SC upholds HC order quashing CIL's decision on transportation

The Supreme Court has refused to entertain a plea challenging a Delhi High Court 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).
"We find no reason to entertain this special leave petition, which is, accordingly, dismissed," a bench of Justices Arun Mishra and Amitava Roy said.
The high court had on October 11, 2015 upheld the January 15, 2015 order of the single judge bench quashing CIL's decision, saying there was no justifiable reason to do so.
The CIL had on August 8, 2012 taken a decision regarding revision of rates of loading and transportation of coal by transport companies run by ex-servicemen.

The January 15, 2015 order of the high court 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 7-8 per cent on a yearly basis, had revised the rates in 2012 for three years without complying with the stipulation of consulting with 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 had 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.
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.