LAWS(DLH)-2010-7-13

MS SHOES EAST LTD Vs. MUNAK CHEMICALS LTD

Decided On July 01, 2010
SHOES EAST LTD Appellant
V/S
MUNAK CHEMICALS LTD Respondents

JUDGEMENT

(1.) This is a suit instituted for recovery of monies advanced by the plaintiff towards supply of Granulated Single Super Phosphate (hereinafter referred to as 'GSSP') with interest at the rate of 18% per annum from 01.04.1995.

(2.) The facts in this case fall in a narrow compass. In brief the plaintiff's case is as follows: 2.1 The plaintiff had secured, it appears, a contract for supply of 3200 metric tons (MT) of GSSP to a buyer at Bangladesh. For this purpose a Letter of Credit (hereinafter referred to as 'LC') was opened by the buyer at Bangladesh in favour of the plaintiff. It appears that the terms of the LC required the goods to reach the Darshana station, Bangladesh by 31.12.1994. There is some evidence in the matter, the details of which I will discuss in the later part of my judgment, which seems to suggest that an amended LC was drawn which, extended the date of shipment as well as the validity of the LC. 2.2 The plaintiff, who was not a manufacturer of GSSP, entered into a Memorandum of Understanding dated 17.01.1995 (Ex. P1) (hereinafter referred to as 'MOU') with the defendant for purchase of GSSP. The broad terms of the MOU in so far as they are relevant for the purposes of the present suit were as follows:

(3.) Having not received a favourable response from the defendant, the plaintiff instituted a suit for recovery of the amount paid as advance alongwith claim for interest at the rate of 18% per annum.