Vedanta Limited filed a request against the Ministry of Coal, asking to cancel a decision that took part of their bank guarantee because they were late in meeting project goals. The High Court of Delhi, however, told Vedanta to take the issue to a special tribunal that handles such matters.
Background of the Case
- Bidding and Auction: On June 18, 2020, the Ministry of Coal announced an auction for coal mines. Vedanta won the bid for the Radhikapur (West) Coal Mine in Odisha.
- Agreements and Orders: A Coal Mine Development and Production Agreement (CMDPA) was signed on January 11, 2021. An order was given on March 3, 2021, transferring rights to Vedanta.
- Delays in Milestones: Vedanta was late in getting necessary approvals, leading to warning letters from the Ministry.
The Warning Letters
- First Letter: Sent on February 8, 2022, for being late with project goals. It was later excused after Vedanta explained.
- Second Letter: Sent on June 6, 2024, for being late in getting environmental and forest approvals.
Court Proceedings
- Vedanta's Arguments: Vedanta said the delays were due to things they couldn't control, like boundary problems and new environmental rules. They asked for more time and a change in the "Zero Date" (the starting date for project timelines).
- Ministry's Position: The Ministry said the penalties were fair under the CMDPA because Vedanta didn’t meet the deadlines.
Court's Decision
- Tribunal Referral: The court, led by Justice Amit Sharma, told Vedanta to go to the Tribunal under the Coal Bearing Areas (Acquisition and Development) Act to sort out the issue, saying the Tribunal is the right place for such disputes.
"The issues raised by the petitioner pertain to disputed questions of fact...over which the learned Tribunal...has jurisdiction."
- Temporary Relief: The court extended the temporary order keeping the bank guarantee unchanged for ten days or until Vedanta goes to the Tribunal.
Verdict Summary
The court decided that Vedanta should take their case to the Tribunal, which is better suited to handle these kinds of disputes. The Tribunal will look into the facts and details of the case.
