SHIVAM IRON & STEEL CO. LTD. Vs. UNION OF INDIA, THROUGH ITS SECRETARY, MINISTRY OF COAL 2.COAL INDIA LIMITED, THROUGH ITS CHAIRMAN 3.MAHANADI COALFIELDS LIMITED

JUDGEMENT

(1.) : The present petition has been preferred mainly for the reasons that the petitioner is a purchaser of the properties of M/s Laxmi Ispat, which is a sole proprietorship of M/s Raj Ganga Traders Pvt. Ltd. In the month of February, 2010, the properties of M/s Laxmi Ispat has been purchased by the petitioner and the coal supply linkage has to be transferred now to the new purchaser i.e. the present petitioner which is M/s Shivam Iron & Steel Co. Ltd. This type of commercial transaction is not unknown in the commercial world. Purchase and sale of the sole proprietorship is a regular phenomenon in the developing country. This petitioner has legally purchased the properties of M/s Laxmi Ispat from the proprietorship namely M/s Raj Ganga Traders Pvt. Ltd. The necessary applications were preferred on 5.3.2010 for the change of name for Coal Linkage before the Ministry of Coal. It is further submitted by the counsel for the petitioner that thereafter series of correspondences and clarifications were sought for, and were given not only by the petitioner i.e. the purchasing party but also by the predecessor in title i.e. by M/s Laxmi Ispat (Annexure Nos.5,7,8 and 9 of the memo of this writ petition) and lastly on 18.8.2010 at Annexure -13 an order was passed by the Under Secretary to the Government of India allowing the change of name of the company from M/s Shivam Iron & Steel Co. Ltd. (Sponge and Power Division) for the purpose of coal linkage /coal allocation, subject to the conditions, that the project for which the long terms coal linkage (Letter of Assurance) has been given, shall remain unaltered and its location will not be changed by the purchaser of the properties (i.e. by the petitioner) and secondly on the condition that the long term coal linkage (Letter of Assurance) given under the conditions, will remain unaltered. Those conditions, upon which the coal supply was to be given to the predecessor in title i.e. M/s Laxmi Ispat, however the conditions will remain as they are of the new purchaser. It is further submitted by the counsel for the petitioner that everything was accepted by the Union of India. A raid was carried out by the C.B.I. officers on 23.8.2010 at the offices of the Central Government, Ministry of Coal and some high ranking officers of the Ministry of Coal as well as Ministry of Commerce were caught red handed by the C.B.I. and now the case is before the Special Judge (Prevention of Corruption Act), C.B.I. -II, Patiala House, New Delhi, being R.C. Case No. S -18/2010 -E -0005. In this matter, the petitioner has nothing to do because the petitioner is a purchaser of the properties of M/s Laxmi Ispat. Necessary 'No Objection Certificate' has also been given by M/s Laxmi Ispat dated 1.4.2010, which is at Annexure -8 to this memo of petition and unnecessarily the petitioner has been joined as accused and the competent trial court has already given 'pardon' to the petitioner under Section 307 of Code of Criminal Procedure read with Section 5(2) of the Prevention of Corruption Act. Thus, the petitioner is not concerned with the criminal case except as star witness in the pending criminal case against the officers of Coal Ministry and Commerce Ministry of Union of India, and therefore, the petitioner may be supplied the coal as per the coal linkage agreement and the order passed by the respondents Dated 26.8.2010, which is annexed with the I.A. No.3979 of 2010 may be quashed and set aside and the petitioner is not going to misuse the supply of coal and there is no allegation levelled against the petitioner for misuse of supply of coal. The counsel for the respondent -Union of India has also tendered a letter dated 13.7.2011 written by the Under Secretary to the Government of India, to this Court, wherein it has been stated that with regard to the misuse of coal there is no report of misuse. Thus, in view of the decision rendered by the Hon'ble Supreme Court in the matter of Coal India Limited & Ors Versus Coal Consumers Association & Ors reported in (2010) 10 Supreme Court Cases 395 (Para 13 and 14 thereof), the coal may be ordered to be supplied to the petitioner as per the coal linkage after fulfilling the necessary procedures by giving certain details like Letter of Assurance to the Union of India. It appears that the whole dispute has arisen because of misunderstanding by the Union of India about the commercial transaction of purchase and sale of properties by a private ltd. company, which is not unknown in the commercial world, it may be unknown to some of the officers of the Union of India. There is no illegality in the purchase of the commercial unit by another company. The small transactions are well known under the Companies Act, 1956, and therefore, there are provisions for amalgamation etc. Only because the raid was carried out in the Coal Ministry and the Ministry of Commerce, there cannot be the reason for not supplying the coal to the petitioner. Therefore, let a writ of mandamus be issued to the Union of India for supply of coal as per the coal linkage.

(2.) I have heard the counsel for the Union of India who has submitted that it is true that there is no allegation against the petitioner for misuse of the coal. The counsel for the petitioner has received a letter from the Under Secretary to the Government of India dated 13.7.2011. A copy whereof is tendered to this Court and it has been stated in the Paragraph -2 of the letter that there is no report of misuse of commercial transaction by the petitioner. It is further submitted by the counsel for the respondent -Union of India that it is true that a letter was written by the Under Secretary to the Government of India dated 18.8.2010 whereby the change of name from M/s Laxmi Ispat to M/s Shivam Iron and Steel Co. Ltd. (Sponge and Power Division) was accepted by the Union of India subject to the conditions stated in that letter, the said letter is at Annexure -13 to this memo of petition. Before it was implemented, a raid was carried out by the C.B.I. on 23.8.2010 in the Ministry of Coal as well as in the Ministry of Commerce under the Prevention of Corruption Act and certain high ranking officers were made accused. The petitioner has been given 'pardon' by the competent trial court i.e. Special Judge (Prevention of Corruption Act), C.B.I. -II, Patiala House, New Delhi, and therefore, the petitioner will be a star witness in the said criminal case but the facts remain that because of this C.B.I. raid, another letter was issued by the Union of India dated 26.8.2010 to put in abeyance the earlier order dated 18.8.2010, the said letter is annexed with the Interlocutory Application, which is already allowed and the amendment has already been carried out with main writ petition, this letter is at Annexure -14.

(3.) HAVING heard the counsels for both the sides and looking to the facts of the case, it appears :