Neo Metaliks LTD vs. Bapi Samanta And Ors

Facts

This matter concerns a contempt application (CPAN 457 of 2022) and a modification application (CAN 2 of 2022) arising from a prior order dated April 28, 2022. The petitioner, Neo Metaliks Ltd., is the appellant in the main appeal (FMAT 137 of 2022). The respondents are Bapi Samanta & Ors., referred to as the alleged contemnors. The parties have arrived at an agreed settlement for the balance contract value concerning 10,000 MT of Coke. The settlement involves amending a Sight Letter of Credit (LC) to a Usance LC, with specific conditions for the appellant to provide documents such as a GST Sale Invoice and Delivery Order. The applicant (respondent) will bear port handling charges and discounting costs. The appellant undertakes to commence delivery upon receiving the balance consideration. If the balance consideration is not received by June 13, 2022, the appellant is free to deal with the goods, and parties can pursue claims in arbitration. Undertakings and a bank guarantee are to be exchanged.

Held

The Court, by consent of the parties, disposed of the contempt application and the modification application on agreed terms. The primary decision was to implement the settlement agreement reached between Neo Metaliks Ltd. (appellant) and Bapi Samanta & Ors. (respondents). The settlement mandates the amendment of the Sight LC to a Usance LC within 7 working days upon the appellant's written request, contingent on the appellant providing a GST Sale Invoice for 10,000 MT, a Delivery Order, and a Confirmation Letter. The applicant will be responsible for port handling and other contractual charges, as well as discounting costs for the amended LC. The appellant undertakes to commence delivery of the 10,000 MT of LAM Coke immediately after receiving the balance consideration through the Usance LC. A crucial term is that if the appellant does not receive the entire balance consideration by June 13, 2022, they are at liberty to sell the goods, and parties may pursue their claims in arbitration. All issues were expressly left open to be raised before the learned Arbitrator. There was no order as to costs.

Key Issues

1. Whether the parties have reached a mutually agreeable settlement for the outstanding contractual obligations concerning the supply of 10,000 MT of Coke, as evidenced by the agreed terms presented to the Court? The petitioner argued that the agreed terms, which involve amending the Letter of Credit, providing necessary documentation like a GST Sale Invoice, and undertaking delivery, represent a resolution of the dispute. They emphasized their commitment to fulfilling their obligations under the amended terms. The respondents, as alleged contemnors, implicitly agreed to the terms presented, as the Court disposed of the applications on agreed terms. Their participation in the settlement discussions and acceptance of the terms indicates their position. The Court's order being by consent suggests an alignment of arguments towards a resolution.