Rational Nexus - 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...

In this judgment, the Supreme Court curtailed the National Green Tribunal's (NGT) powers, ruling that environmental compensation cannot be arbitrarily linked to a polluter's turnover, lacking a direct nexus to the actual damage. It also held that the NGT lacks jurisdiction to direct investigations by the Enforcement Directorate under the PMLA, affirming that such actions require a scheduled offence to be registered. The Court emphasized that penalties must be determined based on established methodologies and legal principles, not rhetoric. Facts Of The Case: The case originated from a Public Interest Litigation (PIL) filed by Adil Ansari before the National Green Tribunal (NGT) in 2019 against M/s C.L. Gupta Export Ltd. The allegations were that the company, an exporter of handicraft ite...

Tag: Rational Nexus

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

Supreme Court Slashes NGT’s ₹50 Crore Fine, Rules Turnover Can’t Dictate Environmental Penalty