/p>\n
petitioner, which would run contrary to the statutory provisions and defeat<\/p>\n
the purpose for which the applications were invited by the opposite party<\/p>\n
no.1 for allotment of coal blocks in favour of a successful Tenderer for<\/p>\n
establishment of power generating plant.      Accordingly the first question is<\/p>\n
answered against the petitioner.\n<\/p>\n
                                       17<\/span><\/p>\n
24.                 To answer the second and third questions, it is necessary<\/p>\n
to mention that, elaborate procedure has been followed by the Union of India<\/p>\n
and other Ministries. A Screening Committee headed by the Secretary (Coal)<\/p>\n
as the Chairman, was constituted to process the applications received<\/p>\n
pursuant to the notification. It would be seen from the notes of preliminary<\/p>\n
submission made on behalf of the opposite party No.1 that the Committee<\/p>\n
has met on several occasions i.e. from 20.06.2007 to 23.06.2007 and on<\/p>\n
30.07.2007. The applications were scrutinized, processed, and the reports<\/p>\n
from the concerned State Governments were received for the purpose of<\/p>\n
allotment of coal blocks and thereafter the same were considered. During<\/p>\n
the process of scrutinisation of the applications, Screening Committee<\/p>\n
thoroughly examined the same on the basis of the detailed data and notes<\/p>\n
submitted by each one of the applicants and the representations which were<\/p>\n
filed before the said Committee. The Screening Committee is the fact finding<\/p>\n
Committee to examine various relevant factors like, financial capacity,<\/p>\n
technical capacity and various other aspects as required, which have been<\/p>\n
examined for allotting the coal blocks in favour of the eligible applicants for<\/p>\n
the purpose of establishment of power generation plant, by using the coal<\/p>\n
blocks for that purpose.   On the basis of relevant criteria and guidelines the<\/p>\n
Committee has applied its mind, expressed its opinion and recommended for<\/p>\n
allotment of the coal blocks in favour of Opposite party No.3-JPL and its<\/p>\n
consortium companies.      Unless cogent and positive materials are produced<\/p>\n
before this Court regarding the correctness of the decision of the fact finding<\/p>\n
Committee, it is not possible for this Court to interfere with the same.<\/p>\n
Therefore, the allegation made by the petitioner that the allotment of coal<\/p>\n
blocks awarded in favour of opposite party No.3 and its consortium
\n                                         18<\/span><\/p>\n
companies is illegal, arbitrary and unreasonable which attracts Article 14 of<\/p>\n
the Constitution of India is not based on any valid grounds and evidence. We<\/p>\n
are of the view that petitioner’s society has got very limited resources in<\/p>\n
placing the materials before this Court.     In public interest litigation, it is not<\/p>\n
for this Court to go into the correctness of the allegations made against the<\/p>\n
granting authority in the absence of material evidence to substantiate the<\/p>\n
allegations.    Opposite party No.1 is the authority which has allotted the coal<\/p>\n
blocks in favour of JPL and its consortium companies. Further, a Committee<\/p>\n
constituted by some responsible bureaucrat headed by the Secretary (coal) as<\/p>\n
its Chairman has carefully scrutinized the applications and being satisfied<\/p>\n
with the eligibility of opposite party No.3, has awarded the contract in its<\/p>\n
favour. The said fact is not at all denied by the petitioner as incorrect. In the<\/p>\n
absence of the same we cannot, on the basis of surmises, record any finding<\/p>\n
that the action of the Ministry of Coal in allotting the coal blocks in the<\/p>\n
favour of JPL is bad in law and JPL has influenced the Ministry in getting the<\/p>\n
allocation of coal blocks in its favour, and the same cannot be accepted by<\/p>\n
this Court.\n<\/p>\n
25.                   The Court should be very cautious while deciding a<\/p>\n
matter relating to PIL, if there is any public interest affected or any injury or<\/p>\n
any violation of rule of law is made out, then only this Court has to exercise<\/p>\n
its Judicial Review Power.\n<\/p>\n
26.                   In S.P. Gupta Vs. Union of India & Anr., AIR 1982 SC<\/p>\n
149, a Seven Judge Bench of Hon’ble Supreme Court has clearly defined<\/p>\n
‘what PIL means and is’ and held as follows :\n<\/p>\n
                     “It may therefore now be taken as well established
\n               that where a legal wrong or a legal injury is caused to a
\n                                       19<\/span><\/p>\n
            person or to a determinate class of persons by reason of
\n            violation of any constitutional or legal right or any burden
\n            is imposed in contravention of any constitutional or legal
\n            provision or without authority of law or any such legal
\n            wrong or legal injury or illegal burden is threatened and
\n            such person or determinate class of persons is by reason of
\n            poverty, helplessness, or disability or socially or
\n            economically disadvantaged position, unable to approach
