JUDGMENT

Aftab Alam, J.

1. This appeal, at the instance of M/s Industrial Promotion and Investment Corporation of Orissa Limited (“Corporation” for the sake of brevity), is directed against the judgment and order dated June 29, 2006 passed by a Division Bench of the Orissa High Court. By the impugned judgment, the High Court allowed the Writ Petition [W.P.(Civil) No.1556/2003] filed by respondent Nos.1 & 2 (M/s Tuobro Furguson Steels Private Limited and its Director) and undoing a contract of sale of an Industrial Unit entered into between the parties, directed the appellant to refund Rs.8,00,000/- (Rupees Eight Lacs), that was paid by the respondents to the appellant as part of the sale consideration, together with simple interest at prevailing rates of interest of the State Bank of India on deposits made by customers during the relevant period.

2. The facts relevant to appreciate the rival contentions of the parties are brief and may be stated thus. A Foundry Unit situated at Ganeswarpur Industrial Estate, Balasore, by the side of NH-5, along with land, building, plant and machineries was taken over by the Corporation under Section 29 of the State Financial Corporation Act, 1951