Holding

The Supreme Court stayed the High Court’s order for personal appearance, allowed document production via designated officers, and permitted respondents to collect coal under an indemnity bond while directing the remaining stock to be auctioned.

Summary

The Supreme Court entertained several Special Leave Petitions arising from a writ petition before the Gauhati High Court, wherein the High Court had directed the Secretary, Ministry of Coal and senior officers of Coal India Ltd. to appear personally and produce original documents. The Union of India, through the Solicitor General, contended that copies were already on record and that personal appearance could be dispensed with, proposing that the documents be produced by any designated officer or counsel. The Court held that the High Court’s direction for personal presence was unreasonable and stayed it, permitting document production through designated officers. The Court also addressed the urgent issue of 3.4 lakh metric tons of coal stock deteriorating in the open yard, allowing the respondents to collect a specified quantity of coal at prevailing rates upon furnishing an indemnity bond, and directed the remaining stock to be sold by auction. Finally, the Court directed the High Court to dispose of the pending writ petitions expeditiously, preferably by 15 March 2005.

Issues considered

Whether the High Court's direction for personal appearance of senior officers can be stayed.
Whether production of original documents can be effected through designated officers or counsel.
Whether the coal stock lying in open yard can be sold or allocated to respondents subject to an indemnity bond.

Subjects

stay of orderpersonal presencedocument productioncoal stock disposalindemnity bondinterim orderspecial leave petitionhigh court directionsupreme court

Judgment

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A COAL INDIA LTD. 'AND ORS.
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!MENK SOU AND ORS: '·
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MARCH 3, 2005 1 • ' ·

B [N. SANTOSH HEGDE, B.P. SINGH AND S.B. SINHA, JJ.)

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Interim Order :

Order of High Court-Stay of-High Court directing personal presence
C of Secretary, Ministry of coal and Senior Officers of petitioner-Company and
to produce relevant documents in Court-Stay of order sought pleading that
copies of documents being already on record, originals would be produced on
specified date and personal presence of officers be dispensed .with-Held,
personal presence of named officers stayed-Relevant documents. to be
D produced by any designated officer or through counsel-Directions given for
disposal of coal lying in open yard and subject matter of dispute between the
parties-High Court would dispose of the writ petition expeditiously.

CIVIL APPELLATE JURISDICTION : Special Leave Petition (C) No.
2061 of 2005.
E
From the Judgment and Order d:ited 7.1.2005 of the Gauhati High
Court at Itanagar Permanent Bench in W.P.(C) No. 9 (AP) of 2005.

WITH

F S.L.P: (C) Nos. 2060, 2207, 2210 and 2295 of 2005.

Mohan Parasaran and A. Sharan, Additional Solicitor Generals, G.L.
Sanghi, Ajit Kumar Sinha, M.P. Jha, Raj Kishore· Prasad Singh, Ram Ekbal
Roy and Harshvardhan Jha for the Petitioners.

G Harish N. Salve, Dushyant Dave, C.L. Paney, P.K. Jain, Ankur Chandra,
Ms. Manik Karanjawala, Rajiv Mehta, B. Aggarwal, Rajiv Malhotra, Parthiv
Goswami, Devashish Bharuka, Dr. Sushi! Balwadia, Amkur Chawla, Ms.
Pragya Singh B., R.N. Karanjawala, Ms. B. Goyal, Rakesh Taneja and K.L.
Taneja for the Respondents.

H 490
COAL INDIA LTD. v. IMENK SOU 491
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The following Order of the Court was delivered : A
In the above petitions an application has been filed by the Union of
India seeking stay of the direction dated 1.3.2005 made by the High Court
of Gauhati in Writ Petition © No. 09 of 2005 and others. By the said order
the High Court has directed the Secretary to the Government of India, Ministry
of Coal, New Delhi, Chairman, Coal India Ltd., Kolkata and Regional B
Manager, Metal Scrap Trading Corporation Ltd., Kolkata to appear in person
before the Court and produce the relevant documents required by the court.

The learned Solicitor General appearing for the applicant has submitted
that though the copies of the documents required by the court are already on
record, still the originais of the same will be made available to the Court as C
directed by it, hence, personal presence of the officers named herein above
may be dispensed with. We think on the facts and circumstances of this case
it is reasonable prayer hence, we direct the officers named in the order of the
High Court and referred to herein above to direct the production of the
required documents through any designated officers or through their counsel D
appearing in the High Court on 8th of March, 2005. We make this order on
an assurance given by the learned Solicitor General. On that basis we stay the
direction of the High Court for the personal presence of the above named
officers of the time being.

The learned Solicitor General then submitted that nearly 3.4 lacs metric E
tons of coal is lying in stock in open yard with the North Eastern Coalfields,
and because of the delay in disposal of the writ petition by the High C<'urt
the said stock of coal is getting deoxydised, because of which the quality of
coal is deteriorating. He submitted if the claim of the respondents named
herein above is to be upheld that Would only require about 8 rakes of coal F
to satisfy their need hence, North Eastern Coalfields is willing to supply the
same at the rates prevailing in the month of December, 2004 to the named
respondents herein subject to the condition that they would file an indemnity
bond before the High Court undertaking to pay the difference in value in the
event of their claim failing before the High Court. He also prays that the
balance stock of c_oal in the North Eastern Coalfields may be permitted to be G
sold to the highest bidders in 'E' - Auction, to prevent the loss to the said
Coalfields. We think this is also a reasonable offer, therefore, we direct the
respondents named herein above, if they so desire to collect such quantity of
coal which they last purchased from Northern Coalfields, to approach the
authorities of North Eastern Coalfields land collect the said quantity of coal H
492 SUPREME COURT REPORTS (2005] 2 S.C.R.

A at the rate mentioned herein above within two weeks from today after
furnishing the undertaking. If the said respondent companies fail to lift the
coal as pen~itted to them by this order and on conditions herein, it will be
open to North Eastern Coalfields to dispose of the same in accordance with
their new policy. · ' '

B This interim order is made because of the facts and circumstances of
this case. As observed in the order dated 14th of Febrµary: 2005 we once
again request the High Court to dispose Of the writ petitions at ah early date
preferably by 15th of March, 2005 since we ar7 told that the arguments in
the petitions are almost complete.

c ordered accordingly.

R.P. Petitions disposed. of.
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