\n            the court for relief, any member of the public can maintain
\n            an application for an appropriate direction, order or writ in
\n            the High Court under Article 226 and in case of breach of
\n            any fundamental right of such person or determinate class
\n            of persons, in this Court under Article 32 seeking judicial
\n            redress for the legal wrong or injury caused to such person
\n            or determinate class of persons …………… This Court will
\n            readily respond even to a letter addressed by such
\n            individual acting pro bono publico. It is true that there are
\n            rules made by this Court prescribing the procedure for
\n            moving this Court for relief under Article 32 and they
\n            require various formalities to be gone through by a person
\n            seeking to approach this Court. But it must not be
\n            forgotten that procedure is but a handmaiden of justice
\n            and the cause of justice can never be allowed to be
\n            thwarted by any procedural technicalities. The court would
\n            therefore unhesitatingly and without the slightest qualms
\n            of conscience cast aside the technical rules of procedure in
\n            the exercise of its dispensing power and treat the letter of
\n            public-minded individual as a writ petition and act upon
\n            it …. But we must hasten to make it clear that the
\n            individual who moves the court for judicial redress in cases
\n            of this kind must be acting bona fide with a view to
\n            vindicating the cause of justice and if he is acting for
\n            personal gain or private profit or out of political motivation
\n            or other oblique consideration, the court should not allow
\n            itself to be activised at the instance of such person and
\n            must reject his application at the threshold, whether it be
\n            in the form of a letter addressed to the court or even in the
\n            form of a regular writ petition filed in court. We may also
\n            point out that as a matter of prudence and not as a rule of
\n            law, the court may confine this strategic exercise of
\n            jurisdiction to cases where legal wrong or legal injury is
\n            caused to a determinate class or group of persons or the
\n            constitutional or legal right of such determinate class or
\n            group of persons is violated and as far as possible, not
\n            entertain cases of individual wrong or injury at the
\n            instance of a third party, where there is an effective legal-
\n            aid organisation which can take care of such cases.”\n<\/p><\/blockquote>\n
                   In Janata Dal Vs. H.S. Chowdhary & Ors., AIR 1993 SC<\/p>\n
892, the Hon’ble Supreme Court while deciding a PIL matter, referred to the<\/p>\n
decision in S.P.Gupta (supra) and held that the decision in Gupta’s case is a
\n                                        20<\/span><\/p>\n
golden master key which has provided access to the Courts for the poor and<\/p>\n
down trodden.\n<\/p><\/blockquote>\n
27.                 In Giani Devender Singh Sant Sepoy Sikh Vs. Union of<\/p>\n
Inida & Anr, AIR 1995 SC 1847, the Hon’ble Supreme Court held as under :<\/p>\n
                     “….If the High Court intends to pass an order on an
\n            application presented before it by treating it as a public
\n            interest litigation, the High Court must precisely indicate the
\n            allegations or the statements contained in such petition
\n            relating to public interest litigation and should indicate how
\n            public interest was involved and only after ascertaining the
\n            correctness of the allegation, should give specific direction as
\n            may deem, just and proper in the facts of the case.”\n<\/p><\/blockquote>\n
28.                 The Hon’ble Supreme Court in the case of R&M Trust Vs.<\/p>\n
Koramangala Residents Vigilance Group & Ors, AIR 2005 SC 894 held as<\/p>\n
under :\n<\/p>\n
            “……Courts should be very very slow in entertaining
\n          petitions involving public interest: in very rare cases where
\n          the public at large stand to suffer….”\n<\/p><\/blockquote>\n
29.                 In M\/s. Holicow Pictures Pvt. Ltd. Vs. Prem Chandra<\/p>\n
Mishra & Ors, AIR 2008 SC 913, the Hon’ble Supreme Court held as under :<\/p>\n
            “……Public interest litigation is a weapon which has to be
\n          used with great care and circumspection and the judiciary
\n          has to be extremely careful to see that behind the beautiful
\n          veil of public interest an ugly private malice, vested interest
\n          and\/or publicity-seeking is not lurking. It is to be used as an
\n          effective weapon in the armory of law for delivering social
\n          justice to the citizens. The attractive brand name of public
\n          interest litigation should not be used for suspicious products
\n          of mischief. It should be aimed at redressal of genuine public
