{"id":60434,"date":"2011-09-21T00:00:00","date_gmt":"2011-09-20T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-balaji-fuels-private-ltd-vs-central-coalfields-ltd-ors-on-21-september-2011"},"modified":"2017-10-29T10:05:07","modified_gmt":"2017-10-29T04:35:07","slug":"ms-balaji-fuels-private-ltd-vs-central-coalfields-ltd-ors-on-21-september-2011","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-balaji-fuels-private-ltd-vs-central-coalfields-ltd-ors-on-21-september-2011","title":{"rendered":"M\/S Balaji Fuels Private Ltd. vs Central Coalfields Ltd. &amp; Ors on 21 September, 2011"},"content":{"rendered":"<div class=\"docsource_main\">Jharkhand High Court<\/div>\n<div class=\"doc_title\">M\/S Balaji Fuels Private Ltd. vs Central Coalfields Ltd. &amp; Ors on 21 September, 2011<\/div>\n<pre>             IN THE HIGH COURT OF JHARKHAND AT RANCHI\n                     W.P.(C) No. 2376 of 2011\n        M\/s Balaji Fuels Private Ltd.                 ....... Petitioner.\n                                  Versus\n       Central Coalfields Ltd. &amp; others        ....          Respondents.\nCORAM: -     HON'BLE MRS. JUSTICE POONAM SRIVASTAV\n\n       For the Petitioner         : M\/s A.K. Sinha, Sr. Advocate, Amit Sinha\n                                        Neeta Sinha, Advocates.\n       For the Respondents        : Mr.A.K. Mehta, Advocate, Mr. A.K. Das.\n\n       Reserved on 5th July,2011             Delivered on 21 \/09 \/2011.\n\n09\/ 21\/09.2011<\/pre>\n<p>:       Sri A.K. Sinha, Sr. Advocate assisted by Mr. Amit Sinha and Ms<\/p>\n<p>       Neeta Sinha, Advocates appears on behalf of the petitioner and Sri Anoop<\/p>\n<p>       Mehta, Advocate, appears on behalf of the respondents M\/s C.C.L..<\/p>\n<p>       2.            The instant writ petition is preferred for a direction in the nature<\/p>\n<p>       of mandamus to the respondents to release the coal for the month of<\/p>\n<p>       March, 2011 onwards, in the light of the decision of this Court in W.P.(C) No.<\/p>\n<p>       6044 of 2006 dated 1st April, 2006 and also order passed in Contempt Case<\/p>\n<p>       \u00a9 No. 550 of 2009. Prayer is also for issuance of restrained order against<\/p>\n<p>       the respondent authorities from taking any coercive step against the<\/p>\n<p>       petitioner.\n<\/p>\n<p>       3.            The questions raised in the instant writ petition are detailed in<\/p>\n<p>       paragraph 2 of the petition, which are being quoted herein below.<\/p>\n<p>                                  (a)   Whether       the   action   of     the   Respondent<br \/>\n                      authorities in not issuing the D.O. Letter and releasing coal for<br \/>\n                      the month of March, 2011 as illegal, arbitrary and without<br \/>\n                      jurisdiction?\n<\/p>\n<p>                                  (b)   Whether the action of the Respondents in<br \/>\n                      stopping the coal supply merely on the basis of a newspaper<br \/>\n                      report about institution of a case against the petitioner by the<br \/>\n                      CBI can be said to be violative of the new Coal Distribution<br \/>\n                      Policy and the terms and conditions of Fuel Supply Agreement<br \/>\n                      executed between the petitioner and Respondent CCL?\n<\/p>\n<p>                                  (c ) Whether the seller and the consumer are legally<br \/>\n                      bound by the terms &amp; conditions of the Fuel Supply Agreement?<br \/>\n<span class=\"hidden_text\">                                         2.<\/span>\n<\/p>\n<p>                         (d) Whether on mere institution of a case by CBI<br \/>\n            and in absence of any direction by CBI to CCL for suspending<br \/>\n            Coal supply, a monthly coal supply in favour of the petitioner<br \/>\n            can be stopped?\n<\/p>\n<p>                         (e) Whether the petitioner is legally entitled to have<br \/>\n            monthly quota of coal for the month of March, 2011 and<br \/>\n            onwards in the light of clear speaking direction of this Hon&#8217;ble<br \/>\n            Court and also in the light of 3 inspections of the unit having<br \/>\n            carried out by the Respondent CCL which has certified about<br \/>\n            the working status of the unit?