Wed. Apr 21st, 2021

Indure Private Limited vs Heidelberg Cement Limited And … on 23 May, 2017

2 min read

1. This order shall dispose of the IA No. 16649/2013 (O. 39 R. 1 and 2

CPC) of the plaintiff. The defendants filed the reply and sought vacation of

the interim stay dated 19.102013.

2. In this application, the plaintiff has prayed for the stay of invocation

of the bank guarantee.

CS (COMM) 1124/2016 Page 1
3. The admitted facts of the case are that the plaintiff and the defendant

had executed a Letter of Intent (LoI) dated 25.01.2013. Subsequently, an

agreement dated 20.02.2013 was entered into between the parties which

contained the conditions of the contract. As per Article 1 of the said

conditions of the work, the effective date of the contract was 25.01.2013,

i.e., the day the LoI was executed between the parties. The plaintiff was

required to furnish to the defendant within three months of the effective date

of the contract, i.e., 25.01.2013, a detailed shipping schedule showing the

breakdown of equipment into various shipment units, etc. Under Article 6 of

these terms and conditions of the contract, the parties agreed that in the

event of any delay in supply of the Engineering and Equipment or violation

of any other terms and conditions of the contract and where the delay is

solely attributable to the seller, the liquidated damages may be imposed as

per Article 14 and be recoverable from the payments due to the seller.

Parties also agreed to the terms “the Buyer by written notice to the Seller

terminate this whole or any part of the Contract after (12) weeks of delay,

due to factors/reasons attributable to the Seller”. The period of performance

of the contract was 18 months from the effective date of the contract, i.e.,

25.01.2013 for the provisional acceptance. The parties also agreed under

CS (COMM) 1124/2016 Page 2
Article 17 that either party may terminate this contract by written notice to

other party. However, before termination, the other party shall be given a

period of 21 days for fulfillment of the conditions of the contract and if the

party fails to complete the obligation within 21 days given vide its notice the

contract may be terminated by termination notice. Parties had also agreed

that where there is a termination on account of sellers breach, delay in

delivery of insolvency, than the buyer can claim and receive compensation

for any direct loss or damages caused by the events referred to in Article 6,

17(b) or Article 17(c) against release and return of the advance payment

bond and for performance bond.

Source: Indian Kanoon

Leave a Reply