In a relief for former Prime Minister Manmohan Singh, the Supreme Court on Wednesday stayed the order issued by the Special Court summoning him as accused in the case of allocation of Talabira-II coal block in Odisha in 2005 to Aditya Birla group company Hindalco.

A bench of Justices V. Gopala Gowda and C. Nagappan also stayed the proceedings in the case till it finally decides the petitions filed by Mr. Singh and five other accused, including industrialist Kumaramangalam Birla and former coal secretary P.C.Parakh, in the apex court.

Appearing for Mr. Singh, senior advocate Kapil Sibal argued that there was no mens rea (criminal intention) and the decision to allocate the coal block to a joint venture including Hindalco company instead of public enterprise Neyveli Lignite Corporation was an "administrative decision".

The Bench also issued notice to the Centre on a challenge made by Hindalco on the constitutionality of section 13 (1)(d)(3) of the Prevention of Corruption Act.

To the court's query as to why Mr. Singh did not comply with the Screening Committee's recommendation to allot the block to NLC, Mr. Sibal argued that his client was only exercising his plenary powers and did not gain any pecuniary advantage from the allocation.

Senior advocate Harish Salve for Mr. Birla argued that the Mr. Singh's decision to allot the block to a joint venture of NLC, Mahanadi Coal and Hindalco after a communication from the Odisha government was fair and a decision in tune with the federal nature of governance.

Mr. Salve argued that of the 507 metric tonnes of coal in Talabira-II block, 75 percent share went to NLC, Mahanadi would get 15 percent and only the rest would be allocated to Hindalco.

Mr. Salve said that an allotment in which 85 percent of coal goes to the public sector was very much in public interest.

Mr. Sibal pointed out that Special Judge Bharat Parashar found illegality in Mr. Singh's decision entirely based on the Screening Committee's recommendation when the Supreme Court had itself found this very screening committee procedure illegal and non-est.

Mr. Singh sought quashing of the summons issued to him to appear as an accused on April 8 by Special CBI Judge on the ground that the order was passed without application of mind and the summoning order was "bad in law".

The petition said that there was nothing on record to point out that Mr. Singh has done any acts which may constitute any offence.

The former Prime Minister had only taken a decision as a competent authority on the representation of Odisha government.

It said there is no evidence to show that there was an abuse of power and moreover, taking a decision in government is not an offence.

The summons were based on the allegation that allocation of Talabira-II coal block in Odisha was changed from Neyveli Lignite Corporation to a joint venture of Mahanadi coal fields, NLC and Birla's Hindalco causing loss to the exchequer. Singh held the coal ministry portfolio at that time.

It said an administrative decision could be "good or bad" but it was unheard of to introduce criminality into the decision by terming it post-facto as against public interest.