Rajasthan Medical Services Corporation Ltd. & Anr. vs. M/s. Bal Pharma Ltd.

Commercial Courts Act, 2015–Decree of suit–Sustainability–Contract between the parties for purchase of medecines–Respondent-supplier had shown his inability to execute the purchase order due to unavoidable/technical reasons–Appellants exercised the Clause 13(9) of the agreement and purchased at the risk and cost of respondent and recovered the differential amount by encashing the bank guarantee–It is not the case of the respondent that the purchase order was beyond the production capacity as declared in the bid document–Once the appellants had come to the conclusion that return of the purchase order was not in consonance of Clause 9(5)(g), they were at liberty under Clause 13(9) to make alternative purchase at the risk and cost of respondent–Impugned judgment of decreeing the suit is liable to be quashed and set aside.