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2014 DIGILAW 1067 (JHR)

Electrosteel Castings Limited v. Government of India through Secretary, Ministry of Coal, New Delhi

2014-10-21

R.R.PRASAD

body2014
Order When the case was called out, objection was raised on behalf of the Union of India that the petitioner got this case listed today without taking consent of the Counsel appearing for the Union of India and, therefore, the matter be adjourned to other day as the counsel appearing for the Union of India has gone out of station and would be returning only in the 2nd week of November, 2014. 2. Upon it, Mr. Sinha, learned Senior counsel appearing for the petitioner submits that the case had been listed on Friday on which date this Bench did not hold the court for some reason and thereby, the matter could not be taken up. But the situation was as such, which compelled the petitioner to make mention for getting the case listed and in that situation, the case was ordered to be listed. 3. It was submitted that he will not ask the Court to pass any fresh order by which the interest of the Central Government would be jeopardized or the Central Government would be harmed in any manner rather this petition is confined only to the modification of that part of the order dated 24.06.2014 whereunder in operative part of the order, it was observed that the holding company may use the coal for its associate company after having formal permission from the Central Government. In the fact and circumstances which would be dwelt upon the clause “Formal Permission” warrants to be deleted. 4. In that situation, the matter was heard. It was submitted that the letter whereunder the petitioner had been asked to raise equity holding from 39% to 51% in its associate company has been quashed and once that was quashed, the petitioner may not require even to take formal permission from the Central Government. 5. However, since the Court had passed such order, a formal application was submitted for according formal permission to use the coal. After waiting for a considerable period when it was not granted, necessity was felt for filing this C.M.P. for modification of that part of the order wherein this Court has asked the holding company to get a formal permission. However, since the Court had passed such order, a formal application was submitted for according formal permission to use the coal. After waiting for a considerable period when it was not granted, necessity was felt for filing this C.M.P. for modification of that part of the order wherein this Court has asked the holding company to get a formal permission. When that modification petition was filed, an order was passed on 31.07.2014 whereby the Court directed the Union of India to accord the formal permission by 11.08.2014, failing which, it was ordered that the prayer made on behalf of the petitioner relating to furnishing of Bank guarantee for using the coal shall be considered, if no formal permission is accorded. 6. When the matter was listed on 26.08.2014, it was pointed out by the counsel appearing for the Union of India that the matter needs not to be pursued by the petitioner as the Hon'ble Supreme Court has passed the order whereby allocation of Coal-blocks to different allottees including the petitioner has been declared as illegal. However, at that time it was pointed out on behalf of the petitioner that it is true that the Hon'ble Supreme Court has passed an order whereby allotment of coal blocks to different allotees including the petitioner has been cancelled, but consequential order has not been passed. In anticipation of consequential order being passed by the Hon'ble Supreme Court, the matter was adjourned to other date. The consequential order was passed on September 24th, 2014 wherein the petitioner and other 41 companies have been allowed to extract the coal till 31st March, 2015 on payment of Rs.295/-per metric tonne. 7. Further it has been directed that the allotees need to make payment of the quantity of the coal which has been extracted right from the beginning of the allotment of the coal block by 31st December, 2014. In that event, if there would be further restriction in using the coal extracted earlier which got piled up creating pollution, the petitioner would not only be put to financial loss but would be under the threat of being prosecuted by the Pollution Board, notice of which has already been given and, therefore, that part of the order whereby this Court has put in Clause “Formal Permission” be modified by deleting it. 8. 8. I have already indicated that the Writ Petition was filed as the petitioner had been asked to raise equity holding 39% to 51% in their associate companies for using coal extracted from the said coal-blocks. That stipulation on being found to be arbitrary was quashed. However, order was passed allowing the petitioner to use the coal by holding company for its associate company, after having formal permission from the Central Government. Pursuant to that a formal application as per the petitioner was filed, but no order was passed and that was the reason the instant C.M.P. was filed for modification of that part of the order wherein Clause “Formal Permission” has been put in. 9. When the matter was taken up on 31.07.2014, time was given to the Union of India to accord formal permission by 11th August, 2014. In the said order, it had also been observed that if the permission is not granted, the matter shall be considered relating to necessity of furnishing the Bank guarantee for using the coal of the stock which got piled up creating pollution. 10. The matter was taken up on 12.08.2014 on which the counsel for the Union of India took time to seek instruction as to whether “Formal Permission” has been accorded or not. Thereafter when the matter was taken up, objection was raised that the coal-block allotted to the petitioner has been cancelled. But since the consequential order had not been passed, the matter was adjourned to other date. 11. Today, learned Senior counsel appearing for the petitioner by placing the consequential order of the Hon'ble Supreme Court passed on 24.09.2014 did point it out that the petitioner and also the other allotees have been permitted to extract coal by 31st March, 2015 for which they have to pay Rs,295/-per metric tonne and, therefore, if any delay is made in using the coal extracted, the petitioner may be put to financial loss and also otherwise as there has been threat of prosecution by the Pollution Board on account of water and air being polluted by the stock of the coal which piled up considerably. 12. In that event, clause “Formal Permission” put in at the end of the order dated 24.06.2014 passed in Writ Petition being W.P.[C] No.7243 of 2012 is hereby deleted. 13. With this modification, this C.M.P. Stands disposed of. Petition disposed of.