\n<\/p>\n<pre>                         (f) Whether         the action of the Respondents is\n            violative   of   Articles    14,16,19(1)(g)   and   300(a)   of   the\n            Constitution of India?\n<\/pre>\n<p>4.          The facts of the case are that the petitioner was granted coal<\/p>\n<p>linkage in the year 1991 to an extent of 5000 MT. After the appropriate<\/p>\n<p>capacity assessment given by the CMPDIL after making a thorough<\/p>\n<p>inspection recommendation was made to coal India Limited fixing quota<\/p>\n<p>month wise as 5000 MT. Copy of the said letter dated 13\/16.05.1991 is<\/p>\n<p>Annexure-2 to the writ petition.         Supply of coal to the petitioner was<\/p>\n<p>stopped in the year 2005. This action was challenged by preferring W.P.(C)<\/p>\n<p>No. 6044 of 2006 for resumption of supply of coal and the same was<\/p>\n<p>disposed of vide order dated 1st April, 2009. Copy of the order is Annexure-4<\/p>\n<p>to the writ petition. The direction in the said writ petition in substance was<\/p>\n<p>that since the respondents had sought certain factual information against<\/p>\n<p>15 points, but since no information was received coal supply was stopped.<\/p>\n<p>This Court directed that the petitioner shall be given a reasonable<\/p>\n<p>opportunity to bring on record all relevant documents and after submission<\/p>\n<p>of the same if any doubt persists regarding the existence of the petitioner&#8217;s<\/p>\n<p>unit, the respondent may make spot verification by fixing a date with prior<\/p>\n<p>notice to the petitioner and even on spot inspection\/ verification final<\/p>\n<p>decision on each point shall be taken by the respondent by means of<\/p>\n<p>speaking order. The entire exercise was further directed to be completed<br \/>\n<span class=\"hidden_text\">                                      3.<\/span><\/p>\n<p>within three months. Since the petitioner&#8217;s unit is completely based on<\/p>\n<p>linkage of coal, contempt proceedings was was initiated for non-compliance<\/p>\n<p>of the order in the writ petition. Coal supply was resumed on initiation of<\/p>\n<p>contempt proceedings, but subsequently once again the petitioner is facing<\/p>\n<p>the same situation.\n<\/p>\n<p>5.        The submission on behalf of the petitioner is that the petitioner&#8217;s<\/p>\n<p>linkage the petitioner&#8217;s linkage was accepted as valid and the petitioner<\/p>\n<p>was required to enter into conditional Fuel Supply Agreement with CCL for<\/p>\n<p>one month for release of monthly quota vide letter dated 15.3.2010. A<\/p>\n<p>conditional agreement was executed on 16.3.2010, which according to the<\/p>\n<p>petitioner, was executed contrary to the new Coal Distribution Policy, 2007.<\/p>\n<p>The emphatic submission is that the new Policy does not provide any<\/p>\n<p>conditional agreement. Subsequently vide letter dated 20.3.2010 the<\/p>\n<p>petitioner was informed that supply of coal would be made for a period of<\/p>\n<p>one month. Thereafter, after inspection by competent authorities further<\/p>\n<p>supply of coal may or may not continue. After execution of the conditional<\/p>\n<p>agreement the respondent accepted a draft for the month of March 2010<\/p>\n<p>and released the coal for the said month. Thereafter inspection was made<\/p>\n<p>on 22.4.2010. Consequent thereon the competent authority decided to<\/p>\n<p>continue supply of coal. Another inspection was carried out by a team<\/p>\n<p>consisting of C.C.L. Authorities and retired CBI officials on 22.9.2010. The<\/p>\n<p>report submitted was :\n<\/p>\n<blockquote><p>     (I) The factory was in running order;\n<\/p><\/blockquote>\n<blockquote><p>     (ii) 21 labourers were working;\n<\/p><\/blockquote>\n<blockquote><p>     (iii) Existing stock was approximately 300 tonnes (Raw material)as seen<br \/>\n     and 300 tonnes SSF.\n<\/p><\/blockquote>\n<blockquote><p>     Copy of the said report is Annexure-8 to the writ petition.\n<\/p><\/blockquote>\n<p>6.        