Delhi High Court issues notice to Union Coal Ministry on Jindal Steel & Power Ltd.'s petition challenging change of end-use of coal blocks under Coal Ordinance and Ministry's Dec 18 order

The Delhi High Court on Monday sought to know the Centre’s response on a writ petition filed by Jindal Steel & Power Ltd. challenging a Coal Ministry order of December 18 and provisions of the Coal Mines (Special Provisions) Ordinance, 2014 "which allow change of end-use" of coal blocks in Chattisgarh and Odisha from sponge iron and steel to power.

Logo of Jindal Steel Power Ltd.

 Under the Coal Mines (Special Provisions) Ordinance, 2014, promulgated after the Supreme Court cancelled the coal block allocations, the end-use was changed with the provision for auction of blocks.

Senior advocates Kapil Sibal, Rajiv Nayar and Abhishek Manu Singhvi, appearing for JSPL, submitted that pursuant to the Coal Ordinance, the Coal Mines Rules were notified and under the same the ministry passed an order on December 18 changing end-use of their coal blocks from sponge iron and steel to power.

They contended that the December 18 order was passed arbitrarily and is in violation of the Ordinance as well as the Constitution.

JSPL contended that change of end-use has also resulted in making the company ineligible for participating in the ongoing auction process which is expected to culminate on February 14.

The company also alleged that while changing the end-use, captive power plants were also excluded from the power sector, hence, they are unable to bid for the blocks even for that.

Senior Counsels appearing for JSPL in the case said that the company has set up steel and sponge iron units in Odisha and Chhattisgarh for over Rs 24,000 crore and the entire investment would be "rendered fruitless" if they are unable to bid for the blocks which were earlier allocated to them and based on which the units were set up after obtaining all necessary environment and forest clearance.

During the proceedings, the ASG said that JSPL can purchase the tender document and submit it any day before February 14, 2015.

He also said there are other coal blocks available for JSPL, including those which have been put up for non-regulated end-use like steel and sponge iron.

Senior Advocate Mr. Kapil Sibal, however, was not in agreement with the ASG’s contention, saying that very few blocks have been put up for non-regulated end-use.

He also said that bidding for a far away block would not help them as they set up their units based on the Utkal and Gare Palma blocks in Odisha and Chhattisgarh respectively.

A Division Bench of the Delhi High Court comprising of Justice Badar Durrez Ahmed and Justice Sanjeev Sachdeva thereafter issued notice to the Coal Ministry seeking its response as to why and where end-use was changed, and posted the matter for hearing on Thursday, January 15, 2015. 

(Sonika Nair contributed in the reporting of this news story)

Lok Sabha passes Public Premises (Eviction of Unauthorized Occupants) Amendment Bill, 2014

The Lok Sabha on 15 December 2014 passed the Public Premises (Eviction of Unauthorized Occupants) Amendment Bill, 2014, which seeks to amend the Public Premises (Eviction of Unauthorised Occupants) Act, 1971.  The Act provides for the speedy eviction of unauthorised occupants from public premises, including those of government companies and corporations. 

  Salient Provisions of the Public Premises (Eviction of Unauthorized Occupants) Amendment Bill, 2014

The Bill proposes to make suitable amendments in Sections 2, 4, 5, 7 and 9 of the 1971 Act.

The Bill redefines public premises to include companies in which at least 51 percent of the paid-up share capital is held by Central and state governments.

The Bill seeks to bring the properties of Delhi Metro Rail Corporation and other Metro Rails which may come up in future and also the properties of New Delhi Municipal Council within the ambit of the 1971 Act.

The Act outlines the process that must be followed by Estate Officers in determining whether the premises are in unauthorised occupation.  The Bill outlines time limits for certain actions to be followed while evicting unauthorised occupants:  

If the Estate Officer is satisfied that premises are in unauthorised occupation, he may order the eviction of the premises.  This should be done within 15 days from the order.  The 15 day period may be extended if the Estate Officer feels there are compelling reasons which prevent a person from vacating the premises in 15 days. 

If an Estate Officer receives information that a person is in unauthorised occupation of the premises, he must make an order, within seven days of receiving this information, directing persons who have occupied the premises to show cause as to why they should not be evicted.  However, any delay in issuing this order will not invalidate proceedings.

When a person is in arrears of rent payable, the Estate Officer may order that he pay rent or damages, after issuing a notice asking the person to explain why such as order should not be made.  The explanation must be provided within seven days of the notice.  

The Act states that every appeal to the Estate Officer’s orders must be disposed off as quickly as possible.  The Bill states that appeals must be disposed off within one month, as far as possible.

The Public Premises (Eviction of Unauthorised Occupants) Act, 1971 was enacted to provide for speedy machinery for the eviction of unauthorised occupants from public premises. The Act has been amended previously in 1980, 1984 and 1994.

The Public Premises (Eviction of Unauthorised Occupants) Act, 1971 was enacted to provide for speedy machinery for the eviction of unauthorised occupants from public premises. The Act has been amended previously in 1980, 1984 and 1994.