{"id":17797,"date":"2010-05-19T00:00:00","date_gmt":"2010-05-18T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-national-fuels-vs-jharkhand-state-mineral-develo-on-19-may-2010"},"modified":"2018-06-12T01:15:56","modified_gmt":"2018-06-11T19:45:56","slug":"ms-national-fuels-vs-jharkhand-state-mineral-develo-on-19-may-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-national-fuels-vs-jharkhand-state-mineral-develo-on-19-may-2010","title":{"rendered":"M\/S National Fuels vs Jharkhand State Mineral Develo on 19 May, 2010"},"content":{"rendered":"<div class=\"docsource_main\">Jharkhand High Court<\/div>\n<div class=\"doc_title\">M\/S National Fuels vs Jharkhand State Mineral Develo on 19 May, 2010<\/div>\n<pre>   IN THE HIGH COURT OF JHARKHAND AT RANCHI\n\n               W.P. (C) No. 5385 of 2009\n                        with\nW.P.(C) No. 5321 of 2009, W.P.(C) No. 5339 of 2009, W.P.(C) No. 5340 of\n2009,    W.P.(C) No. 5342 of 2009, W.P.(C) No. 5344 of 2009, W.P.(C) No.\n5345 of 2009,W.P.(C) No. 5352 of 2009,        W.P.(C) No. 5355 of 2009,\nW.P.(C) No. 5368 of 2009, W.P.(C) No. 5387 of 2009, W.P.(C) No. 5392 of\n2009, W.P.(C) No. 5322 of 2009, W.P.(C) No. 5369 of 2009, W.P.(C) No.\n5585 of 2009, W.P.(C) No. 5583 of 2009,       W.P.(C) No. 5839 of 2009 &amp;\nW.P.(C) No. 6092 of 2009\n   ---\nM\/s Maha Laxmi Enterprises, Palamau\n                            (Petitioner in W.P. (C) No. 5385 of 2009)\nM\/s. National Fuels , Daltonganj\n                            (Petitioner in W.P. (C) No. 5321 of 2009)\nM\/s India (SF) Prducts Company, Daltongaj\n                            (Petitioner in W.P. (C) No. 5339 of 2009)\nM\/s. Jagdish Fuel Industries, Palamau\n                            (Petitioner in W.P. (C) No. 5340 of 2009)\nM\/s. Deccan Trade Linc, Palamau\n                            (Petitioner in W.P. (C) No. 5342 of 2009)\nM\/s. Maa Durga Enterprises, Palamau\n                            (Petitioner in W.P. (C) No. 5344 of 2009)\nM\/s. Volvo Enterprises, Palamau\n                            (Petitioner in W.P. (C) No. 5345 of 2009)\nM\/s. Spice Jet Enterprises, Palamau\n                            (Petitioner in W.P. (C) No. 5352 of 2009)\nM\/s. F. G. Engeecom &amp; Industries, Dalgonganj\n                            (Petitioner in W.P. (C) No. 5355 of 2009)\nM\/s. Classic Chemicals, Daltonganj, Palamau\n                            (Petitioner in W.P. (C) No. 5368 of 2009)\nM\/s. Bhasker Enterprises, Daltonganj, Palamau\n                            (Petitioner in W.P. (C) No. 5387 of 2009)\nM\/s. Jai Mata Jee Enterprises, Daltonganj, Palamau\n                            (Petitioner in W.P. (C) No. 5392 of 2009)\nM\/s. Balajee Enterprises, Daltonganj, Palamau\n                            (Petitioner in W.P. (C) No. 5322 of 2009)\nM\/s. Shiv Coke Briquettes &amp;Manufacturing Co. Daltonganj,Palamau\n                            (Petitioner in W.P. (C) No. 5369 of 2009)\nM\/s. Sri Salasar Mineral Processing Works, Tendua Kalan, Palamau\n                            (Petitioner in W.P. (C) No. 5583 of 2009)\nM\/s. Vananchal Mineral &amp; Processing Works, Kataiya, Palamau\n                            (Petitioner in W.P. (C) No. 5839 of 2009)\nM\/s. Shiv Sagar Industries, Manuadih, Ramgarh\n                            (Petitioner in W.P. (C) No. 6092 of 2009)..\n\n                           Versus\n\n1. The State of Jharkhand through the Secretary, Department of\n   Industries\n2. Jharkhand State Mineral Development Corporation Ltd. Ranchi\n3. The Managing Director, Jharkhand State Mineral Development\n   Corporation Ltd. , Ranchi\n                                         2\n\n        4. In-Charge, Coal Marketting, Jharkhand State Mineral\n        Development Corporation Ltd. Ranchi\n        5. The Joint Director Industries, Directorate of Industries, Govt.\n        of Jharkhand, Ranchi      ...                  ...   Respondents\n                                                           ( In all cases)\n\n                      ---\nCORAM: HON'BLE MR. JUSTICE RAMESH KUMAR MERATHIA\n                      ---\n\n        For the Petitioner  : M\/s. Anil Kumar Sinha &amp;\n                            Ajit Kumar, Advocate\n        For the State       : Mr. A. Allam, Sr. S.C. II.\n        For the JSMDC       : Mr. Anoop Kumar Mehta, Advocate.