BOMBAY REFRACTORIESPVT LTD Vs. COAL INDIAN LTD

JUDGEMENT

(1.) THE petitioner company is a registered Small Scale Industrial Unit and is mainly engaged in the manufacture of various kinds of ceramic goods. Coal is essential for manufacture of such ceramic products. After the nationalisation of all coal mines, the production and distribution of coal is entirely in the hands of agencies of the Central Government, such as Coal Indian Ltd. Different Coalfields are being managed and operated by subsidiary companies of Coal India, Ltd. One such subsidiary company is Eastern Coalfields Limited. Since allotment of coal is. to be done by the aforesaid agencies, the petitioners applied to Eastern Coalfields Limited for allotment of coal for the petitioners manufacturing unit. After necessary enquires were conducted by Eastern Coalfields limited, the petitioners were allotted a monthly quota of 350 Metric Tonnes of steam coal, initially for a period of 3 months, with effect from the month of February, 1988. Subsequently, on further inspection, the petitioners were allotted a monthly quota of 262 Metric Tonnes of Grade 'b' steam coal and 88 Matric Tonnes of Grade "c" steam coal with effect from the month of May, 1988, under the linkage guidelines. Both the initial order and subsequent order of allotment were communicated by the Sales Manager, eastern Coal fields Limited, to the Area Sales Manager, sitarampur/ Kapasara After such allotment was made, the petitioners appointed a handling agent for lighting the said coal from the respective collieries and transporting the same to factory premises of the petitioners. The name 'of the handling agent was duly. intimated by the petitioners to Eastern. Coalfields Ltd. . Each month the petitioners deposited the value of the allotted coal through its handling agent, who lifted and delivered the coal to the petitioners factory premises on the basis of delivery orders and challans issued by Eastern Coalfields Ltd. Such arrangements continued till the month of April, 1990. In May, 1990, despite the arrangements made by the petitioners to lift their quota of coal, no formal order of allotment was issued in the favour of the petitioner company. On enquiry, the petitioners came to learn that the Sales Manager, Eastern coalfields Ltd. Sanctoria, Dishergarh, Burdwan. had advised the Area Sales Manager, Sitarampur/kapasara areas by wireless message on 13th June, 1990, to discontinue the supply of coal to the petitioners. A copy of the wireless message has been Annexure "b" to the Writ petition. This writ application has been moved against the aforesaid decision by the respondents to discontinue supply of coal to the petitioners as per their allotted quota.

(2.) APPEARING on behalf of the petitioners, Mr. Pradip ghosh, learned counsel, first submitted that the respondents had acted illegally arid arbitrarily in taking a unilateral decision to suspend the supply of coal to the petitioner, as per the allotted quota, without even disclosing to the petitioners the reasons for such decision and ,without even , giving the petitioners an opportunity of hearing. Mr. Ghosh submitted that as public authorities, the respondents were bound to act fairly and in keeping with the principles of natural justice and administrative fair-play. In the instant case, the respondents had acted in complete violation of the said' principles and the arbitrary and unilateral decision taken by the respondents 'to suspend the supply of coal to the petitioner, was liable to be quashed. It was sought to be emphasised by Mr. Ghosh that the respondents had neither informed the. petitioners of their decision, nor were the petitioners called upon to explain as to why the supply of coal should not be discontinued to them.

(3.) MR. Ghosh submitted that the respondents had not even filed any affidavit in opposition to the writ petition and there were no materials before the court in justification of the arbitrary decision taken by the respondents to discontinue supply of coal to the petitioner company.