Вы находитесь на странице: 1из 8

1) My client would like to clarify that, the total value of Basic Purchase Orders placed on as aggregates

to Rs.2,93,22,585.00 (ex-works] as detailed under supply of Injectable lines / machines required in


various projects in Pharmaceuticals industry in India / Internationally.

Sr.2 - Packing charges Rs.1.06 Lacs charged against P.O No.FT/MUM/MEP/201/19-20 is as per PO
terms which states packing should not be more than 2% of the PO value (2% of 53 Lacs is 1.06 Lacs)
This is okay.

Sr. 7- Freight charges Rs.33,200/- charged against P.O No.FT/UF-INJ/INJ/75/19-20 is as per PO terms
which states Freight Extra. This is okay.

Hence PO Basic Value Rs.2,93,22,585/- (Ex-works) is okay. This makes the total PO Value as
Rs.3,51,19,260.30 (inclusive of GST@18%)

2) My Client would like to clarify that, the total payments received from your client amount of
Rs.1,13,80,117.00 out of which we have invoiced and delivered the modified lines.
Amount paid by Fabtech is okay. Delivery of modified line is of no use bcoz the problem in the line is not
yet resolved because of which our customer M/s. Shukra Pharma is returning the line back to us. Despite
paying huge amounts to you for modification, the problem still persists.

a) Modified lines to M/s. Shukra Pharmaceuticals Ltd vide PO NO: FT/UF-INJ/INJ/75/19-20


Dated 06.06.2019 invoice no: 11 Dated 16.07.2019 and invoice no: 12 Dated: 23.07.2019 for
a total invoice value of Rs.53,49,530.00out of which your clients have paid Rs.53,10,000/- leaving
a balance of Rs.39,530/- arrears still to be paid.

We have not received Invoice No.11 Dated 16.07.2019 and Invoice No.12 dated 23.07.2019 both
totaling to Rs.53,49,530/- against Modified Line. Please provide copies of the said invoices and
produce proof that invoice was delivered to Fabtech. There is no question of payment of Rs.39,503/-
pertaining to Freight Charges as Invoice is not received by Fabtech. Entire PO Value of Rs.53.10
Lacs (Incl. GST) for the said PO has been paid by Fabtech.

As per PO terms, delivery schedule was 13 th June, 2019 & 25th June, 2019, whereas as stated by
you invoice is dated 16.07.2019 and 23.07.2019, wherein delay has occurred and Liquidated
Damages @ 0.50% per week is applicable (Maximum 5% of the PO Value) on you as per PO terms.

As per PO, 10% of PO value was payable to you after Installation and Commissioning against
submission of PBG for 1 year. However, you have collected the entire PO value before Installation
and Commissioning without submission of PBG as specified in PO.

Moreover, the performance of the Line after modification is not satisfactory due to which the end
user customer has informed that they are returning the Line back to us.

b) The washing machine change parts vide PO No FT/UF-INJ/201/19-20 Dated: 16.10.2019


invoice no 20 Dated 16.10.2019 Rs.2,30,100/-.
We have not received Invoice No.20 Dated 16.10.2019 totaling to Rs.2,30,100/- against Change
Parts for modification of Line. Please provide copies of the said invoice and produce proof that
invoice was delivered to Fabtech. Entire PO Value of Rs.2,30,100/- (Incl. GST) for the said PO has
been paid by Fabtech.(As per PO Terms 100% Advance against PI)

The performance of the Line is not upto mark even after replacing the change parts.

c) Now, the actual advance payment of Rs.58,40,017/- received from your clients.

Break-up:
Advance paid Rs.1,13,80,117/-
Less Rs.53,10,000/- adjusted against Inv. No.11 and 12.
Less Rs.2,30,100/- adjusted against Inv. No.20.
Balance Advance Rs.58,40,017/-
Sr. 1, 2 and 3 in Table – All advances are paid as per PO terms, whereas deliveries still remain
pending from your end causing huge delay.

Sr. 4 in Table – Advance is not paid by us hence the order has been put on hold by Vendor.
Whereas, this was never informed to us in writing at any point till now.

