JUDGMENT :

UJJAL BHUYAN, J.

1. Appellants i.e. Union of India, Director General of Foreign Trade and Joint Director General of Foreign Trade by means of this civil appeal have taken exception to the judgment and order dated 22.08.2008 passed by a Division Bench of the High Court of Karnataka, Circuit Bench at Dharwad in Writ Appeal No. 356 of 2006 affirming the judgment and order of the learned Single Judge dated 22.09.2005 allowing Writ Petition No. 45525 of 2004 filed by the respondent.

2. Facts lie within a narrow compass. Nonetheless, for a determination of the lis, it would be necessary to briefly narrate the relevant facts as projected by the respondent in the related writ petition.

2.1. Respondent is a class-I contractor specializing in the field of civil contract works especially funneling and hydro electric power projects.

2.2. Central Government had approved funding of a project called Koyna Hydro Electric Power Project, Maharashtra by the International Bank for Reconstruction and Development, which is an arm of the World Bank. In the said project, respondent was awarded a sub-contract to execute civil works from Lake Intake to the Emergency Valve Tunnel. Respondent has relied