April 03, 2024 (MLN): The Sindh High Court has ordered Millat Tractors Limited (PSX: MTL) 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.
Consequently, the aggrieved party has initiated an appeal before the Chief Justice of the Sindh High Court (SHC) seeking redress for these contractual grievances.
Following a binding contract, the appellant company agreed with the purchase of 1001 Millat tractors, specifically the "Massey Ferguson (MF) 240" model, through an authorized dealer.
The booking order, issued on June 21, 2022, stipulated a unit price of Rs12,51,600 inclusive of a 5% sales tax, reflecting prevailing rates at the time of the transaction.
To fulfil this contractual obligation, the appellant company disbursed the total sale consideration amounting to Rs1,252,851,600 through 91 pay orders.
These payments were duly received and deposited into the bank account of MTL without any objection. However, despite the complete payment and the availability of 1001 tractors, MTL only delivered a mere 47 tractors.
MTL was legally bound to deliver the remaining 954 tractors within 60 days from the booking date of June 21, 2022, at the agreed price of Rs12,51,600 per tractor, inclusive of a 5% sales tax.
This obligation was mandated by SRO 837(1)/2021 and reinforced through their advertisements and correspondence with authorized dealers.
The court also served notices to MTL and the Deputy Attorney General for filing comments by April 16, 2024.
"In the meanwhile, subject to deposit of 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 MF240 to any third party till the next date and shall provide details of aforesaid tractors with model, chassis and engine numbers before the Court on the next date," the order reads.
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Posted on: 2024-04-03T10:35:06+05:00
