Manoj Kumar Agarwalla vs. Ms Bharat Coking Coal Limited Through Its Chairman Cum Managing Director

Facts

The petitioners, proprietors of firms engaged in coal and related product sales, filed a writ petition challenging a letter dated January 4, 2019, issued by Bharat Coking Coal Limited (BCCL). This letter unilaterally increased the Surface Transportation Charge (STC) from Rs. 31.00 plus GST to Rs. 478.00 plus GST on the lifting of slurry from Dugda Coal Washery. This increase was applied to an e-auction held on December 17, 2018, for December 2018, without prior notice. The petitioners contend that this enhancement violates the e-auction terms and makes lifting the slurry commercially unviable, as they acted based on the rate applicable on the auction date.

Held

The Court, having heard the parties, noted that several representations filed by the petitioners on the issue remained undecided. Without delving into the merits of the case, the Court disposed of the writ petition. It granted liberty to the petitioners to file fresh representations before the respondent no. 2 (Director Technical, BCCL). Upon receipt of these representations, respondent no. 2 is directed to take an appropriate decision by way of an informed order, after providing the petitioners or their representatives with a due opportunity of hearing. This decision is to be preferably made within a period of three months from the date of filing the representations. The Court did not decide the substantive issues raised by the petitioners regarding the unilateral increase in STC.

Key Issues

1. Whether the unilateral enhancement of Surface Transportation Charge (STC) by the respondent-BCCL, from Rs. 31.00 plus GST to Rs. 478.00 plus GST, on the lifting of slurry from Dugda Coal Washery, subsequent to the e-auction held on December 17, 2018, is justified and in accordance with the terms and conditions of the e-auction scheme. Petitioner's contention: The petitioners argued that the unilateral enhancement of STC by BCCL is unjustified and violates the terms and conditions of the e-auction. They asserted that BCCL had no jurisdiction to enhance the STC after the e-auction process concluded, as they had acted based on the rate applicable on December 17, 2018. The petitioners also claimed that such an 'extemporaneous' increase would render the lifting of slurry commercially unviable. Respondent's contention: The respondents submitted that the petitioners had already filed representations before the BCCL authorities. They proposed that if the petitioners preferred fresh representations, the Director Technical, BCCL, would take an appropriate decision.