SOUMEN SEN, J. - (1.) This interlocutory application has been filed by the plaintiff praying, inter alia, for a direction upon the respondent No.2 to execute fuel supply agreement in furtherance of the Letter of Assurance (in short "LOA") dated 3rd/10th September, 2008.
(2.) The plaintiff has taken steps for setting up an integrated steel and power plant in Village - Jamuria, District - Burdwan, in the State of West Bengal. The plaintiff says that for the purpose of setting up a captive power plant and ultimately making it functional, the plaintiff requires assured supply of fossil fuel. In view thereof, they approached the first and second defendant. Pursuant to such request, the second defendant issued a letter of assurance whereby the second defendant agreed to supply 4,52,000 tonnes per annum of Gr. -'E' coal for 3X10 MW power plant to be located at village Jamuria on certain terms and conditions.
(3.) The said letter of assurance required the plaintiff to complete all the activities as mentioned in Annexure -'1' to the said LOA within the period of 24 months from the date of issuance of the LOA and each activity within the time period mentioned against it. The said activities are described as milestones. The respondent No.2 agreed to supply the assured quantity of coal on condition that the petitioner will furnish a commitment guarantee in the form of bank guarantee for a sum of Rs.4,06,80,000/ -. The said commitment guarantee shall remain valid until 4 months after the expiry of LOA period of twenty months.;