T BOARD Vs. LMJ INTERNATIONAL LTD

JUDGEMENT

(1.) Tea Board was set up under the Tea Act, 1953 (hereinafter referred to as the "said Act" of 1953) by the Central Government, inter alia, controlling export of tea. By the said Act, Tea Board was entitled to issue licence for tea export under Tea (Distribution tor Export) Control Order, 1957 issued under the said Act of 1953.

(2.) LMJ International Limited (hereinafter referred to as the "LMJ") was a company mainly dealing with export of various items abroad. On September 11. 1991 Tea Board granted them licence for export of tea. According to LMJ they discovered tea market in Libya and they became pioneer in export of tea in that country. On July 7, 1999 National Supply Corporation (hereinafter referred to as "NASCO") a Government Organization in the said country entered into an agreement with LMJ for export of 3000 MT of black tea as per specification. The goods were accordingly shipped in April, 2000 after proper inspection of the quality and quantity by the approved agency of the parties. According to LMJ, the shipment was properly done and they received payment from NASCO in respect of such supply. Their performance guarantee was also released.

(3.) In August 30, 2000 Tea Board received a communication from Indian Embassy at Libya through the Ministry of Commerce, Government of India that there had been a dispute with regard to the supply made to NASCO by LMJ which resulted to strange commercial relation between the two countries. The communication of the Ambassador of India in Libya is appearing at page 94-96 of the Paper Book. Tea Board forwarded a copy of the said complaint to LMJ vide tetter dated August 30. 2000 and requested them to offer their comments on the same. Immediately LMJ by their letter dated September 1, 2000 gave a detailed reply to the Tea Board appearing at page 97 104 of the Paper Book with a copy to all concerned including the Ambassador of India in Libya as well as other dignitaries of the Central Government. On perusal of the said reply it appears that the goods were inspected before shipment by a Cypress based inspection agency and after being satisfied about the quality of the goods the consignment was shipped. It was also contended that the blending and packaging of tea was done in presence of the representative of the inspecting agency. The sample was also tested in a laboratory abroad at the instance of the inspection agency. However when the goods arrived at Tripoli, Libya the Health Authorities of the Libya Government took sample and raised objection as according to them the consignment was not fit for human consumption. According to LMJ, it might have been caused due to internal disputes between two departments of Libya Government being the Health Authorities on the one hand and NASCO on the other hand. It also appears that there had been dispute with regard to supply of rice also.