CENTRAL COLLIERIES COMPANY LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The challenge in this writ petition is to an order dated 3rd November 2004, passed by the Additional Secretary, Ministry of Coal and Mines, acting as the Revisional Authority under Section 30 of the Mines and Mineral (Development and Regulation) Act, 1957 [hereinafter referred to as the 'MMDR Act']. Also challenged in this petition is an order dated 30th October 2002, passed by the Coal Controller, Ministry of Coal and Mines, Government of India whereby the Petitioner was directed not to dispose of/supply the coal mined from the leased area of its captive coal mine to any agency or party other than its proposed power plant.

(2.) The Petitioner Central Collieries Company Ltd. (hereinafter referred to 'CCCL') having its office at Nagpur and engaged inter alia in the business of mining applied on or around 4th July 1996 to Ministry of Coal for grant of a captive coal mining block for their proposed washery-cum-power generation project. It is stated that on 29th May 1998 the Screening Committee, an in-house mechanism set up by the Ministry of Coal, identified coal blocks which could be granted to CCCL. This was communicated to CCCL by a letter dated 29th May 1998 of the Director, Ministry of Coal. CCCL felt that these coal blocks were inadequate to sustain a power project and indicated this to the Ministry of Coal by its letter dated 16th June 1998. In terms of Section 5(2) of the MMDR Act, CCCL prepared a mining plan, and this was approved by the Central Government on 2nd September 1999.

(3.) On 15th October 1999, the Government of Maharashtra forwarded the proposal for grant of mining lease to the Central Government. The proposal was for grant of mining lease for coal over an area of 271.00 hectares in village Bellora-Jena Takli, South Part, Tehsil: Bhadravati, District Chandrapur for a period of thirty years. It was proposed that the lease should be granted on the terms and conditions along with three additional conditions: