Coal Mines (Special Provisions) Act, 2015 – s.11 – In Manohar
Lal Sharma v. Principal Secretary and Others reported as [2014] 8
SCR 446, Supreme Court held that the allotment of Coal Blocks
between 1993 and 2011 was arbitrary and illegal – All such Coal
Block allocations were quashed – Respondent-prior contractor if
had the first right of refusal in the matter of lending of Mining
Lease, as held by High Court – On appeal, held: s.11 provides that
a successful bidder or allottee, as the case may be, in respect of
Schedule I coal mines, may elect, to adopt and continue such
contracts which may be existing with any of the prior allottees in
relation to coal mining operations – In the event the successful bidder
or allottee elects not to adopt or continue with the existing contracts,
all such contracts shall cease to be enforceable against the successful
bidder or allottee in relation to Schedule I coal mine and the only
remedy of such contracting parties shall be against the prior allottees
– If it is held that u/s.11, a prior contractor is entitled to continue if
his performance is found to be satisfactory and if there is nothing
against him, then it will be providing something in s.11 which the
Statute has not provided for – High Court erred in observing that
respondent had a legitimate expectation – Merely because the Coal
Mine Block was again allotted to the appellant, the same could not
give any vested right in favour of respondent – High Court erred in
forcing the appellant to continue the contract with respondent,
though it was not willing to do so – Decision of the appellant dtd.
06.04.18 was taken in accordance with s.11 and after following
the principle of natural justice – Impugned judgment set aside –Interpretation of Statutes – Literal Interpretation – Doctrine of
Legitimate Expectation – Principle of Natural Justice – Judicial
review. Interpretation of Statutes – Literal Interpretation – Plain and
literal meaning – Held: When upon a plain and literal interpretation
of the words used in a Statute, the legislative intent could be
gathered, it is not permissible to add words to the Statute – Coal
Mines (Special Provisions) Act, 2015 – s.11. Administrative Law:
Exercise of power of judicial review – Scope of – Discussed. Judicial review – Wednesbury Principle – Held: While
applying the Wednesbury principle, the Court will examine as to
whether the decision of an authority is such that no authority
properly directing itself on the relevant law and acting reasonably
could have reached it. Words and Phrases – “may elect” in s.11, 2015 Act – Meaning
of – Discussed – Coal Mines (Special Provisions) Act, 2015 – s.11.