Authority: Gauhati High Court (High Court of Assam, Nagaland, Mizoram and Arunachal Pradesh)

Order Date: 13 November 2026

Case Overview

  • Petitioner: M/S Ashok Traders, a proprietorship firm represented by its proprietor Ashok Jain, located at N.H. 37, Khanapara, Patorkuchi, Beltola, Guwahati, Assam.
  • Respondents: Union of India; North Eastern Frontier Railway (NF Railway); Assam Mineral Development Corporation Ltd (AMDC); Directorate of Geology & Mining, Government of Assam.
  • Case No.: WP(C)/6179/2026.
  • Counsel: petitioner – M K Borah; respondents – DY.S.G.I., GA, Assam; D Doley (respondents 1 & 2); P Sarma (respondent 3); U Das (additional senior government advocate for respondent 4).
  • Core Issue: Challenge to AMDC’s communication dated 10‑02‑2022 (Ref. No. AMDC/MS/7/2020‑21/1051 & 1052‑1053) which mandated that before any coal is transported by rail, the intending transporter must submit documents to AMDC for verification and obtain a joint NOC from AMDC and the Directorate of Geology & Mining.
  • Petitioner’s Position: Coal was procured in Meghalaya and Nagaland, complying with those states’ laws, and was to be moved by road into Assam for onward rail transport. The communication imposed an unreasonable restriction on inter‑state trade.
  • Court’s Legal Analysis:
  • Article 301 of the Constitution guarantees freedom of trade, commerce and intercourse throughout India.
  • Article 302 allows only Parliament to impose restrictions in the public interest.
  • Article 304(b) permits only a State Legislature, by law, to impose reasonable restrictions for public interest.
  • The Court held that AMDC, as an autonomous body under the Government of Assam, lacks legislative authority to impose the NOC requirement and that the restriction is unreasonable and violative of Article 304(b).
  • The Court referenced its earlier judgment in WP(C) No. 442/2023 (JYS Construction vs NF Railway) which arrived at similar conclusions regarding the same communication.

Final Outcome

  • The communication dated 10‑02‑2022 is declared unsustainable and is set aside.
  • The present writ petition is disposed of in accordance with the directions of the judgment dated 05‑02‑2026 in WP(C) 442/2023 and analogous matters.

Topics: Coal Transport, Constitutional Trade Restriction