Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Constitution of India Article 14 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Constitution of India, Article 14-Coal-Dual price policy vis-a-vis Core Sector and Non-Core sector-Lesser price charged from Core Sector-Validity of-Held, charging of lesser price from Core Sector does not amount to treating equals as unequals or an irrational classification-Core Sectors being of national importance, call for special treatment as increase in price, in their case, would have substantial impact on cost of finished goods of vital importance and cost of services to public in general-Administrative law-- Policy decision-Price fixation. Respondent, a state owned company, had been supplying coal to core/priority sector and non-core/unlinked industries. Few industries which were of national importance were identified as core industries which consumed 90% of coal produced by respondent and rest was covered by non-core industries to which appellant belonged. Respondent had accumulated heavy losses and was facing financial problems. To overcome the crisis, Government had been notifying de-regulation of price from time to time. State Government granted discretion to respondent to determine economic price of coal produced. Pursuant to this, Respondent issued notification No. 3/96-97. Clause IO of the Notification provided that non-core industries were required to pay 20% additional price over and above the notified price. Appellant filed Writ petition challenging levy of additional price as being discriminatory and violative of Article 14 of Constitution. High Court dismissed Writ Petition. In appeal to this court, appellant contended that classification of core/linked sector industries and non-core/unlinked sector industries made by the respondent for the purpose of pricing is irrational and gives rise to hostile discrimination; that the classification carved out between core and non-core industries for the purpose of price fixation is arbitrary and unreasonable and an instrumentality of State, even though running a business activity cannot take the stand that it has unfettered freedom in charging any prices it deems fit from any customer and that there is no reasonable basis for the classification introduced for the first time and the appellants cannot be subjected to bear the brunt of much higher prices. Respondents contended that fixation of price is within the discretion of the company and coal being not a controlled commodity now, the company cannot be precluded from fixing appropriate price for the produce including dual price; and that number of factors such as financial problems of the company, operational cost and importance of certain categories of industries in the larger national interest can be legitimately taken into account while fixing the price. |
Judge | Hon'ble Mr. Justice Ashok Bhan |
Neutral Citation | 2005 INSC 7 |
Petitioner | Pallavi Refractories And Ors. Etc. Etc. |
Respondent | M/s. Singareni Colleries Co. Ltd. Etc. Etc. |
SCR | [2005] 1 S.C.R. 30 |
Judgement Date | 2005-01-04 |
Case Number | 109-125 |
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