advocatemmmohan

My photo

ADVOCATEMMMOHAN -  Practicing both IN CIVIL, CRIMINAL AND FAMILY LAWS,Etc.,

WELCOME TO LEGAL WORLD

WELCOME TO MY LEGAL WORLD - FOR KNOWLEDGE IN LAW & FOR LEGAL OPINIONS - SHARE THIS

Monday, September 5, 2016

This application has been filed by the Karnataka Iron and Steel Manufacturers Association seeking the following reliefs:- a) Allow the instant application and direct NMDC to restrain from adopting differential pricing mechanism for the iron ore sold in the e- auction in the State of Karnataka. b) Direct the CEC/Monitoring Committee to fix the floor price of iron ore on realistic grounds and to ensure that NMDC does not take undue advantage of acute shortage of iron ore availability in the State of Karnataka. c) Pass any such further orders/directions which this Hon'ble Court may deem fit and proper in the interest of justice. = inability of M/s. Vedanta Limited to sell the output from its leases, as expressed, could very well be because of the pricing patterns adopted by it. Inability to sell on account of higher prices cannot be a ground for export of the mineral, at least at this stage of developments pursuant to the final order dated 18.04.2013. Permission for export must be governed by norms and parameters of general application as distinguished from ad hoc decisions in individual cases. Until such guidelines are framed, the prayer of M/s. Vedanta Limited for export of its iron ore cannot be granted




                        IN THE SUPREME COURT OF INDIA
                         CIVIL ORIGINAL JURISDICTION
                       I.A.NOS.259 & 263 IN I.A.NO.259
                                     IN
                    WRIT PETITION (CIVIL) NO.562 OF 2009
SAMAJ PARIVARTANA
SAMUDAYA & ORS.                                PETITIONER(S)

                                   VERSUS

STATE OF KARNATAKA & ORS.          RESPONDENT(S)


                               J U D G M E N T


RANJAN GOGOI, J.


I.A.NO.259 of 2016
1.    This application has been  filed  by  the  Karnataka  Iron  and  Steel
Manufacturers Association seeking the following reliefs:-
a)    Allow the  instant  application  and  direct  NMDC  to  restrain  from
adopting differential pricing mechanism for the iron  ore  sold  in  the  e-
auction in the State of Karnataka.
b)    Direct the CEC/Monitoring Committee to fix the  floor  price  of  iron
ore on realistic grounds and  to  ensure  that  NMDC  does  not  take  undue
advantage of acute shortage  of  iron  ore  availability  in  the  State  of
Karnataka.
c)    Pass any such further orders/directions which this Hon'ble  Court  may
deem fit and proper in the interest of justice.

2.    Specifically it is contended on behalf  of  the  applicant-Association
that the NMDC had all along  been  fixing  the  floor  price/sale  price  by
adopting PAN India Uniform pricing. However, since  April,  2016  by  taking
advantage of an increased demand  a differential  pricing  policy  has  been
adopted so far as State of Karnataka is concerned and  the  identical  floor
price/sale  price  that  was  prevailing  in  respect  of  the   States   of
Chhattisgarh and  Karnataka  has  been  altered  and  the  floor  price  for
Karnataka has been increased. Hence the prayers made.
3.    Comments of the C.E.C. on the prayers made  in  I.A.  No.259  of  2016
have been called for and received. The stand of the NMDC and  the  State  of
Karnataka has also been submitted in writing. One M/s.  Vedanta  Limited,  a
lessee of a 'B' category mine, has filed an application  for  permission  to
file reply to I.A. No.259 and has opposed the prayers made therein.
4.    The response of the C.E.C. to  the  said  application  filed  by  M/s.
Vedanta Limited has also been duly received and considered.
5.    By our previous orders passed in the Writ Petition (C) No.562 of  2009
titled Samaj Parivartana Samudaya & Ors. vs. State of Karnataka & Ors.,  out
of which these miscellaneous matters/applications have arisen, we  had  held
that the issue of base price should be left to be decided by  the  concerned
lessee.  This  has  been  affirmed  in  our  final  order  dated  18.04.2013
disposing of the Writ Petition [paragraph 7(E)]. A somewhat  similar  prayer
made by  the  present  applicant-Karnataka  Iron  and  Steel  Manufactrurers
Association to tag/fix the base price to the sale price fixed  by  the  NMDC
in a situation where private leaseholders  were  artificially  hiking  their
prices, was rejected by this Court on  24.02.2014  in  I.A.No.209  with  the
following order :
“The grievance of the applicants is that the  leaseholders  are  jacking  up
the base price of iron ore and as a result the industrial consumers of  iron
ore are suffering a lot of prejudice.
We find from the judgment of this Court  in  Samaj  Parivartan  Samudaya  v.
State of karnataka and Ors. (2013) 8 SCC 154  that  the  lessees  have  been
given the right to fix the base price.
Hence, we are not inclined to pass any orders on this application  filed  by
the applicants.”

6.    The above apart, it is the stand of the NMDC  before  the  Court  that
the base price/floor price  fixed  by  it  has  been  determined  by  market
conditions and despite the higher price in Karnataka than  in  Chhattisgarh,
the cost of landing in Karnataka is lower than in Chhattisgarh.
7.    The C.E.C. in its response has  indicated  that  as  NMDC  is  working
under a special dispensation granted by this Court, until such  dispensation
continues it should not be allowed to resort to dual pricing.  While  it  is
correct that the special dispensation granted to NMDC by this  Court  cannot
continue in perpetuity and the regulatory measures prescribed by this  Court
for other leaseholders must also apply to NMDC, the working  of  its  leases
by NMDC under the special dispensation, by itself, cannot  be  a  legitimate
ground for not resorting to a dual price mechanism if the same  is  dictated
by market forces. There is nothing in the report of the C.E.C.  to  indicate
otherwise. We, therefore, do not accept the said part of the  recommendation
of C.E.C. The issue of continuity of the special dispensation in  favour  of
NMDC will be considered in due course.
8.    Insofar as the statements made on behalf of M/s. Vedanta  Limited  are
concerned, all we would  like  to  observe,  at  this  stage,  is  that  the
inability of M/s. Vedanta Limited to sell the output  from  its  leases,  as
expressed, could very well be because of the  pricing  patterns  adopted  by
it. Inability to sell on account of higher prices cannot  be  a  ground  for
export of the mineral, at least at this stage of  developments  pursuant  to
the final order dated 18.04.2013. Permission for export must be governed  by
norms and parameters of general application as  distinguished  from  ad  hoc
decisions in individual cases. Until such guidelines are framed, the  prayer
of M/s. Vedanta Limited for export of its iron ore  cannot  be  granted.  So
far as issue of framing of guidelines/norms for exports are  concerned,  the
same will be dealt  with  separately  at  an  appropriate  time  and  stage.
Consequently and in light of the foregoing, I.A. No. 259 is dismissed.
9.    Shri Shyam  Divan,  learned  amicus  curiae,  may  at  an  appropriate
stage, mention the matter so for as the issues relating  to  continuance  of
the special dispensation in favour of NMDC and norms to govern  exports  are
concerned.

I.A. No.263 IN I.A.NO.259

10.   In view of the dismissal of the  I.A.  No.259  of  2016,  no  separate
orders will  be  called  for  on  I.A.  No.263  of  2016  and  is  dismissed
accordingly.

                                                 ……….....................,J.
                                                              (RANJAN GOGOI)


                                                 ……….....................,J.
                                                          (PRAFULLA C. PANT)


                                                 ……….....................,J.
            (A.M. KHANWILKAR)

NEW DELHI
SEPTEMBER 1, 2016.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.