- (1.) THE Court : THE facts in short in respect of the application under Section 41 of the Arbitration Act are that the petitioner company has its factory at Choudwar which is a 100% Export Oriented Unit. THE petitioner Company is engaged in manufacture and sale of High Carbon Ferro Chrome/Charge Chrome. THE licenced capacity of the petitioner's unit was 50,000 tonnes per annum.
(2.) THE respondent was at all material times operating a number of mines and its production was more than 6,00,000 tonnes per annum from the Sukinda Valley in the district of Cuttack. In fact the said 6,00,000 tonnes per annum can be and is being extracted from less than 200 hectares of mining lease area with the respondent. THE respondent entered into agreement hereinafter mentioned to enable the petitioner to manufacture High Carbon Ferro Chrome/Charge Chrome and export the remaining excess Chrome Ore the value added product being the Charge Chrome. Sometimes in March, 1990, it was agreed between the parties that the respondent would supply Chrome Ore to the petitioner, at its 100% Export Oriented Unit at Choudwar on a regular basis free of any cost which will be converted into Charge Chrome/High Carbon Ferro Chrome and the said Charge Chrome would be thereafter exported by the respondent. In consideration of the above the respondent agreed to pay conversion charges to the petitioner. The said agreement between the parties was recorded in a memorandum of agreement dated 2nd April, 1990. Though the said agreement was for a period for one year the supply of ore deemed to have commenced from October, 1989 and subsequently on 30th March, 1991 the period was further extended for another 9 months with effect from 1st April, 1991. The unit of the petitioner commenced production only after entering into the said agreement with the respondent.
(3.) ON March 1, 1992, The parties entered into a fresh agreement in writing whereby the petitioner agreed to dedicate its entire unit exclusively for the conversion of the respondent's Chrome Ore Coke into charge Chrome for and on behalf of the respondent.;