Apex court dismisses petition challenging coal ordinance

The Supreme Court on Thursday dismissed a writ petition by CESC Ltd that challenged the Coal (Mines Special Provisions) Ordinance 2014.

Before the court, CESC argued unlike other entities that had secured mining licences through the screening committee route (which the court had criticised in September, while cancelling 204 licences), it wasn't tainted. The company's counsel, Gopal Subramaium, said CESC was a public utility that generated and distributed power to many consumers in West Bengal.

Apart from challenging the ordinance, the company sought it be excluded from the implementation of the law. The ordinance is set to be made into law through a Bill pending in Parliament. Attorney General Mukul Rohatgi, however, said the apex court's September judgment applied to CESC in equal measure. He added CESC's objection to the levy of Rs 295/tonne of coal wasn't tenable, as that figure was suggested by the Comptroller and Auditor General. "All these arguments are to derail the judgment and the economy," Rohtagi said.

Earlier, Electro Steel Casting, a private company, had also challenged the ordinance. However, Kapil Sibal, the company's counsel, chose to withdraw the petition and take up the matter with a high court.