Vaswani Industries Limited vs Union Of India
2021 Latest Caselaw 3250 Chatt

           HIGH COURT OF CHHATTISGARH, BILASPUR

                            WPC No. 4701 of 2021

 Real Ispat and Power Limited A Company Duly Incorporated Under The
  Provisions Of The Companies Act, 1956 Having Its Registered Office At Urla
  Bendri Road, Borjhara, Raipur 493221, Chhattisgarh, Through Its Authorized
  Signatory, Shri Nitesh Agrawal.

                                                                    ---- Petitioner

                                   Versus

1. Union Of India Through The Secretary, Ministry Of Coal, Nirman Bhawan, New
   Delhi.

2. Coal India Limited A Maharatna Company (Govt. Of India Undertaking), Through
   Its General Manager, (Marketing And Sales), Coal Bhawan, Marketing
   Directorate, Premises No. 04 Mar, Plot Af - Iii, Action Area, 1 A, New Town
   Kolkata - 700156.

3. South Eastern Coalfields Limited Through Its General Manager (M and S),
   Having Its Registered Office At, Seepat Road, Bilaspur 495006, Chhattisgarh.

4. Mstc Limited A Government of India Enterprise, Cin L27320wb1964goi026211,
   Having Its Registered Office At, 225 - C, Acharya Jagadish Chandra Bose Road,
   Kolkata 700020 (India).

                                                                ---- Respondents

WPC No. 4676 of 2021

1. API Ispat and Powertech Private Limited A Company Duly Incorporated Under The Provisions Of The Companies Act, 1956 Having Its Registered Office At Near Industrial Growth Centre, Phase-2, Siltara, Raipur-493221, Chhattisgarh, Through Its Authorized Signatory, Shri Nitesh Agrawal., District : Raipur, Chhattisgarh

---- Petitioners

Versus

1. Union Of India Through The Secretary, Ministry Of Coal, Nirman Bhawan, New Delhi.

2. Coal India Limited A Maharatna Company (Government Of India Undertaking), Through Its General Manager, (Marketing And Sales), Coal Bhawan, Marketing Directorate, Premises No. 04mar, Plot - Af-3, Action Area- 1a, New Town, Kolkata

- 700156.

3. South Eastern Coalfields Limited Through Its General Manager (M And S), Having Its Registered Office At, Seepat Road, Bilaspur-495006, Chhattisgarh., District : Bilaspur, Chhattisgarh

4. Mstc Limited A Government Of India Enterprise, Cin L27320wb1964goi026211, Having Its Registered Office At, 225-C, Acharya Jagadish Chandra Bose Road, Kolkata - 700020 (India)., District : Kolkata, West Bengal

---- Respondents

WPC No. 4663 of 2021

1. Vaswani Industries Limited A Company Incorporated Under The Provisions Of Companies Act, 2013, Having Registered Office At Bahesar Road, Near Cycle Park , Village Sondra , Siltara , Phase Ii, Raipur Chhattisgarh (493221) , Through Its General Manager (Finance) Brijendra Kumar Chandrakar., District : Raipur, Chhattisgarh

---- Petitioner

Versus

1. Union Of India Through Secretary, Ministry Of Coal, Government Of India, Shashtri Bhawan, New Delhi 110001., District : New Delhi, Delhi

2. M/s Coal India Limited (A Public Sector Undertaking) Through Chairman Cum Managing Director Having Its Registered Office At 10, Netaji Subhash Road, Kolkata 700001

3. M/s South Eastern Coal Fields Limited Through Its Chairman Cum Managing Director, Seepat Road Bilaspur Chhattisgarh.

4. Mstc Limited Through Its Chairman Cum Managing Director , Plot No. Cg 18/2, Street No. 175, Action Area Ic, New Town Kolkata 700156.

---- Respondents

WPC No. 4719 of 2021

1. Drolia Electrosteels Private Limited A Company Incorporated Under The Provisions Of Companies Act , 2013, Having Office At Village Siltara (Dharsiwa) Raipur Chhattisgarh (493221), Through Its Authorized Representative Prem Shankar Dubey., District : Raipur, Chhattisgarh

---- Petitioner

Versus

1. Union Of India Through Secretary, Ministry Of Coal Government Of India, Shashtri Bhawan, New Delhi 110001., District : New Delhi, Delhi

2. M/s Coal India Limited ( A Public Sector Undertaking) Through Chairman Cum Managing Director Having Its Registered Office At 10, Netaji Subhash Road Kolkata 700001.

