JUDGMENT

P.K. BALASUBRAMANYAN, J.

1. Leave granted.

2. M/s Kalinga Mining Corporation, a partnership

firm bearing registration No. 71/1949, came into existence on 10.12.1949. During the years from 1973 to 1980, the firm obtained three mining leases from the State Government. The partnership firm was reconstituted in the year 1980, taking in some additional partners, again in the year 1991 and yet again in the year 1994.

3. On 14.3.1991, the firm entered into an agency agreement with the appellant, a private limited company for a term of 10 years. Thereby, the appellant was engaged as a raising contractor in respect of the mines for which the firm had obtained leases from the State Government. On 25.3.1991, the firm executed an irrevocable Power of Attorney in favour of the appellant authorizing it to administer the mines and sell the iron ore extracted therefrom.

4. On 13.3.2001, the term of 10 years fixed in the agency agreement expired. New terms were negotiated between the parties and on 22.9.2001, the agreement was extended for a period of three years commencing from 14.3.2001. The term was to end with 31.3.2003. Again, on 3.9.2003, the term of the agreement was extended fo