QUALCAST INDIA Vs. WESMAN ENGINEERING COMPANY PRIVATE LTD

JUDGEMENT

(1.) In this appeal the order of the learned Company Judge dated 26th February, 2010 is questioned. The learned Trial Judge by impugned judgment and order has permanently stayed the said winding up application and the appellant has been given liberty to establish the claim in appropriate proceedings. The facts are summarized hereunder on which the winding up of the Company was prayed for.

(2.) Pursuant to purchase orders placed by the respondent herein namely the above company, during the period on and from 24th May, 2008 till 5th February, 2009, the appellant-petitioning creditor agreed to manufacture, sell and supply and did supply substantial quantity of Heat Resistant Cast Iron Castings (herein after in short 'HRCI') for construction, erection and installation of Rotary Hearth Furnace. The aforesaid agreement for purchase and sale and supply of the said materials were embodied in the number of the purchase orders themselves. The relevant terms and conditions for sale and supply are as follows:-

(3.) We reserve the option to cancel this order without liability or to return goods for rectification or replacement in either of the following circumstances:-