Per S.S. Sekhon :

The appellants (hereinafter referred to as MKL) are registered manufacturers of machinery and parts thereof and also carry out business of manufacture of machine tools and its accessories, high grade castings, pollution control equipments and other incidental and ancillary equipment and owns and operates a main machine manufacturing factory at Harihar. They accepted order to develop, fully engineering machine set ups and manufacture the said machines as per the drawings, patterns, jigs, fixtures and tools, etc. which they would develop on separate orders to be negotiated and placed on a principal to principal basis. The agreement dated 10.5.91 was entered into with ITC. The agreement related the preparation of drawings, patterns, jigs, fixtures and tooling necessary for manufacture of certain machines, which ITC requires and would place orders separately, once they approve the designs. This agreement stipulated the supply of a prototype machine by ITC to MKL to develop such drawings, patterns, jigs, fixtures and tools and it specifies that such items will be prepared by MKL, yet they would remain the property of ITC and shall be handed over to ITC on terminati