PAVAN COAL COMPANY Vs. STATE OF U P

JUDGEMENT

(1.) THE Ministry of Coal, Government of India issued an Office Memorandum dated 18.10.2007 laying down the New Coal Distribution Policy with regard to the consumers in Small and Middle Sectors as contained in Paragraph 3 of the Coal Policy filed as Annexure -2 to the Writ Petition No. 12680 of 2015 which directed that the earmarked quantity of coal for companies/consumers would be distributed through the agencies notified by the State Governments. It also provided that these agencies could be State Government Agencies, Central Government Agencies [National Co -operative Consumer Federation (N.C.C.F.J/National Small Industries Corporation (N.S.I.C.) etc.] or industries associations as the State Government may deem appropriate. The agency so notified will continue to distribute coal until the State Government chooses to denotify it. There was further incorporation made that the agency/association so notified by the State Government would be required to enter into Fuel Supply Agreement (F.S.A.) with coal company to be designated by the Coal India Limited and such agreement would continue to remain in force till either the State Government denotifies the agency/association or Coal India Limited shifts the obligation to some other coal company. With regard to the State of U.P., the Government vide the Government order dated 1.4.2008 (Annexure -3 to the Writ Petition No. 12680 of 2015) appointed the U.P. Small Industries Corporation Limited, Kanpur (a Government of India Undertaking) (hereinafter referred to as the U.P.S.I.C.) as the nodal agency for distribution of coal in the entire State of U.P. An agreement was executed on 19.4.2011 which is the fuel supply agreement in between the Central Coalfields Limited and the U.P.S.I.C. (Annexure -4 to the Writ Petition No. 12680 of 2015). The U.P.S.I.C. in turn as per the National Coal Policy advertised for appointment of a coal coordinator/handler to take care of lifting of the coal from the site and deliver it to the consumers as per the allotment made by the U.P.S.I.C. Pursuant to the said advertisement, the U.P.S.I.C. appointed one M/s. A.K.A. Logistics Private Limited as its handler (petitioner in Writ Petition No. 12680 of 2015).

(2.) THIS arrangement continued till July, 2014 when the State Government took a decision on 16.7.2014 to bifurcate the distribution of coal given to the U.P.S.I.C. by appointing another nodal agency, i.e., U.P. Pradeshik Cooperative Federation Limited (hereinafter referred to as the U.P.P.C.F.). 40% of the distribution remained with U.P.S.I.C. and 60% of the distribution was given to the U.P.P.C.F. (Annexure -10 to the Writ Petition No. 12680 of 2015).

(3.) ON 4.10.2014, as the financial bid of M/s. Pavan Coal Company was better than the second highest scorer M/s. Swastik Coal Suppliers, it was appointed as the coal handler for U.P.P.C.F. An agreement pursuant to the said appointment was executed on 10.10.2014. M/s. Sendoz Impex Limited filed Writ Petition No. 58843 of 2014 before this Court on 3.11.2014 praying for issuance of a writ in the nature of certiorari quashing the appointment of the respondent No. 3 (M/s. Pavan Coal Company) as coal coordinator appointed by the U.P.P.C.F. The prayers as claimed in the aforesaid writ petition are reproduced below :