Subsequently yet another inspection was carried out on 5.12.2010<\/p>\n<p>i.e. approximately after 2 \u00bd months by a batch consisting of CCL authorities<\/p>\n<p>and the CBI officials vide Annexure-9 to the writ petition certifying that the<br \/>\n<span class=\"hidden_text\">                                     4.<\/span><\/p>\n<p>petitioner&#8217;s unit was in working status.\n<\/p>\n<p>7.          Learned counsel appearing on behalf of the petitioner submits<\/p>\n<p>that another contempt petition being Contempt Case (C) No. 352 of 2010<\/p>\n<p>was preferred highlighting the manner of functioning of the respondents,<\/p>\n<p>whereby supply of coal was not continuous and was hampered time and<\/p>\n<p>again which caused great inconvenience and financial loss to the unit,<\/p>\n<p>evidently it prevented smooth functioning.\n<\/p>\n<p>8.          Suddenly    coal supply for the month of March 2011 was<\/p>\n<p>stopped, though amount towards the said supply was already in deposit<\/p>\n<p>with the respondents. On inquiry it was revealed that a First Information<\/p>\n<p>Report has been instituted against the petitioner by the C.B.I. News item<\/p>\n<p>appeared in the daily newspaper and thus, the supply for the month of<\/p>\n<p>March 2011 and onwards was stopped. The petitioner preferred the instant<\/p>\n<p>writ petition on sudden stoppage of coal supply without notice. After the<\/p>\n<p>news paper reporting and acquiring knowledge about the aforesaid F.I.R. an<\/p>\n<p>amendment application vide I.A. No. 1547 of 2011 was made challenging<\/p>\n<p>the letter\/ order dated 9.5.2011.This letter was a communication issued to<\/p>\n<p>the petitioner suspending supply\/ dispatch of coal which is Annexure-9 to<\/p>\n<p>the Amendment Application. The said I.A. was allowed vide order dated<\/p>\n<p>13.6.2011.The petitioner was permitted to challenge the order dated<\/p>\n<p>9.5.2011 by adding the prayer.\n<\/p>\n<p>9.          The submission on behalf of the petitioner is that the<\/p>\n<p>respondents could not adopt highhanded attitude as it has been done in the<\/p>\n<p>case of the petitioner. The only option before the respondents was to<\/p>\n<p>cancel the agreement after issuing a notice and giving an opportunity of<\/p>\n<p>hearing specially since merely lodging of a F.I.R. amounts to levelling<\/p>\n<p>allegation alone but cannot be treated to be an unit liable for a criminal<\/p>\n<p>offence. In absence of any written order or notice the act of the<\/p>\n<p>respondents is nothing short of contempt, whereas in the instant case<br \/>\n<span class=\"hidden_text\">                                  5.<\/span><\/p>\n<p>second cont. Case (C )No. 352 of 2010 is still pending for disposal. Sri Sinha<\/p>\n<p>has castigated the action of the respondents as a blatant abuse of the<\/p>\n<p>orders of this Court, besides being illegal, arbitrary and unfair. The news<\/p>\n<p>paper report about the incident chastising the petitioner can hardly be a<\/p>\n<p>good cause for stopping the supply of coal which was continued only after<\/p>\n<p>direction of this Court in the previous writ petition specially when the<\/p>\n<p>proceedings     under    Contempt     petition    and   after   executing   a   fresh<\/p>\n<p>agreement. It is contended that the action of the respondents is violative of<\/p>\n<p>Articles 14,16, 19(1)(g) and 300 (A) of the Constitution of India.<\/p>\n<p>10.          The respondents filed their counter affidavit. On the basis of a<\/p>\n<p>revised     Coal Supply Agreement dated 31.7.2010, whereby certain new<\/p>\n<p>conditions were incorporated in the original Agreement dated 16.3.2010<\/p>\n<p>and also stating therein that a complaint has been received by the S.P., CBI,<\/p>\n<p>Ranchi, at the behest of Gopalka Credit Corporation, Church Complex,<\/p>\n<p>Ranchi. The said complaint was sent to the C.B.I. by the Dy. S.P., Vigilance<\/p>\n<p>Department. Complaint was in respect of black-marketing of coal by the<\/p>\n<p>petitioner&#8217;s unit, which is also part of the counter affidavit. A joint surprise<\/p>\n<p>check memorandum dated 26.3.2011 was made. The said surprise<\/p>\n<p>inspection report reveals that on physical inspection of the plant, the unit<\/p>\n<p>runs   on    generator   sets,   however,    no    bills\/   invoices   pertaining   to<\/p>\n<p>procurement of diesel was found or produced. The plant was found in-<\/p>\n<p>operative and also the order suspending the coal dispatch as well as a<\/p>\n<p>decision of the Apex Court between Coal India Limited and others<\/p>\n<p>Versus Alok Fuels Private Limited ( 2010) 10 Supreme Court Cases<\/p>\n<p>157. The respondents lay emphasis on the said decision of the Hon&#8217;ble<\/p>\n<p>Supreme Court.