P. K. Balasubramanyan, J. - (1.) These Cross Appeals by Special Leave challenge the order passed by the High Court of Orissa in an appeal under Section 37(1)(a) of the Arbitration and Conciliation Act, 1996. The said appeal was one filed by the respondent in C.A. No. 6569 of 2005 which is the appellant in C.A. No. 6570 of 2005 challenging an order of the District Court at Sundargarh in a petition under Section 9 of the Act filed by the appellant in C.A. No. 6569 of 2005 and the respondent in C.A. No. 6570 of 2005. For convenience, the parties will hereinafter be referred to as Adhunik Steels" and O.M.M. Private Limited". Adhunik Steels it was, that filed the application under Section 9 of the Act.
(2.) O.M.M. Private Limited obtained a mining lease from the Government of Orissa for mining manganese ore from certain extents of land situate in Sundargarh district in the State of Orissa. For reasons of its own, O.M.M. Private Limited entered into an agreement dated 14.5.2003 with Adhunik Steels for raising the manganese ore on its behalf. The term of the agreement was 10 years with effect from 18.5.2003, it conferred on Adhunik Steels an option to seek a renewal for a further term.
(3.) According to Adhunik Steels, pursuant to this agreement, it had mobilized huge resources for carrying on the excavation and extraction of the mineral by arranging for the necessary labour, staff, equipments, and so on. It had also incurred expenditure for removing the overburden. On 24.11.2003, O.M.M. Private Limited issued a notice to Adhunik Steels purporting to terminate the agreement. The notice also called upon Adhunik Steels to remove their workmen and equipment from the site. According to O.M.M. Private Limited, it had realized that the contract it had entered into with Adhunik Steels was one in violation of Rule 37 of the Mineral Concession Rules, 1960 and since there was danger of O.M.M. Private Limited itself losing its rights as a lessee, the contract had to be terminated. Adhunik Steels, alleging that it had incurred considerable expenditure and had already incurred losses, moved the District Court at Sundargarh under Section 9 of the Act for an injunction restraining O.M.M. Private Limited from terminating the contract and from dispossessing Adhunik Steels from the site of the mines and for other consequential reliefs. The said application was opposed by O.M.M. Private Limited on various grounds. Ultimately, by order dated 18.8.2004, the District Court allowed the application and restrained O.M.M. Private Limited from relying on, acting upon or giving effect to the letter of termination dated 24.11.2003 and further restraining O.M.M. Private Limited from dispossessing Adhunik Steels from the mines in question. The order was to remain in force till the final award that was to be passed by an Arbitral Tribunal constituted in terms of the arbitration agreement.;