The High Court of Karnataka rejected the plea of Mysore Minerals Ltd (MML) to add a counterclaim of about ₹1,172.79 crore against JSW Steel Ltd.
The judge also asked the lower court to pass an order in the original case within a year.
About Case
The case dates back to 2012, when the company had entered into two lease-cum-sale deeds with the state government for expansion of its integrated steel plants.
However in 2011, Supreme Court has already banned mining operations in Karnataka due to which this memorandum of understanding MoU was kept on hold.
This hold lead to a dispute between JSW Steel and MML.
MML filed its response in the beginning of 2013.
And It also sought the court’s permission to amend its response and file a counterclaim against JSW Steel for ₹1,172.79 crore along with 18% interest.
JSW opposed the claim
The counsel for JSW Steel opposed the counterclaim saying, “A counterclaim is nothing but a ‘deemed suit’ for all practical purposes and therefore it is bound by the same limitation period,” argued the counsel for the Jindal owned firm.
Claim adjoned in the court
On January 13, Justice Krishna S Dixit said, “The subject application of the respondent (MML) seeking leave to amend the written statement for introducing the counterclaim is dismissed.”
This came as a major relief to the Sajjan Jindal-owned JSW Steel.
Civil Procedure Code
Under the Code of Civil Procedure (CPC), the events can amend their reply inside 90 day. The legislation permits addition of info that are associated to the case solely.
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