The Court earlier had ruled that the allocation of licenses was illegal but the court did not order to cancel the licenses.
The Attorney General Mukul Rohatgi has suggested the court to not to cancel the licenses as they have already started producing coal or were about to produce.
He informed the court that the government has agreed to re-auction the coal blocks if their allocations are annulled.
Meanwhile, an association of coal producers has stated that the firms have will have to default on bank loans worth five lakh crores.
In 2012, a report by Comptroller and Auditor General (CAG) had said that the nation had lost Rs 1.86 Lakh Crore because of the illegal allocation of licenses for coal mining.