3. Mstc Limited Through Its Chairman Cum Managing Director , Plot No. Cf 18/2, Street No. 175, Action Area Ic, New Town Kolkata 700156

4. M/s South Eastern Coal Fields Limited Through Its Chairman Cum Managing Director , Seepat Road, Bilaspur Chhattisgarh.

---- Respondents

22/11/2021 Mr. Apurv Goyal, Advocate for petitioner in WPC Nos. 4663/2021 & 4719/2021.

Mr. Ashish Anand Bernard with Mr. Ankit Singhal, Advocates for petitioners in WPC Nos.4676/2021 & 4701/2021.

Mr. Tushar Dhar Diwan, Advocate on behalf of Mr. Ramakant Mishra, Asstt. S. G for respondent No.1.

Mr. Abhishek Sinha, Sr. Adv. With Mr. Vaibhav Shukla, Advocate for respondents No.2 & 3.

Heard on petition as also on application for grant of interim relief.

It is submitted by the counsel for the petitioners that petitioners are engaged in the business of power generation and manufacturing of steel. Respondent No.4 by a communication through e-mail, which is filed as Annexure P/1 in WPC No.4701/2021, 4676/2021 and Annexure-P/7 in WPC No.4663/2021, informed that the petitioner industries have been debarred from participating in Tranche-V of CPP Coal Linkage as per Scheme Document. As per submissions made by the counsel for the petitioners, respondent No.4 has misinterpreted the Scheme Document. It is also submitted that the order of debarment or blacklisting has been passed without affording opportunity to show cause.

Reliance has been placed on the judgment of Supreme Court in the case of Erusian Equipment & Chemicals Ltd vs State of West Bengal & another reported in (1975) 1 SCC 70; UMC Technologies Private Ltd. vs Food Corporation of India reported in (2021) 2 SCC 551.

It is further submitted that auction for Tranche V of Coal Linkage is continuing, last date for submission of bids is 7th December, 2021, therefore, the petitioners in all these cases be granted permission on interim basis to submit bids in this auction.

Learned counsel for respondent No.1 opposes the submissions.

Mr. Abhishek Sinha, Senior Counsel representing respondents No.2 & 3 opposes the submissions made in this respect. It is submitted that relief claimed by the petitioners in all the cases is similar to final relief claimed by them. It is submitted that there is also an issue of jurisdiction because the parties have agreed in the contract that in case of any dispute the Courts of Kolkata shall only have jurisdiction. It is submitted that according to the scheme documents, the petitioners are responsible for the consequences which they are facing, which is totally lawful and in accordance with the scheme documents. There is no prima facie case present in favor of the petitioners, hence, it is prayed that time may be granted to file response to the petition and application for grant of interim relief before considering on grant of any relief to the petitioners.

In reply, learned counsel for the petitioners has submitted, that as per scheme document, after the last date for submission of bids, relevant subsidiary shall issue Letter of Intent, within 15 days, to the successful bidders, who, in turn, will be required to submit performance security and documents within a period of 75 days and subsequent to that agreement shall be executed within a period of 60 days thereafter. Therefore, there is about five months time before the whole process is completed. In case the the petitioners are not allowed to submit their bids and they succeed in the petitions, then they would certainly suffer irreparable loss. The auction once conducted shall not be re-conducted, hence, the petitioners be granted liberty to submit bids on interim basis.

Considered on the submissions and perused the documents available in the record of writ petitions.

Taking into consideration the issue raised by the petitioners' side and also contested by the respondents, who are represented before this Court, purely as an interim measure, it is ordered that the petitioners in all the cases shall be permitted by the respondent authorities to submit their bids until the submissions of bids are open in auction proceeding. No right will be created in favor of petitioners on the basis of this order alone. Further, confirmation regarding entitlement of petitioners or their disqualification shall be subject to final out come of present petitions.

Notice be issued to respondent No.4. PF as per rules.

Notice may also be served upon respondent No.4 through e-mail.

Time is granted to the counsel for respondents No.1 to 3 to file reply.

List this case on 1st December, 2021.

Sd/-

(Rajendra Chandra Singh Samant) Judge

Nisha