The Delhi High Court has dismissed a batch of writ petitions filed by several retired defence officers challenging Coal India Limited’s decision to withdraw from a 2013 Memorandum of Understanding that governed the Coal Loading and Transportation Scheme for ex-servicemen and their dependants. The petitions assailed Coal India’s communications dated 26 June 2020 and 30 June 2020, by which the PSU approved a transition plan, declined fresh allocations or extensions to ex-servicemen companies, and decided to exit the MoU upon completion of existing contracts.
The petitioners sought quashing of the impugned letters and directions to continue the scheme, including a mandate that at least 32 per cent of coal transportation work be allocated to ex-servicemen companies under the Directorate General Resettlement framework. They also sought age relaxation and protection of seniority for wait-listed officers, contending that withdrawal from the MoU violated doctrines of promissory estoppel and legitimate expectation.
Justice Amit Sharma held that no enforceable or vested right survived in favour of the petitioners once Coal India rescinded the MoU. The Court observed that the MoU did not guarantee any fixed or preferential share of coal transportation work to ex-servicemen companies and that allocation of work under the scheme remained discretionary, contingent on requirement and availability.
The Court further held that Coal India’s decision to phase out the ex-servicemen contracting mechanism was a policy decision taken in the economic and commercial domain, and could not be interfered with in exercise of writ jurisdiction absent arbitrariness or violation of statutory or constitutional provisions. Judicial review, the Court reiterated, does not extend to examining the wisdom or advisability of such economic policy choices.
Rejecting the plea for continuation or revival of the scheme, the Court also declined requests for age relaxation and ante-dated seniority. It noted that some petitioners, including Brig. (Retd.) Sandeep Kala, would have been ineligible by age even if the MoU had continued, and that granting relaxation would prejudice similarly placed ex-servicemen waiting under other resettlement schemes.
Accordingly, the Delhi High Court upheld the validity of Coal India’s communications dated 26 and 30 June 2020 and dismissed all connected writ petitions, while clarifying that ongoing contracts would remain undisturbed until completion.
Appearances:
For the Petitioners: Mr. Gautam Swarup, Mr. Ankur Das, Mr. Rudra Deoshthali, and Ms. Sakshi Pandey, Advocates.
For the Respondents: Mr. Atma Ram N. S. Nadkarni, Senior Advocate with Mr. Harsh Parthak, Ms. Shaveta Mahajan, Mr. Mohit Choubey, Ms. Deepti Arya Mr. Salvador Santosh Rebello & Mr. Aditya Nema, Advocates for Coal India Ltd.
Ms. Radhika Bishwajit Dubey, CGSC with Ms. Gurleen Kaur Waraich, Mr. Kritarth Upadhyay, Mr. Vivek Sharma, Ms. Aprajita Verma, Mr. Mathy Kutty & Mr. Saksham Sharma, Advocates along with Mr. Sanjay Pal, GP for DGR.
Mr. Shashank Dixit, CGSC with Mr. Kunaj Raj & Ms. Charu Khandelwal, Advocates for UOI.
