CIL - The Legal Chamber

The Supreme Court upheld the constitutional validity of Coal India's Interim Pricing Policy, ruling that the 20% price increase for the non-core sector was a valid economic policy decision. The Court affirmed that such price fixation, based on reasonable classification and to subserve the common good, does not violate Article 14, and set aside the refund directed by the High Court. Facts Of The Case: Following the Supreme Court's 2006 decision in Ashoka Smokeless that struck down the e-auction system for coal sales, Coal India Limited (CIL) introduced an Interim Coal Policy on December 15, 2006. This policy increased the price of coal by 20% over the pre-e-auction notified price specifically for linked consumers in the non-core sector, such as manufacturers of smokeless fuel. An associat...

The Supreme Court upheld the Appellate Tribunal for Electricity's (APTEL) ruling that a Coal India Limited (CIL) notification imposing Evacuation Facility Charges (EFC) constitutes a "change in law" event under the Power Purchase Agreement (PPA). The judgment affirmed that the power generator is entitled to compensation from the notification date with carrying cost at Late Payment Surcharge (LPS) rates on a compounding basis, based on restitutionary principles. The Court clarified that only a substantial question of law is appealable, and the supplementary bill is required only after due adjudication. Facts Of The Case: A Power Purchase Agreement (PPA) was signed on January 28, 2010, between Rajasthan Discoms and Adani Power Rajasthan Ltd. for 1200 MW. On December 19, 2017, Coal India ...

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Coal India’s 20% Price Hike for Select Industries Upheld by Supreme Court

Supreme Court Late Payment Surcharge Valid: Coal India’s Levy Ruled as ‘Change in Law’