Supreme Court Upholds Coal India's Controversial Price Hike Policy
The Supreme Court validated Coal India Limited's 2006 interim policy that increased coal prices for non-core sectors by 20%. Overruling the Calcutta High Court's decision, the court noted the policy aimed at stabilizing supply rather than profit-making. Refund requests by private firms were dismissed.
- Country:
- India
In a significant victory for Coal India Limited, the Supreme Court on Friday upheld the company's 2006 interim coal policy, which imposed a 20% price increase on coal supplied to non-core sector industries. This decision overturns a prior ruling by the Calcutta High Court that had rejected the policy.
Justices J B Pardiwala and R Mahadevan ruled that the High Court had erred in its judgment. The court emphasized that the price hike was intended to ensure coal availability and stabilize market supply rather than to pursue profit. Requests for refunds by affected firms were subsequently dismissed.
The court handled three major issues in its ruling, focusing on the legitimacy of Coal India's authority to set interim prices, the constitutionality of the increase under Article 14, and the right of claimants to refunds. All three challenges were addressed in favor of upholding the interim policy.
(With inputs from agencies.)
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