SINGARENI COLLIERIES COMPANY LIMITED Vs. MALLIKARJUNA CHEMICALS

JUDGEMENT

(1.) A common question arises in this batch of Writ Appeals and writ petitions. Some of the writ petitions came up for disposal before a learned single Judge who allowed the same with certain directions under his judgment and order dated 19-9-1989. Writ Appeals are preferred against the said judgment. Other writ petitions which were not disposed of are posted for hearing along with the Writ Appeals. For the sake of convenience we may refer to the facts in Writ Appeal No. 1555/1989 (arising from W.P.No. 1039/89). It is agreed by the counsel for the appellant as well as Sri S. Ramachandra Rao, appearing on behalf of the writ petitioners, that the facts in this case may be taken as representative of the facts in all other cases.

(2.) The petitioner in W.P.No. 1039/89, "M/s Mallikarjuna Chemicals, Piduguralla", came forv/ard with the following averments:

(3.) The petitioner-company is a small scale industry engaged in manufacturing/ processing activities of 'burnt lime'. It is registered with the Industries Department as a small scale industrial unit Before registering it as a small scale industrial unit, the Industries Department had verified from the Singareni Collieries their ability to supply the quantity of coal required by the petitioner-industry. The requirement of the petitioner was assessed at 230 Metric Tonnes per month, and only after Singareni Collieries expressed its readiness to supply the said quantity to the petitioner, did the Industries Department register the petitioner-unit as a small scale industry. It is in this manner that the appellant, Singareni Collieries, agreed to supply coal to the petitioner. However, since the date of registration, the appellant-Collieries has not been supplying the said quantity of coal regularly. Sometimes it has been supplying 50%; sometimes 70%, and in some months not at all. In spite of the petitioner approaching the Collieries on a number of occasions, it was submitted, no supplies have been made over the last several months. The petitioner-industry cannot be run except with coal. The petitioner cannot also import coal from outside the State, because it is not permitted. Moreover, the price of coal outside is highly prohibitive. Tne Collieries is under an obligation to supply the coal in the agreed quantity regularly. Accordingly, a writ of mandamus was sought against the Singareni Collieries, directing it to supply coal every month to the petitioner at the agreed quantity of 230 Metric Tonnes per month.