Dayal Iron Equipments Works vs Union of India (UOI) and Others

Aftab Alam, J.—The two Petitioners claim to be small scale coal based industries. They were receiving their monthly supply of coal from South Eastern Coal Fields (S.E.C.L.) Limited under the Linkage scheme. It appears that pursuant to a spot verification it was found that the two units along with a number of others, were either non-existent or non-operational and consequently their supply of coal was stopped. On the stoppage of the supply of coal, M/s. Bablu Mishri Udyog wrote a Letter, dated 3.5.2002 protesting against the stoppage and asking for the reason for the stoppage of supply of coal to them. M/s. Dayal Tron Equipments Works also wrote a similar letter on the same day (3.5.2002) (copies at Annexure 5 in the respective writ petitions). Both the Petitioners received identical Letters intimating that during status verification the two units were found to be non-existent/non-operational.

In the counter affidavit filed on behalf of the Coal Company, it is stated that in the meeting held on 2.4.2002 a decision was taken to have an inspection made of all non-core sector consumers with a view to weed out the non-operational/non-existent units which were misutilising the supply of coal made to, them. In pursuance of the decision an inspection team was constituted that visited a number of units and made a status report. In the status report, dated 29.4.2002 the two units before this Court, namely, M/s. Dayal Iron Equipments Works and M/s. Bablu Mishri Udyog were found to be nonexistent/non-operational. In the remarks column of the report, it is stated in respect of the two units as follows:

There is no establishment at the given name/address and no sign board noticed.

The address of M/s. Bablu Mishri Udyog is given as Nagadih and that of M/s. Dayal Iron Equipments Works as Balsara.

Mr. N.K. Agrawal. Senior Advocate appearing for the Petitioners in these two writ petitions pointed out that the addresses of the two units were their previous addresses and shortly before the inspection, the two units had shifted to two different places. In support of the submissions reliance was placed on orders permitting shifting of the units issued by the District Industries Centre, Aurangabad. In the case of M/s. Bablu Mishri Udyog, the order permitted shifting of the unit from Naga Bigha, Aurangabad to village Pipardih, P.O. and District Aurangabad. This order was issued by the General Manager, District Industries Centre, Aurangabad under his memo No. 276 dated 11.4.2002.

In the case of M/s. Dayal Iron Equipments Works the permission was given for shifting the unit from Belsara Block to village Jagdishpur, P.O. Ramchandra Nagar, District Aurangabad under the order issued by the General Manager, District Industries Centre, Aurangabad under his memo No. 275, dated 11.4.2002.

Mr. Agrawal submitted that on or about 11.4.2002 the two units had been shitted from their previous addresses and, therefore, the inspection team that visited the previous addresses of the two units found that the units were non-existent/ non-operational. According to him, however, the two units were operational and were very much in existence at their respective newly shifted places.

Mr. V.M.K. Sinha, counsel appearing for the Coal Company doubted the correctness of the orders at Annexure 4 and submitted that the issuance of the orders permitting shifting of two units on the same day was not free from doubt. Mr. Sinha implied that the orders were obtained by the Petitioners somehow after the coal authorities in course of inspection found them to be non-existent/non-operational. Mr. Sinha further submitted that in any event the orders permitting the shifting of the two units were quite vague and it was not indicated in those order whether at the newly shifted places the units were set up with the same capacity and with the requirement of the same amount of coal etc.

The submissions raised by Mr. Sinha cannot be brushed aside and to my mind the best course would be to have the units duly verified and inspected once again both by the authorities of the State Government and by the authorities of the Coal Company, if so desired by latter.

Accordingly, on hearing counsel for the parties and having regard to the over all facts and circumstances of these cases, these two writ petitions are disposed of with the following directions:

The Petitioners are directed to appear before the Small Industries Service Institute, Patna (S.I.S.I., Patna) and before the District Industries Centre, Aurangabad. The authorities of the S.I.S.I. and the D.I.G. will hold a joint inspection of the two units of their newly shifted addresses. In the joint inspection report, they would not only indicate whether or not the units were truly shifted to their respective new addresses and whether or not in reality they are in existence and operational, but, would also indicate their respective capacities and their respective requirements of the monthly supply of coal. A report with regard to the two units will be sent to the concerned authorities in the S.E.C.L. within two months from the date of receipt/production of copies of this order in the office of the S.I.S.I. Patna and the District Industries Centre, Aurangabad.

On receipt of the report from the authorities of the State Government, it will be open to the Coal Company to act on that basis. If the report is in favour of the Petitioners, the Coal Company may either restore or grant fresh linkages to the Petitioners in the light of the report or it may have the units reverified by its own team. In any case, the Coal Company must take a final decision and intimate the Petitioners in this regard within one month from the date of receipt of the report from the authorities of the State Government.

These two writ petitions stand disposed of with the aforesaid observations and directions.