Posco withdraws suit against SAIL

Posco E&C, part of South Korean steel giant Posco, today withdrew its suit in the Delhi High Court against state-run SAIL for terminating a Rs 2,000-crore order.     

During the proceedings, the counsel appearing for Posco E&C informed the Court that the company is withdrawing its writ petition filed against SAIL and the Bhilai Steel Plant on Wednesday.     

Admitting the request, a Division Bench comprising Justice B D Ahmad and Justice Veena Birbal allowed the South Korean firm to withdraw its petition.     

The Court granted Posco E&C the option of approaching a civil court or take any other course available to it.     

During the last hearing, the Court had asked the foreign firm to submit its views by today — whether it is going to participate in the retendering process initiated by SAIL for constructing the blast furnace at the Bhilai Steel Plant.     

The South Korean firm had moved the Delhi High Court against SAIL alleging an "illegal and discriminatory" termination of an order by the Bhilai Steel plant of the PSU for constructing a blast furnace, despite it being the lowest bidder.

The Division Bench had suggested Posco participate in the retendering process initiated by SAIL.