In Brief
Three appellants contracted with Coal India Ltd. to supply explosives, but the company unilaterally inserted a supplementary performance clause that substantially altered payment terms and obligations, working retroactively from the contract's original date. The High Court dismissed their writ petitions on the ground that the dispute was purely commercial and outside constitutional scrutiny. The Supreme Court held that as Coal India Ltd. is a Government Company amenable to State control, the contract involves a public law element. A unilateral supplementary clause that constitutes a novation cannot be imposed without consent and violates Article 14 of the Constitution. The Court set aside the High Court's order and allowed the appeals, directing that all consequential benefits be conferred on the appellants without delay.
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