Steel Authority of India Ltd., through J.T. Kongari… — Company and Corporate | Jharkhand HC (2026)

Steel Authority of India Ltd., through J.T. Kongari… — Company and Corporate | Jharkhand HC (2026)

What the court decided

AI extract

Outcome

Liberty to the parties to approach the Court if the dispute is not resolved or any cause of action survives; no relief on the merits, the petition being disposed of in view of the ongoing conciliation/informal negotiation (impugned order already kept in abeyance till 31.01.2026).

Issue for consideration

Whether the letters no. ED/Comml/JH/39/SAIL-BSL/1261 dated 20.11.2025 and ED/Comml/JH/39/SAIL-BSL/1234 dated 12.11.2025 issued by Respondent No. 4 — directing the petitioner to align procurement and scheduling of power as DISCOM under the Electricity Act, 2003 and issuing a disconnection notice under section 56 of the Electricity Act, 2003 for transition from retail consumer mode to schedule mode — are liable to be quashed and set aside. +1 more

Ratio / Principle

Since an informal negotiation is going on between the parties for settlement of their dispute, the writ petition is disposed of with liberty to the parties to approach the Court if the dispute is not resolved or still any cause of action survives. The merits of the challenge to the DVC letters were not decided.

Detailed headnote1 paragraphs

Writ petition (W.P.(C) No.7078 of 2025, neutral citation 2026:JHHC:233) filed by Steel Authority of India Ltd. (SAIL), Bokaro Steel Plant, against Damodar Valley Corporation (DVC) and its commercial officers, challenging: (i) letter no. ED/Comml/JH/39/SAIL-BSL/1261 dated 20.11.2025 (Annexure-9) issued by Respondent No. 4 directing SAIL to align the procurement and scheduling of power as DISCOM under the Electricity Act, 2003 and to transition power drawal to schedule mode, failing which DVC would discontinue supply in retail consumer mode on and from 1st December 2025; and (ii) letter no. ED/Comml/JH/39/SAIL-BSL/1234 dated 12.11.2025 (Annexure-7), a formal disconnection notice under section 56 of the Electricity Act, 2003. At hearing, counsel informed the Court that a conciliation proceeding was ongoing and the impugned order had been kept in abeyance till 31.01.2026. Holding that an informal negotiation between the parties for settlement was underway, the Court (Rajesh Kumar, J.) disposed of the writ petition with liberty to the parties to approach the Court if the dispute was not resolved or any cause of action survived. The merits of the challenge were not decided.

2026:JHHC:233

IN THE HIGH COURT OF JHARKHAND AT RANCHI W.P.(C) No.7078 of 2025

....

Steel Authority of India Ltd., a Government of India Company registered under section 617 of the Indian Companies Act, 1956 having its registered office at Ispat Bhavan, Lodhi Road, New Delhi, having its unit at Bokaro by the name of Bokaro Steel Plant, Bokaro Steel City, P.O. and P.S. Bokaro Steel City, District Bokaro, Jharkhand, through J.T. Kongari, aged about 57 years, son of Late P.L. Kongari working as General Manager (Law), Steel Authority of India Limited, Bokaro Steel Limited, P.O. B.S. City, P.S. B.S. City, District-Bokaro, Jharkhand

.… Petitioner

Versus

Damodar Valley Corporation through its Chairman, having office at DVC Tower, VIP Road, Kolkata, P.O. Cmda Abasan SO, P.S. Maniktala, DistrictKolkata, West Bengal, PIN-700054

The Executive Director (Commercial), Damodar Valley Corporation, DVC Tower, VIP Road, Kolkata, P.O. Cmda Abasan SO, P.S. Maniktala, DistrictKolkata, West Bengal, PIN-700054

The Chief General Manager (Commercial), Damodar Valley Corporation, DVC Tower, VIP Road, P.O. Cmda Abasan SO, P.S. Maniktala, District-Kolkata, West Bengal, PIN-700054

The Senior General Manager (Commercial), Damodar Valley Corporation, DVC Tower, VIP Road, Kolkata, P.O. Cmda Abasan SO, P.S. Maniktala, DistrictKolkata, West Bengal, PIN-700054 .... Respondents

CORAM: HON’BLE MR. JUSTICE RAJESH KUMAR

For the Petitioner : Mr. Indrajit Sinha, Adv. For the DVC : Ms. Khushboo Kataruka, Adv. : Mr. Gaurav Kumar, Adv.

03/07.01.2026

Heard learned counsel for the parties.

The present writ petition has been filed for the following reliefs:“I. For quashing and setting aside the letter no. ED/Comml/JH/39/SAIL-BSL/1261 dated 20.11. 2025 (Annexure-9) issued by the Respondent No. 4 wherein the petitioner is directed to align the procurement and scheduling of power as DISCOM under the Electricity Act, 2003 and transition of power drawal to schedule mode, failing which the respondent DVC will discontinue the power supply in retail consumer mode on and from 1st December 2025.

II. For quashing and setting aside the letter no. ED/Comml/JH/39/SAIL-BSL/1234 dated 12.11. 2025 (Annexure-7) issued by the Respondent No. 4 wherein formal disconnection notice under section 56 of the Electricity Act, 2003 is issued upon the petitioner for disconnection of power supply in retail consumer mode with effect from 1st December 2025.

2026:JHHC:233

III. For issuance of appropriate writ(s), order(s), direction(s) in the nature of Mandamus commanding upon the Respondent authorities not to compel and coerce the petitioner to execute Power Purchase Agreement (PPA) under the 'Schedule Mode' from 'Retail Consumer Mode' under the garb of disconnection of power supply.

IV. For issuance of appropriate direction putting stay on letter no. ED/Comml/JH/39/SAIL-BSL/1261 dated 20.11.2025 as well as letter no. ED/Comml/JH/39/SAIL-BSL/1234 dated 12.11. 2025 and keeping them under abeyance during the pendency of the instant writ petition.”

It has been informed by the learned counsel for the parties that a conciliation proceeding is going on and the impugned order has been kept in abeyance till 31.01.2026.

Since, an informal negotiation is going on between the parties for settlement of their dispute, hence, the present writ petition stands disposed of giving liberty to the parties to approach the Court if the dispute is not resolved or still any cause of action survives.

With above liberty the present writ petition stands disposed of.

(Rajesh Kumar, J.)

Shahid/ Uploaded on 08.01.2026

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W.P.(C) No.7078 of 2025