Summary:
New Delhi, Aug 17 (PTI) The Supreme Court Wednesday imposed a cost of Rs one lakh on the Centre for its “callous, careless and casual approach” that had led to the cancellation of a coal block that was validly granted to private firm BLA Industries in Madhya Pradesh in 1997.
The top court also held that the Union Coal Ministry was not entitled to claim payment of an additional levy for the coal extracted by the private firm from the mine, saying “Any such demand raised by the respondent No.
1 – UOI is hereby quashed and set aside.” A bench comprising Chief Justice N V Ramana and Justices Krishna Murari and Hima Kohli referred to the sequence of events in the case related to BLA Industries which had followed the due process in securing “Gotitoria (East & West) Coal Blocks" in Mohapani Coalfield in Madhya Pradesh to meet the coal requirements of the captive power plant.
“We are constrained to make certain observations regarding the conduct of respondent no.
1 – UOI.
Here is a case where a private party followed all the rules and the law, as applicable, before investing large sums of money to undertake business.
In fact, it appears from the facts of the case that it was respondent no.
1 – UOI that did not follow the letter of the law,” it said.
The top court said it was the private party that had to suffer the consequences of the “careless and callous approach” of the Centre which had led to the cancellation of the coal block consequent to a 2014 judgement on a PIL.
“To compound the petitioner’s woes, the respondent no.