Eastern Coalfields Ltd vs Dugal Kumar

2. The facts of the case are that the appellant is `Government Company' under Section 617 of the Companies Act, 1956. A scheme was formulated by the Company to offer employment 2 to a person who is a land loser for 1 acre of land which has been acquired, purchased or used by the Company. Subsequently, the policy was changed and it was also provided that those who do not intend to get employment may be offered 800 Metric Tons (MTs) of coal in lieu of employment of a family member whose one acre of land has been acquired, purchased or used by the Company. The policy was again modified in 1996 and entitlement was increased to 1600 MTs.

3. It is the case of the Company that it purchased land of the respondent admeasuring 1.26 acres and registered sale deed No. 2006, dated February 17, 1989 was executed at Dhanbad. In the light of the policy then in vogue, the respondent was offered 1008 MTs of coal on the basis of 800 MTs per acre since the sale was for 1.26 acres of land. The respondent accepted the said decision on February 23, 1989 and a written communication was addressed to the General Manager stating therein that the land owner was not interested in getting 3 employment and he would be thankful if 1008 MTs of coal would be given to him. The Authorities accepted the request and the appellant Company vide a letter dated May 22, 1989, passed an order to release 1008 MTs of steam Coal, Grade-D. It was stated that the coal would be released on fulfilling the terms and conditions mentioned in the said communication. According to the Company, everything was over and nothing further was required to be done in the matter. The respondent-writ-petitioner was paid consideration for land which was sold by registered sale deed. Over and above compensation, as per the policy in force, they offered 1008 MTs of coal which was accepted by the respondent and quantity was also released. It was accepted by the respondent without any protest, objection or reservation and the matter ended there.

4. After considerable delay of about a decade, a petition came to be filed being Writ Petition No. 770 of 1999 contending therein 4 that writ petitioner (respondent herein) was entitled to additional quantity of 1008 MTs of coal and an appropriate direction be issued to the Company to release the goods. The writ petition was placed for `first' hearing on September 6, 1999, and on the same day, it was disposed of by the Court observing inter alia that "no affidavit in opposition has been filed", and the learned counsel for the Company submitted that `usual order' be passed in the matter. Accordingly, the Company was directed to allot "balance quantity of 1008 MTs" of coal to the writ-petitioner.

6. It is stated by the appellant-Company that after the order dated September 6, 1999, on September 13, 1999, again the matter was mentioned by the writ-petitioner without filing any application and the High Court modified its earlier order dated September 6, 1999 and the balance quantity which was mentioned in the earlier order of September 6, 1999 as 1008 MTs was enhanced to 6800 MTs. Again, the matter was mentioned on September 15, 1999 and the order was corrected.

7. The Company, being aggrieved by the order passed by the learned Single Judge, preferred an appeal being APOT No. 94 of 2004 6 challenging the orders passed by the learned single Judge. The Division Bench of the High Court, however, dismissed the appeal on February 17, 2000 observing that when the order was passed by the learned single Judge on September 6, 1999, the counsel for the Company appeared and no reply was filed by the Company. In the circumstances, the Company had "to blame itself". The matter was thereafter taken up by the learned single Judge and even at that stage, no reply was filed. According to the Court, therefore, there was no reason to interfere with the order of the single Judge and the appeal was dismissed.

8. The Company challenged the order passed by the Division Bench of the High Court by filing Special Leave Petition No. 8238 of 2000. When the matter came up for admission hearing, it was withdrawn on May 12, 2000. The said order mentioned that the learned counsel for the Company stated that the Company would file `Review Petition' in the High Court. The 7 special leave petition was accordingly `dismissed as withdrawn'. Thereafter Review Petition was filed by the Company in the High Court and as stated above, the Review Petition was also dismissed by the Court observing that there was "no apparent error to review the order". The said order is challenged in the present appeal.

9. Initially when the matter was placed for admission hearing, notice was issued on August 12, 2002. It appears that the Special Leave Petition was dismissed on February 12, 2003, but the said order was recalled by the Court on September 12, 2003. On January 12, 2004, leave was granted, printing was dispensed with and the appeal was ordered to be heard on SLP paper books. Parties were granted liberty to file additional documents. Original record was requisitioned. Interim stay against the order passed by the High Court was also granted. On March 7, 2008, a Bench of this Court presided over by Hon'ble the Chief 8 Justice of India directed final hearing of the matter during summer vacation and accordingly the matter was placed before us for final disposal on May 27, 2008.

13. Having heard the learned counsel for the parties, in our opinion, the appeal deserves to be partly allowed. So far as the technical objection raised by the Company with regard to territorial jurisdiction of the High Court of Calcutta is concerned, in our opinion, it would not be appropriate to set aside the order passed in favour of the writ petitioner on that ground. It is clear from the record that the writ petition came up for admission hearing on September 6, 1999 and the counsel for the appellant-Company was present. Not only that he did not raise any objection as to territorial jurisdiction of the Court, he expressly made a statement before the Court to pass "usual order". Accordingly, an order was passed directing the Company to allot "balance quantity of 1008 MTs" of coal to the writ petitioner. We are, therefore, unable to uphold the contention of the learned counsel for the appellant-Company that the High Court 1 of Calcutta had no territorial jurisdiction to entertain the writ petition.

14. But we are also unable to uphold the contention of the writ petitioner that the appeal is not maintainable since the Company had challenged the order passed in Review Petition dated January 28, 2002 and not the main order dated February 17, 2000 dismissing intra-Court appeal. It was submitted by the learned counsel for the appellant that when Review Petition was dismissed, the order passed by the Division Bench in intra-Court appeal got merged in the order of Review Petition. But even otherwise, when the order passed in the Review Petition is challenged, it would not be proper to dismiss this appeal particularly when leave was granted in SLP after hearing the parties. We, therefore, reject the objection raised by the writ petitioner.

(emphasis supplied)

(emphasis supplied) 2

The supply is to be effected within a period of eight weeks from the date of communication of this order.

This order is incorporating into the earlier order dated 6.9.99.

All parties are to act on a signed copy of the minutes of this order."

24. We are also of the view that in the light of the above order, the Division Bench ought to have interfered with the direction of the learned single Judge in the order dated September 13, 1999 and intra-Court appeal ought to have been allowed. When the intra-Court appeal was dismissed, the appellant approached this Court by filing Special Leave Petition. It was dismissed as withdrawn as the Company wanted to move the Division Bench in Review Petition. To us, on the facts and in the circumstances of the case, the Division Bench ought to have considered the aforesaid aspect and passed an appropriate order in accordance with law.

26. For the foregoing reasons, the appeal is partly allowed and the writ petitioner is held entitled to 1008 MTs as initially awarded 2 to him as also 1008 MTs of coal towards "balance quantity" as per the order dated September 6, 1999. The writ petitioner will not be entitled to anything more. If the said quantity of coal has already been allotted, the Company has discharged its liability and nothing more is required to be done. But if it has not released the said quantity, the writ petitioner would be entitled to coal to the above extent. On the facts and in the circumstances of the case, there will be no order as to costs.