\n                            ---\n        C.A.V. on 30.4.2010              Delivered on 19.5.2010\n\n                       ---\n\n9. 19.5.2010<\/pre>\n<p> :   All these writ petitions involving common questions<br \/>\n           were heard together at length. Parties agreed that these writ<br \/>\n           petitions can be disposed of on the basis of pleadings of W.P.<br \/>\n           (C) No. 5385 of 2009.\n<\/p>\n<p>           2.    These writ petitions have been filed for directing the<br \/>\n           respondent-Jharkhand              State      Mineral      Development<br \/>\n           Corporation Limited (JSMDC for short) to resume the coal<br \/>\n           supply to the petitioners from the month of October, 2009,<br \/>\n           and for quashing the letters under which, the coal supply<br \/>\n           agreements have been terminated\/ suspended.\n<\/p>\n<p>           3.    According to the petitioners, pursuant to Notice Inviting<br \/>\n           Tender (N.I.T.) dated 6.12.2007 issued by JSMDC inviting<br \/>\n           applications for purchase of coal of               Coal India Limited<br \/>\n           (C.I.L.)   collieries   from         JSMDC,       they    applied   for<br \/>\n           purchase\/allotment      of       coal.    JSMDC   asked   the   Deputy<br \/>\n           Commissioner, Palamau to hold preliminary inquiry at the<br \/>\n           District level about the status of the petitioners. Accordingly,<br \/>\n           three men committee consisting of the District Mining<br \/>\n           Officer; the General Manager, District Industries Centre,<br \/>\n           Medninagar; and the Additional Collector, Palamau inspected<br \/>\n           and recommended allotment of 350 M.T. coal per month.<br \/>\n           Accordingly, they entered into the agreements; deposited<br \/>\n           money, and started lifting coal, allotted to them, from April,<br \/>\n           2009. In July JSMDC asked the petitioners to submit the<br \/>\n           utilization report with other documents and informations,<br \/>\n           which the petitioners complied in August and October, 2009,<br \/>\n<span class=\"hidden_text\">                          3<\/span><\/p>\n<p>but while the petitioners were running their industries the<br \/>\nallotment of coal was discontinued from October 2009. Then<br \/>\nthey made several representations. But the coal supply<br \/>\nagreements have been terminated\/suspended without any<br \/>\nshow cause notice and without affording opportunity of<br \/>\nhearing to the petitioners.\n<\/p>\n<p>4.   On the other hand the respondents justified their<br \/>\nactions.\n<\/p>\n<p>5.   Accordingly, on 4.12.2009 the following order was<br \/>\npassed in these writ petitions:-\n<\/p>\n<blockquote><p>            &#8220;All these writ petitions involve similar<br \/>\n      controversy and therefore this common interim order<br \/>\n      is being passed in all these petitions.<\/p>\n<blockquote><p>            These are in all 14 writ petitions of &#8220;tiny&#8221;<br \/>\n      industries, as they are known whose supply\/allocation<br \/>\n      of coal under the F.S.A. has either been cancelled or<br \/>\n      suspended. The cancellation\/suspension is due to the<br \/>\n      suspicion on the part of the State Government that<br \/>\n      these industries do not exist on the spot.            This<br \/>\n      suspicion has been generated because letters sent to<br \/>\n      some of these industries were returned with the<br \/>\n      endorsement that the unit was not found on the spot.<br \/>\n      This in turn led to a suspicion that in the entire district<br \/>\n      there has been some large scale fraud by showing<br \/>\n      non-existent industries to be working on the spot and<br \/>\n      thereby obtaining allocation of coal through F.S.A.