NANDAN IRON AND METAL INDUSTRIES Vs. FENESTY INC

JUDGEMENT

(1.) M/s. Nandan Iron & Metal Industries, (hereinafter called the 'plaintiff) has filed the suit for recovery of Rupees 1,83,410.00 against the defendants on the allegations that plaintiff is a partnership firm registered under the Partnership Act and that the suit has been filed through an authorised person.

(2.) Defendant No. 1 M/s. Fenesty Inc. is a United States Corporation incorporated under the laws of U.S.A. and the defendant No. 2 is acting as its agents in India. Defendant No. 2 acting as agents for and on behalf of its US principals M/s. Fenesty Inc. issued indent dated 31st January, 1984 from its office in New Delhi to the plaintiff firm for supply of about 17.5 Metric Tonnes of Brass Dross, Copper minimum 60%, metallic recover 90% of U. S. origin @ US Cents 58 per pound C & F Bombay by sea. The said offer was accepted by the plaintiff and was conveyed to defendant No. 2 as agents for defen- dant No. 1. The offer was made at New Delhi, accepted at New Delhi and the contract was entered into at New Delhi.

(3.) In pursuance to the aforesaid contract, the plaintiff established an irrevocable letter of credit dated 7th February, 1984 with the State Bank of India, Moradabad in the sum of US $ 23.400.00 being the established price of material to be shipped by the defendant No. 1 in pursuance of the aforesaid indent. One of the vital and material binding term of the contract was that the metallic recovery of 90% was guaranteed in the Brass Dross to be supplied by defendant No. 1. In pursuance of the contract, for supply of Brass Dross, the defendant No. 1 shipped a quantity of 15.815 M. T. of Brass Dross ex Los Angeles to Bombay per M/V President- Lincoln and raised their invoice dated 27th March, 1984 in the sum of US$21,032.15.