EASTERN COALFIELDS LTD. versus M/S TETULIA COKE PLANT (P) LTD. & ORS.

Citation: [2011] 9 S.C.R. 1103 · Decided: 10-08-2011 · Supreme Court of India · Bench: MUKUNDAKAM SHARMA, ANIL R. DAVE · Disposal: Disposed off
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Judgment (excerpt)

[2011) 9 S.C.R. 1103 
EASTERN COALFIELDS LTD. 
v. 
M/S TETULIA COKE PLANT (P) LTD. & ORS. 
(Civil Appeal No. 6888 of 2011) 
AUGUST 10, 2011 
[DR. MUKUNDAKAM SHARMA AND 
ANIL R. DAVE, JJ.] 
COAL: 
Refund of excess price paid - Scheme of a-auction 
introduced by Union of India - Held ultra vires of Article 14 
A 
B 
c 
of the Constitution and quashed by Supreme Court in Ashoka 
Smokeless Coal India (P) Ltd. - Coal companies directed to 
refund the excess amount paid by the purchasers - Writ 0 
petition involving similar issues pending before High Court 
- Disposed of, following the decision of Supreme Court in 
Ashoka Smokeless Coal India's case - Held: It cannot be 
. said that the effect of the decision in Ashoka Smokeless Coal 
India's case would be restricted only to those cases which 
E 
were before the Supreme Court and not for all cases which 
were pending in different High Courts at that stage, at least 
to the issues which were common in nature - Without taking 
a plea of unjust enrichment either in the writ petition or before 
the Supreme Court, the plea cannot be entertained at the time 
of argument, particularly, in view of the fact that the 
F 
respondents did not have any notice of such a plea taken for 
the first time at argument stage - In the instant case, it is a 
case of refund of price recovered by the appellant in excess 
and not of any kind of payment of tax or duty - Besides, the 
appellant has already refunded such excess amount realised 
G 
to many other parties without raising any such plea - If 
anything is done by a party in violation of the law, 
consequence has to follow and the party is bound to return 
the money to the parties from whom excess amount has been 
1103 
H 
·\ 
1104 
SUPREME COURT REPORTS 
[2011) 9 S.C.R. 
A realised - Pursuant to the orders of Supreme Court, the 
accounts in terms of the ord,3rs of the High Court have been 
verified and the said accounts have been settled -Therefore, 
appropriate steps shall be taken to give effect to the judgment 
and order passed by the High Court - The amount in terms 
... 
B of the settled accounts shall be paid by the respondents in 
accordance with law - Unjust enrichment - Plea - Constitution 
of India, 1950 - Article 14. 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 
c 6888 of 2011. 
From the Judgment and Order dated 04.10.2010 of the 
High Court of Calcutta in APO No. 226 and 321 of 2010, WP 
No. 1279 of 2005 and GA No. 1929 of 2010. 
D 
P.P. Malhotra, ASG, Anip Sachthey, Mohit Paul and 
Shagun Matta for the Appellant. 
Ashwani K. Dhatwalia, Piyush Meharia, Amit Meharia and 
Meharia & Company for thEl Respondents. 
E 
The following order of the Court was delivered 
ORDER 
Leave granted. 
'If"!
F 
This appeal is directed against the judgment and order 
dated 4.10.201 O passed by the Calcutta High Court whereby 
the Division Bench of the High Court dismissed the appeal of 
the Appellant herein and while doing so, affirmed the findings 
and conclusions arrived at by the learned Single Judge. 
G 
A writ petition was filed by the respondents herein before 
' 
"-
the Calcutta High Court which was registered as Writ Petition 
No. 1279 of 2005. In the said writ petition the respondents 
challenged the legality of the e-auction scheme introduced by 
H the Union of India and adopted by the Appellant herein. In the 
EASTERN COALFIELDS LTD. v. TETULIA COKE 1105 
PLANT (P) LTD. & ORS. 
) 
"' 
said writ petition, an interim order was also passed on 
A 
08.08.2005 with regard to the liability for payment of price for 
purchasing coals under e-auction scheme and for furnishing 
bank guarantee in connection thereof. 
-I 
During the pendency of the said writ petition in the High 
B 
~ 
Court, some other writ petitions involving similar issues and 
also pending before the Calcutta High Court and also other 
High Courts were transferred to this Court. This Court passed 
certain interim orders. However, finally the said cases were 
taken up for final hearing and were disposed of by a judgment c 
and order rendered on 01.12.2006 in the matter of Ashoka 
Smokeless Coal India (P) Ltd. & Ors. Vs. Union of India & 
Ors. reported in (2007) 2 SCC 640. By the said judgment and 
j 
order this Court upheld the challenge of the writ petitioners 
therein to the scheme of e-auction. This Court in the said 
judgment further held that the said scheme of e-auction was 
D 
invalid. Consequently, this Court declared the same as ultra 
vires of Article 14 of the Consti
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