PRAKASH INDUSTRIES LIMITED Vs. SOUTH EASTERN COALFIELDS LIMITED

JUDGEMENT

(1.) Heard Mr. Shashank Thakur, learned counsel for the appellant. Also heard Mr. Vaibhav Shukla, learned counsel, appearing for the respondents.

(2.) This appeal is presented against an order dtd. 29/3/2022 passed by the learned Single Judge in Writ Petition (C) No.1811 of 2021, dismissing the writ petition.

(3.) The appellant is a Company registered under the Companies Act, 1956. For supply of Grade G6 category coal, the appellant had entered into three Fuel Supply Agreements ('FSA') being No.FSA No.A-276, executed on 8/8/2017, FSA No. A-368, executed on 29/12/2017 and FSA No. A-370, executed on 29/12/2017. As per Clause 2.2 of the FSAs, the agreements were for a period of five years Under Clause 17.1, there is a locking period of two years. Notice of 90 days for termination could be given as per Clause 17.2. The appellant submitted notice of termination in respect of all the three FSAs on 1/7/2020. Pursuant to the decision of 232nd Functional Directors meeting held on 27/6/2020 on dispensation of Non-power sector consumers to re-validate shortfall quantity and lift coal to the extent of Annual Contracted Quantity (for short, ACQ) under FSAs, a letter dtd. 3/7/2020, containing a 'Scheme', was issued by the Coal India Limited to all the coal companies including the South Eastern Coalfields Limited, the respondent No. 1 herein. The same was notified on 9/7/2020.