Supreme Court Dismisses JSW Steel’s Plea Against ₹127.66 Crore Recovery in Bomman Iron Ore Lease Dispute

The Supreme Court dismissed a Special Leave Petition filed by JSW Steel Limited challenging a Karnataka High Court order that refused to restrain recovery of ₹127.66 crore and invocation of bank guarantees in relation to the Bomman Iron Ore Mining Lease.

The dispute arose over alleged non-compliance with minimum production requirements under a mining lease granted pursuant to auction under the Mineral (Auction) Rules, 2015.

The High Court had held that unconditional bank guarantees cannot ordinarily be restrained except in cases of fraud or special equities, which were not made out.

It also observed that commercial difficulties do not excuse contractual obligations. The Supreme Court declined to interfere.

[JSW Steel Ltd. v. State of Karnataka]