The historic decision by a commercial court is likely to result in bringing one of the world’s most renowned designer’s wear-brand back to Pakistani manufacturers restoring their share in the global market. The Special Commercial Court (SCC) headed by its Chairman Mr Sathi Ishaque after umpteenth hearings has ordered the respondents to pay the damages of $61,000 to the foreign buyer for shipping rejected and damaged goods.
SCC Sindh and Balochistan had received complaints of fraud and breach of contract by the owner of a textile firm by D Michael Painter of M/s Quivera LLC, California, USA.
The sourcing agent for the designer’s wear brand said that through Trade Development Authority of Pakistan (TDAP) he had placed an order for supply of garments worth $50,000 to M/s Shan Textiles, Karachi in 2008. But the latter had shipped damaged and rejected goods to the buyer.
On this, TDAP filed a case against M/s Shan Textiles in Commercial Court in 2009 / 2010. The TDAP, having realized the situation and reputation of the country, ordered the officials to get it resolved on priority basis.
This was the first time that a case had been taken up vigorously by the regulators and by virtue of government’s decision to establish commercial court in order to decide trade disputes involving foreign buyers and sellers. The stakeholders have taken a sigh of relief for establishment of commercial courts by the government and have termed it an encouraging step to resolve trade disputes.
Pakistan was losing its markets abroad due to various commercial cases which remained undecided and the aggrieved did not get justice. This had resulted in damage to Pakistan’s reputation abroad.
The court after hearings finally gave the judgment and declared the act of the exporter tantamount to cheating and ordered them to compensate the damages.
“The most significant aspect of this decision, at this point of time, is that it will create a highly positive impact and raise the image and credibility of Pakistan in the business circles of USA and Europe where we have been demanding a sizeable free access to their markets,” an official said.
According to the complaint, M/s Quivera had placed an order to M/s Shan Textiles in Karachi. Significantly on the insistence of the exporter, M/s Quivera agreed to pay the entire amount of the order in advance so as to receive the goods on stipulated time.
To the horror of the buyer, most of the goods they got were damaged, tainted and rejected. M/s Quivera (the sourcing company) got a big snub from the exporter when they informed them of the damaged goods they had received.
The exporter had at first admitted his fault and agreed to settle the issue. They somehow kept on delaying it and finally almost declined the same. When M/s Quivera approached through US Department of Commerce, the Pakistan Commercial Councilor requested Ministry of Commerce to intervene. The ministry then handed over the case to TDAP’s Trade Dispute and Law Department, which after studying the case thoroughly and having several meetings with both the parties asked M/s Shan Textiles to settle the rightful claim. TDAP has set a laudable example by promptly acting on the complaint of the foreign buyer and bringing justice to them.