\n<\/p>\n<p>11.          Learned counsel appearing on behalf of the petitioner submits<\/p>\n<p>that the order of suspension though passed at a subsequent stage in the<\/p>\n<p>month of May 2011 whereas supply of coal was suspended in the month of<br \/>\n<span class=\"hidden_text\">                               6.<\/span><\/p>\n<p>March 2011. No grounds have been enumerated for suspending the supply<\/p>\n<p>of coal. It is for the first time the respondents have revealed that the supply<\/p>\n<p>was stopped on account of a F.I.R. It is settled principle of law that ground<\/p>\n<p>for passing an order against the petitioner cannot be supplemented for the<\/p>\n<p>first time by means of counter affidavit. The impugned order suspending<\/p>\n<p>the supply of coal is dated 9.5.2011, which can only be given effect<\/p>\n<p>prospectively, but supply has been stopped for the month of March 2011,<\/p>\n<p>for which admittedly money was in deposit with the respondents. An<\/p>\n<p>advance amount was deposited in the month of April 2011 itself pertaining<\/p>\n<p>to two months. There is no order in existence till date. This itself amounts<\/p>\n<p>unfair practice. The next argument is that the impugned order is without<\/p>\n<p>any reason and non-speaking. Learned counsel has placed reliance on the<\/p>\n<p>decision by this Court in Mrs. Lakshmi Singh &amp; anr. Versus State of<\/p>\n<p>Jharkhand &amp; others, 2007 (3) J C R 340 (Jhr). It was held that in the<\/p>\n<p>event of absence of reason and the petitioners not made aware of the<\/p>\n<p>penal action against them non-existence of grounds is a clear violation of<\/p>\n<p>principle of natural justice. Similar view was expressed by the apex Court<\/p>\n<p>in the case of M\/S Dwarkadas Marfalia &amp; Sons Vs. Board of Trustees of the<\/p>\n<p>Port of Bombay, that every action of the        executive authority must be<\/p>\n<p>subjected to Rule of Law and must be informed by Reasons. In the decision<\/p>\n<p>of Apex Court in State of Punjab V.Bhag Singh, (2004) 1 S.C.C. 547<\/p>\n<p>and Kumari Shrilekha Vidyarthi etc. V. State of U.P. And others, AIR<\/p>\n<p>1991 S.C. 537. It is contended on behalf of the petitioner that affording no<\/p>\n<p>opportunity of hearing or giving explanation renders the impugned action<\/p>\n<p>completely vitiated. In support of this contention reliance has been placed<\/p>\n<p>on another decision of the Apex Court in <a href=\"\/doc\/1238017\/\">Mahabir Auto Stores and<\/p>\n<p>others V. India Oil Corporation and others AIR<\/a> 1990 Supreme Court<\/p>\n<p>1031. It was held in para 10 as enumerated below:\n<\/p>\n<p><span class=\"hidden_text\">                                     7.<\/span><\/p>\n<blockquote><p>                  &#8220;Failure to give reasons amounts to denial of justice&#8221;.<br \/>\n                  Reasons are live links between the mind of the decision<br \/>\n                  taker to the controversy in question and the decision or<br \/>\n                  conclusion arrived at. Reasons substitute subjectively by<br \/>\n                  objectively. The emphasis on recording reasons is that if<br \/>\n                  the decision reveals the &#8220;inscrutable face of the sphinx&#8221;, it<br \/>\n                  can, by its silence, render it virtually impossible for the<br \/>\n                  Courts to perform their appellate function or exercise the<br \/>\n                  power of judicial review in adjudging the validity of the<br \/>\n                  decision. Right to reason is an indispensable part of a<br \/>\n                  sound judicial system, reasons at least sufficient to<br \/>\n                  indicate an application of mind to the matter before Court.