MSTC LTD Vs. VINAYAKA ALLOYS P LTD

JUDGEMENT

(1.) SUIT is filed for recovery of a sum of Rs. 17,65,266.27 with interest at 24% p.a. on the claim amount of Rs. 10,64,926/- from the date of plaint till the date of realisation and for costs;

(2.) THE averments found in the plaint are as follows: THE plaintiff was in the export and import trade as Canalising agent under the Export Import policy of Government of India for a number of years. THE plaintiff used to book orders of various parties abroad to customers who required to purchase shredded scraps from abroad for their own use. THE terms and conditions will appear in the said standard offer letter which indicates the broad parameter of the contract and the terms thereof. In addition to the price for the quantity of goods purchased by the defendant, the defendant was liable to pay to the plaintiff Bank charges, stamp charges and service charges at the rate of 1.1% to 2% per tonne. After booking orders from the customers the plaintiff used to place firm orders on their foreign suppliers for supply of shredded scraps and after shipment was completed by the foreign sellers, the plaintiff sold the goods on high seas to the defendants. THE defendant herein placed an order on the plaintiff for supply of 1100 + 1000 + 500 Mts. of shredded scraps at the value of US$ 199.95 per MT. It was an arrangement made that for the quantity booked by the defendant the plaintiff shall arrange bill of lading equivalent to the quantity booked by the Indian customers. THE quantity of 1100 + 1000 + 500 MT arrived per Vessels MV GALAXY, MV BILLIE-FAY & MV EVEMAR respectively at the Port of Chennai and delivered to the defendant by issuing sale certificate. According to the arrangement, the defendant was to pay for the quantity of 1100 + 1000 + 500 MT of scraps delivered at the Port of Chennai at a price of Rs. 70,38,592/-, Rs. 63,98,720/- and Rs. 31,99,360/-. THE defendant was liable to pay price of the very goods supplied to the defendant on 8.12.1995, 4.1.1995 and 12.6.1995 at the exchange rate of one US equivalent to Rs. 35.02, Rs. 34.69 and Rs. 34.23 in Indian rupee prevailing on that date. At the time of booking of the order Rupee-Dollar ratio was 1 US$ = Rs. 32 and on the expiry of credit availed of by the defendant the exchange ratio increased to one US$ = Rs. 35.23, Rs. 35.02, Rs. 34.69 in Indian rupee. THE plaintiff had sent to the defendant their provisional invoice treating the Dollar Exchange value at Rs. 32/- per Dollar on 12.6.1995. Accordingly, the plaintiff was invoiced initially for Rs. 1,66,36,672/-. THE price payable by defendant increased to Rs. 1,81,61,766/- by addition of an additional Rs. 15,25,094/- due to exchange variation. Besides that the defendant is liable to pay to the plaintiff Rs. 3,63,236/- towards service charges and Rs. 1,99,784/- towards Bank charges and stamp duty. THE plaintiff caused a legal notice demanding the aforesaid amounts. THE defendant is liable to pay interest at the rate of 24% per annum from 6.7.1996 to 31.3.1999 amounting to Rs. 6,99,848.27/- on the principle amount of Rs. 10,65,418/-. A decree may be passed against the defendant for a total sum of Rs. 17,65,266.27 with further interest at the rate of 24% per annum from the date of plaint till the date of realisation.

(3.) BASED on the above pleadings, the following issues are framed: