Orissa Minerals loses appeals in iron ore supply disputes

The Calcutta High Court, in an order dated December 9, 2025, dismissed two appeals by Orissa Minerals Development Company Limited (OMDC) against Jai Balaji Industries Limited. The appeals concerned arbitration awards previously affirmed by additional district judges in Barasat. The court found no perversity or jurisdictional error in the Arbitral Tribunal's decisions.

The disputes stemmed from agreements in 2003 and 2004 for iron ore supply, with OMDC ceasing supply due to alleged non-payment. The Arbitral Tribunal had previously ruled that OMDC breached contract and awarded Jai Balaji Industries Limited compensation for excess amounts spent on purchasing balance iron ore, as well as for loss of profits, with interest and costs.

The High Court confirmed that OMDC had to supply the agreed quantities of iron ore irrespective of prior demands or availability, and that OMDC failed to prove non-availability. It also found that OMDC had waived the 100% advance payment pre-condition by continuing supplies. The court further noted that tendering undated cheques was a usual practice, and the respondent's complaints regarding product quality justified payment delays.