TMI Blog2005 (1) TMI 668X X X X Extracts X X X X X X X X Extracts X X X X ..... n Union of India v. Cynamide India Ltd.(1987 (4) TMI 478 - SUPREME COURT) and M/s. Shri Sita Ram Sugar Co. Ltd. v. Union of India (1990 (3) TMI 358 - SUPREME COURT), in our opinion, the High Court did not fall into an error in upholding Clause 10 of the Price Notification dated 14.3.1997. The High Court rightly came to the conclusion that Clause 10 of the Price Notification did not violate the equality clause of Article 14 of the Constitution of India. By evolving the dual price policy and charging lesser price from the core-sector industries the respondent has not treated equals as unequals or that the classification made was not rational. For the reasons stated above, we do not find any merit in these appeals and dismiss the same. - Appeal (civil) 109 of 1999, Civil Appeal No.15 of 2005 - - - Dated:- 4-1-2005 - ASHOK BHAN A.K. MATHUR, JJ. JUDGMENT BHAN, J. Leave granted in SLP (C) No. 2783 of 1999. These appeals by grant of special leave have been filed by the writ petitioners the appellants herein, against the common order passed by the High Court of Andhra Pradesh in a group of writ petitions. The High Court in the impugned judgment has upheld Clause 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Pradesh challenging the levy of additional price by the respondent being discriminatory and violative of Article 14 of the Constitution of India. According to them, the classification of linked and unlinked industries for the purpose of pricing was irrational and gave rise to hostile discrimination. It was averred that the respondent has effected a substantial price variation under the guise of additional levy and the same amounts to dual pricing. It was also averred that the price fixed was arbitrary and excessive. The respondent in its reply contended that fixation of price is within its discretion and coal being not a controlled commodity now, the respondent could not be precluded from fixing appropriate prices for its produce including dual price. It was averred that the limited grievance of the appellants was against the alleged discriminatory treatment between core sector/linked sector industries and other industries. Having regard to the financial position of the respondent, having accumulated loss of more than Rs. 1000 crores and additional cost of production, there was nothing wrong in charging higher price from the non-core/unlinked sector customers leaving a comfort ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... increase of price of coal from them will not result in any appreciable increase in the cost of products manufactured by such industries. The extent of bulk consumption of coal by core sector/linked sector industries call for a special treatment. It cannot be said that by evolving dual price policy and charging lesser price from the core/linked sector industries, the respondent has treated equals as unequals or that the classification made was not rational. Being aggrieved by the dismissal of the writ petitions by the High Court, the present appeals have been filed. The only point argued before us in these appeals is whether resort to dual price fixation classifying its customers into core sector/linked sector and non-core sector/unlinked sector by the respondent and charging different prices for coal from such customers is discriminatory treating the equals as unequals and, therefore, violative of Article 14 of the Constitution of India. Essence of the submissions advanced by Shri T.N. Rao, learned counsel appearing for the appellants, is that classification of core/linked sector industries and noncore/unlinked sector industries by the respondent for the purpose of pric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... slature. In such situations, the determination of price may acquire a quasi judicial character but, otherwise, price fixation is generally a legislative activity. After observing thus, the Court held that price fixation is neither the function nor the forte of the Court. The Court is neither concerned with the policy nor with the rates. But in appropriate proceedings it may enquire into the question, whether relevant considerations have gone in and irrelevant considerations kept out while determining the price. In case the Legislature has laid down the pricing policy and prescribed the factors which should guide the determination of the price then the Court will, if necessary, enquire into the question whether policy and factors were present to the mind of the authorities specifying the price. The assembling of raw materials and mechanics of price fixation are the concern of the Executive and it should be left to the Executive to do so and the Courts would not revaluate the consideration even if the prices are demonstrably injurious to some manufacturers and producers. The Court will however examine if there is any hostile discrimination. It was observed as under:- We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Seven industries, reference to which has already been made, have been identified as core sector consumers. These consumers are extended inter se priorities in the supply of coal by granting appropriate linkages. No linkage is required for Defence, Railways and for Exports. The coal linkages, as far as these industries are concerned, are monitored periodically by the Standing Linkage Committee. Guidelines for giving linkages are issued under the provisions of clause 8 of the Colliery Control Order, 1945 by the Central Government. The priority given to the linked customers in the matter of supply of coal are not under challenge before us. The industries which do not fall in the core sector are classified as non-core/unlinked sector industries. In the present case admittedly the respondent is facing heavy financial deficit having accumulated loss of more than Rs. 1,000 crores. The decontrol of prices was done with the predominant object to enable the respondent and other coal companies which were in red to wriggle out of the financial predicament to some extent and to derive returns so as to prevent or minimise further losses. An industrial company completely held by the Government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any increase in the price of coal supply to them, the common man would not be affected much. Even otherwise, the increase in the price is passed on the consumers by the appellants. Their end product does not have a national bearing. The products of these industries are not of an everyday concern for a common man. The primary consideration for placing the seven industries in the core-sector is of their intrinsic importance to the economy of the country and the role which they play in the nation building activities. The same consideration will hold good for charging lesser price from them. The requirement of coal in the core-sector is on the higher side either for captive power generation or for other uses for the manufacturing operations. Any substantial increase in the price of coal shall have a substantial effect on the cost of finished products of vital importance and the cost of service to the public. Counsel for the respondent has submitted before us that 70% of the cement manufactured by the country is utilized by the Central or State Governments for the construction of projects, bridges, roads etc. Any increase in the price of coal supplied to the core industries would res ..... 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