\n          wrong or public injury and not publicity-oriented or founded
\n          on personal vendetta…..”\n<\/p><\/blockquote>\n
30.                 In the instant case, as could be seen from the event that<\/p>\n
had taken place, only after the allotment of coal blocks is made in favour of<\/p>\n
JPL, particularly when, private and Government lands to the extent of 1055<\/p>\n
acres have been acquired by the State Government and handed over in
\n                                        21<\/span><\/p>\n
favour of the JPL is the statement of counter filed by the opposite parties.<\/p>\n
The aforesaid land which includes both Government and Private lands, were<\/p>\n
provided to the JPL for establishment of plant by using coal blocks for end<\/p>\n
uses. Further, this writ petition has been filed in the year 2010 but the offer<\/p>\n
of allotment was made in the year 2008. Thereafter, the MOU and the<\/p>\n
supplementary agreement were entered into by opposite party No.1 with JPL<\/p>\n
and its consortium companies.      Apart from the said agreement, necessary<\/p>\n
permissions from the different departments like Pollution Control Board,<\/p>\n
Airport Authority and other necessary organizations had already been<\/p>\n
obtained for establishment of the plant.     As stated by the learned Senior<\/p>\n
Counsel huge investment has already been made for the purpose of<\/p>\n
procuring the water, for obtaining geological reports from CMPDI and GSI,<\/p>\n
bank guarantees, approval of mining plans etc. for establishment of the<\/p>\n
plant.   Further, as per the terms and conditions of the agreement, JPL and<\/p>\n
its consortium companies have entered into an agreement with the State<\/p>\n
Government to supply the power that would be generated for consumption of<\/p>\n
the consumers of the State at large. Therefore, this writ petition        at the<\/p>\n
instance of a public spirited person alleging that the public interest will<\/p>\n
suffer in the present case is not correct. Rather, in our considered view, if we<\/p>\n
interfere at this stage and quash the allotment by granting relief sought for<\/p>\n
by the petitioner, in that event, the public interest will suffer and injury will<\/p>\n
be caused to the public at large. Therefore, we are of the view that public<\/p>\n
interest is in favour of the allocation of coal blocks and not against it as<\/p>\n
alleged in the writ petition, for the reason that awarding of the contract in<\/p>\n
favour of JPL and its consortium companies for establishment of plant,<\/p>\n
referred to supra, by using the coal blocks for end uses is in the public
\n                                       22<\/span><\/p>\n
interest, which will generate employment for thousands of unemployed youth<\/p>\n
of the State and will augment the State exchequer. Not only it will mitigate<\/p>\n
the unemployment problem of the State but also mitigate the power<\/p>\n
generation problem as per the MOU entered into by the JPL and its<\/p>\n
consortium companies with the State Government. The State Government<\/p>\n
under Section 11 of the Electricity Supply Act, 2002 can issue notification to<\/p>\n
the power generating companies to supply power to the Corporation which<\/p>\n
will supply the same to the consumers and in that process both the<\/p>\n
agricultural and industrial development would take place in the State and as<\/p>\n
a result of which large number of farmers and industrial workers will be<\/p>\n
benefited and the per capita income of the people of the State will increase<\/p>\n
and in that process the public interest is protected and safeguarded. In view<\/p>\n
of the aforesaid reasons, we have answered the question Nos. 2 and 3 in<\/p>\n
justification of the allocation of the coal blocks in favour of JPL and its<\/p>\n
consortium companies.\n<\/p>\n
31.                 As we have answered all the points in justification of the<\/p>\n
award in allotting the coal blocks in favour of JPL and its consortium<\/p>\n
companies, the fact situation is not in favour of the petitioner’s society,<\/p>\n
which has filed this public interest litigation for grant of the reliefs.<\/p>\n
Accordingly the writ petition is dismissed.   Since we have dismissed the writ<\/p>\n
petition the status quo order granted by this Court on 25.2.2010 stands<\/p>\n
vacated.<\/p>\n","protected":false},"excerpt":{"rendered":"
Orissa High Court Welfare Society Of Orissa vs Unknown on 7 April, 2010 W.P.(C) No. 3352 of 2010 In the matter of an application under Articles 226 and 227 of the Constitution of India. ____________ Welfare Society of Orissa, (represented by its Secretary, Bhutkun Mandal),Jajpur … Petitioner – versus – Union of India … Opposite […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,25],"tags":[],"class_list":["post-136049","post","type-post","status-publish","format-standard","hentry","category-high-court","category-orissa-high-court"],"yoast_head":"\nWelfare Society Of Orissa vs Unknown on 7 April, 2010 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/welfare-society-of-orissa-vs-unknown-on-7-april-2010\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Welfare Society Of Orissa vs Unknown on 7 April, 2010 - 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