( 1 ) IN this appeal, the Revenue has challenged the judgment of Sabyasachi Mukherji J. making the rule nisi obtained by the respondent company, Shriram Bearings Ltd. , on its application under Article 226 of the Constitution absolute.

( 2 ) THE respondent company, formerly styled and named "bharat Ball Bearing Company Ltd. ", has been now renamed "shriram Bearings Ltd. " The respondent company, with a view to starting the manufacture of cylindrical, spherical and tapered roller bearings in India, entered into a technical collaboration agreement with M/s. Nippon Soike Kabushiki Kaisha of Japan, a non-resident, hereinafter referred to as " N. S. K. " on April 7, 1965. The said agreement became effective from June 17, 1965. It was subsequently modified by supplementary agreements dated March 21, 1966, and May 17, 1967. The original agreement dated April 7, 1965, consists of two parts. By the first part, N. S. K. agreed to sell to the respondent company its trade secrets which means all N. S. K. know-how relating to the products and relating to the manufacturing technique which are considered sufficient enough for the production of products of a quality comparable to