\n<\/p><\/blockquote>\n<blockquote><p>              Having regard to the nature of controversy, in<br \/>\n      stead of wasting time in obtaining lengthy affidavits<br \/>\n      from the parties, hearing lengthy arguments only for<br \/>\n      deciding the question of fact whether the industries<br \/>\n      actually exist on the spot or not, it seems to be more<br \/>\n      appropriate to require a dependable officer to conduct<br \/>\n      a spot inspection and to submit a report regarding<br \/>\n      existence of each of these 14 industries on the spot<br \/>\n      and either their running or their ability to run upon<br \/>\n      supply of fuel, along with photographs taken on the<br \/>\n      spot to corroborate the report. For this purpose, the<br \/>\n      Sub-Judge of the district Palamau or if the Sub-Judge,<br \/>\n      Palamau is not available for any reason, another civil<br \/>\n      Judicial Officer to be nominated on or before<br \/>\n      10.12.2009 by the District Judge, Palamau is hereby<br \/>\n      appointed for the above purpose. The petitioners will<br \/>\n      produce a certified copy of this order along with a list<br \/>\n      of names and complete addresses of each industry<br \/>\n      involved in these petitions before the District Judge,<br \/>\n      Palamau on or before 9th December, 2009 to enable<br \/>\n      him to issue necessary direction to the concerned Civil<br \/>\n      Judicial Officer. Because on 12.12.2009 there are<br \/>\n      elections in the district of Palamau, therefore, the<br \/>\n      Judicial Officer will conduct his inspection on<br \/>\n      13.12.2009 and if the inspection cannot be completed<br \/>\n      on 13.12.2009 he may continue the same on<br \/>\n      14.12.2009.      If the inspection is continued on<br \/>\n<span class=\"hidden_text\">                              4<\/span><\/p>\n<p>       14.12.2009 the Officer will be treated to be on duty for<br \/>\n       that day. The report will be sent through the District<br \/>\n       Judge, Palamau in sealed cover via special messenger<br \/>\n       so as to reach this Court by 16.12.2009.             The<br \/>\n       photographs taken by a digital camera may be sent in<br \/>\n       the form of a memory card which is normally used in<br \/>\n       such cameras so that time is not wasted in getting<br \/>\n       them printed in Palamau.\n<\/p><\/blockquote>\n<blockquote><p>             The Deputy Commissioner, Palamau will for this<br \/>\n       purpose arrange a proper vehicle with appropriate<br \/>\n       security escort for the Judicial Officer at 9.00 A.M. on<br \/>\n       13.12.2009 at the residence of the Judicial Officer. The<br \/>\n       learned counsel for the State will intimate this order to<br \/>\n       the Deputy Commissioner, Palamau by FAX by<br \/>\n       09.12.2009.\n<\/p><\/blockquote>\n<blockquote><p>             The learned counsel for the petitioners<br \/>\n       undertakes to supply a good quality digital camera to<br \/>\n       the Judicial Officer for this purpose along with a<br \/>\n       photographer for the period of two days.\n<\/p><\/blockquote>\n<blockquote><p>             A certified copy of this order will be issued on<br \/>\n       payment of requisite charges by 05.12.2009&#8243;\n<\/p><\/blockquote>\n<p>6.     Pursuant to the said order a report from Sub Judge-1,<br \/>\nPalamau, Daltonganj dated 15.12.2009 sent through the<br \/>\nlearned District Judge was received. The Sub Judge opined<br \/>\nthat the industries were in existence and were able to run<br \/>\nupon supply of fuel and they were found in running<br \/>\ncondition.    Along       with    report     photographs         and     other<br \/>\ndocuments were enclosed.\n<\/p>\n<p>7.     On 27.1.2010, the parties were given photo copies of<br \/>\nthe relevant documents\/ reports for filing their objections if<br \/>\nany.\n<\/p>\n<p>8.     Thereafter, when the matters were taken up on<br \/>\n24.2.2010, counsel for the petitioners submitted that in view<br \/>\nof the said reports, the writ petitions should be allowed and<br \/>\nJSMDC be directed to resume coal supply.\n<\/p>\n<p>9.     On    the     other       hand,     learned      counsel    for    the<br \/>\nrespondents submitted that as per the said order passed on<br \/>\n4.12.2009,         the     inspections        were       conducted         on<br \/>\n13\/14.12.2009, and within these 9-10 days the petitioners<br \/>\ngot time to manage the show by window dressing, which will<br \/>\nfind support from the stereotyped report of learned Sub<br \/>\nJudge.\n<\/p>\n<p>10.    