\n<\/p><\/blockquote>\n<blockquote><p>                              Another rationale is that the affected party<br \/>\n                  can know why the decision has gone against him. One of<br \/>\n                  the salutary requirements of natural justice is spelling out<br \/>\n                  reasons for the order made. In other words, a speaking<br \/>\n                  out. The &#8220;inscrutable face of sphinx&#8221; is ordinarily<br \/>\n                  incongruous with a judicial or quasi-judicial performance&#8221;.\n<\/p><\/blockquote>\n<p>12.         Exercise of power must be governed by Rule of Law and must<\/p>\n<p>be informed by reason. Firm carrying on business of sale and distribution of<\/p>\n<p>lubricants for 18 years, abrupt stoppage of supply of lubricants to the firm<\/p>\n<p>by Indian Oil Corporation without any notice of intimation is glaring example<\/p>\n<p>of arbitrariness and unfair play.\n<\/p>\n<p>13.         I am not in agreement with the contention on behalf of the<\/p>\n<p>respondents on the basis of the decision of the Apex Court annexed with<\/p>\n<p>the counter affidavit. It is not applicable to the facts of the present case<\/p>\n<p>since while the Apex Court had directed for stoppage of supply of coal to<\/p>\n<p>the unit in the case of Coal India Limited and others Versus Alok Fuels<\/p>\n<p>Private Limited on account of the reason that the allegation of black-<\/p>\n<p>marketing and mis-utilization of the coal was substantiated by filing of the<\/p>\n<p>charge sheet after completion of investigation. In the instant case since<\/p>\n<p>investigation is still continuing and only F.I.R. has been lodged and that too<\/p>\n<p>on account of certain complaint by a private person who had definite<\/p>\n<p>grudge against the petitioner, this could not be said to be a sufficient for<\/p>\n<p>stoppage of supply of coal.\n<\/p>\n<p>14.         Sri Anoop Kumar Mehta, counsel appearing on behalf of the<\/p>\n<p>respondent- CCL has controverted the argument of Sri A.K. Sinha and has<br \/>\n<span class=\"hidden_text\">                               8.<\/span><\/p>\n<p>tried to justify the action of the respondent that only after a complaint was<\/p>\n<p>made by Gopalka Credit Corporation to the Vigilance Department and on<\/p>\n<p>the basis of a letter written by the Department to the C.B.I., a joint surprise<\/p>\n<p>check was conducted on 26.3.2011; an F.I.R. was lodged on 19.4.2011.<\/p>\n<p>15.         I have thoroughly examined and scrutinized the document and<\/p>\n<p>have also given careful consideration to the argument advanced by the<\/p>\n<p>respective counsels. Series of events commencing from the initial stoppage<\/p>\n<p>of supply of linkage of coal to the petitioner and institution of first writ<\/p>\n<p>petition (W.P.(C) No. 6044 of 2006) and the subsequent contempt cases are<\/p>\n<p>quite eloquent on its face. Evidentially the petitioner and the respondents<\/p>\n<p>were not working in a congenial atmosphere. The petitioner had to<\/p>\n<p>approach this Court on several occasions for the supply of coal; inspections<\/p>\n<p>were made on a number of occasions and in all previous inspections<\/p>\n<p>conducted on 22.4.2010, 22.9.2010 and 5.12.2010, the unit was found to<\/p>\n<p>be functioning. The last inspection in the month of December was carried<\/p>\n<p>out in presence of C.B.I. authorities and only in the final inspection at a<\/p>\n<p>subsequent stage i.e. on 26.3.2011 the Inspecting Team reported that on<\/p>\n<p>inspection of the campus, raw coal as well as processed coal were found<\/p>\n<p>which were measured by the Survey Manager CCL Head quarter, Ranchi.<\/p>\n<p>Shri Munna Singh who was present at the time of inspection on behalf of<\/p>\n<p>the petitioner, was unable to produce certain books of account and stock<\/p>\n<p>register and the Team found that the plant was being run on generator set,<\/p>\n<p>though no bills\/ invoices pertaining to procurement of diesel could be found.