S.J. Coke Industries Pvt. Ltd. Etc vs Central Coalfields Ltd. Etc

3. In order to appreciate the issues involved in these appeals, it is necessary to state the background of the facts, which led to filing of the writ petitions by the Companies, which have given rise to these appeals.

4. These Companies are private limited companies registered under the Companies Act, 1956. They are engaged in the business of sale and purchase of various grades of Coal. The CCL is a Public Sector Undertaking of the Government of India engaged in the business of producing various grades of Coal. The CCL sells coal to several bulk coal consumers including the present Companies, who are linked consumer of the Coal. The Coal being an essential commodity, its prices and mode of disposal are governed by the Acts/Regulations/Control Orders and the Policies made by the Central Government/Coal Companies from time to time.

13. Feeling aggrieved by this order, the CCL filed L.P.A. No. 1094 of 2009. By order dated 17.02.2010, the Division Bench of the High Court dismissed the appeal but reduced the rate of interest payable on excess refund amount from 12% to 6%. Dissatisfied with the said order, the Central Coalfields Ltd. filed Special Leave Petition (c) No. 17406/2010 before this Court. By order dated 19.07.2010, this Court dismissed the special leave petition in limine and confirmed the order passed by the Division Bench.

19. Felt aggrieved, the CCL filed LPAs before the High Court of Patna out of which these appeals arise. By impugned order, the Division Bench allowed the appeals and while setting aside the order of the Single Judge dismissed the writ petitions filed by the Companies on the grounds that firstly, the claim of the writ petitioners was not based on any fundamental or statutory right but was based on contract and hence it was not maintainable and secondly, the claim was not based on any direction issued by this Court or/and the High Court to refund the amount in question and lastly the writ petition was barred by limitation. So far as the contention of the CCL relating to principle of undue enrichment was concerned, the same did not find favour to the Division Bench and was accordingly decided against CCL holding that since the writ petitioners' claim does not involve any adjudication of disputed facts, therefore, it was capable of being entertained in the writ petitions.

41. In the light of aforesaid law laid down, we find no justification to deny the benefit of such law to the present Companies(writ petitioners) on the ground of parity with the writ petitioner of Central Coalfields Ltd. and Eastern Coalfields Ltd case.

43. We cannot, therefore, concur with the view taken by the Division Bench when it proceeded to dismiss the writ petitions on the ground of delay and laches. The Single Judge, in our view, rightly entertained the writ petitions on merits and proceeded to grant relief as claimed by the companies in the writ petition and the Division Bench, in our opinion, should have upheld the view of the Single Judge.

48. In view of foregoing discussion, the appeals filed by the writ petitioners i.e. appeals arising out of S.L.P.(c) Nos. 12925-12926, 13286, 14148, 14576, 15992 & 15993 of 2013 deserve to be allowed and are accordingly allowed though on different reasons which we have given above. As a consequence, the impugned judgments/orders are set aside and that of the Single Judge restored.

49. As a consequence, the appeals filed by the Central Coalfields Ltd. - C.A. arising out of S.L.P.(c) Nos. 14430, 15985, 15986, 15987, 15989, 15990 and 15991 of 2013 stand dismissed.

50. The CCL is directed to verify the claim of each of the writ petitioners and then after giving adjustment of any amount if already found paid to the writ petitioners against their claim in question, refund the balance amount along with interests at the rate of 6% to the respective writ petitioners (companies). Let this be done within three months.

April 08, 2015.