On    being       prima     facie    satisfied     with    the     said<br \/>\nsubmissions of the respondents, I thought it proper to get a<br \/>\nconfidential inquiry done through the Vigilance Department,<br \/>\n<span class=\"hidden_text\">                           5<\/span><\/p>\n<p>without indicating anything in the court. Accordingly only<br \/>\nthis order was passed on 24.2.2010-\n<\/p>\n<p>       &#8220;Heard the parties. Order is reserved.&#8221;\n<\/p>\n<p>11.    Accordingly a confidential letter dated 19th March, 2010<br \/>\nwas issued to the Director General of Police, Vigilance<br \/>\nBureau, Jharkhand, Ranchi. One inquiry report for 14 units<br \/>\nwas received. But when these cases were got listed on<br \/>\n7.4.2010, it was noticed by this Court that writ petitions of 3<br \/>\nmore    units   were    tagged   with   these    writ   petitions.<br \/>\nAccordingly, reports with regard to these 3 units were also<br \/>\nasked, confidentially, and simply this order was passed-\n<\/p>\n<p>       &#8220;Put up for orders on 17.4.2010.&#8221;\n<\/p>\n<p>12.    Then on 17.4.2010, the following was passed:-\n<\/p>\n<blockquote><p>       &#8220;Pursuant to the order dated 4.12.2009, reports were<br \/>\n       received. On 27.1.2010, the parties were given copies<br \/>\n       of relevant reports for their objection, if any. On<br \/>\n       24.2.2010, State counsel objected to the reports,<br \/>\n       saying that the petitioners got time to manage the<br \/>\n       show by window dressing and therefore, the<br \/>\n       stereotyped reports have come.\n<\/p><\/blockquote>\n<blockquote><p>             In the circumstances, I thought it proper to get<br \/>\n       an inquiry done, confidentially, without indicating<br \/>\n       anything in the order. A confidential letter dated<br \/>\n       19.3.2010 was sent to the Director General of Police,<br \/>\n       Vigilance Bureau, Jharkhand. One inquiry report was<br \/>\n       received for 14 units, but when the cases were listed<br \/>\n       on 7.4.2010, it was noticed that writ petition of three<br \/>\n       more units were tagged with these writ petitions.<br \/>\n       Accordingly, the matter was simply adjourned for<br \/>\n       17.4.2010 and a report was called for, confidentially<br \/>\n       about the remaining three units.\n<\/p><\/blockquote>\n<blockquote><p>             The two sealed covers, containing the said<br \/>\n       reports, were opened in Court.\n<\/p><\/blockquote>\n<blockquote><p>             Let copies of the reports be supplied to the<br \/>\n       parties. Objections, if any, by the parties may be filed<br \/>\n       by 27.4.2010.\n<\/p><\/blockquote>\n<blockquote><p>             Put up on 30.4.2010 under the same heading for<br \/>\n       disposal, if possible.\n<\/p><\/blockquote>\n<blockquote><p>             Let a copy of this order be handed over the State<br \/>\n       Counsel, as prayed.&#8221;\n<\/p><\/blockquote>\n<p>The parties were given liberty to look into the reports and<br \/>\nraise their objection, if any.\n<\/p>\n<p>13.    On 30.4.2010, the parties were heard at length. Mr.<br \/>\nSinha, appearing for the petitioners objected to the said<br \/>\nconfidential reports on the following grounds. The judicial<br \/>\n<span class=\"hidden_text\">                                   6<\/span><\/p>\n<p>officer correctly reported that the units of the petitioners<br \/>\nexist. The respondents did not file written objections to such<br \/>\nreports and without rejecting such reports; no further<br \/>\nenquiry        should      have    been      done     by   this   Court.    The<br \/>\nconfidential enquiry has been done by the Vigilance behind<br \/>\nthe back of the petitioners. A big unit Kalawati Coal<br \/>\nCompany has been compared with the tiny units of the<br \/>\npetitioners. The vigilance enquiry also shows that the units<br \/>\nof the petitioners exists.\n<\/p>\n<p>14.    