RESOLUTION OF THE SUPREME ECONOMIC COURT OF THE REPUBLIC OF UZBEKISTAN

of February 21, 2005 No. 11-0401/1285

(extraction)

In case of delivery of goods of inadequate quality the buyer has the right to demand from the seller of indemnification, in cost type of low-quality goods, and also payment of penalty.

The management of material and military supply of the Ministry of Internal Affairs of the Republic of Uzbekistan appealed with the claim to economic court of the Tashkent region to state of emergency of "TURANGUL" about collection of 25099800 bags of principal debt and penalty in the amount of 5019960 bags.

Claims are satisfied by resolution of the Trial Court.

The judgment is left by the resolution of appellate instance without change.

Without having agreed with the decision and the court order, state of emergency of "TURANGUL" addressed with the writ of appeal in which the question of cancellation of judgments is put.

Judicial board, having discussed the arguments stated in the writ of appeal and response, having checked case papers, considers the decision and the court order subject to leaving without change, and the writ of appeal - without satisfaction on the following bases.

Apparently from case papers, between the parties the agreement N37/5-13, according to which the defendant undertook to make delivery of meat and cereal canned food to the total amount of 43875000 bags is signed on March 7, 2003, and the claimant undertook to accept products and to pay its cost. In accordance with the terms of the specified agreement the defendant made delivery of canning products in assortment:

- porridge pearl-barley with meat in cans in number of 35.100 pieces at the price of 600 bags of the total amount of 21060000 bags;

- buckwheat cereal with meat in cans in number of 35.100 pieces at the price of 650 bags of the total amount of 22815000 bags. The cost of the received products was completely paid by the claimant.

On the delivered products were issued by the defendant the hygienic certificate of N025721 of February 10, 2003 and the certificate of conformity N026527 of February 17, 2003. Products delivered by the defendant were made in March, 2003 and according to GOST 8286-90 the storage duration of products constitutes 2 years after its production.

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