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5. The Punjab State Electricity Board (hereinafter referred to as the “PSEB”) which is now known as Punjab State Power Corporation Limited (hereinafter referred to as the “PSPCL”), was proposed to be allotted Captive Coal Mines by the Union of India. On 16th February 1999, PSEB issued a tender, thereby inviting bids for the purpose of development of Captive Coal Mines. In the said bid, opened on 9th February 2000, the respondent­EMTA emerged successful. Accordingly, an agreement was entered into between PSEB and EMTA on 5 th May 2000, thereby creating a Joint Venture Company called Panem Coal Mines Limited (hereinafter referred to as “Panem”). The said agreement provided the rights for mining of coal from the Coal Mines, transporting and delivery of it, wholly and exclusively to PSEB. Since EMTA being a partnership firm could not have been a shareholder of the Joint Venture Company, a follow up Joint Venture Agreement was entered into on 21st March 2001 between PSEB, EMTA and the three partners of EMTA, incorporating the same terms and conditions as were found in the earlier agreement dated 5 th May 2000. The same was intimated to the Union of India by PSEB. Thereafter on 26th December 2001, Union of India allotted a Captive Coal Block being Pachhwara (Central Block) Coal Mine (hereinafter referred to as “Pachhwara Coal Block”) in the State of Jharkhand to PSEB. On 22 nd February 2002, Union of India notified the supply of coal from the Pachhwara Coal Block by the Joint Venture Company (Panem) to the power stations of PSEB on an exclusive basis as an end use under Section 3(3)(a)

8. EMTA filed a civil writ petition being CWP No. 26180 of 2015 before the High Court of Punjab and Haryana, thereby challenging the said NIT. On 10 th February 2016, the High Court passed a direction restraining PSPCL from opening the financial bids till 29th February 2016. On 1st February 2018, CWP No. 26180 of 2015 was dismissed as withdrawn by the High Court on the basis of the statement made by PSPCL that it shall consider the representation­cum­claims made by EMTA and it shall take a decision thereon before finalizing the fresh tender process for allotment of Coal Mines at Pachhwara. Accordingly, a representation was made by EMTA on 20 th February 2018, which came to be rejected by PSPCL on 6 th April 2018. The same was challenged by EMTA by filing a civil writ petition being CWP No. 10055 of 2018 before the High Court of Punjab and Haryana.

11. The learned Senior Counsel further submitted that in pursuance of the directions issued by this Court for payment of Rs.295/­ per metric ton, it was the liability of EMTA to make the said payment amounting to Rs.1400 crore. He submitted that however, EMTA had failed to make the said payment resulting in a huge loss to the public exchequer. The learned Senior Counsel further submitted that the findings of the High Court with regard to the legitimate expectation of EMTA, are totally unsustainable. The learned Senior Counsel submitted that the legitimate expectation would not be applicable against the Statute. He further submitted that PSPCL has taken a policy decision to appoint Mine Developer­cum­Operator by competitive bidding process. He submitted that the policy is reasonable and as such, the legitimate expectation would not be applicable as against such a reasonable policy. The learned Senior Counsel relied on the judgment of this Court in the case of Kerala State Beverages (M and M) Corporation Limited v. P.P. Suresh and Others3.

14. Shri Mukul Rohatgi, learned Senior Counsel appearing on behalf of respondent­EMTA vehemently opposed the submissions made on behalf of PSPCL. The learned Senior Counsel submitted that EMTA has made huge investment by deploying specialized machinery for the purpose of mining, construction of roads to the Mining Blocks and other infrastructural developments. He submitted that since the contract was entered into for a period of 30 years, EMTA has a legitimate expectation to continue till completion of the said period of 30 years. He therefore submitted that the High Court has rightly held that EMTA had a legitimate right of first refusal.