GRAMIN GOOL UDYOG Vs. C I L

JUDGEMENT

(1.) ALL the eighteen writ petitions in this batch, some filed by a single petitioner and others filed by several petitioners (twenty five in all), are at the instance of coal based small scale industrial units in different districts of the State. For a regular and smooth supply of coal each of the petitioner unit enjoyed Linkage Facility on the basis of the orders issued by the Coal India Limited in their favour. But the supply of coal to the petitioner unit is stopped under the Linkage Scheme since all these units were included in the list of 981 industrial units that were found suspect as bona fide consumers of coal in the status report, dated 25-7-2002 by the Industries Department, Government of Bihar. In regard to six units, petitioners in C.W.J.C. Nos. 13369, 4863 and 5503 of 2002 there is also the inspection report of the Vigilance Department of the Coal company. The stoppage of supply of coal under the Linkage Scheme has brought the petitioner units to this Court seeking direction(s) to the respondent coal companies to restore their supplies under the Linkage System. The validity of the status report/inspection report is assailed and in some cases it is even said that no team from the Industries Department or the Coal company ever visited the units in question and the findings/remarks in the reports were incorrect and unfounded. It is further submitted that the action of the respondent Coal company is stopping the supply of coal even though in most of the cases large sums of money were already deposited by the petitioner units for the supply of the next month's quota, on the basis of unreliable reports and even without giving the petitioners an opportunity to show the incorrectness of the report(s), was quite unreasonable and arbitrary.

(2.) AFTER lengthy arguments were made at the bar, the parties seem to be more or less in agreement that each of the petitioner units to which the supply of coal under the Linkage Scheme was stopped on the basis of the status report of the Industries Department of the Government and/or the inspection report by the Coal Company Vigilance Department was entitled to an opportunity to satisfy the concerned authorities that the unit was in fact running and the quota of linkage coal received by it was not diverted to the black market but was consumed for bona fide industrial purpose. And in fact, in fairness to the Industries Department, it may be noted that after preparation of the status report, a general notice was issued in the news papers giving a list of 759 units all over the State. The notice directed the owners of all the units included in that list to file their show cause and produce materials in support of their claim of being genuine industrial establishments and bona fide consumers of linkage coal. Out of twenty five units, petitioners before this Court, sixteen are included in the list of 759 units put under show-cause.

(3.) IN the counter-affidavit filed on behalf of the respondent coal company, it is stated that though coal was no longer a controlled commodity, having regard to its vital importance in the life of the nation, the company was still obliged to regulate its supplies. The supply of coal depended upon some basic factors, such as, the amount of production and the need of the core sector in the country. It was only after meeting the need to the core sector that coal could be made available for supply to the non-core sector linkage consumers. IN this regard, it is stated in the counter-affidavit that the total demand of coal for the non-core sector linkage consumers was about 41 million metric tonnes whereas after meeting the requirements of the core sector, only 4 million metric tonnes (approx.) of coal was available and, therefore, it was imperative that it should be supplied only to genuine and bona fide consumers.