In reply it was submitted that decision was taken in a<br \/>\nhigh level meeting to cancel\/suspend the agreements when<br \/>\nthe coal utilization reports were asked but the letters<br \/>\nreturned and the petitioners, did not submit such reports,<br \/>\nwhich showed that they have not utilized coal for specified<br \/>\npurpose and have disposed off coal otherwise. Now this<br \/>\nposition finds support from the vigilance report. The Judicial<br \/>\nOfficer held enquiry after about 9-10 days from the order of<br \/>\nthis court and between this period, the petitioners managed<br \/>\nthe show, which is apparent form the stereotyped reports. It<br \/>\nis further argued on behalf of the respondents that in such<br \/>\ncircumstances it cannot be said that the enquiry reports of<br \/>\nthe Judicial Officer should be believed and not the Vigilance<br \/>\nenquiry. Moreover, both the reports are part of these<br \/>\nproceedings. When the vigilance enquiry is confidential, it<br \/>\ncannot be said that it was behind the back of the petitioners.<br \/>\nIt is also submitted on behalf of respondents that even if the<br \/>\nobservations about Kalawati Coal Company and other<br \/>\nobservations, in the vigilance report are kept aside for the<br \/>\nsake      of        argument,     petitioners&#8217;      claim-that    their    units<br \/>\nfunctioned for about 4-6 months, before they were closed in<br \/>\nOctober, 2009, does not find support form the vigilance<br \/>\nreport.        It    was   also       said   that    the   committee        has<br \/>\nrecommended action against the General Manager, District<br \/>\nIndustry Centre, Medninagar, Palamau. It was lastly said that<br \/>\nthe petitioners have set up their units only for getting quota<br \/>\nof coal for selling it at premium price.\n<\/p>\n<p>15.    The impugned letter dated 17.11.2009, issued to the<br \/>\npetitioner in the first writ petition (W.P.C. No. 5385 of 2009 )<br \/>\nreads as follows:-\n<\/p>\n<p><span class=\"hidden_text\">                   7<\/span><\/p>\n<p>&#8220;To<br \/>\nM\/s Mahalaxmi Enterprises<br \/>\nNimia, Sudana<br \/>\nPalamau (Jharkhand)<\/p>\n<p>Sub: Order terminating Agreement No. 131 dated<br \/>\n10.08.2009 for sale of coal between M\/s Jharkhand<br \/>\nState Mineral Development Corporation Ltd., Doranda,<br \/>\nRanchi and M\/s Mahalaxmi Enterprises District<br \/>\nPalamau.\n<\/p>\n<p>Sir,<br \/>\n       M\/s Jharkhand State Mineral Development<br \/>\nCorporation Ltd., Doranda, Ranchi has been entrusted<br \/>\nwith the duty of sale and distribution of coal to<br \/>\nsmall\/medium      scale    industrial    units   on   the<br \/>\nrecommendation of District Level Committee and State<br \/>\nLevel Committee under New Coal Distribution Policy,<br \/>\n2007 vide resolution of the Dept. of Mines &amp; Geology<br \/>\ndated 13.05.2008 published in Jharkhand Gazette No.<br \/>\n395 dated 15.05.2008.\n<\/p>\n<p>       In the Jharkhand Gazette No. 395 dated<br \/>\n15.05.2008, it has been clarified that the District Level<br \/>\nCommittee is to verify the consumption and utilization<br \/>\nof coal allocated to these units and the State Level<br \/>\nCommittee will examine the utilization of coal on the<br \/>\nreport by the District Level Committee.\n<\/p>\n<p>       The Director of Industries, Jharkhand, Ranchi vide<br \/>\nits letter No. 1653 dated 6.7.08 sought for utilization<br \/>\nreport in the prescribed format from 181 industrial<br \/>\nunits. As per the report received from the Dept. of<br \/>\nIndustries it was found that 64 units are working while<br \/>\n14 units have not been established. Letters sent by the<br \/>\nIndustries Department in respect to 62 units have<br \/>\nreturned undelivered while in respect to 41 units no<br \/>\nutilization report could be received by the Industries<br \/>\nDepartment as in evident from the above mentioned<br \/>\nletter.\n<\/p>\n<p>       The Secretary, Dept. of Industries, Govt. of<br \/>\nJharkhand, Ranchi has therefore directed the Managing<br \/>\nDirector JSMDC Lt. to cancel the allotment of coal if<br \/>\nbeing made in respect to 62 units whose where about<br \/>\nare not known.\n<\/p>\n<p>       The Director Industries Govt. of Jharkhand by her<br \/>\nletter no. 2633 dated 11.11.09 has forwarded a list<br \/>\ncontaining names of 62 units with a direction to<br \/>\ncomply with the decision taken in the meeting held on<br \/>\n15.10.09 and communicated to the Corporation vide<br \/>\nletter No. 2492 dated 22.10.09 where by the Managing<br \/>\nDirector    JSMDC     Ltd.   has     been    directed  to<br \/>\ncancel\/terminate allotment of coal and report<br \/>\ncompliance to the said Directorate.