Sr.5 in Table – As per PO 100% payment is payable against PI. Whereas, we have not received
any PI or intimation stating the material is ready for dispatch. Hence advance is not paid.

3) My Client would like to deny that delays are only because at our end, there is lot of
incomplete / incorrect information provided and frequent changes in the information cycle. Infact my
Client has also shown your client's representatives the machine progress whenever they came to
factory from time to time and have apprised them of the challenges and the delays which could
be expected.

Deny providing incomplete information and frequent changes in the information cycle.
Since you have expertise in manufacturing of Lines, looking into this the order was awarded to you.
Hence challenges and delays at your end are not accepted.

4) My Client has denied the above statement and we would like to reiterate that during the visits of their
representatives we have shared the information / challenges from time to time and it is quite
surprising to raise this point in this legal notice. The said delays have been because of lack of precise
and correct information. The other major reason for the delays has accrued out of serious gaps in
the information provided to us by M/s. Fabtech Technologies International Ltd and their lackadaisical
approach towards completion of projects which has resulted in these delays.

Deny as per Point 3) above

5) My Client is strongly disagreeing with this point as the representative deputed by your client
unilaterally, we have not accrued in spite of giving them regular updates. My client [L&P Pharma Pack
LLP] has incurred huge losses due to incomplete/incorrect information provided during the project
lifecycle and due to stagnation of orders and services provided on behalf of your clients, our company
has come under severe financial duress, loss of goodwill with all the clients where we have been
exposed to and a rapid spread of the information into the market we have lost all round goodwill in the
market.

Deny as per Point 3) and 4) above

6) At the onset, my client would like to correct the figure mentioned for the Ukraine project that the total
advance received is Rs.49,40,000/- and not the figure of Rs.72,50,000/- as mentioned in the notice. We
had discussed with the client that in the current project, there were some challenges in the brought out
components and if received on the expected dates, we would start the internal trial on the Dt.
09.03.2020 and subsequently the FAT on Dt. 16.03.2020 however even as of date we are facing
some challenges for deliveries due to the spread of Coronavirus, which has delayed the expected
deliveries of the brought out components. Hence there is a further delay in the FAT dates. We shall
update the dates as seen as we receive the brought out electrical components.

The delivery date of the Ukraine Order as per PO was 30.08.2019 for Line and 24.10.2019 for Tunnel.
The delivery still remains pending causing huge delay. Time and again you have given one or the other
excuses and sought time. Coronavirus started in India from end of March, 2020, whereas our delay is
much prior to March, 2020.
You have again failed to provide FAT on 09.03.2020 against the contest of bought out components.
My clients first priority is the delivery of Ukraine Order as there is tremendous pressure on my client from
the Ukraine Customer, for which you are requested to accord top priority and deliver the order Ukraine
Order, without any further delay.
We are aware of the lock down conditions due to Coronavirus, but since your manufacturing activities of
pharmaceuticals machines/lines fall under essential services, you can complete the manufacturing of the
Ukraine Line on urgent basis and provide us an earliest date for conducting FAT of the Ukraine Line.
7) My Client has no direct contract with the Ukraine customer so my client has denied having any
information on this subject.
Due to delay in delivery of Ukraine Order, the end user customer has filed complaint against my client.

8) My Client is agreeing to receipt of advance payment of Rs.9,00,017/- against the Purchase Order of
the line for M/s. Ultra Drugs, In this project, there were numerous machines and 70% of the machines
were brought out machines, and we had taken your client representative and had shown the
readiness of the machine/s and as frequently we had discussed with your client to kindly arrange the
payment (My client had sent an Email on Dt.08.11.2019) as the machine being manufactured by us
was also getting ready to give a complete line FAT; as our company was going through a financial
crisis. However, there was no response to this email and your client recalled all the trial material on Dt.
28.12.2019 which we had dispatched to your clients' site on Dt. 30.12.2019 and after which there was
silence until we received this legal notice.

