Court Orders Refund for Coal Overcharge.
22 February 2024
Business Laws >> Business & Commercial Law
Facts:
- M/s. DOMCO Smokeless Fuels Pvt. Ltd. (appellant) participated in an e-auction conducted by the State of Jharkhand (respondent) for the purchase of coal. The appellant claims that they paid more than the notified price for the coal. The appellant filed a writ petition in the Jharkhand High Court, seeking a refund of the excess amount paid which was allowed and directed the respondent to refund the excess amount with interest. However, the respondent did not comply with the order.
- The appellant then filed a contempt petition against the respondent, which was dismissed by the High Court.
- The appellant subsequently approached the Supreme Court.
Conclusion:
- The Supreme Court concluded that the appellant was entitled to a refund of the excess amount paid, with interest at 12% per annum.
- The Court also directed that the respondent pay the refund within two months, failing which the officers concerned would be personally liable to pay the interest amount to the appellant.