M/S.Vishwa-Syntharo Pharmachem Private Limited v. M/S.Radiant Pharma

SENTHILKUMAR RAMAMOORTHY, J.

The applicant seeks an interim direction in relation to the delivery of specific quantities of 2-Hydroxystearic Acid (HSA) against payment of amounts outstanding by the applicant to the respondent in relation thereto.

2. The applicant states that it entered into an agreement with the respondent for the manufacture and supply by the respondent of the goods described in paragraph 4 of the affidavit, including HSA. The said agreement provides for dispute resolution by arbitration. The applicant placed an order on the respondent for the production and supply of 506 kgs of HSA in February 2022. Out of the total quantity, the applicant states that 26 kgs have not been supplied as on date by the respondent. In addition, an order for a second lot of 663 kgs of HSA was placed subsequently on the respondent. In respect of this lot an advance of about Rs.7,16,984/- was paid. Upon taking into consideration amounts remitted by the applicant towards the first and second lot, the applicant states that the amount payable 1/4

by it to the respondent is Rs.32,25,142/-. Subject to payment of this amount, the applicant prays that the respondent be directed to supply HSA as per the agreement.

3. The respondent is represented through counsel. On instructions, learned counsel submits that the amount due and payable by the applicant in respect of the first and second lot aggregates to Rs.32,81,026/-. Subject to receipt of the entire amount, he submits that the respondent agrees to supply the balance quantity of 26 kgs in the first lot and 663 kgs in the second lot. Both parties state that outstanding disputes would be resolved by resorting to arbitration.

4. Since the respondent has consented to effect supply subject to receipt of the sum of Rs.32,81,026/-, this application may be disposed of by issuing the following directions:

(i) The applicant shall pay a sum of Rs.32,81,026/- to the respondent towards the remaining supply under the first lot and the supply under the second lot.

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(ii) The above payment shall be made by the applicant to the respondent within one week from the date of receipt of a copy of this order by way of demand draft.

(iii) Contemporaneously with the receipt of the above payment, the respondent shall despatch the balance quantity of 26 kgs of HSA forming part of the first lot and 663 kgs of HSA forming the second lot to the applicant.

5. This application is disposed of on the above terms subject to the further condition that the applicant shall take steps for the constitution of the arbitral tribunal within the time limit specified in Section 9(2) of the Arbitration and Conciliation Act, 1996.

11.10.2022 rna Note: Issue Order copy on 11.10.2022 3/4

SENTHILKUMAR RAMAMOORTHY, J.

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