<\/p>\n<p>A small quantity of coal was being burnt at the exist point of the Oven,<\/p>\n<p>despite the fact I am not making any comment on the allegations and<\/p>\n<p>counter-allegations. It is apparent that the respondents act is far from being<\/p>\n<p>commendable.\n<\/p>\n<p>16.         I am in agreement with the submission of the learned counsel<\/p>\n<p>that since the unit was not able to function on account of intermittent<br \/>\n<span class=\"hidden_text\">                               9.<\/span><\/p>\n<p>supply of coal, the industry could not be made operative continuously for all<\/p>\n<p>30 days and 24 hours of the month. Besides, the supply of coal was<\/p>\n<p>admittedly reduced from 5000 MT to 3000 MT which was not sufficient to<\/p>\n<p>run the industry continuously on all days of the month. It is also correct that<\/p>\n<p>the F.I.R. was lodged by one Gopalka Credit Corporation alleging that the<\/p>\n<p>petitioner indulged in black-marketing and despite the fact that Inspecting<\/p>\n<p>Team along with the vigilance officer of the C.C.L. and C.B.I., submitted a<\/p>\n<p>report in favour of proper utilization of coal on previous three occasions, but<\/p>\n<p>only at a subsequent stage i.e. on 26.3.2011 the functioning of unit was<\/p>\n<p>reported to be subsequently by aid of a generator set. The explanation<\/p>\n<p>given by the petitioner that since supply of coal was insufficient, the unit<\/p>\n<p>could not function and existence of generator in the premises of the unit is<\/p>\n<p>not sufficient to conclude that the petitioner indulged in black-marketing.<\/p>\n<p>17.         I have also noticed from the documents on record and in the<\/p>\n<p>second supplementary affidavit that apart from the instant F.I.R. at the<\/p>\n<p>instance of Chandrakant Gopalka there are 10 more cases against the<\/p>\n<p>petitioner all the reported allegations are by the same persons details of<\/p>\n<p>which are given in paragraph 9 of the supplementary affidavit.<\/p>\n<p>18.         Besides this, I have also examined the agreement entered into<\/p>\n<p>between the petitioner and the respondents. Clause 13, deals with &#8221;<\/p>\n<p>suspension of coal supplies&#8221;. Clause 15 deals with &#8220;termination of<\/p>\n<p>agreement&#8221; Admittedly none of the conditions of the Agreement exists in<\/p>\n<p>the instant case. Therefore, neither the suspension can be resorted to nor<\/p>\n<p>the agreement could be terminated. It is evidently an action on behalf of<\/p>\n<p>the respondent, which has far reaching effect, besides I cannot overlook<\/p>\n<p>that the action taken is by an authority who is admittedly a State Executive<\/p>\n<p>authority and, therefore, this act must be in accordance with Rule of Law<\/p>\n<p>and informed by &#8216;reason&#8217;. Specially where the State enters the contractual<\/p>\n<p>fields, it should necessarily be governed by incidence of the contract and in<br \/>\n<span class=\"hidden_text\">                               10.<\/span><\/p>\n<p>my opinion fairness must be cardinal rule that has to be followed with<\/p>\n<p>reason non-arbitrariness. Since the order passed in the month of May 2011,<\/p>\n<p>whereas the supply was stopped from the month of March 2011 itself. It is<\/p>\n<p>absolutely clear that the action of the respondent is pre-determined. No<\/p>\n<p>reason has been attributed for stopping the supply and for the first time it is<\/p>\n<p>detailed in the counter affidavit. This cannot be done because assigning<\/p>\n<p>reason at a subsequent stage by affidavit is deprecated by the Apex Court<\/p>\n<p>as far back as in the year 1978 in the case of Mahendra Singh Gil Versus<\/p>\n<p>State of Hariyana, (1978) 1 SCC 405.\n<\/p>\n<p>19.         I am of the considered view that the stoppage of supply of coal<\/p>\n<p>in the instant case is not justified and giving of reasons is one of the<\/p>\n<p>fundamentals of good administration. Reliance has been placed in the<\/p>\n<p>decision of Ran Singh and Anr. Versus State of Haryana and<\/p>\n<p>another, 2008(1) Supreme 473. Paragraph 10 is being quoted herein<\/p>\n<p>below:\n<\/p>\n<blockquote><p>            &#8221; Even in respect of administrative orders, Lord Denning M.R. In<br \/>\n            Breen V. Amalgamated Engineering Union, (1971 (1) All E.R.