KARACHI, May 6: Justice Mushir Alam of the Sindh High Court issued notices to the federal ministry of food, agriculture and livestock (Minfal) and the Pakistan Agricultural Storage and Services Corporation (Passco) for May 18
in a suit instituted by the importer of the rejected Australian wheat consignment.
M/s Tradesmen International (Pvt) Limited submitted in their plaint filed through Advocate Abdul Hafeez Pirzada that they imported the consignment after acceptance of their bid, execution of performance bond and testing of samples.
The defendants unduly rejected it in breach of their agreement and launched a media campaign to justify their action. They were, therefore, liable to refund $ 1.011,375 deposited by the plaintiffs, as cash performance guarantee together with mark-up at the rate of 0.85 per month from the date of deposit till the date of repayment.
The plaintiffs also claimed Rs 976.4 million as liquidated damages being "aggregate of expenses and losses incurred by them and Rs 600 million by way of unliquidated damages, exemplary damages and damages in tort for loss of reputation, business prospects, projected losses and blockage of capital".
The defendants were also issued notices for May 18 in three applications moved by the plaintiffs for production of all reports of sample tests of the consignment carried out at the National Agricultural Research Centre, the Qualitest lab, the plant protection department and "different laboratories".
They also sought details of chemical analysis method applied and qualifications of analysts along with the certificate of calibration of the equipment used.
Another application requested the court to take into custody all samples procured from the four vessels carrying the wheat consignment jointly by the plaintiffs and the defendants and order "comprehensive scientific tests within and outside Pakistan, preferably in the US and Europe".
The third application prayed for a direction to the defendants to deposit in the court $1,011,375 paid by the plaintiffs as cash guarantee for performance of the import and supply contract.
The plaint stated that Passco invited international bids in December 2003 for itself and on behalf of Minfal for supply of 150,000 tonnes of white wheat of foreign origin to offset a likely shortage of the commodity in February-March 2004.
The plaintiffs bid was accepted on Jan 6 and a letter of intent was issued on Jan 17. The plaintiffs, meanwhile, entered a supply contract with the Australian Wheat Board. All terms were agreed and the plaintiffs submitted a cash performance guarantee.
Preshipment samples, the plaint said, were tested by ITS, a company duly authorized by the Australian government and notified by the plaintiffs to Passco. Positive test reports were also issued by the Pakistan Institute of Nuclear Science and Technology.
Passco, however, refused to take delivery of the consignment brought by the first vessel, alleging that samples of shipment drawn jointly by it, ITS and the government's grain quality testing laboratories were sent to "different labs" and that they had tested positive for Karnal Bunt (fungus) and live insects. Test weight and wet glutten were also found below the acceptable limit.
The wheat aboard the three vessels, the plaint further stated, was likewise found by Passco to suffer from deficiencies but the corporation refused joint testing, resampling and retesting proposed by the plaintiffs.
A media campaign was instead undertaken to justify the rejection of the consignment. In reply to a legal notice, according to the plaint, Passco "omitted to address core averments" and asserted that Minfal was not privy to agreement.