Payment terms of this order is 20% Advance – Which has been duly paid and acknowledged by you.
70% is payable to you against FAT by 30 days PDC and 10% after installation and commissioning
against submission of PBG.
Your email dated 08.11.2019 states that machine is being manufactured and requested to arrange
payment as you had financial crisis. However, my client is not bound to release this payment, which is not
as per terms of PO. They are entitled to pay 70% against FAT and not before that.

9) My Client would like to correct the statement that we have received payment as follows:

1) 1st Part advance received on Dt. 13.06.2019 Amount of Rs.15,00,000/-, which was receivable on
Dt. 03.06.2019 as per agreed terms and informed on Email Dt. 06.06.2019
2) 2nd Part advance received on D t.25.06.2019 Amount of Rs.15,00,000/-, which was
receivable on Dt. 06.06.2019 as per agreed terms and informed on email Dt, 06.06.2019
3) My Client had dispatched all Machineries from our end on without receipt of balance payment of
Rs.23,49,530/-, which was receivable before dispatch of consignment from our end.
As per terms of PO No.FT/UF-INJ/INJ/75/19-20 dated 06.06.2019, 100% payment was payable to you
against Proforma Invoice. Still to support you, we made 2 payments of Rs.15.00 Lacs each on
11.06.2019 and 25.06.2019 without waiting for the dispatch of Material and Proforma Invoice.

Dt. 16.07.2019 - Invoice No. 11 Amount of Rs.22,32,379.46


Dt. 23.07.2019 - Invoice No. 12 Amount of Rs.2,87,077.48.
Dt. 09.08.2019 - Invoice No. 15 Amount of Rs.28,30,073.06
The above mentioned invoices are not received by Fabtech. Kindly
provide proof of Invoice sent to Fabtech.
The delivery dates mentioned in the PO was 13th June, 2019 and 25th
June, 2019, However, we understand from your invoices mentioned
above that you have dispatched the lines on 16.07.2019, 23.07.2019
and 09.08.2019. Wherein a huge delay has been occurred for which
you are liable for Liquidated Damages as per terms of PO.

4) My Client has received balance payment of in two parts, which was actually receivable before
dispatch of the consignment from our end. We have received 1st Part payment on Dt.
10.08.2019 Amount of Rs.11,55,000/- and 2nd Part payment on Dt. 13.08.2019 amount of
Rs.11,55,000/- and balance amount or Rs.39,530/- still pending to be receive.
The afore mentioned lines were manufactured at your client’s facility and due to noncompliance and
technical deficiencies your client approached us to carry out certain modifications on the line to improve
the aesthetic value and filling accuracies of the machines under consideration. The modification of the
lines was initially for the aesthetic value and later for the replacement of the filling mechanism.
However, based on the good relations, we had worked with your client and we deputed our engineers
to install and commissioning the machines at customer's site without charging any cost. However, as we
started the installation and commissioning work, we found out that the components used in the machine
was very poor / sub-standard / old and many were rusted. The chassis of the machine and the
mechanical gears were worn out and seemed second hand. The machines were found rusting within the
filling zones which are aseptic in nature and could not be reworked on. We changed a lot of
components on Free of Cost on the machine and bring out one of the lines into operation. However,
it was not possible to run the machine to its optimum performance because of poor workmanship /
metallurgy and incorrect designs. My Client did all this only because of the close relations with your
client. Moreover, my client replaced the ampoule washing machine on Free of Cost as their washing
machine failed during trials at our factory. This washing machine was for a different customer however
because your client was in trouble, we replaced it, so that his progress of work does not stop. We
supported your client from last 8 months and this also happens to be one of the major reasons our
production cycles were messed up and our company was put through a lot of financial/marketing strain
and lack of personnel at our work as the senior technical team was deputed at M/s. Shukra
Pharmaceuticals Ltd. for the rectification and startup of the machines supplied by your client.

Since the Line had a technical problem, you were approached and the line was given to you for
modification, looking into your expertise in manufacturing of lines. However, you failed to access the
problem in the line and time and again you came up with showing one or the other problems to us
piecemeal. You were given order total amounting to Rs.55,40,100/- for modification of line, despite which
the technical issues still persist and the end user customer M/s. Shukra Pharma is returning the line due to
non-performance of the line.

