Allowed

M/S. Karam Chand Thapar and Brothers (Coal Sales) Limited v. Karnataka Power Corporation Limited

Karnataka HC25 Mar 2024WP/15654/2023

Case brief

AI extract

What is this about?

A writ petition contesting recovery of coal costs and freight where the respondent recovered more than the actual shortage. The Court allowed the petition, directing a refund of excess recovery based on a coordinate bench judgment and an indemnity against third-party claims.

What did the court decide?

Refund of Rs. 3,48,88,830/- plus 6% per annum interest from filing date; petitioner to indemnify respondent against Coal Company's claim within eight weeks.

M/S. Karam Chand Thapar and Brothers (Coal Sales)… — Company and Corporate | Karnataka HC (2024)

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1 - NC: 2024:KHC:12151 WP No. 15654 of 2023

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25^TH DAY OF MARCH, 2024

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BEFORE

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THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM

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WRIT PETITION NO.15654 OF 2023 (GM-RES)

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BETWEEN:

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Digitally signed by ALBHAGYA Location: HIGH COURT OF KARNATAKA

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M/S KARAM CHAND THAPAR & BROTHERS (COAL SALES) LIMITED A COMPANY INCORPORATED UNDER THE EXISTING MEANING OF THE COMPANIES ACT, 2013 HAVING ITS REGISTERED OFFICE AT: THAPAR HOUSE, 163 S.P.MUKHERJEE ROAD KOLKATA-700 026 ALSO BRANCH OFFICE AT: THAPAR NIKETAN, 7/4, BRUNTON ROAD BENGALURU-560 025 REPRESENTED BY ITS MANAGER BANGALORE BD AND CUSTOMER SERVICE MR.GURUPRAKASH K

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…PETITIONER

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(BY SRI.UDAYA HOLLA, SENIOR ADVOCATE FOR SMT. SUVARNA LAKSHMI M L, ADVOCATE)

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AND:

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KARNATAKA POWER CORPORATION LIMITED SHAKTHI BHAVAN, 3^RD FLOOR 82, RACE COURSE ROAD BENGALURU-560 001

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NC: 2024:KHC:12151 WP No. 15654 of 2023

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REPRESENTED BY ITS MANAGING DIRECTOR

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…RESPONDENT

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(BY SRI.AJAY J N, ADVOCATE)

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THIS WRIT PETITION IS FILED UNDER SECTIONS 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO CALL FOR THE RECORDS OF THE RESPONDENT IN RESPECT OF JOINT RECONSILIATION (UNDER ANNLX-C) AND TO THE REPRESENTATIONS OF THE PETITIONER DTD 20.11.2020, 30-07-2022, 11.05.2023 (UNDER ANNX-D, E AND G) AND ETC.

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THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING ‘B’ GROUP, THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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The captioned writ petition is filed by the

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petitioner feeling aggrieved by action of respondent in recovering amounts in excess of actual shortage and therefore, in the captioned writ petition, the petitioner is seeking a direction against the respondent to consider representations submitted by petitioner on 20.11.2020, 30.07.2022 and 11.05.2023 as per Annexures-D, E and G and refund an amount of Rs.3,48,88,830/- being the coal

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NC: 2024:KHC:12151 WP No. 15654 of 2023

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cost and Railway Freight from Talcher to Paradip Port with interest at the rate of 12% p.m.

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Facts leading to the case are as under;

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The petitioner and the respondent entered into an agreement for the work of liaisoning, movement, handling and delivery of raw coal from Mahanadi Coalfields Limited, Talcher in Odisha to Raichur Thermal Power Station in Karnataka by Rail-Sea-Rail route.

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Learned Senior Counsel appearing for the

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petitioner has placed reliance on the judgment rendered by the Co-ordinate Bench in an identical case pertaining to previous Contractor.

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Learned counsel appearing for the respondent

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fairly admits the judgment rendered by the Co-ordinate Bench in an identical case.

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Let me examine the dispute in the light of the judgment rendered by the Co-ordinate Bench in an

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NC: 2024:KHC:12151 WP No. 15654 of 2023

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identical case in W.P.No.48121/2019. This Court has extensively dealt the claim made by the petitioner and the objections raised by the respondent in the said writ petition. Having heard the learned counsel and after examining the records, the Co-ordinate Bench has disposed off the writ petition directing the respondent to refund an amount claimed under representations along with interest at the rate of 6% p.a. from the date of filing of the writ petition till payment and recovery. Further, it was also observed that if there is any claim made by any

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third party – Coal Company claiming the said excess amount towards the coal delivered/supplied, such claim shall be indemnified by the petitioner to the respondent.

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Now, it would be useful for this Court to take

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cognizance of the table furnished at para No.9 of the writ petition, which reads as under;

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5 - NC: 2024:KHC:12151 WP No. 15654 of 2023

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Sl. No.	Item	Quantity on which Coal Value and Talcher to Paradip
1	Coal Value and Railway freight paid by KPCL on Talcher RR quality	52,81,698.61
2	Delivery quantity at RTPS/BTPS	52,70,205.35
3	Actual short delivery quantity (1) –(2)	11,493.26
4	Quantity on which Coal Value and Talcher to Paradip Railway freight recovered by KPCL	25,178.74
5	Therefore, quantity on which coal value and Talcher to Paradip Railway freight paid by KPCL (1) – (4)	52,56,519.87
6	Quantity on which Coal Value and Talcher to Paradip Railway Freight to be borne by KPCL (i.e., the quantity delivered at RTPS/BTPS	52,70,205.35
7	Differential Quantity on which Coal Value and Talcher to Paradip Railway Freight excess recovered to be absorbed by KPCL (to be refunded to KCT) (6) –(5)	13,685.48

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NC: 2024:KHC:12151 WP No. 15654 of 2023

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In the present case on hand, the actual short

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delivery quantity is about 11,493.26 Metric Tonne amounting to Rs.2,93,00,133/-. However, the respondent has determined shortage quantity of Coal at 25,178.74 Metric Tonne amounting to Rs.6,41,88,963/-, therefore resulting in excess recovery on 13,685.45 Metric Tonne amounting to Rs.3,48,88,830/-. The table furnished supra

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clearly indicates that actual short delivery quantity is found at 11,493.26 Metric Tonne. In the light of the judgment rendered by the Co-ordinate Bench, the petitioner is entitled for refund of excess recovery. The respondent cannot withhold the amount contrary to the admitted short delivery quantity. Therefore, this Court proceeds to pass the following;

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ORDER

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(i) The writ petition is allowed.

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(ii) The respondent is hereby directed to consider representations of the petitioner dated 20.11.2020, 30.07.2022 and

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NC: 2024:KHC:12151 WP No. 15654 of 2023

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11.05.2023 as per Annexures-D, E and F and refund an amount of Rs.3,48,88,830/- to the petitioner along with interest at the rate of 6% per annum from the date of filing of the writ petition till the date of payment.

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(iii) If any claim is made by the Coal Company seeking for disputed quantity of 13.685.48 Metric Tonne, it shall be indemnified by the petitioner to the respondent.

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(iv) This exercise shall be completed within a period of eight weeks from the date of receipt of order copy.

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(v) Pending applications, if any, are also disposed off.

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Sd/JUDGE

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NBM

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List No.: 1 Sl No.: 26

M/S. Karam Chand Thapar and Brothers (Coal Sales) Limited v. Karnataka Power Corporation Limited

Case brief

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M/S. Karam Chand Thapar and Brothers (Coal Sales) Limited v. Karnataka Power Corporation Limited

Case brief

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What did the court decide?

What the court decided

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