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The appellant OMDC is a Government of India Enterprise, having its registered office at AG 104, Sector 2 (Sourav Avasan), Salt Lake City - 700 091. The appellant OMDC is engaged in mining of iron ore in different mines in Orissa.

On or about 18 th September, 2007, the appellant OMDC issued a Tender Notice No. OMDC/49/2007 whereby sealed tenders were invited in prescribed format, from reputed parties having earth moving equipment, with minimum three years of experience in raising of minerals of the description specified, for the job of raising and transporting of iron ore at North Iron Section, Bhadrasai Mines, Roida near Barbil, District Keonjhar (Orissa).

It is the case of the respondent Contractor that the respondent Contractor was wrongfully induced by the appellant OMDC to accept the contract by suppression of the material fact that the appellant OMDC had no right to operate the Bhadrasai mines in Roida.

On the directions of the State Government, the appellant OMDC terminated the contract of the respondent Contractor by a letter dated 19 th July, 2008. No penalty was however imposed by the appellant, OMDC on the respondent Contractor.

It appears that the lease of the appellant, OMDC in respect of the Bhadrasai Mines, was due to expire on 14 th August, 1996. The appellant OMDC applied for renewal of the lease on 14 th July, 1995. However, the lease was not renewed and ultimately the Government of Orissa cancelled the lease on 16 th November, 2006.

It appears that on the prayer of the appellant, OMDC, the revisional authority passed an order dated 28 th March, 2007 staying the order dated 16 th November, 2006 whereby the lease had been cancelled. The order of the revisional authority was later vacated after which the appellant, OMDC filed an application in the High Court of Orissa under Article 226 of the Constitution of India being Writ Petition No. 12704 of 2007 challenging the decision of the authority concerned to cancel the lease.

(iii) The learned Arbitrator erred in law and facts and acted against public policy in allowing most of the claims of the respondent Contractor and in rejecting the counter claims of appellant OMDC.

(iv) The learned Arbitrator factually erred in holding that appellant OMDC did not have mining lease.

Mr. Somnath Bose, appearing on behalf of the appellant OMDC submitted that the contract between the respondent contractor and the appellant OMDC related to certain jobs at the Bhadrasai-Roida Iron Ore and Manganese Mines covering 254.952 hectares, held by the appellant OMDC under a mining lease granted by the State of Orissa.