<br \/>\n            1148) observed &#8220;The giving of reasons is one of the<br \/>\n            fundamentals of good administration&#8221;. In Alexander Machinery<br \/>\n            (Dudley) Ltd. V. Crabtree (1974 LCR 120) it was observed:\n<\/p><\/blockquote>\n<blockquote><p>                  &#8220;Failure to give reasons amounts to denial of justice&#8221;.<br \/>\n            Reasons are live links between the mind of the decision taker to<br \/>\n            the controversy in question and the decision or conclusion<br \/>\n            arrived at&#8221;. Reasons substitute subjectivity by objectivity. The<br \/>\n            emphasis on recording reasons is that if the decision reveals the<br \/>\n            &#8220;inscrutable face of the sphinx&#8221;, it can, by its silence, render it<br \/>\n            virtually impossible for the Courts to perform their appellate<br \/>\n            function or exercise the power of judicial review in adjudging<br \/>\n            the validity of the decision. Right to reason is an indispensable<br \/>\n            part of a sound judicial system, reasons at least sufficient to<br \/>\n            indicate an application of mind to the matter before Court.<br \/>\n            Another rationale is that the affected party can know why the<br \/>\n            decision has gone against him. One of the salutary<br \/>\n            requirements of natural justice is spelling out reasons for the<br \/>\n            order made, in other words, a speaking out. The &#8220;inscrutable<br \/>\n            face of a sphinx&#8221; is ordinarily incongruous with a judicial or<br \/>\n            quasi judicial performance.\n<\/p><\/blockquote>\n<p>20.         For the reasons detailed herein above, there is no justification<\/p>\n<p>in the manner , in which the supply was stopped and the order has been<br \/>\n<span class=\"hidden_text\">                                         11.<\/span><\/p>\n<p>         passed subsequently.\n<\/p>\n<p>         21.         Mr. A.K. Mehta has apprised me of the fact that now under the<\/p>\n<p>         Coal Agreement supply cannot be resumed as a new policy has been<\/p>\n<p>         implemented. I am of the view that this Court cannot enter into the matter<\/p>\n<p>         of policy decision, therefore, this writ petition is disposed of with a direction<\/p>\n<p>         that the respondents shall take step to execute an agreement with the<\/p>\n<p>         petitioner under the New Policy for supply of coal in accordance with law<\/p>\n<p>         within a period of two months from the date a certified copy of this order is<\/p>\n<p>         produced before him. The continuance of investigation on the basis of F.I.R.<\/p>\n<p>         lodged by a private person shall have no adverse effect on the supply of<\/p>\n<p>         coal pursuant to the new agreement.\n<\/p>\n<p>         22.         The writ petition is, accordingly, disposed of in terms provided<\/p>\n<p>         here-in-above.\n<\/p>\n<\/p>\n<p>                                                          (POONAM SRIVASTAV, J)<\/p>\n<p>Sharma\n <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Jharkhand High Court M\/S Balaji Fuels Private Ltd. vs Central Coalfields Ltd. &amp; Ors on 21 September, 2011 IN THE HIGH COURT OF JHARKHAND AT RANCHI W.P.(C) No. 2376 of 2011 M\/s Balaji Fuels Private Ltd. &#8230;&#8230;. Petitioner. Versus Central Coalfields Ltd. &amp; others &#8230;. Respondents. CORAM: &#8211; HON&#8217;BLE MRS. JUSTICE POONAM SRIVASTAV For the [&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-60434","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 v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M\/S Balaji Fuels Private Ltd. vs Central Coalfields Ltd. &amp; Ors on 21 September, 2011 - 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-balaji-fuels-private-ltd-vs-central-coalfields-ltd-ors-on-21-september-2011\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"M\/S Balaji Fuels Private Ltd. vs Central Coalfields Ltd. &amp; 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