Jharkhand High Court
Cotton Street vs Bharat Coking Coal Limited Through Its ... on 13 October, 2023
Author: Sanjaya Kumar Mishra
Bench: Sanjaya Kumar Mishra, Ananda Sen
IN THE HIGH COURT OF JHARKHAND AT RANCHI
W.P. (C) No. 4880 of 2023
Rani Sati Coke Pvt. Ltd., a company incorporated in India under the
Companies Act (1956/2013) having it registered office at 136, 5th Floor,
Cotton Street, Kolkata (West Bengal), and principal place of business
is at Ambona More, Deoli, Govindpur, P.O. & P.S. Govindpur, Dist.
Dhanbad, through one of its director Mohan Kumar Agarwal, aged
about 51 years, S/o Sadhu Ram Agarwal, R/o Near Gujrati School,
Gujrati Mohalla, Akashkanali, P.O. P.S. & Dist. Dhanbad.
Petitioner
Versus
1. Bharat Coking Coal Limited through its Chairman-cum-Managing
Director, having its office at Koyla Bhawan, P.O.-Koyla Nagar, P.S.
Saraidhela, District Dhanbad.
2. General Manager (Sales and Marketing), Bharat Coking Coal
Limited having its office at Koyla Bhawan, P.O.-Koyla Nagar, P.S.
Saraidhela, District Dhanbad.
3. Chief Manager, Finance, Bharat Coking Coal Limited, having its
office at Koyla Bhawan, P.O.-Koyla Nagar, P.S. Saraidhela, District
Dhanbad.
4. Manager (M&S), Bharat Coking Coal Limited, M&S Department
having its office at Koyla Bhawan, P.O.-Koyla Nagar, P.S.
Saraidhela, District Dhanbad.
5. General Manager, Bharat Coking Coal Limited, Govindpur Area
No.III, having its office at Sonardih, P.O.- & P.S. Sonardih, District
Dhanbad.
... Respondents
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CORAM: SRI SANJAYA KUMAR MISHRA, C.J.
SRI ANANDA SEN, J.
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For the Petitioner: Mr. Shailesh Kumar Singh, Advocate
Mr. Abhijeet Kumar Singh, Advocate
For the Respondents: Mr. Amit Kumar Das, Advocate
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03/Dated: 13.10.2023
Upon hearing the learned counsel for the parties, this Court
passed the following, (Per Sanjaya Kumar Mishra, C.J.):-
ORDER
1) By filing this writ application, the petitioner has prayed for the following reliefs:
"For issuance of an appropriate order quashing the letter dated 15.06.2022 (Annexure-9) passed by the Respondent No.2 terminating the Fuel Supply Agreement dated 05.03.2020 (Annexure-1) entered into between the 2 petitioner and the respondents under auction of coal linkage other sub sector tranche-IV in BCCL for supply of coal. Details of the FSA and Performance Security are as under:-
Primary Secondary Quantity Mode Grade BG Number Amount (in Source Source (in tones) Rs.) Block-IV New 3200 Road W-III- 0172010000153 Rs.7,08,377/-
OCP Akashkinaree STEAM 2) But, it is apparent from the submissions of the learned counsels
for the parties as well as Clause 16 of Annexure-1, i.e., the Fuel Supply Agreement, that an alternative forum exists for amicable settlement of the disputes between the petitioner and the respondents.
It is appropriate to take note of the aforesaid Clause regarding the settlement of disputes:-
"16. SETTLEMENT OF DISPUTES 16.1 In the event of any dispute, disagreement or difference arising out of or in connection with this Agreement, including any question regarding its performance, existence, interpretation, validity, termination and the rights and liabilities of the Parties ("Dispute"), the Parties shall in the first instance endeavour to amicably settle the same through negotiations carried out in good faith.
16.2 For the purpose of conducting such negotiations, each Party shall designate in writing to the other Party, a representative who shall be authorised to negotiate on its behalf with a view to resolving any Dispute (the "Representative"). Each such Representative shall remain so authorised until his replacement has been notified in writing to the other Party, by the Party he represents.
16.3 The Representative of the Party which considers that a Dispute has arisen shall give to the Representative of the other Party, a written notice setting out the material particulars of the dispute ("Dispute Notice"). Within 30 (thirty) days, or such longer period as may be mutually agreed by the Parties, of the Dispute Notice having been delivered to the other Party, the Representatives of both Parties shall meet in person to attempt in good faith and using their best endeavours at all times, to resolve the Dispute. Once the Dispute is resolved, the terms of the settlement shall be recorded in writing and signed by the 3 Representatives of the Parties. In the event that the Representatives of the Parties fail to resolve or settle the Dispute within 90 (ninety) days of their meeting, the Parties shall be entitled to exercise the remedies available to them under Clause 16.4 16.4 If amicable settlement as above is not possible, then the unresolved disputes or Model Fuel Supply Agreement - Non-
Regulated Sector differences shall be settled through the process as given below:
"In the event of any dispute or difference relating to the interpretation and application of the provisions of commercial contract (s) between Central Public Sector Enterprises (CPSES)/Port Trusts inter se and also between CPSEs and Government Departments/Organizations (excluding disputes concerning Railways, Income Tax, Customs & Excise Departments), such dispute or difference shall be taken up by either party for resolution through AMRCD as mentioned in DPE OM No. 4(1)/2013- DPE(GM)/FTS-1835 dated 22-05-2018"-
3) In that view of the matter, we dispose of the writ application giving liberty to the petitioner to file an appropriate application before the authorities ventilating his grievances. On such an event, the respondents shall resort to Clause 16 of the Fuel Supply Agreement and make all the efforts for settlement of the dispute. A reasonable opportunity of hearing shall be given to the petitioner and sincere efforts to settle the dispute shall be made by the respondents and the entire process shall be concluded within 60 days of production of the application by the petitioner.
4) There shall be no order as to costs.
5) Pending Interlocutory Applications, if any, stand disposed of.
6) Urgent Certified copies as per rules.
(Sanjaya Kumar Mishra, C.J.)
(Ananda Sen, J.)
Manoj/MM