SWATI ALUMINIUM LTD Vs. MULLINS STEERING GEARS

JUDGEMENT

(1.) Plaintiff no.1 is a public limited company engaged in business of supplying steering boxes. Plaintiff no.2 is a director of plaintiff no.1 and is stated to have represented plaintiff no.1 in the negotiations with defendants for supply of such steering boxes. Plaintiff nos 3 and 4 are stated to the proprietor firms.

(2.) The aforesaid negotiations are stated to have done on or about 20.01.1999 which resulted in the plaintiff no.2 receiving a memorandum from one Mr. Bill Mullins of defendant no.1/Company regarding steering boxes and blue prints along with drawings and specifications for the steering boxes which the defendant no.1 wanted to procure. The supply is stated to have started some time in July, 2000. The invoices expressly state declaration of exclusive jurisdiction of Delhi Courts. Plaintiff no.1 is also agreed to have invested $ 60,000 vide its letter dated 16.07.2001 to get the tooling of Vega Boxes ready but subject to the condition of defendant no.1 procuring at least 150 boxes per month for the next five years.

(3.) The dispute started between the parties on 24.04.2002 almost a year after supply on account of the allegation of defendant no.1 that there were problems with the consignments received. Defendant no.1 even initiated recall proceedings before the National Highway Traffic and Safety Administration categorizing the consignment as hazardous for use in USA. Thereafter the defendants on 09.08.2002 are stated to have approached the District Courts in Arizona for grant of injunction in favour of the said defendants against the plaintiffs to prevent the continued distribution of the product being supplied by the plaintiffs as also for damages.