LexCOAL INDIA LTD. AND ANR. versus M/S. CONTINENTAL TRANSPORT AND CONSTRUCTION CORPORATION AND ORS. ETC.
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COAL INDIA LTD. AND ANR. v. MIS. CONTINENTAL TRANSPORT AND CONSTRUCTION CORPORATION AND ORS. ETC. MARCH 18, 1997 [S.C. AGRAWAL AND G.B. PATTANAIK, JJ.) Essential Commodities Act, 1955/Collieiy Control Order, 1945/Defence of India Rules, 1939 : A B c S. 2(a)(ii) and S.16/Clauses 2(l)(a), 8, 9, 12B, 12E and 15/Rule 81 (2)-Govemment of India Notifications dated 24. 7.1967, as amended by Notifications dated 4.6.1992 a11d 25.8.1993-Sale of Steam Coal by Coal India Limited through its subsidimy Central Coal-fields Limited under Liberalised Sales Scheme-II-Directions by Coal Controller to CCL to tra11s- fer the allotment of equivalent quantity of steam Coal agreed to be sold from D the Collie1ies mentioned i11 the agreement, to other Collie1y not covered under LSS-II, Held, Coal Controller is competent to issue such a direction which would prevail over a contract to the contrary and collie1y would dispose of Coal in accordance with such direction-Directions issued by the Coal Con- trol/er can11ot be said to be vitiated on the ground that 110 opportunity of E hearing be/ ore issuing such directions was given-Such a direction is binding and a Wiit of Mandamus could be issued to implement the same-Constitu- tion of India, Alticle 22tr-Administrative Law-P1inciples of Natural justice. Maxim-Audi alteram partem-Held, inapplicable. F The Government of India, in order to liberalise the sale of coal-an essential commodity under s.2 (a)(ii) of the Essential Commodities Act, 1955 - and in exercise of power under the Colliery Control Order, 1945, issued Notification dated 24.7.1967 as amended by Notifications dated 4.6.1992 and 25.8.1993. The effect of the Notifications was that in respect G of certain categories of coal falling within the ambit of the said N otifica- tions, the Colliery owners were free to enter into transactions for sale of coal without prior approval of the Central Government or the Coal Con- troller. In pursuance of the Notifications dated 24.7.1967 and 4.6.1992, Coal H 1 2 SUPREME COURT REPORTS [1997] 3 S.C.R. A India Limited (CIL) framed Liberalised Sales Scheme-II (LSS-11), and inviteq, by an advertisement, offers for purchase of Coal from various Collieries belonging to its subsidiaries, includin~ Urimari and Jarangdih <;ollieries - the .Collieries of Central Coalfields Limited (CCL), a sub- sidiary of CIL. In response thereto, respondent No. 1 (in C.A. No. 2004/97) B offered to purchase and the General Manager (Sales) CCL, allotted to it certain quantities of Grade-B and Grade W-111 Steam Coal from Urimari and Jarangdih Collieries respectively. However, since respondent No. 1 found that Steam Coal of Urimari · and :Jarangdih Collieries was not matching to the declared Grades 'B' and 'W-111' respectively, and Sirka Colliery falling in Argada area and also belonging to CCL had huge stocks C of Grade-B Steam Coal for disposal and the General Manager of Sirka Colliery was willing to accept the diversion of orders of other areas booked under LSS-11, it wrote a letter to the General Manger (Argada area) or" CCL expressing its willingness to lift equivalent quantity of Grade-B Steam Coal from Sirka Colliery. Respondent No. 1 accordingly requested the D General Manager (Argada area) CCL to accept the transfer of allotment at his level. The General Manager (A) Sirka also sent to the General Manager (S&M) CCL a copy of the aforesaid letter confirming the asser- tions made therein. Meanwhile, the respondents submitted a representation to the Coal E Controller for transfer of allotments of steam coal Urimari and Jarangdih Collieries to Sirka Colliery. The Coal Controller by its communication dated 12.4.1994 directed the Chainnan-cum-Managing Director, CCL, Ranchi to give effect to the transfer of the said allotments of Steam Coal from Urimari/Jarangdih Collieries to Sirka Colliery as requested by the F respondents and recommended by the General Manager of the area con- cerned. In similar circumstances, on representation of respondents (in C.A. No. 2005/97) and recommendation of the authority concerned, the Coal Controller, by another communication dated 12.4.1994, directed the Chair- G man-cum-Managing Director of CCL, Ranchi to effect transfer of allot- ment of Dirty Slurry to equivalent quantity of Steam Coal from Sirka/Religara/Gidi-C Collieries as requested for by the party and recom- mended by the authority of the area concerned. H Since the directio
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