C. HARI SHANKAR, J.

1. On 14th December, 1998, an agreement was entered into, between M/s Sterlite Industries India Ltd (hereinafter referred to as “Sterlite”) and the Mineral and Metals Trading Corporation of India Ltd (hereinafter referred to as “MMTC”), the respondent herein. Under the said agreement, MMTC was to undertake storage, handling and marketing of continuous cast copper rods (hereinafter referred to as “CC rods”) manufactured by Sterlite, in various states. Sale, of the rods, was to be undertaken, by MMTC, on consignment basis, at various places in India. Though the Agreement provided that MMTC would sell only against 100% advance, or against financial arrangements made by the customer, it had been earlier decided, in a meeting held on 20th January, 1994, between Sterlite and MMTC, that MMTC could extend credit to the customers of the rods, but on its own terms and at its own risk. In case such credit was extended by MMTC to the customers of the rods, it was decided that payment, to Sterlite, would, nevertheless, be made, by MMTC, on delivery of the rods being effected to the customers. Acting on the basis of this understanding, MMTC sold CC rods to M/s Hindus