\n<\/p>\n<p>       Now, therefore, in view of the orders and the<br \/>\ndirections passed by the Secretary, Industries<br \/>\nDepartment. The Director of Industries, Govt. of<br \/>\nJharkhand, Ranchi and clause II(V) of the Coal Supply<br \/>\nAgreement No. 131 Dated 10.08.2009 is hereby<br \/>\nterminated.\n<\/p>\n<p><span class=\"hidden_text\">                            8<\/span><\/p>\n<p>             You are directed to collect amount if any, due to<br \/>\n       you from the Corporation, upon reconciliation of<br \/>\n       account within a period of 15 days from the date of<br \/>\n       receipt of this order.\n<\/p>\n<p>             By order of the competent authority.\n<\/p>\n<p>                                      Yours faithfully,<\/p>\n<p>                                      (Pravir Kumar)<br \/>\n                                      I\/c Coal Trading Cell&#8221;\n<\/p>\n<p>16.    Clause 10 and 11 and 12(iv) of the agreements<br \/>\nentered between the petitioners and JSMDC, reads as<br \/>\nfollows:-\n<\/p>\n<p>&#8220;10.           End User Clause:\n<\/p>\n<blockquote><p>       (i)     The purchase hereby declares that the CIL coal<br \/>\n               to be purchased by them from the Seller in<br \/>\n               pursuance of this agreement shall not be<br \/>\n               diverted for any use other than the end-use as<br \/>\n               mentioned herein or traded in any other way and<br \/>\n               that the same will be used only for the purpose<br \/>\n               indicated in this agreement. In other words all<br \/>\n               coal to be supplied to the Purchaser shall be<br \/>\n               utilized as fuel\/raw material for further<br \/>\n               processing       in     Mahalaxmi      Enterprises<br \/>\n               Company\/plant of the purchaser situated at<br \/>\n               Nimia, Sudna, Aurangabad, Medinagar, Palamau,<br \/>\n               Jharkhand.\n<\/p><\/blockquote>\n<blockquote><p>       (ii)    The Purchaser has submitted\/undertakes to<br \/>\n               submit an affidavit to the effect that the coal to<br \/>\n               be supplied to them shall be used only for the<br \/>\n               purpose specified herein.\n<\/p><\/blockquote>\n<blockquote><p>       (iii)   The Seller, the Government of Jhakrhand or any<br \/>\n               of their authorised officer shall be free to visit<br \/>\n               the Purchaser&#8217;s plant for verification of end-use<br \/>\n               of coal and the Purchaser shall be bound to<br \/>\n               facilitate the same extend all help and assistance<br \/>\n               and produce all documents and records which<br \/>\n               may be necessary for the purpose of such<br \/>\n               verification.\n<\/p><\/blockquote>\n<blockquote><p>       (iv)    The Purchaser also hereby undertakes to furnish<br \/>\n               periodical certificates, as may be required by the<br \/>\n               Seller,     from     a     practicing    Chartered<br \/>\n               Accountant\/Cost Accountant certifying end-use<br \/>\n               of coal to be supplied to them in terms of this<br \/>\n               agreement. The Purchaser further undertakes to<br \/>\n               supply such other information, and\/or certificate<br \/>\n               as may be required by the Seller, during the<br \/>\n               term of this agreement.\n<\/p><\/blockquote>\n<blockquote><p>       11.     Termination of Agreement:-\n<\/p><\/blockquote>\n<blockquote><p>               This agreement shall be liable to be terminated<br \/>\n               by the Seller on the occurrence of the following<br \/>\n               events. However, such termination shall be<br \/>\n               without prejudice to the accrued rights or<br \/>\n               obligations of the either party as it stood<br \/>\n<span class=\"hidden_text\">                           9<\/span><\/p>\n<p>              immediately prior to the termination. The<br \/>\n              termination shall be dully communicated to the<br \/>\n              Purchaser in writing. The Seller shall bear no<br \/>\n              liability on account of such termination.\n<\/p><\/blockquote>\n<\/blockquote>\n<blockquote><p>      (i)     If a material information furnished by the<br \/>\n              Purchaser before or after signing of this<br \/>\n              Agreement is found to be not true. This would<br \/>\n              also cause the security deposit to be forfeited.