Coal India Limited & Ors vs Domco Smokeless Fuels (P) Ltd

The Supreme Court held that the refusal of Coal India Ltd. to transfer coal linkage from Bharat Coking Coal Ltd. to Central Coalfields Ltd. for the respondent's smokeless fuel unit was arbitrary and violated principles of natural justice. The Court emphasized that the assurances made by Coal India Ltd. created a legitimate expectation for the respondent, which should have been honored. The Court directed the appellant to process the respondent's request for linkage transfer in accordance with the earlier decisions and principles laid down under Article 14 of the Constitution.