TECON PROJECTS PVT. LTD Vs. SANJAY MEHTA

JUDGEMENT

(1.) Contempt Petition C.C.P. No. 16 of 2009 has been filed by Tecon Projects Private Limited ( Tecon ), the Petitioner in O.M.P. No. 495 of 2008, under Sections 11 and 12 of the Contempt of Courts Act, 1971 complaining of wilful breach, disobedience and violation by the Respondents of the order dated 18 th September 2008 passed by the Court in O.M.P. No. 495 of 2008. Background facts

(2.) The background to the contempt petition is that Tecon specializes in design, engineering, manufacture, supply, erection and commissioning of bulk material handling systems. M/s Kolsons International ( Kolsons ) had been awarded the work of design, engineering, manufacture, supply erection and commissioning of material handling system for the Respondent in O.M.P. No. 495 of 2008 Gulf Sponge Iron Company Limited ( Gulf ) at ICAD-1 Mussfah Abu Dhabi, UAE. For this purpose, Kolsons entered into an agreement dated 29 th May 2007 with Gulf. The stipulated date of completion was 30 th April 2008. Tecon stated that it was approached by Kolsons immediately thereafter for execution of the said work on its behalf. In terms of the agreement, the contract could be assigned by Kolsons in favour of Tecon subject to the approval by Gulf. This was formalized by a letter dated 30 th May 2007 awarded to Tecon which was accepted by it on 1 st June 2007.

(3.) It is not necessary to set out in detail the dispute that arose between the parties in relation to the execution of the said work by Tecon. What is relevant is that Gulf opened a Letter of Credit ( LC ) dated 22 nd October 2007 in favour of Tecon for US Dollar ( USD ) 1,646,800 after 100 days.