April 04, 2024 (MLN): Millat Tractors Limited (PSX: MTL) on Thursday clarified that as per the order of the Sindh High Court, the company has already deposited an amount of Rs1.194 billion with the Nazir of the court being the price of 954 tractors (not delivered due to non-payment of price difference of Rs148,400 per tractor by the plaintiff ) paid by the plaintiff.
This clarification came after the decision of the Sindh High Court issued on Tuesday, April 02, 2024, has been making rounds on media.
“Details of the order reported in the national press are not available with the Company. The Company will exhaust all legal remedies available in the matter. Any further comment is being avoided due to sub judice matter,” the clarification note issued to PSX reads further.
To note, the SHC ordered the company to refrain from selling 954 tractors of Model MF-240 to any third party amid a contractual dispute, affirming that MTL is bound by its original agreement to sell these tractors to the initial buyer.
The intended recipient, a group of impoverished farmers, was expecting delivery of tractors at the agreed price of Rs12,51,600 per unit, inclusive of a 5% sales tax.
However, MTL unilaterally increased the price of each tractor by Rs148,400 and abruptly halted the supply to the designated buyer. Despite full payment for 1001 tractors, only 47 units were delivered.
