Supreme Court Verdict on Coal India Limited's Interim Coal Policy
The Supreme Court upheld the validity of Coal India Limited’s Interim Coal Policy of 2006, which mandated a 20% price increase on coal supplied to non-core sector industries. This decision marks a significant victory for the PSU, Coal India Ltd.
Key Points of the Verdict
- The Supreme Court overturned the Calcutta High Court's 2012 ruling that had invalidated the policy.
- A bench comprising Justices J B Pardiwala and R Mahadevan stated that the High Court made an "egregious error" in its judgment.
- The Court confirmed the Interim Coal Policy's objective was to maintain coal supply and availability, not driven solely by profit motives.
Issues Addressed in the Verdict
- Authority to Notify Interim Coal Policy: The Supreme Court found Coal India had the authority to regulate prices through the Interim Coal Policy under the CCO, 2000.
- Price Increase Validity Under Article 14: The Court upheld the 20% price increase for non-core linked consumers, affirming the classification between core and non-core sectors.
- Refund Entitlement: Respondents' request for a refund of the 20% price hike was dismissed. The Court indicated even an invalidation wouldn't have warranted a refund.
Justice Pardiwala emphasized the policy aimed to maintain market supply rather than pursue profit.
