In Brief
The Supreme Court examined whether EMTA Coal Limited retained a right of first refusal to continue as an operator of the Pachhwara Coal Block after the Punjab State Power Corporation (PSPCL) decided to appoint a Mine Developer through competitive bidding under the Coal Mines (Special Provisions) Act, 2015. The Court held that Section 11 of the Act grants a new allottee complete discretion to either adopt prior contracts or reject them; the words "may elect" confer choice, not obligation. A reasonable policy decision to secure the best operator at the best price through competitive bidding cannot be questioned. The Court rejected EMTA's claim based on legitimate expectation, noting that such expectation cannot override statutory discretion exercised reasonably. The impugned High Court judgment was quashed and the appeals allowed."
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