Reliance Polycrete Limited vs National Agricultural Cooperative Marketing federation (NAFED)
In this case, Reliance Polycrete which is a subsidiary of Reliance Industries filed a case against the National agricultural cooperative Marketing Federation of India Ltd which is known as NAFED in the High Court of Delhi under section 38 of the Negotiable instrument act
Reliance Polycrete Limited had entered into a contract with NAFED for the supply of food grain storage bags made from a specific type of polymer. However, NAFED later issued a tender for the company’s daily activities such as bags from other manufacturers, allegedly in violation of the contract with Reliance Polycrete Limited.
Reliance Polycrete Limited argued that NAFED’s actions amounted to a breach of contract and sought a permanent injunction to restrain NAFED from awarding the tender to any other manufacturer. NAFED, on the other hand, argued that Reliance Polycrete Limited had failed to supply the bags as per the specifications and timelines agreed upon in the contract.
The High Court of Delhi found in favor of NAFED, holding that Reliance Polycrete Limited had not fulfilled its obligations under the contract and that NAFED was within its rights to invite tenders from other manufacturers. The court also dismissed Reliance Polycrete Limited’s claims for damages and costs. According to the complaint it was said to be an appropriate punishment which made them feel bad
It was said No witness was to be ordered to attend in person unless the resident within certain However, the case was subsequently appealed to the Supreme Court of India
Reliance Polycrete was charged a fine of 50000
The accused received financial aid of Rs 18,38,75,000 But the defendant most of the checks were bounced
They have to pay Rs 24 lac to NAFED under section 357(3) as a payment to Cr.P.C. within six weeks Judge S.K. if damages are not paid. Jain will be sentenced to six months of simple imprisonment, and the obligation to pay will not be relieved even after the execution of the illegal sentence, and this amount can be recovered pursuant to Article 421(1)(b) and 431 of the Code. This is to ensure that important justice is done and that complainants get the money they deserve.
Completion of this payment does not reduce NAFED’s right to take from the perpetrator in the judicial process. Criminal S.K. Jain was imprisoned to serve his sentence. According to the relevant law, he will be sent to prison.
If 10,000/- deducted from the penal company is not paid within 10 days, it must be deposited by the court. If payment is not made as specified, it may be withdrawn pursuant to Section 421(1)(b) of the Code.