Manohar Lal Sharma vs The Principle Secretary & Others

The Supreme Court ruled that the allotment of coal blocks by the Screening Committee and through the Government dispensation route is arbitrary and illegal, violating the provisions of the Coal Mines Nationalization Act (CMN Act), particularly Sections 3(3) and (4). The Court emphasized that only eligible entities as defined under the CMN Act are entitled to coal allocations, and any joint ventures with ineligible firms are impermissible. The judgment left open the question of the consequences of this declaration for further hearing, particularly regarding the coal blocks already in operation.