In Brief
In this case, the Supreme Court clarified the scope of Section 11 of the Coal Mines (Special Provisions) Act, 2015 in relation to a prior mining contractor (EMTA) claiming a right to continue operations. The Court held that Section 11 confers discretion on the successful bidder to elect whether to continue existing contracts, not an obligation conditioned on satisfactory performance. The doctrine of legitimate expectation cannot prevent a state authority from conducting competitive bidding to secure the best operator at the best price. The decision of PSPCL to reject EMTA's claim and proceed with competitive bidding was rational and reasonable, and not vitiated by irrationality or procedural impropriety. The Court allowed the appeals and set aside the High Court's judgment granting EMTA a first right of refusal.
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