MYTIMASTERS ENGINEERING PVT LTD Vs. HEXAGON METROLOGY

JUDGEMENT

(1.) The parties have entered into contracts for the sale and distribution of the goods and equipments of the Defendants in India through the Plaintiff. The Plaintiff carries on business in India and the Defendants carry on business in Italy. The initial contract between the parties was admittedly executed on 6.10.1978. The Plaintiff was appointed the exclusive agent of the Defendants for India thereunder. It is the Plaintiff s case that the contract was entered into in Mumbai inasmuch as the Plaintiff accepted the Defendants offer in Mumbai. The Plaintiff was to be granted 8% commission on the price of the products sold. The parties admittedly amended their contract on 9.1.1985 under which the Plaintiff was to be paid 8% commission even on supplies of spare parts of the equipments and machines of the Defendants sold in India. It is the Plaintiff s case that that contract was also accepted in Mumbai and hence entered into at Mumbai.

(2.) The Defendants cancelled the said contract on 27.9.1990 with effect from 31.12.1990 by giving the Plaintiff the required three months notice under the contract between the parties. The Plaintiff claims that that is not a valid termination binding on the Plaintiff.

(3.) After the termination of the contract with the Plaintiff, the Defendants entered into a licence agreement with one M/s.Gremach India Ltd. The Plaintiff has taken exception to the appointment and claimed its commission.