M/S Rashmi Sponge Iron and Power Industries Pvt. Ltd. v. Union of India
Case brief
What is this about?
WPC No. 1397 of 2025, Chhattisgarh HC Bilaspur, order dated 17/03/2025 by Justice Amitendra Kishore Prasad; petitioner M/s Rashmi Sponge Iron and Power Industries Pvt. Ltd.; respondents Union of India (Ministry of Coal), Coal India Limited, South Eastern Coalfields Ltd (SECL), South East Central Railways; subject: apprehended encashment of bank guarantees by SECL; petition held premature at this stage; petitioner directed to seek remedy of representation under Clause 16 of the Fuel Supply Agreement (FSA) before SECL; interim restraint on encashment of bank guarantees till decision on representation; adequate opportunity of hearing expected from SECL authorities; counsel: Ankit Singhal (petitioner), Ramakant Mishra DSGI (UOI), Himanshu Yadu for SECL; NAFR-marked order.
What did the court decide?
Liberty to the petitioner to approach the authorities concerned and submit a representation under Clause 16 of the FSA before SECL; SECL to provide adequate opportunity of hearing; bank guarantees, if not already encashed, not to be encashed till a decision is taken on the representation.