HC upholds quashing of Coal India's revised transportation rates

Two-judge bench refuses to interfere with Jan 15 order, saying it doesn't find justifiable reason to do so

Delhi High Court has upheld its order quashing Coal India Ltd's (CIL) decision on revision of rates of coal transportation by companies run by ex-servicemen without consulting the Director General of Resettlement (DGR).

A bench of Chief Justice G Rohini and Justice Jayant Nath refused to interfere with the January 15 order, saying it did not find any justifiable reason to do so.

"The single judge has rightly set aside the order dated August 8, 2012, and interference by us is not warranted on any ground whatsoever," the court said.

The court passed the order on CIL's appeal against the order of the single judge, who had quashed the August 8, 2012, decision regarding revision of rates of loading and transportation of coal by ex-serviceman transport companies.

The January 15 order was passed on a plea by Khushi Coal Transport Private Limited, filed through advocate T L Garg, which had claimed that CIL, which was earlier increasing the rates by seven to eight per cent on a yearly basis, had revised the rates in 2012 for three years without complying with the stipulation of consulting with the DGR.

The memorandum of understanding drawn up between CIL and DGR regarding transportation of coal by ex-servicemen companies had a clause that the modalities, of fixing rates and escalation to be paid yearly, would be formulated by the CIL in consultation with the latter, the plea had said.

It further stated that the scheme was formulated with the intercession of the Union ministries of Energy and Defence.

The ex-servicemen transport companies have been making representations since 2009 for enhancement of transportation rates on a yearly basis, the petitioner company had said.

The company had submitted before the single judge that while CIL's profits had increased from Rs 5,744 crore to Rs 21,272 crore between 2008 and 2012, firms like it had been denied their dues.

To which, the single judge had noted that the instant and other such schemes were formulated by the Centre to enable robust rehabilitation of ex-serviceman, as a vast majority of this class of personnel retire at a relatively young age when compared to their civilian counterparts.