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Manohar Lal Sharma v. the Principal Secretary and others

Writ Petition (Criminal) · Neutral citation not assigned (Writ Petition (Criminal) No. 120 of 2012, order of 24 September 2014)Decided 24 Sept 2014
Writ Petition (Criminal) No. 120 of 2012
Chief Justice R.M. Lodha · Justice Madan B. Lokur · Justice Kurian Joseph

Background

An earlier judgment had declared coal allocations through the Screening Committee and Government dispensation routes arbitrary and illegal. This order considered the consequences after hearing industry associations, States and other affected interests. Allottees argued that cancellation would disrupt production, investments and jobs and sought individual consideration by a committee.

Decision Breakdown

The Court cancelled the unlawful allocations, retaining Moher and Moher Amroli Extension for the Sasan ultra-mega project and Tasra and Pakri Barwadih for the specified Central Government undertakings. Cancellation of the other 42 producing or near-producing blocks in the annexures took effect on March 31, 2015, allowing adjustment time. A committee could not reopen a decision about the fundamentally flawed allocation process, and affected interests had been heard through their associations and States. Non-exempt allottees had to pay an additional ₹295 per tonne already extracted by December 31, 2014, with the same levy on extraction until March 31, 2015. Lignite allocations were outside the earlier judgment, and criminal investigations remained independent.

Lesson Learnt

Investment and operational readiness did not preserve coal allocations made through a fundamentally unlawful process. Public-resource allocations must withstand legal scrutiny, and cancellation or a compensatory levy does not itself determine criminal guilt.

Official source (sci.gov.in)View Judgment (PDF)

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