Kohinoor Foods has informed that vide their letter dated 1st June, 2011, they intimated to Stock Exchanges that they have entered into certain Agreements including a Rice Supply Agreement (RSA) with Kohinoor Speciality Foods India (KSF). In terms of the Rice Supply Agreement, their Company Kohinoor Foods (KFL) is exclusive rice supplier of KSF to sell within the Territory of India for a period of 7 Years including a lock in period of 5 years. However they came to know through reliable sources that KSF had started taking supplies of Rice in complete violation of RSA from an alternate supplier since year 2013-14, without any bona fide cause or notice to KFL. They have been objecting to this violation through various communications last being their email dated 26.06.2015. To pre-empt the charges leveled by them of continuous violation/breach of RSA, KSF unilaterally sent us a notice of termination of RSA alleging that the termination is with cause. There is no substance in the allegation made by KSF and a suitable reply based on facts has already been sent to KSF and their attorney. In their reply they have established that the agreement has been breached by the KSF by souring supplies from an alternate supplier, during the lock in period. They have also stated that since KSF has violated the RSA without cause and without giving due notice as provided in RSA, KFL may also be treated free from the provisions of various agreements. In this regard they are taking all necessary steps to protect the interest of the Company.
The above information is a part of company’s filings submitted to BSE.
| Company Name | CMP |
|---|---|
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| Nestle | 1287.40 |
| Britannia Inds | 5701.55 |
| LT Foods | 415.75 |
| Hatsun Agro Product | 971.10 |
| View more.. | |
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