AJAY CHEMICALS Vs. STATE OF CHHATTISGARH

JUDGEMENT

(1.) As the present Writ Petitions arise out of the same order dated 31.12.2005, they are being disposed of by this common order.

(2.) By way of the present Writ Petitions, the Petitioners seek to challenge the order dated 31.12.2005 issued by the Director, Industries, Chhattisgarh, whereby the Respondent-State contrary to and in violation of the guidelines issued by the High Court of Madhya Pradesh in M.P. No. 462 of 1981, with a malafide intention and arbitrarily has evolved the policy of distribution of chemical by-products viz Drained Napthalene Oil (DNO), De-Phenolyzed Oil (DPO) and Heavy Benzol Oil (HBO) produced from the Bhilai Steel Plant, an organization under the Steel Authority of India Limited. Apart from seeking quashment of order dated 31.12.2005, the Petitioners have also sought for a direction to the Respondents to restore the agreed formula of distribution formulated in pursuance to the recommendation made by the committee constituted at the instance of the High Court of Madhya Pradesh vide its decision dated 11.10.1984 passed in M.P. No. 462 of 1981.

(3.) Case of the Petitioners is that the Steel Authority of India Limited (for short, SAIL) has a steel plant at Bhilai known as Bhilai Steel Plant (for short, BSP) and in the course of manufacturing of steel, certain by-products are manufactured like DNO, DPO and HBO. Initially one M/s Raysinet Kemikal Company was registered with the District Industries Office, Durg, who was purchasing the above referred by- products. Later on, more and more Small Scale Industries (for short, SSI) were established for production of coal-tar, as a result of which the by-products from the BSP became scarce and the industries dependent upon the by-products from the BSP found it difficult to sustain themselves. Therefore, M/s Raysinet Kemikal Company initially filed a writ petition in the High Court of Calcutta, seeking a direction to the SAIL for supplying it the maximum by-products generated at BSP.