BEFORE THE ARBITRATION AND CONCILIATION

CENTRE-BENGALURU
(DOMESTIC AND INTERNATIONAL)

Disp. No. AC. 487/2023 (I&C No. 365/2021)

IN THE MATTER OF: -

M/S GALAXY HYDRAULICS

PVT. LTD …CLAIMANT/PETITIONER

VERSUS

M/S PRIME RIGS LIMITED ...RESPONDENT

STATEMENT OF DEFENCE ON BEHALF OF THE

RESPONDENT AGAINST THE STATEMENT OF CLAIM
FILLED BY THE CLAIMANT.

MOST RESPECTFULLY SHOWETH: -

At the very outset, all the contentions, submissions and facts stated
in the claim petition are specifically and emphatically denied word
to word unless the same has been admitted by the answering
respondent.

PRELIMINARY OBJECTIONS: -

A. That the present claim of the claimant/petitioner is patently false,

frivolous, flippant, misconceived and misleading which is based on
wrong, concocted, moonshined, and cooked up facts. The present
claim has been filed by the claimant/petitioner for just merely to
waste the precious time of this Hon’ble Tribunal & extort undue
amounts and hence is liable to be dismissed.
B. That the present claim of the claimant is not maintainable as this
Hon’ble Tribunal has no jurisdiction to try and entertain the present
claim petition. The claimant and the respondent had unconditionally
agreed on the terms enshrined in the purchase order, which is
annexed by the claimant with the claim as Annexure No. 7 and as
per the para no. 14 of the purchase order it was agreed that the
parties shall refer any dispute that arises out of the transaction in
question to arbitration and the venue for said arbitral proceedings
shall be at Delhi. Thus, in the light of afore-mentioned term of the
purchase order relied upon by the claimant only, this Hon’ble
tribunal has no territorial jurisdiction to entertain, try or dispose the
present claim petition of the claimant.

C. That the present claim of the claimant is not maintainable and thus,
is liable to be dismissed as the claimant has not come to this Hon’ble
Tribunal with clean hands and have filed the present claim petition
on the basis of wrong information furnished to this Hon’ble Tribunal
and there is no iota of truth. Claimant has also concealed the
material facts from this Hon’ble Tribunal about its conducts due to
which, the respondent has suffered the loss of substantial amount. It
is submitted that the claimant has not complied with its contractual
obligations, duly elucidated in para no. 6 of the purchase order i.e.,
Annexure No. 7 of the claim petition. As per para no. 6 of the
purchase order, the claimant was bound to get a pre dispatch
inspection done and get a clearance certificate issued by respondent
i.e., PRL but, surprisingly the said contractual criterion was never
complied with by the claimant because the claimant had an ill-intent
of sending substandard as well as counterfeit Hydraulic Cylinders to
respondent. It is also submitted that the contract of supply of
 Hydraulic - Cylinders was time bound and as per Para no. 6 of the
purchase order, the claimant was contractually obligated to supply
the said Hydraulic – Cylinders within 02 weeks of the date of
purchase order, which he miserably failed to do and that too caused
severe losses to the respondent. The above stated facts have been
purposefully concealed by the claimant in its claim petition and it is
a well-settled preposition of law that a person who does not
approach the Hon’ble Tribunal with clean hands and has concealed
the material facts from this Hon’ble Tribunal is not at all entitled for
any relief from the court of law. The claimant/petitioner has
suppressed the material facts from this Hon’ble Tribunal to mislead
in order to illegally expropriate the hard-earned money of the
respondent. Therefore, the same is liable to be dismissed.

D. That the present claim of the claimant is bogus, moonshine and

sham. It is submitted that Mr. Yogesh M.R., through the present
claim has been filed is not the authorized representative of the
claimant and thus, has no locus to file the present claim. Hence, the
present claim petition is liable to be dismissed on this sole ground
only.

E. That the present claim deserves to be dismissed, as the same is an

abuse process of law and an afterthought and filled by the
claimant/petitioner with the ulterior motive to avoid its liability of
compensating the answering the respondent on account of its
deficiency in services, unprofessional and unethical conducts and
behavior. Thus, the present claim is vexatious aimed solely at
wrecking personal vendetta upon the respondent.

REPLY ON MERITS
1. That the contents of the para no.1 of the claim as stated, are
misleading, fabricated & twirled and hence denied vehemently. It is
specifically denied that the claimant/petitioner is a micro enterprise
engaged in the business of manufacturing of Hydraulic Cylinders,
namely M/s Galaxy Hydraulics Pvt. Ltd.. It is further denied
categorically that Mr. Yogesh M.R. is the managing director of
claimant company or he is authorized to file the claim petition under
reply. It is submitted that claimant is a corporate entity which can
only be represented by duly authorized personnel and here in the
claim under reply there is no piece of paper annexed with the claim
petition which reflects that Mr. Yogesh M.R. is authorized to
represent the claimant before this Hon’ble Tribunal.

