SINEXIMCO PTE. LTD Vs. DINESH INTERNATIONAL PVT. LTD

JUDGEMENT

(1.) As per the plaint, claiming decree in sum of Rs 84,15,000/- equal to US$ 1,70,000.00 at and exchange rate of Rs 49.50 per US$, case of the appellant is that on April 29, 1997 a contract was concluded between the appellant and the respondent where under the respondent agreed to purchase Australian Tyson Chick Peas from the appellant at the rate agreed and pursuant whereto the appellant shipped 200 MT Chick Peas valued at US$ 185,729.25 to the respondent and raised an invoice dated July 23, 1997 followed by Standard Chartered Bank, Singapore, the banker of the appellant drawing up a Bill of Exchange dated July 27, 1997 upon the respondent through its banker, Bank of Punjab, New Delhi for the invoice amount, which Bill of Exchange envisaged payment within 90 days of its acceptance by the respondent. On July 29, 1997 the Bill of Exchange was accepted for payment by the respondent, but it wanted to pay the amount in installments and accordingly it made four payments on September 09, 1998, September 17, 1998, September 21, 1998, November 24, 1998 and January 20, 1999 in sum of US$ 17,970.00 each to the appellant followed by a fifth payment made on February 04, 1999 in sum of US$ 10,970.00 and thereafter did not tender the balance payment of US$ 84,909.25. The respondent was required to make balance payment under the Bill of Exchange on or before the due date of May 05, 1999 but the needful was not done by the respondent. Since the balance payment was not made by the respondent within the stipulated period, vide letter dated April 21, 1999, Bank of Punjab returned the Bill of Exchange to the banker of the appellant i. e. Standard Chartered Bank, which in turn returned the same to the appellant vide its letter dated May 10, 1999. Thereafter the appellant issued legal notice dated February 24, 2000 to the respondent claiming the sum which remained unpaid under the Bill of Exchange but to no avail. Accordingly, the appellant filed a suit claiming a sum of US$ 84,909.25 towards principal amount + US$ 84,790 towards interest @ 18% per annum for the period from October 29, 1997 to the date of filing of suit + US$ 305 towards bank charges = US$ 1,70,000 or INR 84,15,000/- from the respondent.

(2.) In the written statement filed, the respondent admitted that:- (i) on July 24, 1997 a contract for purchase of Australian Tyson Chick Peas was entered into between the parties; (ii) the appellant had shipped 200 MT of chick peas valued at US$185,729.25 to the respondent vide invoice dated July 23, 1997; (iii) on July 27, 1997 the banker of the appellant Standard Chartered Bank, Singapore had drawn a Bill of Exchange upon the respondent through its banker Bank of Punjab, New Delhi and that said bill was accepted by it on July 29, 1997 and (iv) the respondent had made total payment of US$ 100,820 in respect of said contract, last payment being made on February 04, 1999. However, the respondent contended that it is not liable to make balance payment of US$ 84,909.25 to the appellant for the reasons: - (i) the suit filed by the appellant is barred by limitation; (ii) quantity of chick peas received by the respondent was less than the agreed quantity; (iii) chick peas received by the respondent was not as per agreed specifications; (iii) in view of the deficiencies in the quality and quantity of the chick peas received by the respondent the parties agreed to settle the matter on the respondent making a payment of US$ 100,820 to the appellant, which amount was duly paid by the respondent and thus no amount whatsoever is due to the appellant from the respondent.

(3.) On the basis of pleadings of parties, following issues were settled by the learned Single Judge:-