The Chief Justice of Sindh High Court (SHC) has stopped a leading tractor manufacturer Millat Tractors Limited from selling 954 tractors to any third party, as it was under the contractual obligation to sell these tractors to the original buyer.
The SHC issued an order (124 of 2024) against Millat Tractors Limited (MTL) on Tuesday. The Chief Justice of the SHC has issued an order on a petition filed by Shahzad Riaz against the respondents i.e. Millat Tractors Limited; Bolan Castings Limited; Khalid Habib (K.K. Tractors), dealer of MTL and Secretary Revenue Division.
The tractors were required to be delivered to the poor farmers at the agreed price of Rs. 12,51,600 per tractor including 5% sales tax, but the MTL raised the price of each tractor by Rs. 148,400 and also stopped supply to the said buyer. Despite full payment made of 1001 tractors, the delivery of only 47 tractors was made.
Subsequently, the applicant company filed an appeal before the Chief Justice of the SHC. The SHC has issued directives to the MTL not to sell 954 tractors of Model MF- 240 to any third party and shall provide details of aforesaid tractors with model, chassis and engine numbers before the court by April 16, 2024.
According to the order of the SHC, the appellant (Buyer Company) has filed a Suit seeking a declaration, injunction, damages and recovery of the amount towards KIBOR in respect of 954 tractors, which were required to be delivered to the appellant company under a conclusive contract towards purchase of 1001 Millat tractors, Model “Massey Ferguson (MF) 240” through their authorized dealer based on booking order issued on June 21, 2022 at the rate of Rs. 12,51,600 per each tractor prevailing at the relevant point of time, including 5% sales tax.
The total amount of sale consideration in the sum of Rs. 1,252,851,600 was paid by the appellant company through 91 pay orders, which was also received and deposited in the bank account of MTL without any objection and still lying along with huge amount of profit accrued thereon.
However, in spite of having received the entire sale consideration and availability of 1001 tractors, the delivery of only 47 tractors was made immediately.
The MTL was under legal obligations to make the delivery of the remaining 954 tractors also within 60 days from the date of booking i.e. June 21, 2022, at the agreed price of Rs. 12,51,600 per tractor including 5% sales tax in terms of SRO 837(1)/2021 as well as their commitment through advertisements and correspondence with their authorized dealers.
Admittedly, the entire sale consideration was duly received in respect of 1001 Millat tractors booked by the appellant on behalf of their customers.
The computer-generated details of such orders and the amount received against each tractor, totaling 1001 tractors were issued.
However, the delivery of only 47 tractors was made immediately, whereas, the delivery of the remaining 954 tractors was withheld without any factual or lawful excuse despite repeated requests in writing by the appellant company,, instead of fulfilling their contractual and legal obligation, the MTL has demanded increase/revise price in the sum of Rs. 148,400 on each tractor, in violation of law, including sections 4, 18, 19, 32, 33 and 34 of the Sales of Good Act, 1930.
According to counsel for the appellant, once the entire sale consideration in respect of 1001 tractors on the agreed price, without any consideration of its enhancement or revision was received by the respondents, whereafter, the part delivery of 47 tractors was also made, therefore, the contract between the parties became conclusive and the respondents were not justified to back off from such contractual obligations or demand any extra amount from the appellant on the pretext of the revised price at a subsequent stage.
Hence, the non-delivery of the remaining 954 tractors and asking for the enhanced price by the MTL, besides being illegal and contrary to agreed terms of sale/purchase, is based on malafide.
The MTL neither made delivery of the remaining tractors, nor even acceded to the request of the appellant to refund the amount of 954 remaining tractors, on the contrary, insisted upon enhanced/revised price on the one hand, and also earned huge profits on the amount of the appellant at the rate of 22% profit from the bank.
The buyer has a prima facie case for grant of interim relief, including delivery and/or attachment of the remaining 954 tractors, which were admittedly manufactured and ready to be delivered to the appellant as per booking orders, which included the names of customers, model, engine and chassis numbers of the tractors.
“The notices have been served to MTL as well as to the Deputy Attorney General for filing comments by April 16, 2024.
In the meanwhile, subject to deposit the differential amount i.e. Rs. 148,400 per tractor through bank guarantee before the Nazir of this Court, MTL is restrained from selling 954 tractors of Model MF- 240 to any third party till next date, and shall provide details of aforesaid tractors with model, chassis and engine numbers before the Court on the next date”, SHC order added.