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ARTICLE · 17 MARCH 2017

‘Fair And Reasonable' Compensation Under The Coal Mines (Special Provisions) Act, 2015

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The Hon'ble Delhi High Court on 9 March 2017 pronounced its much-awaited judgment in connected writ petitions challenging, inter alia, the validity of Section 16 of the Coal Mines...

IndiaEnergy and Natural Resources

The Hon'ble Delhi High Court (Court) on 9 March 2017 pronounced its much-awaited judgment in connected writ petitions challenging, inter alia, the validity of Section 16 of the Coal Mines (Special Provisions) Second Ordinance, 2014 (Ordinance) and Rule 14 of the Coal Mines (Special Provision) Rules, 2015 (Rules).

Background

Pursuant to the cancellation of allocation of coal blocks by the Supreme Court vide its judgement in (Manohar Lal Sharma v Union of India; Manohar Lal Sharma v. Principal Secretary (2014) 9 SCC 516), the Ordinance and the Rules came to be enacted to inter alia determine the manner in which the de-allocated coal blocks were to be auctioned. The Act and the Rules also provided for manner and quantum for determination of compensation payable to the prior allottee of the cancelled coal blocks.

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