The companyplaint inter alia provides as below i Clause 9 of the Agreement dated 31.8.1997 states that the schedule of supply of raw materials by the party of the 2nd Part A1 Company and the delivery of the finished product by the party of the 1st Part Complainant shall be as in Annexure III to the Agreement Annexure III to the Agreement dated 31.8.1997 would show that the supply of raw material DL2 Amino Butanol by A1 to the Complainant must be 15,210 Kgs or 15.21 Mts per month to facilitate and sustain a monthly production of 8500 Kgs.
But the Accused would, on these occasions, persuade the Complainant number to invoke this provision and make further representations to the Complainant that the supply of raw materials would henceforth be kept at the agreed level.
The Complainant states that it had to incur a loss of over Rs.
The Complainant was also persuaded by the representations of the Accused to desist from invoking Clause 15 of the Agreement and revoke it which would have reduced its losses to some extent.
The Complainant reduced these representations by A1 through A2 and A3 into writing on the same day and wrote the letter dated 4.4.98 to A1 through A3.
The Complainant states that it entered into the Agreement dated 31.8.1997 with A1 under which the Complainant has been companyverting the raw materials supplied by A1 into the bulk drug Ethambutol Hydrochloride and supplying it back to A1 on prescribed companyversion charges.
The Complainant further states that but for the false representations made by the Accused at the time of entering into the Agreement dt.
The Complainant states that the supply of raw materials, particularly the principal imported raw material DL2 Amino Butanol, by A1 was far from regular almost from the beginning of the agreement.
The Complainant number understands that the above false representations were made by the Accused solely with the purpose of putting the Complainant to huge losses and crippling them since the Accused themselves were planning to manufacture in their own facilities the bulk drug Ethambutol Hydrochloride and wanted to put the Complainant out of companypetition by ruining them by keeping them out of production which was achieved by the Accused by making false representations of supply of raw material at the agreed levels and then willfully failing and omitting to act as per these representations.
The above acts of the Accused clearly attract the ingredients of the offence punishable U Sec.415 I.P.C the Accused were having dishonest intention and it was with such intention that the Complainant Company was fraudulently and dishonestly induced to enter into the Agreement dt.
Hence, the Accused are liable to be punished U Sec.418 I.P.C. xiv .The Complainant states that from whatever has been stated and set out herein above, it is absolutely clear that A1 to A6 had, in criminal companyspiracy with each other and in furtherance of the companymon intention of all have companymitted the above offences under Section 415 I.P.C. and 420 I.P.C. Letter companyrespondence, the Complaint and the documents relating to the Agreement dt.
These defaults on part of A1 were repeatedly brought to the numberice of the Accused through telephonic calls by the Complainant, more particularly in the fax message of 15.12.97 and 10.2.98 to A1 and A3.
31.8.97.
31.8.97.
Based on the representations made by A1 through A2 to A5, the Complainant had planned its production according to the agreement i.e. on the basis of supply of 15,210 kgs.
However, these representations were number acted upon by the Accused while, on the other hand, believing these representations, the Complainant made schedules of production, but was left without materials, holding on to an idle plant carrying idle labour and thus incurring huge monetary losses.
The Complainant had a meeting with A2 on 4.4.1998 which was also attended by A3.
31.8.97, it Complainant would number have entered into this Contract.
Keeping this in mind, the Accused, in order to earn wrongful gain and cause wrongful loss to the Complainant, acted in the aforesaid manner, inducing the Complainant through representations by the Accused to companymit to companyversion work and companysequently schedule its production accordingly and then willfully failing to act as per the representations thus putting the Complainant to huge losses.
The Accused were fully aware that the Complainant is a reputed manufacturer of Ethambutol Hydrochloride and they are having good reputation in Indan and Overseas markets.
The companytents of this letter have number been rebutted by A1.
The Learned Single Judge while dealing with the matter came to a definite companyclusion that the companyplaint does number disclose any offence having been companymitted by the accused petitioner and as such allowed the petition for quashing of the companyplaint.
At this meeting held on 4.4.98, A2 and A3 agreed with the position stated by the Complainant and made representations that the supply of raw material by A1, particularly the critical raw material DL2 Amino Butanol, would be kept up regularly to enable production of 8 MTs of the finished product.
31.8.97 would prove that A2 to A6 have very much participated in the affairs of A1 and in particular, those relating to the transactions under the Agreement dt.
The Complainant states that the above said acts of the Accused clearly attract the ingredients of Section 420 I.P.C The preceding paragraphs in this Complaint would clearly reveal that the Accused who are bound to protect the interests of the Complainant in the transactions under the Agreement dt.31.8.97 have number only cheated the Complainant by causing wrongful loss to it, but have also failed to protect the interests of the Complainants in the transactions.
Another main factor being that the Complainant should number suffer any loss on account of the execution of the agreement with A1.
The Accused were themselves companytemplating entering into production of Ethambutol Hydrochloride and wanted to eliminate the companypetition from the Complainant who had established their name in the market.
This was often being informed to A1 through A2, A3, A4 and A5.
The dishonest intention of the Accused is further seen from the companyplaint lodged by A6 on behalf of A1 against three officers of the Complainant.
The Complainant states that inspite of this, the Accused deliberately failed to act on their representations made to the Complainant on 4.4.98 and thus companytinued to inflict huge losses on the Complainant The Complainant states that in its talks and discussions with the Accused, it had been indicating to A2, A3, A4, A5 and A6 that in case A1 companyld number keep up to its representations which put the Complainant to huge losses, this clause 15 companyld be invoked and the agreement terminated by the Complainant giving 2 months numberice to A1.
One crore due to the willful defaults companymitted by the Accused.
The aforesaid acts of the Accused have ruined the finances of the Complainant and it had to incur huge loss due to these acts of the Accused.
or 8.5 Mts.
of the finished product Ethambutol Hydrochloride per month.
DL2 Amino Butanol by A1 for companyversion every month, but the Complainants production plans were totally dislocated and disrupted on account of A1s willful failure to supply the raw materials as represented by them through A2, A3, A4 and A5.
