JUDGEMENT
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(1.) In this writ application, the petitioner has prayed for following reliefs:
(a) For quashing of letter No. T & C (M)/B320/AKT/035RR/1429, dated 21/22 December, 2012 (Annexure-31), whereby and whereunder, the respondent-SAIL has illegally demanded a sum of Rs.4,42,46,309/- from the petitioner and threatened that in case of non-payment of the above amount, the same will be deducted from the other bills, which is required to be paid by the respondent-SAIL.
(b) Petitioner further prays for restraining the respondent-SAIL from implementing the aforesaid impugned letter dated 21/22 December, 2012 (Annexure-31) and from deducting/withholding the said amount of Rs.4,42,46,309/- from the pending bills and/or bills submitted by the petitioner regarding other separate and unrelated contracts, which are to be paid by the respondent-SAIL.
(c) Petitioner also prays for a direction upon the respondent-SAIL to forthwith refund/pay to the petitioner, an amount of Rs.5,00,000/- (Rupees five lakhs only) along with interest @18% p.a., which has been illegally and in most arbitrary manner recovered/realized by the respondent-SAIL by encashing the bank guarantee furnished by the petitioner as bid Security.
(d) Petitioner also prays for a direction upon the respondent-SAIL, Bokaro Steel Plant to forthwith refund/pay to the petitioner an amount of Rs.4,42,46,309/- along with interest @18%, calculated from 25.10.2013, which has been illegally and in most arbitrary manner deducted by the respondent- SAIL, Bokaro Steel Plant from the invoice No.1530, with respect to FFC Aug. 13, dated 31.8.2013 for Rs.6,55,39,230.59 (Annexure-35), which was submitted by the Petitioner to respondent-SAIL, Bokaro Steel Plant with respect to an independent and separate contract/agreement being No. TC/M/AGT-916, dated 19.5.2006 (Annexure-34).
(2.) It is stated in the writ application that the petitioner is a Company incorporated under the Companies Act, 1956, engaged in the business of manufacturing of industrial, medical gases and Air Separation Plants and running, operating and maintaining plants for the production of "Oxygen" and "Nitrogen" , which are required for manufacturing of steel and other industrial products. It is further stated that the petitioner has several long term, ongoing contracts and arrangements with the respondent-SAIL including an agreement dated 19.5.2006, for supply of industrial gases to the respondent-SAIL for its steel plant at Bokaro, Jharkhand and also entered into an agreement on 27.12.2008 for supply of gases to its steel plant at Salem (Tamil Nadu). It is further stated that the said contract/agreement are for the period of 15 years from the date of the respective contract/agreement. It is further stated that on a monthly basis, the petitioner receives about Rs. 7 crores from the respondent-SAIL, Bokaro in lieu of gases supplied to it.
(3.) The respondent No.1-Steel Authority of India Limited (SAIL) is a Public Sector, Government Company having its steel plant in the State of Jharkhand, known as Bokaro Steel Plant at Bokaro Steel City, Jharkhand. The respondent No.2-MECON Limited is also a Government Company having its head office at Doranda, Ranchi, Jharkhand.;