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Informist, Thursday, Jan. 2, 2025

 

NEW DELHI – The Supreme Court on Thursday issued a notice to Ultratech Cement Ltd. on a petition filed by Shree Cement Ltd. against the Chhattisgarh High Court's order quashing the in-principle approval for setting up a private railway freight terminal at the latter's Khapradih cement plant in Chhattisgarh. The apex court ordered status quo between the parties and listed the case for hearing on Mar 5.

 

The railway administration had, in 2021, given the in-principle approval to Shree Cement under the Private Freight Terminal Policy to set up a freight terminal with a connection from the existing private railway siding of Ultratech Cement. Rejecting the in-principle approval, the high court in August held that the "principles of natural justice" were violated since Ultratech Cement was not heard before the railways granted in-principle approval to set up the freight terminal.

 

In its petition, Shree Cement said the high court failed to appreciate that an in-principle approval is a preliminary form of approval, which has no civil consequences on Ultratech Cement. The approval has neither given any rights to Shree Cement nor has it taken away any rights of Ultratech Cement, the petition said. An in-principle approval may or may not result in a final approval, the petition said. 

 

Under the Private Freight Terminal Policy there is no requirement to give a hearing before granting in-principle approval, said Shree Cement. The high court had failed to appreciate that the railways had duly complied with the "principles of natural justice" and the opportunity of being heard was given to Ultratech Cement after the grant of in-principle approval, where the company participated, Shree Cement said. Instead of participating in the next hearing, Ultratech Cement filed a petition before the high court challenging the in-principle approval, Shree Cement said. 

 

Further, the high court has re-written and altered the terms of Ultratech Cement's private siding agreements with railways by mandating that the latter cannot permit any other party to use the private siding of the company without its consent, Shree Cement said. Clause 19 of the private siding agreements gives the railway administration the right to use or permit the use of the siding by third parties, the petitioner said.

 

On Thursday, the shares of Shree Cement ended 4.7% higher at INR 26,689.90 on the National Stock Exchange, while the shares of Ultratech Cement closed 3.1% higher at INR 11,797.70.  End

 

Reported by Surya Tripathi

Edited by Saji George Titus

 

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