The order for the new machines which was hitherto placed by your clients for M/s. Shukra
Pharmaceuticals Ltd vide order no: FT/UF-INJ/INJ/162/19-20 Dt. 05.08.2019 and the advance for the
same machines were never paid by your clients the payment which has been indicated in your notice
is for the modification costs.

If what you say that we botched up is true, then the customer would never have placed an order with us
on the contrary this is a clear indicator that your client has botched up all the orders received from
this customer and has not only put the customer but also our company reeling under financial stress.
We are absolutely agonized and baffled by the stand taken by your client and would like to reiterate
that it was the customer of his own free will who took a decision to place the order with us based on
his own conclusions/evaluations of our hard/committed work put into making a few of the substandard
machines supplied by your client into working condition and our technical competence.

Lack of technical competency is seen form the results of the line modified for Shukra Pharma.

10) The cost incurred for the installation and commissioning caused M/s. L&P Pharma Pack LLP a financial
loss to the tune of Rs.50 Lakhs. The loss of goodwill and bad name which this project has generated for
us is irreparable and cannot even be defined however loss of business opportunity we would like to
claim damages to the tune for the breach of trust committed, our financial distress and mental agony
caused to us by such behavior of Rs.7 crores. There has been a complete breach of trust by your client
by non-disclosure of the facts of the machine and has misused our relation to pass the blame and
indemnify their good selves and projecting us as the third party who have not run their machines
wherein the primary responsibility of running these machine lies with the OEM i.e., your client who has
taken the order.

The strain which this has put on our company has caused tremendous financial burden / losses in
terms of marketing/production as both the directors were also tried down on the site during the course
of this rectification which has caused a huge loss of various business opportunities.
a) We had received machines at our Gandhinagar facility for modification work on D t. 22.05.2019 and
discussion had with your client regarding the work of modification.
b) We had submitted Performa Invoice on Dt. 31.05.2019 and against the same we get the
Purchase
Order from your client on Dt. 06.06.2019, which was not agreed terms.
c) We had informed them to amend the PO as per finalized the terms on Email Dt. 06.06.2019, which
was still not received from the client.
d) As the very good relations with your client, we had not wait for the PO as well as advance
payment as mentioned in above clause, and we had worked continued and finished the job and
even dispatched the consignment at customer end in their good faith.
e) As your client is well aware, that we are a new company with small technical team, they put in to the
pressure to place our skilled man power at customer site for installation and commissioning work
and we had deputed daily average 7 persons at customer's site without any cost, which had a
cascading effect on all our projects and caused delays in the design / manufacturing of machine
schedule.
f) Also we had bear huge cost for all the accommodation travel and food expenses besides their
salaries, which amount to Rs.50,00,000.00, which as defined in Para-1 - Point-A for our man power
to depute the client site from last 8 months (from the dispatch the machines from our end),

11) My client says that the time sought by our client from your Client has been because of the
unnecessary load which was exerted by your client by committing breach of trust which put our company
under a lot of financial burden and has caused a lot of mental stress.

12) My client says that the delay in delivering the machine has been due to your customer's actions and has
caused a lot of distress and losses to my client in terms of our goodwill and reputation.
a) Ukrain project - Line Offical PO No.: received on Dt. 16.05.2019,
b) Submitted Performa Invoice on Dt. 20.05.2019 for receipt of advance payment of Rs.18,80,000/-
c) We have received advance payment of Rs.18,80,000/- on Dt. 28.05.2019 from your client. (12 days
Delay in receipt of advance payment)
d) Tunnel PO received on Dt. 24.06.2019
e) Submitted Performa Invoice on Dt.25.06.2019 for receipt of advance payment of Rs.21,20,000/-
f) We have received advance payment of Rs.21,20,000.00 on Dt. 09.07.2019 (15 days delay in receipt
of advance payment)
g) We had submitted Design Qualification document from our end on Dt. 28.05.2019 and get approval
from your client on Dt. 16.08.2019. (Delay 79 days to get the approval) Design Qualification
Document is very essential to start the machine manufacturing and without it our client cannot start
the machine manufacturing.
h) We have received final area layout from your client on Dt. 26.06.2019 and we had submitted line
layout with the placement of the machine on Dt. 27.06.2019 to get the approval from your client.
i) We have received line layout and height layout approval on Dt.16.08.2019 (Delay 39 days).
Layout approval is very essential to start the machine manufacturing and without it our client
cannot start the machine manufacturing.
j) As per GMP norms, we can start to manufacture the machine after getting approval from the
client, which was received on Dt. 16.08.2019 during the personal visit of your client's representative
along with their client's representative
k) We had submitted project schedule to your client by email as well as photographs of the
machine structure and parts.
13) My client says that they have put all efforts to complete the balance lines. We are enclosing
herewith a tentative schedule for the same.
a) FAT for the Ukraine project - Dt. 20 April, 2020 on technical clearance for certain point
th

