Judgment : –

Pinaki Chandra Ghose, J. –

1. Leave granted.

2. This appeal has been filed against the order dated February 21, 2012 passed by the High Court of Karnataka in W.P. No.38280/2011.

3. The facts of the case reveal that on February 19, 2007, Steel Authority of India (for short ‘SAIL’) had advertised for E – auction of 1.00 lakh metric tons of iron ore (fines) from Kemmanagundi mines. On March 13, 2007, auction was held and respondent No.1 was declared as the successful tenderer. It would be evident from the sale order dated March 16, 2007 that the price was agreed upon at [pic]1,132/ – per metric ton plus VAT of 4% aggregating to [pic]11,32,00,000/ – plus VAT of 4%. The appellant duly paid [pic]176 lakhs being 15% of the total sale value on March 15, 2007. Out of the said amount, [pic]58.86 lakhs being 5% of the total sale value was retained as Security Deposit and a sum of [pic]117.74 lakhs was kept for adjustment along with the final instalment. The balance payment was to be made in two monthly instalments with the grace period of 30 days with interest at the rate of 6% per annum. The entire material was to be lifted within four months from the date of the sale order.

4. On