Coal block: SC upholds Punjab powercom decision

Satya Prakash

Tribune News Service

New Delhi, September 21

The Supreme Court today upheld the decision of the Punjab State Electricity Board (PSEB) — now known as Punjab State Power Corporation Limited (PSPCL) — to select the lowest bidder, DBL­VPR Consortium, for supply of coal, saving crores of rupees for the PSPCL.

“A policy decision to get the best operator at the best price, cannot be said to be a decision which no reasonable person would take in his affairs,” a Bench of Justices LN Rao, BR Gavai and BV Nagarathna said.

Due bidding process followed

The verdict came on appeals challenging HC order allowing pleas filed by EMTA Coal Ltd giving first right of refusal of lending of coal mining lease to it

The court took note of the fact that PSPCL went for a competitive bidding process to select lowest bidder, DBLVPR Consortium, for supply of coal

The court said the PSPCL’s April 6, 2018, decision could not be questioned on the grounds of illegality or procedural impropriety. The decision was taken in accordance with Section 11 of the Coal Mines (Special Provisions) Act, 2015 and after following the principle of natural justice, it added.

“In the result, the impugned judgment and order passed by the High Court of Punjab and Haryana is unsustainable in law. The appeals are, therefore, allowed and the judgment and order passed by the High Court of Punjab and Haryana dated January 25, 2019, is quashed and set aside,” it said.

The verdict came on appeals challenging the HC order allowing the petitions filed by EMTA Coal Limited giving the first right of refusal in the matter of lending of coal mining lease to EMTA.

“While exercising powers of judicial review, the court is not concerned with the ultimate decision but the decision-making process. The limited areas in which the court can inquire are as to whether a decision-making authority has exceeded its powers, committed an error of law or committed breach of principle of natural justice,” it said.

The top court took note of the fact that PSPCL went for a competitive bidding process for the purpose of eliciting the best operator. It had also referred to its decision that held the allotment should be through a competitive bidding process. The PSEB was proposed to be allotted captive coal mines by the Centre. Following issuance of a tender inviting bids for the purpose of development of captive coal mines, ETMA Coal Limited emerged the winner. Following creation of a joint venture company, the Centre on December 26, 2001, allotted a captive coal block in Jharkhand, to the PSEB.