which have cropped up during the visit of your client's representative along with their client's
representative at our site on Dt. 28.02.2020 and received email confirmation on Dt.02.03.2020
and on receipt of electrical brought out items which is still not received at our end due to
the problem of Coronavirus.
Above given date of 20.04.2020 is also not honoured by you. Though your factory was closed
but you could have obtained necessary permission to run the factory as you fall under
essential services of manufacturing of pharmaceutical machines. Since my client is under
tremendous pressure from the Ukraine Customer for the delivery of the Line, kindly make
necessary arrangements to complete the pending work of the said line and dispatch the same
at the earliest, without causing any further delay.

b) Delivered of injectable line of M/s. Ultra Drugs Project - Dt. 30.04.2020

This given date of 30.04.2020 is also not honoured. However, after giving
1st priority to the Ukraine Line, you may give 2 nd priority on this order and
arrange to dispatch the same at the earliest.

c) The injectable lines being returned by M/s. Shukra Pharmaceutical Ltd envisages complete
rehaul right from the structure to all major and minor components which would be a 3-4
months’ exercise and we would provide you're a revised indicative cost for the same. The
parts which we have already replace are new and could be reused however all other parts
would need to be replaced and for the cost indication your client would have to share all the
design drawings/manufacturing drawings in editable format so as to enable us to make
corrections to rebuild the machines.
Inspite of spending a huge amount in modification, the performance of the line is not up to the
mark, `you may kindly ensure its optimum performance.
14) My client further says that your notice is absolutely illegal and with full of errors in actual facts
which is absolutely wrong and illegal.
In view of aforesaid facts and circumstances, you are being advised to further advise your client
to withdraw the said notice under reply and further advise him not to drag my client in any
frivolous litigation, failing which my client shall be constrained to contest the same, besides civil
and criminal proceedings against your client under the relevant provisions of law at the costs,
risks and consequences of your client only.

We need to insist them more on immediately delivering the line of Ukraine (after completing the
work in all aspects) on most urgent basis.

DATE: 23.03.2020

PLACE: GANDHINAGAR
POINTS OF DISCUSSION (DISCUSSED ON 17TH APRIL, 2020)

1) TO COLLECT PO FROM CUSTOMER AGAINST SA-1 JOB. – (PERSON


RESPONSIBLE SMS)
2) LETTER TO BE SENT TO ASSOCIATE THAT SOON WE ARE RAISING OUR DEBIT
NOTE FOR THE DEALS DONE THROUGH US IN LAST 3 TO 4 WEEKS. - (PERSON
RESPONSIBLE AMJ/SMS)
3) AGREEMENT WITH ASSOCIATE FOR COMMISSION @ 4% FOR ALL THE DEALS
THROUGH OUR FOREIGN REFERENCES AND CONTACTS. - (PERSON
RESPONSIBLE AMJ/LRK)
4) TO COLLECT PO’S FROM CUSTOMER FOR ALL THE BAHRAIN DEALS - (PERSON
RESPONSIBLE LRK)
5) TO RAISE PO’S ON RESPECTIVE VENDORS AGAINST ALL BAHRAIN JOBS.
(PERSON RESPONSIBLE - AMJ/SMS)

Оценить