GODAWARI POWER AND ISPAT LIMITED Vs. SOUTH EASTERN COALFIELDS LIMITED AND MARUTI CLEAN COAL AND POWER LTD

JUDGEMENT

(1.) THIS petition, under Article 226/227 of the Constitution of India, seeks a writ in the nature of mandamus directing the respondent No. 1 (South Eastern Coal Fields Limited) to issue the delivery orders/release orders and transit passes for monthly requirement of 'F' grade coal to the petitioner, totaling to annual quantity of 3,27,204 metric ton, through the respondent No. 2 (Maruti Clean Coal & Power Ltd.) washery for onward transportation to the petitioner's sponge iron/power plant, and a writ in the nature of prohibition, restraining the officers/employees of the respondent No. 1 from creating any obstruction in the delivery of coal, purchased by the petitioner under its linkage supply, from the respondent No. 1 to the respondent No. 2 washery.

(2.) THE brief facts in nutshell, as projected by the petitioner, leading to filing of this writ petition are that the petitioner is a company engaged in the business of running sponge iron plant at Siltara Industrial Area, Raipur having captive power plant for the purpose of generation of electricity. THE petitioner obtained coal linkage supply order dated 19/20 September, 2006 (Annexure P/13) of 'F' grade coal from the Ministry of Coal, Government of India for 3,27,204 metric ton per annum for the petitioner's plant. THE coal consumed for the purpose of the sponge iron plant and captive power plant has to be washed for giving more effective, beneficial and advantageous results. THE washing reduces the ass contains of the coal from the normal content of approximately 42 to 44% to 32 to 34%. This also reduces the pollution during the transportation and reduces the cost of transportation of coal itself. Use of the washed coal gives better quality to the sponge iron and better generation of power. THE respondent No. 2 has set up a washery having a capacity of washing of 10 metric ton coal near Dipika mines, in district Korba, of the respondent No. 1. THE petitioner entered into an memorandum of understanding on 27th March 2007 (Annexure P/1) with the respondent No. 2, wherein it was provided that the petitioner would supply coal to the respondent No. 2 for washing of annual supply of raw coal from the respondent No. 1 to the tune of 3,27,204 tones per annum. THE petitioner, accordingly, informed the respondent No. 1 by letter dated 29.3.2007 (Annexure P/2) requesting the respondent No. 1 to give delivery through the respondent No. 2. On 9.4.2007 (Annexure R-1/1), the petitioner wrote a letter to the respondent No. 1 to issue delivery order through M/s Chhattisgarh Power and Coal Beneficiation Ltd., Bilaspur. THEreafter the petition was filed on 10.5.2007 seeking the aforementioned relief.

(3.) THE respondent No. 1 by letter dated 26/27.6.2007 (Annexure 'B' to the Additional Affidavit filed by the petitioner company on 30.8.2007) declined to release coal through the respondent No. 2 on the ground that the validity of the allotment of land and title of the land to the washery is pending adjudication before the Civil Court, Katghora and the status quo order passed by the Civil Court is in operation. It was further stated that since the purported coal washery was on the land which is in dispute, it was not possible for the respondent No. 1 to order release of coal through the respondent No. 2.