The Karnataka High Court has rejected a Mysore Minerals Ltd (MML) plea to add a counterclaim of about ₹1,172.79 crore to a petition of JSW Steel Ltd, which is seeking a refund of about ₹272 crore from the state-owned company.
“The subject application of the respondent (MML) seeking leave to amend the written statement for introducing the counterclaim is dismissed,” Justice Krishna S Dixit said in a January 13 order, which came as a major relief to the Sajjan Jindal-owned JSW Steel.
The judge also asked the lower court to pass an order in the original case within a year.
“The respondent’s (MML) contention that he has already laid the foundation for the filing of counterclaim in the original written statement itself, places into insignificance since what the law of limitation bars is the remedy and not the grounds on which it is founded,” the court said in a 19-page order. “In other words even if the respondent had taken up all the grounds in his written statement as filed originally, a prayer for counter decree cannot be belatedly superadded once the same becomes time-barred.”
JSW Steel had originally filed a plea to claim the refund of excess premium of about ₹272 crore paid by it in lieu for supply of iron ore. The company had entered into two lease-cum-sale deeds with the state government in 2006 for expansion of its integrated steel plants. However, when the Supreme Court banned mining operations in Karnataka in 2011, this memorandum of understanding MoU was kept on hold, leading to a dispute between JSW Steel and MML.
The case dates back to 2012, when JSW Steel had approached the court. MML filed its response in the beginning of 2013. Subsequently, MML sought the court’s permission in 2016 to amend its response and file a counterclaim against JSW Steel for ₹1,172.79 crore along with 18% interest.
Source: Economic Times