SCANTEL (P) LTD Vs. LATHAM INDIA LTD

JUDGEMENT

(1.) THE plaintiff i.e. Scantel (P) Limited has filed the present suit for recovery of Rs.1,78,68,819.13. Plaintiff pursuant to a technical collaboration agreement dated 18.6.1991 with Ricoh Co.Ltd. Tokyo, Japan had imported components of 500 Fax 82 machines in two lots of 250 machines each. On 18.2.1992 plaintiff and the defendant had entered into a Memo of Understanding (hereinafter referred to as ï¿ 1/2the MOU.) whereby defendant had offered to market, distribute and sell the Fax 82 machines assembled/manufactured by the plaintiff. In terms ofthis agreement, defendant had assured the plaintiff that he would purchase 100 fax machines upto 31.3.1992 and 800/1000 fax machines during the financial year 1992-93. The purchase of machines for subsequent years i.e. for the year 1993-94 and 1994-95 was subject to further negotiations. This MOU of 18.2.1992 was valid till 31.3.1995.

(2.) ON the assurance and commitment of the defendant that he would market and distribute the said fax machines, plaintiff pursuant to and in term of this MOU dated 18.2.1992 imported components for additional 500 fax machines. Plaintiff made heavy investments in this regard. He incurred a liability of Rs.4,32,95,771.00. Plaintiff performed all his obligations in terms of this MOU. The defendant failed to honour his commitment. He purchased 5 machines short of the target up to 31.3.1992. For the financial year 1992-93, there was a substantial default on his part; there was a shortfall of 550 machines.

(3.) DEFENDANT is liable to pay interest for the losses suffered by the plaintiff which amount is calculated at Rs.13,52,156.00.