Court appoints Coal India as custodian of two mines

Posted on 28th Mar 2015 10:19 am by mohit kumar

New Delhi, March 27 (IANS) The Delhi High Court on Friday made Coal India Ltd (CIL) custodian of Gare Palma IV/2 and IV/3 coal mines in Chhattisgarh as an interim measures from April 1, while also holding that it would be entitled to sell coal produced from there.

A division bench of Justice B.D. Ahmed and Justice Sanjeev Sachdeva also said that CIL will utilise the manpower of Jindal Power Limited to continue production of coal.

Jindal Power had moved the court against the government's March 20 decision to cancel the company's winning bids for the two coal blocks.

The bench, posting the matter for April 13, in an interim order said that as a custodian, CIL would be entitled to sell coal produced from the two blocks from Arpil 1. It added that the interim order would be subject to outcome of the case.

Jindal Power had sought quashing of the government's March 20 order as well as directions to the government to declare the company as the successful bidder for the three blocks and award these to it.

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