Madras High Court M/S.Metro Machinery Traders vs Union Of India on 26 October, 2007 DATED : 26/10/2007 CORAM THE HONOURABLE MR.JUSTICE M.CHOCKALINGAM W.P. No.43497 of 2006 AND MP. Nos.2 and 3 of 2006 And 1 of 2007 M/s.Metro Machinery Traders No.42 2nd Floor Nishant Kunj Pitampura Delhi 110 088 rep. By its Partner Ram Kishan ..Petitioner Vs 1. Union of India rep. By its Secretary Ministry of Coal & Mines Central Secretariat New Delhi. 2. M/s.Neyveli Lignite Corporation Ltd. (A Government of India Enterprises) Disposal Wing Marketing Branch Card Complex Office of the Dy. General Manager Chemical Units Neyveli 607 807. 3. Neyveli Lignite Corporation Ltd. having its Regd. Office at Neyveli House rep. By its Dy. General Manager Chemical Units No.135 Periyar E.V.R. High Road Kilpauk Chennai 10. 4. State Trading Corporation of India Ltd. having its Regd. Office at No.1 Toistory Marketing New Delhi 3. 5. M/s.Metal Scrap Trading Corporation (A Govt. of India Enterprises) Ranka Chambers No.31 1st Floor Cunningham Road Bangalore 560 052. 6. The Director Directorate of Revenue Intelligence No.25 Gopalakrishna Iyer Road T.Nagar Chennai 17. ..Respondents Writ petition filed under Article 226 of the Constitution of India praying for a writ of certiorarified mandamus calling for the records relating to Sale Order/Acceptance Letter No.MSTC/S/NLC/EA14/200506/101/008 dated 1.4.2005 issued by the fifth respondent and quash the same and direct the second and third respondents to return the amount of Rs.163,49,96,511/ after deducting the amounts already received, with interest at the rate of 18% from 30.4.2005 to the petitioner. For Petitioner : Mr.Rawal, Senior Counsel, for Mr.Murthy For Respondents : Mr.P.Wilson, Assistant Solicitor General for RR1 and 6 Mr.N.A.K.Sarma for RR2 & 3 Mr.R.K.Anand, Senior Counsel and Mr.D.Roy Chondri, Senior Counsel for Mr.S.Umapathy for R4 No appearance for R5 ORDER The main writ petition itself is taken up for consideration following the request made by the Counsel on either side. 2.Invoking the writ jurisdiction of this Court, the petitioner has sought for a writ of certiorarified mandamus to call for the records relating to Sale Order/Acceptance Letter No.MSTC/S/NLC/EA14/200506/101/008 dated 1.4.2005 issued by the fifth respondent, quash the same and direct the second and third respondents to return the amount of Rs.163,49,96,511/ after deducting the amounts already received, with interest at the rate of 18% from 30.4.2005 to the petitioner. 3.The affidavit in support of the petition and the counter affidavits of the respondents 2, 3 and 4 are perused. The Court heard the learned Counsel on either side. 4.The following would emerge as facts admitted: (a) The petitioner is a partnership firm. The respondents 2, 3 and 4 are owned and managed by the Government of India while the respondents 2 and 3 are under the control of the first respondent. Likewise, the respondents 4 and 5 are under the control of the Union of India. Thus, the respondents 2 to 5 are Public Companies under the control of the Government of India. The Neyveli Lignite Corporation (hereinafter referred to as NLC) issued two communications both on 24.5.2004, one addressed to the Superintendent of Central Excise, Virudhachalam, and the other to the Commissioner of Central Excise and Customs, Pondicherry, regarding the disposal of the fertilizer plant. On 7.6.2004, the Superintendent of Central Excise, Virudhachalam, requested the second respondent to inform the payment of Customs Duty and Central Excise Duty and to pay the arrears of duty/penalty/fine/demand pending as on date. On 30.6.2004, the NLC replied to the Superintendent of Central Excise, Virudhachalam, that the machinery, equipment, spares, etc., required for the fertilizer plant, were procured only after paying the Customs/Excise Duty as applicable. On 2.7.2004, the Superintendent of Central Excise, Virudhachalam, requested the second respondent to furnish the details of the machinery, imported with partial/full exemption and bills of entry for the same. The same was furnished by the second respondent on 10.7.2004. While the matter stood thus, the fifth respondent issued an advertisement for auction notice No.MST.BLR/Neyveli Lignite Corporation Ltd., 14/Neyveli/2004/05/1025(1674) alleging that the respondents 2 and 3 being owner in possession of the machinery, intended to sell the fertilizer plant, machinery etc., as installed in its factory at Neyveli within its disposal. The fifth respondent by its tender notice dated 27.1.2005, issued general terms and conditions. The petitioner made its offer, and