Industries & Commerce Association, registered association v. Union of India, service through Secretary, Ministry of Coal

--------- : Mr. Mr. Sunil Kumar, Sr. Adv Mr. Deepak Kr. Sinha, Adv Mr. Janak Kr. Mishra, Adv Mr. Piyush Poddar, Adv : Mr. Anil Kumar, Addl. SGI Mr. Abhijeet Kr. Singh, CGC For the R-2 to 8 (BCCL): Mr. Anoop Kr. Mehta, Adv Mr. Manish Kumar, Adv CAV On 01.07.2025. Pronounced on: 17/07.2025. Per: Deepal Roshan, J. The Petitioner in this Review Application is seeking for review of the judgment dated 31.08.2024 passed in LPA No. 587 of 2019. The Petitioner has urged that although a number of points were pressed at the time of hearing of the Appeal but the same have not been dealt with in the judgment under review.

2. The Petitioner, an association of Hard Coke Manufacturers, registered under Section 25 of the Companies Act, 1956 having altogether 74 members owning and possessing their hard coke plants, filed a Writ Application being WPC No. 2267 of 2018 for the following reliefs: (a) For a declaration that the new e-auction policy introduced by the Respondents for auctioning the coal linkage/LOAs through competitive bidding is arbitrary.. illegal, null and void as the same is detrimental and shall severally affect the interest of the business of the 2 the proposal of members of the Petitioner Association resulting into closure of almost 90% of the units. (b) For quashing and setting aside the Letter dated 19.01.2017 (Annexure-11) issued by the Respondent No. 2 to the Respondent no. 3 directing it to identify the source-wise/grade-wise quantity on the basis of market assessment for conducting the e-auction successfully including the Respondent No. 1 contained in Letter dated 15.02.2016 (Annexure-10) for auction of coal regarding competitive bidding linkage/LOAs to non-regulated sector. (c) For issuance of direction upon the concerned Respondents to release coal to the petitioners under the existing Fuel Supply Agreement (FSA) and may further. be pleased to extend the tenure of such Fuel Supply Agreements of the members of the Petitioner Association for further period after completion of tenure of the same, in order to save them from their extinction. (d) For restraining the Respondents from acting in pursuance of the said new e auction policy during the pendency of this writ petition.

3. The Petitioner Association submitted that its members were receiving Coking Coal under Fuel Supply Agreement (FSA) entered with Respondents No. 3 to 8 through linkage orders being Non-Core Sector consumers of coal for manufacture of Hard Coke. Subsequently, Respondent BCCL, a subsidiary of Coal India Limited and other subsidiary coal companies issued notices proposing to sell coal to Non-Core Sectors of Respondent BCCL through e-auction scheme.

4. Challenge was thrown to the said scheme of e- auction before different High Courts. These Writ Petitions were transferred from different High Courts and the matters were finally heard and disposed of by the Hon’ble Apex Court in the case of Ashoka Smokeless Coal India Pvt. Ltd. & Ors. Vs. Union of India & Ors1. The Apex Court by the said Judgment held that the Central Government and the Coal Companies are 1 (2007) 2 SCC 640 3 not profit earning concerns but are extended arms of a Welfare State. They are different from private sectors which thrive only on profit motive while the coal companies are under a constitutional obligation to fix reasonable price of coal. While rendering the said judgment, the Apex Court took into consideration the implications of Article 39(b) of the Constitution of India for ensuring equitable distribution of natural resources. Coal India Limited and its subsidiary companies accordingly were directed to distribute coal equitably and at a fair and reasonable price.

5. The Central Government thereafter came out with a policy decision vide its Memorandum dated

18.10.2007 namely ‘New Coal Distribution Policy’ superseding the existing Coal Distribution Policy, 2007; whereby consumers of NRS including members of the Petitioner Association were to receive 75% of their requirement of coal through Fuel Supply Agreement (FSA) at Notified Prices to be fixed/declared by Respondent Coal India Limited and balance 25% of their requirement through e-auction/import. The NRS Consumers of Coal including Members of the Petitioner Association were required to enter into Fuel Supply Agreement (FSA) to maintain monthly supply of coal and as such the members of the Petitioner Association entered into Fuel Supply Agreement with Respondent Nos. 3 to 8.

6. The Respondent Union of India thereafter proposed to devise the sale and distribution of coal through auction for which representations were sought from stakeholders. Objections were submitted by the 4 Association as to how auction would be held and quota would be fixed for each category and sub category of NRS Consumers.

7. The Ministry of Coal thereafter by its Notification dated 15.02.2016 took a policy decision for holding auction of linkage of Non-Regulated Sector (NRS) Consumers. It was also decided that FSAs of Non- Regulated Sector maturing in 2015-16 onwards will not be renewed and any consumer willing to continue supply of coal will have to secure linkage through transparent auction of linkages wherein a consumer was eligible to secure linkage quantity up to 100% of their normative requirement after implementation of Linkage Auction Policy. Thereafter, auction of linkage of NRS Consumers held since 2016 and four Phases of Linkage Auction were at the verge of conclusion.

8. The for consideration before the Learned Single Judge was with regards to correctness, legality and validity of auction of linkage of Non- Regulated Sector (NRS) Consumers introduced by Respondent Union of India in its Notification dated

15.02.2016. The Learned Single Judge after hearing the parties and taking into consideration the Judgments rendered by the Hon’ble Apex Court in the case of State of Jharkhand & Ors. Vs. Ashok Kumar Dangi & Ors.2 and Manohar Lal Sharma Vs. Principal Secretary & Ors.3 held, that Policy Guideline formulated by Central Government needs no