INDIAN EXPLOSIVES LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) The facts relating to the present application may be briefly noted.

(2.) Petitioner No. 1, Indian Explosives Limited (hereinafter referred to as IEL), manufactures fertilizers at its factory in Panki, Kanpur. The essential raw material required for such manufacture is naphtha. Naphtha during the relevant time was manufactured by the Indian Oil Corporation (hereinafter referred to as IOC) inter alia at its Barauni refinery in Bihar.

(3.) From September, 1969, naphtha was being supplied by IOC to IEL through a pipe-line connecting the Barauni refinery of IOC with the factory of IEL at Kanpur. The terms and conditions of such supply were recorded in an agreement between IEL and IOC dated 9th February, 1970. The agreement was effective from September, 1969, and was in force till 31st December, 1980.