MANOHAR LAL SHARMA versus THE PRINCIPAL SECRETARY & ORS.

MANOHAR LAL SHARMA versus THE PRINCIPAL SECRETARY & ORS.

The allocation of coal blocks by the Central Government between 1993 and 2011, whether through Screening Committee or Government dispensation route, was arbitrary and illegal, as it was not traceable to the statutory provisions of Mines and Minerals (Development and Regulation) Act, 1957, or the Coal Mines (Nationalisation) Act, 1973. Executive instructions cannot override the provisions of these statutes. Consortiums, joint ventures, and state PSUs were not eligible for commercial coal mining under the CMN Act; the allocation process lacked transparency, objective criteria, and fairness, resulting in illegal and unconstitutional distribution of national wealth.

Parties
Petitioner: Manohar Lal Sharma; Respondents: The Principal Secretary & Ors.
Jurisdiction
India
Judgment Date
25 August 2014
Procedural Posture
Writ Petition (criminal) / Judgment on Merits; Matter Pending for Further Hearing on Consequences
Outcome
Allocations of coal blocks by Screening Committee and Government dispensation route are declared illegal; matter pending for directions on consequences.
Legal Topics
Allocation of Coal Blocks, Executive Power Under Article 73, Interpretation of Statutes, Public Interest Litigation, Mineral Development, Arbitrariness in Government Action
Constitutional Law Administrative Law Mines and Minerals Law Allocation of Coal Blocks Executive Power Under Article 73 Interpretation of Statutes Public Interest Litigation Mineral Development +1 more

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Parties

Manohar Lal Sharma

Petitioner

The Principal Secretary & Ors.

Respondents

Procedural Posture

Writ Petition (criminal) / Judgment on Merits; Matter Pending for Further Hearing on Consequences

Legal Issues

  1. 1 Legality of coal block allocation by Central Government between 1993 and 2011
  2. 2 Compliance of allocation process with Mines and Minerals (Development and Regulation) Act, 1957 and Coal Mines (Nationalisation) Act, 1973
  3. 3 Eligibility of state PSUs and private parties for coal mining operations

Ratio Decidendi

The allocation of coal blocks by the Central Government between 1993 and 2011, whether through Screening Committee or Government dispensation route, was arbitrary and illegal, as it was not traceable to the statutory provisions of Mines and Minerals (Development and Regulation) Act, 1957, or the Coal Mines (Nationalisation) Act, 1973. Executive instructions cannot override the provisions of these statutes. Consortiums, joint ventures, and state PSUs were not eligible for commercial coal mining under the CMN Act; the allocation process lacked transparency, objective criteria, and fairness, resulting in illegal and unconstitutional distribution of national wealth.

Court Disposition

Allocations of coal blocks by Screening Committee and Government dispensation route are declared illegal; matter pending for directions on consequences.

Orders

  • Allocation of coal blocks based on Screening Committee recommendations from 1993 to 2011 is illegal.
  • Allocation of coal blocks through Government dispensation route is illegal.