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Petitioner has submitted that Ilmenite is a very scarce natural resource, available in limited areas in India, the best quality (Q-grade), being mined in Quilon (Kollam) in Kerala. IREL, the 2 nd respondent, a Government of India undertaking, has the mining facility for the same at Kollam. Ilmenite (Quilon grade), is the best among available for developing Titanium Sponge, a very light weight material, which is essential for the KMML, 4th respondent, a Government of Kerala undertaking, for its Government projects, including that of manufacturing satellites, aircrafts, space research equipments, among others.

10. Company Secretary of the Kerala Minerals & Metals Ltd. (KMML), 4th respondent, has also filed a counter affidavit, denying the averments made in the writ petition. KMML, the 4 th respondent, has submitted that, the raw material, Ilmenite, mined from the mines of KMML, is not sufficient to meet the requirements of the company. KMML always used to purchase Ilmenite from IREL, 2 nd respondent. KMML is in need of the raw material for production and when there was no supply from IREL; KMML had to depend on private manufacturers of beneficiated Ilmenite.

11. KMML, the 4th respondent, has further submitted that, it is not correct to say that the KMML is a competitor of IREL, the 2 nd respondent, for the reason that, the Ilmenite mined from the mining areas allotted to KMML, was not sufficient to meet its own production requirements. Further, it is also not correct to say that the KMML stopped sourcing Ilmenite from the IREL, 2nd respondent, on account of their own production of Ilmenite.

12. It is submitted that even though KMML, the 4 th respondent, has its own mines, it has been requesting IREL, 2 nd respondent, for Ilmenite, to fill the shortfall of raw material requirement. In the earlier years, for the production of TiO2, the raw material requirement was met with production from its own mines. But with the raw sand feed becoming lean in Ilmenite, and percentage fall in the beach collection of sand, and increase in production capacity of Ti02, the requirement of Q Grade Ilmenite became important for KMML, and KMML can only be considered as a trusted customer, and not as a competitor, for price fixing. The dual pricing policy of IREL discriminates KMML compared to the CMRL, 3rd respondent. It is also not correct to hold that KMML will be hoarding valuable raw material with a view to export it, as KMML itself is having shortage of raw material, required for its production of TiO2. KMML was never engaged in export of Ilmenite, or sale of Ilmenite, in the open market. KMML has also submitted that, the various purchase requests that KMML has placed for procurement of Ilmenite from the IREL, 2 nd respondent, would prove that, KMML is facing shortage of raw material, and is forced to pay a higher price, so as to have its units functioning.