This Revisionis filed under Article 227 of the Constitution of India by petitioner challenging the order dt.14-07-2004 of the District Judge, Nizamabad in I.A.No.23 of 2003 in O.S.No.7 of 2002.

2. The respondent is a Company registered under the Companies Act, 1956. It engages in the business of exporting turmeric besides other items to its foreign buyer/importers. It’s registered office is at New Delhi.

3. The petitioner is a partnership firm doing business as a Commission Agent in purchases and sales of agricultural products like maize, turmeric and other agricultural products based in Nizamabad in Andhra Pradesh.

4. The respondent, in order to meet its requirement in terms of an export order procured by it, was purchasing turmeric from the petitioner from 1997-98, prior to the filing of the above suit.

5. As per the business dealings between the parties, the respondent, after procuring export orders from its foreign buyers, would place an order of purchase of turmeric on the petitioner, to be supplied in batches as per the requirement of foreign buyer to ensure timely export and also payments over a period of time. The foreign buyer would open a Letter of Credit on the respondent as per it’s requirement. The respondent would inform the petitioner of the opening of the Letter of Credit by the foreign buyer to enable the petitioner to ensure procurement of goods with delivery to Mumbai for export. The petitioner would inform the respondent about its procurement of the goods from local market and once the goods are received by it in its godown, it would inform the respondent of the same. The respondent would then inform the approved and nominated International Inspection Agency of the foreign buyer who would inspect the goods and certify the quality, quantity, packaging and other specifications of the goods so that they may be fit for export as per the requirement of the foreign buyer as also the export norms applicable.

THE SUIT O.S.NO.2287/1999

6. According to the respondent, the total quantity of the goods to be exported in terms of the purchase order and the price at which the same is to be supplied is negotiated and agreed prior to foreign buyer placing a confirmed order on the respondent. On 08-02-1999, according to the respondent, a foreign buyer approached it for supply of 470 M.T. of turmeric. It then negotiated and finalized the supply of this quantity of turmeric from the petitioner at a price of Rs.28,500/- per M.T.; that the petitioner confirmed the order and terms of the agreement for supply by a fax communication dt.25-02-1999 but stated that it would supply the goods either in its own name or in the name of its associate/sister concern representing that the same was necessary for the purpose of taxation/accounting etc; and that the supply was to be in three consignments subject to the opening of a Letter of Credit by the foreign buyer.

7. The 1st consignment was for 210 M.T. A Letter of Credit was opened on 19-03-1999 by the foreign buyer in respondent’s favor.

Although the petitioner procured and supplied it, according to the respondent, two bills were raised for the said quantity – one for 110 M.T. in the name of the petitioner and another for 100 M.T. in the name of M/s.Jeetmal Industries, Nizamabad. But according to respondent, no negotiations /dealings were held with M/s.Jeetmal Industries, Nizamabad and payments were made to the petitioner only by respondent.

8. The 2nd consignment was for another 210 M.T. A Letter of Credit was opened on 03-06-1999 by the foreign buyer in favor of respondent. According to the respondent, the petitioner expressed its inability to procure and supply this entire quantity and suggested that it could supply only 105 M.T. and the balance of 105 M.T. forming part of its 2nd consignment be procured by the respondent from some other source. According to the respondent, it thus procured only 105 M.T. from the petitioner and other 105 respondent from some other source. A