\n<\/p><\/blockquote>\n<blockquote><p>      (ii)    On permanent closure of the end-use plant of the<br \/>\n              Purchaser or on shifting or relocating the same<br \/>\n              outside the State of Jharkhand.\n<\/p><\/blockquote>\n<blockquote><p>      (iii)   If the Seller on its own motion or on the<br \/>\n              information furnished by others finds and is<br \/>\n              satisfied that the coal supplied under this<br \/>\n              agreement is put to a use other than the end-use<br \/>\n              specified in this agreement or is disposed of<br \/>\n              otherwise. This would also lead to forfeiture of<br \/>\n              the security deposit.\n<\/p><\/blockquote>\n<blockquote><p>      (iv)    In the event of non payment of compensation for<br \/>\n              short-lifting of coal by the Purchaser within the<br \/>\n              permitted time or extension thereof if any. The<br \/>\n              security deposit would also be liable to be<br \/>\n              forfeited.\n<\/p><\/blockquote>\n<blockquote><p>      (v)     On receipt of any order or direction of the State<br \/>\n              Government to that effect.&#8221;\n<\/p><\/blockquote>\n<pre>      12      Miscellaneous:\n      (iv)    Arbitration:-\n<\/pre>\n<blockquote><p>              In the event of any differences or dispute<br \/>\n              between the Seller and the Purchaser with<br \/>\n              reference to any matter arising out of this<br \/>\n              agreement such disputes or differences will be<br \/>\n              referred for arbitration to a Sole Arbitrator who<br \/>\n              will be nominated by the Manging Director,<br \/>\n              JSMDC in terms of the provisions of the<br \/>\n              Arbitration and Conciliation Act, 1996.\n<\/p><\/blockquote>\n<p>17.   Thus it appears that the quota of coal was allotted with<br \/>\nclear stipulation that it will be used only for the specified<br \/>\npurpose and if it appeared to JSMDC that the coal supplied<br \/>\nhas not been used for the specified purpose, and it has been<br \/>\ndisposed off, otherwise, it could terminate\/suspend the<br \/>\nagreements. The impugned action cannot be said to be<br \/>\nwithout any basis. Petitioners are claiming coal supply under<br \/>\nthe contract. Respondents are denying such claim on the<br \/>\nbasis of the contract. Actually, both the parties are alleging<br \/>\nviolation of contract, against each other. Such disputes<br \/>\ncannot be decided in these writ petitions. Moreover, it is<br \/>\nsettled position that in such type of non-statutory contracts,<br \/>\npetitioners cannot allege that there has been violation of the<br \/>\nprinciples of natural justice. Further there appears to be an<br \/>\n<span class=\"hidden_text\">                            10<\/span><\/p>\n<p>     arbitration clause.\n<\/p>\n<p>     18   In the facts and circumstances noticed above and for<br \/>\n     the reasons aforesaid, these writ petitions are dismissed.<br \/>\n     However, no costs.\n<\/p>\n<p>                                      (R. K. Merathia, J.)<br \/>\nMK\n <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Jharkhand High Court M\/S National Fuels vs Jharkhand State Mineral Develo on 19 May, 2010 IN THE HIGH COURT OF JHARKHAND AT RANCHI W.P. (C) No. 5385 of 2009 with W.P.(C) No. 5321 of 2009, W.P.(C) No. 5339 of 2009, W.P.(C) No. 5340 of 2009, W.P.(C) No. 5342 of 2009, W.P.(C) No. 5344 of 2009, [&hellip;]<\/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":[8,18],"tags":[],"class_list":["post-17797","post","type-post","status-publish","format-standard","hentry","category-high-court","category-jharkhand-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M\/S National Fuels vs Jharkhand State Mineral Develo on 19 May, 2010 - Free Judgements of Supreme Court &amp; 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\/ms-national-fuels-vs-jharkhand-state-mineral-develo-on-19-may-2010\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"M\/S National Fuels vs Jharkhand State Mineral Develo on 19 May, 2010 - Free Judgements of Supreme Court &amp; 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