Judgment

The appeal impugns the correctness of a judgment of a Division Bench of the High Court of Orissa dismissing the writ petitions filed by the appellant.

2. The appellant is a Government of India undertaking. It functions as a canalising agent for the purpose of import and export of minerals and metals. It had, for this purpose, issued guidelines to actual users in the matter of applications for the import of iron and steel items to be cenalised through it. Thereby the actual user was informed that the formal purchase order on the foreign exporter would be re­leased by the appellant after the actual user had made financial arrangements to cover the purchase. The actual user had the option to open either a domestic letter of credit in favour of the appellant or a direct letter of credit in favour of the exporter, but the facility of opening a direct letter of credit was to be given only on the merits of the case and provided an undertaking in the stated proforma was given. In other cases a back-to-back letter of credit favouring the appellant had to be established. On 31st March, 1991, the Steel Authority of India Limited (hereinafter referred to as ‘SAIL’) requested the appella