2. That the contents of the para no.2 of the claim as stated are admitted
and hence needs no reply.

3. That the contents of para no. 3 of the claim are wrong, concocted
and moonshine and thus, denied vehemently. It is submitted that
the claimant/petitioner approached the respondent and lured the
respondent for purchasing the Hydraulic Cylinders at a competitive
price and under the said allurement of the claimant/petitioner,
respondent has placed purchase order for the purchase of Hydraulic
Cylinders on 25/04/2019 from the claimant/petitioner. It is
submitted that the said Hydraulic Cylinders were very disappointing
and unsatisfactory and due to which, the respondent has sustained
losses of lacs of rupees.

4. That the contents of para no. 4 of the claim petition as stated are
false, vague & wrong and thus denied in toto. It is specifically denied
 that after considering the purchase order request from the
respondent, the claimant manufactured and raised tax invoice dated
25/04/2019 and delivered all the ordered Hydraulic ‘Cylinders,
which was priced at Rs. 5,27,182/- (including GST). It is submitted
that it was agreed (in accordance with para no. 6 & 12) between the
claimant and respondent that the claimant was supposed to get a
pre-dispatch inspection done by the duly deputed engineer of
respondent and then get a dispatch clearance certificate issued by
the respondent and these contractual obligations weren’t complied
by the claimant as the claimant, with mala-fide intent, had purchase
substandard and counterfeit Hydraulic- Cylinders from second hand
market and supplied the same to the respondent, that too with an
inordinate delay which was way beyond the stipulated and pre-
decided time frame of two weeks. It is further submitted that due to
this delayed supply on the part of claimant, that too of counterfeit
Hydraulic Cylinders, the respondent had to undergo substantial
losses.

5. That the contents of para no. 5 of the claim are vague, false,
moonshine and thus denied vehemently. It is further denied that the
respondent has issued the cheque bearing number ‘000216’ dated
27/06/2019 as per purchase order payment terms. It is denied that
the cheque got rejected with the bank memo “Payment Stopped by
the Drawer.” It is submitted that the claimant is stating blatant lies
in the present claim petition as the cheque bearing no. ‘000216’
dated 27/06/2019 was a post-dated cheque, issued by the
respondent at the time of giving the purchase order and the same
was subject to clearance only after the supply of Hydraulic -
Cylinders as per the terms and conditions of the Purchase Order
which were laid down in para no. 6 & 12 of the purchase order but,
 when the claimant sent the cylinders without taking pre-dispatch
inspection and clearance certificates and that too of substandard and
counterfeit quality, respondent smelled the mala-fide intents of the
claimant and immediately communicated its banker to stop the
payment of the said post-dated cheque bearing no. ‘000216’ dated
27/06/2019.

6. That the entire contents of para no. 6 of the claim are moonshined,
untrue wrong and hence denied stridently. It is submitted that it is
the claimant company who misused the post-dated cheque bearing
no. ‘000216’ dated 27/06/2019, in order to extract undue financial
gains from the respondent company, without even complying with
the contractual obligation elucidated in the purchase order, with the
sole ulterior intent of usurping hard-earned money of the
respondent.

7. That the contents of para no. 7 of the claim petition as stated are
false, wrong and thus denied in toto. It is specifically denied that the
claimant personally visited the respondent’s corporate office to
collect the payment on 09/07/2019. It is specifically denied that the
respondent requested 2 to 4 days of time to make the payment
stating there is no balance amount in the account. It is denied that
the complete communication and travel detail by email to the
respondent by the claimant on 27/07/2019. It is submitted that the
claimant has stated blatant lies in its plaint that they have visited the
registered office of the respondent. It is further submitted that it is
the respondent who enquired claimant/petitioner and confronted
their officials regarding the dispatch of substandard and counterfeit
Hydraulic – Cylinders and also raised concerns about why the
 claimant had not obtained pre-dispatch inspection and clearance
certificate as per the terms of the purchase order.

8. That the contents of para no. 8 of the claim are wrong, concocted
and moonshine and thus, denied vehemently. It is denied that the
respondent after the purchase of Hydraulic Cylinders and against
the continuous follow up for the payment by the claimant, the
respondent transferred Rs. 2,00,000/- to the claimant business
account by NEFT on 18/09/2019 and it is also denied that
respondent agreed to pay the balance amount of Rs. 3,27,182/- at
the earliest. It is submitted that the after the respondent explained
the claimant about its breach of contractual obligations as per the
purchase order, the claimant admitted its mistakes regarding the
supply of substandard, second hand and counterfeit Hydraulic-
Cylinders and even then, persuaded the respondent to pay
whatsoever amount was deemed to be suitable for the substandard
products supplied by it. It is submitted that the respondent being a
reputed company and merely with the intent to maintain its goodwill
and clean image in the market, the respondent offered Rs.
2,00,000/- (Rupees Two Lacs Only) as full and final settlement
towards the claimant. The said offer of Rs. 2,00,000/- was duly
accepted by the claimant and it undertook not to raise any claims in
the future qua the transaction in question, after accepting Rs.
2,00,000/- as full and final settlement towards the claimant.

