RELIANCE INDUSTRIES LTD Vs. MADAN STORES PVT LTD
LAWS(DLH)-2007-11-42
HIGH COURT OF DELHI
Decided on November 06,2007

RELIANCE INDUSTRIES LTD. Appellant
VERSUS
MADAN STORES PVT LTD. Respondents

JUDGEMENT

- (1.) INDIAN Petrochemical Corporation Ltd (for short, IPCL) entered into a distributorship agreement (hereinafter referred to as the 'said agreement')with the respondent on 13. 01. 1991 for the execution of which the respondent/distributor maintained a depot in Varanasi where it traded various goods produced by IPCL. The said agreement was renewed on a yearly basis. It is stated that in 1997, certain loopholes arose in the said agreement due to failure in exercising of due control on financial management by the petitioner in relation to various customers. Certain sale proceeds which were to be recovered by IPCL were not recovered by them in time but goods continued to be supplied to such customers. It is claimed that ipcl passed on its liabilities to the respondent.
(2.) IT is stated that there were certain categories of consignment from ipcl which were handled by the respondent and IPCL had dispatched material to customers falling within the said categories and that when sale proceeds against such customers were not recovered the same were imposed/shown as arrears payable by the respondent even though it was not covered by the agreement.
(3.) IT is stated that the agreement dated 1. 10. 1997 was renewed by a circular dated 04. 12. 1998 wherein in the schedule, certain products were included which were not part of the schedule items of the previous agreements. It was alleged by the respondent that huge amounts were shown as dues payable by the respondent against such products. The respondent claimed that it had brought these errors to the notice of IPCL but IPCL stopped the supply of goods after June 2000 and the distributorship agreement was also not renewed.;


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