Coal bid: SEML withdraws plea against disqualification

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New Delhi | Published: February 22, 2015 12:56:09 AM

SEML withdrew the plea after the HC bench observed that the company had not made out its case and had furnished incorrect information which was not falling under the parameter set by the coal ministry for auction

Sarda Energy and Minerals Limited (SEML) on Saturday withdrew from the Delhi High Court its plea challenging removal of some of its units while calculating coal requirements of the company which was disqualified from bidding for Gare Palma IV/7 block in Chhattisgarh.
It withdrew the plea after the bench of justices Badar Durrez Ahmed and Sanjeev Sachdeva observed that the company had not made out its case and had furnished incorrect information which was not falling under the parameter set by the coal ministry for auction.

“The incorrect information… itself disqualify you,” the court said, adding that “we would not like to further waste our time”.

Sensing the mood of the court, SEML requested the court to withdraw the petition, which was allowed. “The petitioner withdraw their petition without prejudice to the rights and contention,” the court noted in its order.

SEML had approached the court challenging their disqualification for Gare Palma IV/7 in Chhattisgarh. The company sought reassessment of the annual coal requirement of all the plants which are part of their integrated steel plant. It also alleged that government has not given any reason for the company’s disqualification for the bid.

Advocate Ratan K Singh, appearing for SEML, contended in the court that when definition says in the ordinance that specified end use is iron and steel, then can other elements that produce steel, like  gasifier, and use of rolling mill and ferro alloys which eventually lead to production of steel, be exempted.

The central government’s standing counsel Akshay Makhija, opposed the company’s plea saying they specified the norms for coal auction and all the bidders should follow the same. SEML produces steel (sponge iron, billets, ingots, TMT bars). It manufacturers and exports ferro alloys in India.

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