9. That the contents of para no.9 are wrong and false and hence denied
in totality. It is specifically denied that the respondent even though
received the entire consignment of all the Hydraulic Cylinders from
the claimant, he has failed to pay the balance amount of Rs.
3,27,182/- which is due from 18/09/2019. It is submitted that
 neither the respondent has ever received the entire consignment of
Hydraulic Cylinders from the claimant nor has the claimant
complied with its contractual obligations laid down in the purchase
order. It is further submitted that this claim petition under reply is
an afterthought because the same has been filed after duly accepting
the payment of Rs. 2,00,000/- as full and final settlement towards
the entire dues raised by the claimant qua the transaction in
question. It is submitted that the claimant/petitioner has filed the
present frivolous claim just to harass and persecute the respondent
with ulterior motive of extorting money from the respondent by
holding them to ransom. Thus, it can be easily concluded that this
claim is nothing but undue process of law.

10. That the contents of para no. 10 of the claim are wrong,
concocted and moonshine and thus, denied vehemently. It is
specifically denied that the claimant/petitioner company
approached the respondent company several times and also it is
denied that claimant request the concerned persons to clear the
balance amount or the same was communicated to them by email
but the respondent failed to make any payment or went on
postponing the same. It is submitted that claimant never
approached the respondent to clear the alleged dues as the claimant
had already duly accepted the sum of Rs. 2,00,000/- as full and final
payment qua the transaction in question and by stating the frivolous
and fictitious narrations in the para under reply, the claimant is
trying to mislead this Hon’ble Tribunal.

11. That the contents of the para no.11 of the claim as stated are false,
frivolous & moonshine and hence denied stringently.
12.That the contents of the para no.12 of the claim as stated are matter
of record and hence needs no reply.

13. That the contents of the para no.13 of the claim as stated are matter
of record and hence needs no reply.

That the contents of the Prayer clause of the present claim petition is
fabricated, false, frivolous and misconceived and thus denied
vehemently and opposed in the lights of averment and objections
made hereinabove. It is submitted that the plaintiff is not at all
entitled for any relief of whatsoever nature from this Hon’ble
Tribunal in view of the detailed submissions made hereinabove. It is
submitted that the claimant/petitioner has failed to place any
substantive evidence in support of its contention, hence claim of the
claimant/petitioner is itself to be dismissed.

PRAYER:

a) Consequently, it is most respectfully prayed to this Hon’ble Court

that the present claim of the claimant/petitioner may kindly be
dismissed with exemplary cost being false, frivolous and based on
baseless ground.

b) Any other relief, which this Hon’ble Tribunal deemed fit and proper,
may kindly be allowed in favour of the respondent and against the
claimant/petitioner in the interest of justice.
DELHI: RESPONDENT
DATED: 24/03/2024

THROUGH

ACQUITY LAW ASSOCIATES

(RAJEEV BANSAL & PRABHAT SAINI)
ADVOCATES
302, H-6, AGGARWAL TOWER,
NETAJI SUBHASH PALACE, DELHI -34
8377998979

VERIFICATION
Verified at Gurugram on /03/2024 that the contents of para no. 1 to
13 of reply on merits are true and correct to best of my Knowledge
and belief and para no. A to E of preliminary objections are based on
legal information received and believed to be true and correct. Last
para is prayer to this Hon’ble Tribunal.

RESPONDENT
 BEFORE THE ARBITRATION AND CONCILIATION
CENTRE-BENGALURU
(DOMESTIC AND INTERNATIONAL)

Disp. No. AC. 487/2023 (I&C No. 365/2021)

IN THE MATTER OF:

M/S GALAXY HYDRAULICS
PVT. LTD …CLAIMANT/PETITIONER
VERSUS
M/S PRIME RIGS LIMITED ...RESPONDENT

AFFIDAVIT

I, __________, Authorized Signatory of M/S Prime Rigs Ltd. at

287-288, Prime Tower, Udyog Vihar, Phase – II, Gurugram,
Haryana - 122016 do hereby solemnly affirm and declare as under:

1. The deponent is the authorized signatory of the respondent in the

abovesaid case and is well conversant with the facts and
circumstances of case and is competent to swear this affidavit before
this Hon’ble Tribunal.

2. The contents of accompanying written statement on behalf of the

respondent has been drafted by my counsel under my instructions
and contents of the same has been read over and explained to me in
vernacular which have been understood by me and same are true
and correct to best of my knowledge.

3. The deponent craves leave to this Hon’ble Tribunal to read the

contents of same as integral part and parcel of this affidavit as the
same are not being repeated herein for the sake of brevity.

DEPONENT
VERIFICATION:
Verified at Gurugram on _____ that the
contents of my above affidavit are true and correct to the best of my
knowledge and no part of it is false and nothing material has been
concealed therein.

DEPONENT