Full Judgment Text
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IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 375 OF 2009
[Arising out of SLP(C) No.21863 of 2008]
M/S SUSHILA CHEMICALS P.LTD.& ORS. ... Appellant(s)
Versus
BHARAT COKING COAL LIMITED & ORS. ... Respondent(s)
ORDER
1 Delay condoned.
2 Leave granted.
3 There are as many as 45 appellants before us. At the very out set it has been
pointed out that out of the said 45 appellants, 27 appellants, namely, appellants Nos.
1,2,5,6,14,15,17,18, 19 to 27,30,31,32, 33, 35,36,37,41,42 & 44 have filed two separate
applications, being I.A No. 3 of 2008, for deletion of their names from the array of
parties. Such prayer is allowed and that leaves us with 18 appellants. This order
will, accordingly, govern the said 18 appellants.
4 The appellants claim to be Units, which have been enjoying linkage for supply
of coal vis-a-vis Bharat Coking Coal Limited (hereinafter referred to as "BCCL").
On 30th November, 2004, BCCL issued a notice No.BCCL/S&M/Link/04/5089,
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requiring the linked consumers to submit detailed data/information in terms of the
details mentioned in the notice along with an affidavit and the photographs of
owners on or before 31st December, 2004, to enable it to cross check the genuineness
of the working units regarding continuance of supply of coal for the year 2005. The
said notice refers to 18 specific documents and item 19 refers to any other relevant
documents. It appears that subsequently the said number of documents were
reduced to 13 as will appear from clause 10 of paragraph 12 of the counter affidavit
filed on behalf of BCCL. The notice will, therefore, be confined to the said 12/13
documents and also any other relevant documents.
5 The stoppage of supply, pursuant to the aforesaid notice, was questioned by
the appellants herein before the learned Single Judge of the Patna High Court, who
by his judgment and order dated 10th January, 2008 held that the decision to stop
supply of coal on the failure of the appellants to produce all the documents in
question could not be supported, particularly, in view of the fact that no hearing had
been given to them before such stoppage. On the ground of violation of the
principles of natural justice the learned Single Judge declared the decision to stop
supply of coal to the appellants to be void ab initio and unenforceable.
Consequently, the writ petition was allowed and the decision of the appellants herein
to stop supply of coal to the appellants was set aside and BCCL was directed to
forthwith resume supply of coal to the appellants. As against the decision of the
learned Single Judge, BCCL filed a Letters Patent Appeal, being LPA No.174 of
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2008, which was disposed of on 24th April, 2008 relying on an earlier decision of the
Patna High Court in M/s. Central Coalfields Ltd. & Ors. Vs. M/s. Aman Line
Works & Ors. Having regard to the said decision, the Division Bench allowed the
Letters Patent Appeal to the extent that it was left open to BCCL to resume or not
to resume supply of coal to the appellants till the proceedings were finally
determined and after considering the explanation of the respondents in respect of the
alleged deficiency. The Division Bench also observed that it would be open to the
appellants to make up the alleged deficiency and to supply the required particulars,
if they had necessary materials for the same along with the submission of their
explanation.
6 The appellants are before us on a very narrow ground, namely, that in
addition to a hearing been given to them, a direction should also be given to BCCL,
if it was not satisfied with the documents produced, to conduct a spot
inquiry/inspection, as had been directed by the Allahabad High Court in another
similar matter.
7 Having heard learned counsel for the respective parties, and also having
regard to the fact that stoppage of supply of coal to the Units in question, if they are
genuine, will cause a great deal of hardship and would amount to closure of the
industry, at least for the time being, we are of the view that the directions given by
the Division Bench need not be interfered with, but we modify the same to the extent
that while considering the representations made by the appellants, in the event the
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appellants are unable to produce a particular document, the authorities of BCCL
would permit the appellants to produce supporting documents in corroboration of
the documents which they are unable to produce, in order to effectively decide as to
whether the unit of the appellant in question, was a running unit or not.
8 This will not preclude BCCL from holding any inspection, if it so deems fit.
9 We also request BCCL to dispose of the representations at an early date and
preferably within two months from date.
10 The appeal is disposed of.
11 There will, however, be no order as to costs.
...................J.
(ALTAMAS KABIR)
...................J.
(CYRIAC JOSEPH)
New Delhi,
January 22, 2009.