Coal Case Referred Back To Hc

The Supreme Court yesterday remanded the dispute between private cement companies and government coalfields to the Madhya Pradesh high court for reconsideration. Meanwhile the private consumer companies of coal will deposit the disputed amount in the high court.

Several cement companies like Gujarat Ambuja Cement and Shree Cement Ltd and other bulk consumers of coal have challenged the 10 per cent "premium" levied from them under a notification issued by the department of coal. The premium is over and above the prices charged for high grade coal available in the state. South Eastern Coalfield, a subsidiary of Coal India Ltd, is one of the main supplier of this coal.

 

When the consuming companies moved the high court, their challenge was dismissed. Therefore they moved the Supreme Court. They argued that the high court had not gone into the question whether the premium was part of the price and whether fixing of the premium on select collieries was discriminary or not. The bench consisting of Justice S B Majmudar (repeat Majmudar) and Justice M Jagannadha Rao laid down certain principles regarding the nature of the premium and remanded the large batch of appeals to the high court. The interim order asking the consumers to deposit the premium in the high court will continue till the disposal of the cases.