COAL INDIA LIMITED Vs. MAHATHA TRADERS

JUDGEMENT

(1.) After hearing the learned Counsel for the parties, we are of the view that there is no merit in this appeal. It appears that an agreement was entered into between the parties whereby the appellants were to supply sink coal/rejected coal to the respondents according to notice dated 9/2/1987 which is on record. Dispatches were to commence on and from 1/3/1987 and in relation to the price, the clause was as under:

(2.) We are informed that subsequently a formal agreement was entered into between the parties. It seems that on 30/11/1987 the price of certain categories of coal were increased. According to the Schedule annexed to the notice to increase cooking coal having the calorific value exceeding 2400 but not exceeding 3360 per kilo was graded as "f" and its price was increased. It is this increased price which the appellants sought to realise from the respondents.

(3.) The respondents challenged the same by filing a petition under Article 226, while the Single Judge dismissed the same, the Division Bench came to the conclusion that if what was supplied to the respondents had the calorific value between 2400 and 3360 then the increased price could be charged. The authorities were required to look into this and on the basis of the report of the Central Fuel Research Institute, to whom the samples of the sink/rejected coal were to be sent, the price payable was to be determined.