RUDNAP EXPORT IMPORT Vs. ESTERN ASSOCIATES CO

JUDGEMENT

(1.) M/s. Rudnap Export-Import, Belgrade, plaintiff filed the suit on 19th April, 1971 for recovery of Rs. 5,98,850.44 on account of balance of price of goods and. interest @ 6% per annum against M/s. Eastern Associates Co., New Delhi, a partnership firm (defendant No. 1) and its partners S. N. Goenka and C. R. Dass, defendants 2 and 3.

(2.) The plaintiff alleges that it is a Yugoslav Enterprise. It is registered in the Registry of Economic Organizations, Yugoslavia having its own seal and can sue and be sued in its own name. Shri Jevrem Sofronijevic, its representative in India, is authorised by a Power of Attorney dt. 5th Feb.. 1971 to institute- legal proceedings; In the year 1965, the Agriculture Department, Government of Andhra Pradesh wanted to buy TG 90 S Crawler Tractors of Yugoslav Make. The plaintiff agreed to sell the said goods to the defendants who in turn entered into a contract of sale with the Andhra Pradesh Government. The defendants were to get 20% commission on the ex-factory value of the goods out of which 10% as sales commission and the remaining 10% was towards servicing the machines for a period of three years from the date of delivery. The Andhra Pradesh Government on the request of the defendants agreed to open a letter of credit for 90% of the value of goods in favour of the plaintiff. 10% payment was to be made by the Andhra Pradesh Government to the defendants after one month of the delivery of goods at site.

(3.) The goods were shipped for Madras on 12th Dec. 1966. The' Bills of Lading, invoice for Rs. 39,80,669,54 and other documents were sent to the defendants on 19th Dec. 1966. The invoice amount was received by the plaintiff against the Letter of Credit. A sum of Rs. 6,81,178.00 as commission was remitted by the plaintiff to the defendants on 17th Feb. 1967. The goods arrived at Madras Port. The defendants got the goods cleared from Custom and delivered the same on 29th April 1967 to the Director of Agriculture, Andhra Pradesh Government, Hyderabad.