NATIONAL AGRICULTURAL CO-OPERATIVE MARKETING FEDERATION OF INDIA LTD. (NAFED) Vs. MEGNOSTAR TELECOMMUNICATION (P) LTD. AND ORS.

JUDGEMENT

(1.) THE petitioner had entered into an agreement/MoU dated 30.9.2004 with respondent No. 1 (company) whereby the petitioner was to finance respondent No. 1 for importing telecommunication and electronic goods including mobile phones etc. for supplies to parties in India. The petitioner at the request of respondents (R -2&3 are MD and Director of R -1 company) agreed to provide Letter of Credit (LoC) facilities for import/purchase of these telecommunication/electronic goods and opened foreign LoC from time to time. The goods so imported were to be sold by respondent No. 1 on High Sea sale basis or in lots on ex -bonded/ex -stockyard godown basis as mutually agreed. Respondent was to advise the petitioner indicating details of quantities, specifications, price delivery schedule etc. The sale on High Sea sale basis was to be done against 100% payment of the value of stock, including bank expenses and services charges and respondent No. 1 was to receive 7% p.a. as finance charges and in case the material was not lifted with the usance period, respondent No. 1 was to pay interest @ 8% p.a. of the finance receipt. The petitioner released a total payment of 60.43 crores to respondent No. 1 by Letter of Credits. The respondent No. 1 also purchased goods from domestic market for a total amount of Rs. 6,79,90,728/ - in terms of the MoU. The goods under import and domestically procured were used to be deposited in godown of respondent No. 1 at B -47/1, Wazirpur Group Industrial Area and in the godown of petitioner at A -8, Lawrence Road, Delhi.

(2.) IT is submitted by the petitioner that the respondent No. 1 did not fulfill the terms and conditions of the agreement and did not discharge its liability towards the petitioner. The respondent admitted its liability towards the petitioner as per balance confirmation note dated 31.3.2007 for a sum of 31,71,54,017.28. The respondent failed to lift the stock from the aforesaid godowns and did deliberate acts of not repaying the outstanding amounts. The petitioner also moved an application for arbitration before this Court under Section 11(6) of the Arbitration & Conciliation Act, 1996 and prayed for interim orders. Vide order dated 30.1.2008, the respondent was restrained from selling, alienating or parting with possession of property at 119, Gangandeep Building, Rajendra place, New Delhi and respondent was also restrained from selling or transferring the goods which were subject matter of MoU entered into between the parties.

(3.) NOTICE of the petition was served upon the respondents. Despite service of notice none appeared for the respondents. Respondents were therefore proceeded ex parte.