Saturday, January 4, 2014

in the year 2001 with the object of setting up an Integrated Sugar Plant with 250 TCD Sugar, 30 MW P

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
registered office at 101, East High
New Delhi-110 003 RESPONDENTS -------------------------------------------------------------------------------------------------- Shri S.C.Mehadia, Advocate for appellants. Shri M. G.Bhangde, Senior Counsel with Shri Shyam Dewani, counsel for Respondent Nos. 1 and 2
1. The appellants are the defendant nos. 2 and 3 in Special Civil Suit No. 824/2010, whereas the respondent no.1 is the plaintiff and respondent no. 2 is the defendant no.1. This Appeal against Order preferred by defendant nos. 2 and 3, challenges the order passed below Exh. 5 by the learned 3rd Joint Civil Judge, Senior Division, Nagpur, on 22nd November, 2010, allowing the application for grant of 3
temporary injunction filed under Order 39, Rule 1 and 2 read with Section 151 of C.P.C., by the respondent No.1/plaintiff in Special Civil Suit No. 854/2010. By this order, the appellants/defendants are restrained different types of crops grown in india from acting upon the letters dated 10.03.2010 and 9/13th September, 2010, issued by them to the respondent different types of crops grown in india no.1/plaintiff and doing any act of cancelling the Letter of Assurance and encashing the bank guarantee till the decision of the suit. The parties shall hereinafter be referred to according to their status in this appeal as "appellants" and "respondent."
2. The facts leading to the case are as under; The Government of India, Ministry of Coal issued Office Memorandum dated 18th October, 2007, laying down New Coal Distribution Policy. As per this Policy, the Letter of Assurance (LOA) having validity of 24 months is to be issued by the Coal India Ltd., (CIL) i.e. the appellant no.1, for the consumers/ applicants of Power Utilities, Captive Power Plants and others. The allottee of LOA is required to 4
fulfill certain stipulated conditions and to meet the specified Milestones within different types of crops grown in india a period of 24 months and thereupon to approach the Coal Company for entering into Fuel Supply Agreement (FSA). With a view to ensure that only serious and committed consumers approach for LOA, they would be required to furnish an "Earnest Money Deposit" (EMD) in the form of Commitment Guarantee and the same is to stand discharged upon the execution of FSA within a stipulated period. On failure to fulfill the commitments in the form of conditions and milestones within a stipulated period, there is a right conferred upon the Coal India Ltd., for forfeiting the EMD. The EMD could initially different types of crops grown in india be kept at 5% of the value of annual Coal requirement and the Coal India Limited is empowered to decide different levels based upon the relevant factors with the approval of the Board of Directors of Coal India Ltd (CIL).
in the year 2001 with the object of setting up an Integrated Sugar Plant with 250 TCD Sugar, 30 MW Power Plant and 2,00,000 liters Ethenol per day. It approached the CIL (the appellant no.1) through its subsidiary company i.e. the appellant no. 2 - Western different types of crops grown in india Coalfields Ltd (WCL) for issuance of LOA in terms of New Coal Distribution Policy for supply of 1,51,000 MT of Coal per annum for its 30 MW Captive Power Plant at post Bijora-Dhanuk, Tah. Mahagaon, District Yavatmal, different types of crops grown in india in the State of Maharashtra. In response to such request, the WCL appears to have processed the proposal and asked the respondent no.1 to furnish commitment guarantee either in cash or in the prescribed format of bank guarantee for an amount equivalent to 10% of the notified base price of annual Coal requirement asked for. It was by communication dated 25th /26th March, 2008, along with which the model LAO and the format of bank guarantee was enclosed.
Guarantees (CGs) on 7.7.2008 to WCL for total value of Rs. 2,39,18,400/-. On 19.08.2008, a LAO was issued by WCL to the respondent no.1 company for allotment of 1,51,000 MT of Coal per annum for its proposed different types of crops grown in india 30 MW Captive Power Plant upon certain terms and conditions. The validity of this LOA is stipulated in Clause different types of crops grown in india 4, for a period of 24 months different types of crops grown in india from the date of issuance of LOA, upon expiry of which the LOA to stand annulled. It also prescribes the period and different levels of attaining the milestones specified.
Appraisal
for
24 (Central months Govt.) 8 Funding of Within Board's resolution on Company In case of investment, different types of crops grown in india 18 the amount of equity Secretary Proprietary/ different types of crops grown in india as months investment in the under the Partnership firm, identified different types of crops grown in india CPP and/or Sanction Company Bank statement in the DPR Letters from the Seal and/or of the Bank/Financial Bank or Proprietor/ Institution Financial Partners for the Institution last twelve
An undertaking was taken from the respondent no.1 to complete all the activities within a total period of 24 months including any Force Majeure Act, that may occur during the validity period of LAO, in terms of Clause 2.1 of the LOA. Though, column 3 above regarding timeline specifies the period for completion of stages of each milestone, Clause 3.3. p

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