M/S Coal India Limited & Ors vs Coal Consumers Association & Ors on 15 September, 2010
8. We have today delivered judgments in M/s Coal India
Limited & Ors. v. Alok Fuels (P) Ltd. & Ors. and also in
M/s Sushila Chemicals Pvt. Ltd. & Anr. v. Bharat Coking
Coal Ltd. & Ors. in which we have held that the petitioner
No.2 has the right to suspend supplies of coal to the
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purchaser of coal where it has doubts that the purchaser
may mis-utilize the allotted coal and divert or sell in open
market because, as it was clear from Clause 4.4 of FSA
and the New Coal Distribution Policy dated 18.10.2007,
the very object of FSA as well as policy decision of the
Government is to allot coal to the purchasers for
utilization in their plants and not for any other purpose.
In two judgments delivered today, we have also held that
the FIR lodged by the CBI, which is a premier
investigation agency of the Central Government, created
serious doubts that the allotted coal may have been
diverted or sold in the open market instead of being
utilized in the plants of the purchasers and hence the
petitioner No. 2 was within its rights to suspend the
supplies of coal to the purchasers in these cases till the
doubts were cleared in appropriate proceedings.