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Millat Tractors Prohibited from Selling Nearly 1,000 Tractors to Third Parties

Millat Tractors Prohibited from Selling Nearly 1,000 Tractors to Third Parties

The Chief Justice of the Sindh High Court (SHC) has issued an order against Millat Tractors Limited (MTL), a leading tractor manufacturer, prohibiting them from selling 954 tractors to any third party. This directive comes in response to a petition filed by Shahzad Riaz, who alleged that MTL breached a contractual obligation to sell these tractors to the original buyer.

According to the petition, MTL was obligated to deliver the tractors to poor farmers at an agreed price of Rs. 12,51,600 per tractor, including 5% sales tax. However, MTL raised the price of each tractor by Rs. 148,400 and halted the supply to the buyer. Despite full payment for 1001 tractors, only 47 were delivered.

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The SHC’s order mandates MTL to provide details of the 954 tractors, including model, chassis, and engine numbers, by April 16, 2024. It further states that MTL must not sell these tractors to any third party until the issue is resolved. Additionally, MTL is required to deposit the differential amount of Rs. 148,400 per tractor through a bank guarantee before the court.

The petition alleges that MTL’s actions violate the Sales of Goods Act, 1930, and constitute malafide. The petitioner argues that once the entire sale consideration was received, the contract became conclusive, and MTL had no grounds to demand an increased price or withhold delivery of the remaining tractors.

The SHC has served notices to MTL and the Deputy Attorney General, directing them to file comments by the specified date. Pending further proceedings, MTL is restrained from selling the 954 tractors and must provide detailed information about them to the court.