SANJAY KISHAN KAUL, J.

1. Indian Petrochemical Corporation Ltd (for short, IPCL) entered into a distributorship agreement (hereinafter referred to as the said agreement) with the respondent on 13.01.1991 for the execution of which the respondent/distributor maintained a depot in Varanasi where it traded various goods produced by IPCL. The said agreement was renewed on a yearly basis. It is stated that in 1997, certain loopholes arose in the said agreement due to failure in exercising of due control on financial management by the petitioner in relation to various customers. Certain sale proceeds which were to be recovered by IPCL were not recovered by them in time but goods continued to be supplied to such customers. It is claimed that IPCL passed on its liabilities to the respondent.

2. It is stated that there were certain categories of consignment from IPCL which were handled by the respondent and IPCL had dispatched material to customers falling within the said categories and that when sale proceeds against such customers were not recovered the same were imposed/shown as arrears payable by the respondent even though it was not covered by the agreement.

3. It is stated that the a

Click Here to Read the rest of this document