PRADEEP NANDRAJOG, J.

( 1 ) ON 7. 2. 1992, appellant, Power Grid Corporation of India Ltd. (here-in- after referred to as PGCIL) a Government Company incorporated under Section 617 of the Companies Act, 1956 earlier named as National Power Transmission corporation obtained approval from the Central Government for issue of taxable/tax free bonds. Inter alia, condition of the consent recorded :- it is a condition of the consent that the company will be subject to any measures of control, licensing, or acquisition that may be brought into operation either by the Central or any State Government or any authority therein.

( 2 ) CANBANK Financial Services Ltd. (here-in-after referred to as Canfina), a company wholly owned by Canara Bank, vide it s letter dated 6. 3. 1992 offered to subscribe to 17% taxable bonds of the face value of Rs. 80 crores on the terms and conditions set out in the said letter. Being relevant, entire contents of the letter dated 6. 3. 1992 may be noted. It reads :"the Director (Finance) national Power Transmission corporation Ltd. , 89, Nehru Place, New Delhi. Dear Sir, sub: Private Placement of Bonds Aggregating to Rs. 100 crores (Taxable ). Referring to your su

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