2005 (12) TMI 610 - SC - Indian Laws

Summary

Issues:
Challenging E-auction scheme for coal supply, varying High Court judgments on scheme's validity, transfer petitions for consolidation of cases, compliance with interim orders, modification of payment terms for coal supply.

Analysis:
1. The petitions challenge the new E-auction scheme introduced by Coal India Ltd. and its subsidiaries, affecting industrial undertakings with coal linkages. High Courts passed interim orders for coal supply at notified prices, leading to petitions for special leave to appeal. The Supreme Court directed coal supply at notified prices with indemnity bonds and financial statements submission by petitioners.

2. Conflicting judgments by Gauhati High Court and M.P. High Court on the E-auction scheme's validity prompted transfer petitions by the Union of India to consolidate cases in the Supreme Court for resolution and avoidance of prolonged litigation.

3. Compliance issues with the Supreme Court's interim order were raised by Coal India Ltd. and its subsidiaries, advocating modification of payment terms for coal supply to mitigate financial risks. Petitioners resisted changes, emphasizing compliance and financial stability.

4. After considering arguments, the Supreme Court directed petitioners to pay a portion of the enhanced price for coal supply, with security for the remaining amount pending the resolution of challenges to the E-auction scheme. The Court balanced interests, ensuring refunds if petitioners succeed in their challenge.

5. The Court set a payment structure for petitioners, requiring partial payment of enhanced prices and security, with undertakings for refunds if challenges succeed. Compliance with payment terms was mandated for coal supply, with non-compliance leading to supply cessation.

6. Transfer petitions for case consolidation were allowed, and a timeline was set for final disposal of cases, with detailed written submissions and no adjournment requests accepted to expedite proceedings and ensure efficient resolution of the legal issues involved.