 "Kohinoor Foods appeals against KFL to the regulator")
The supply agreement in question was signed between KFL and Kohinoor Specialty Foods India (KSF) during June, 2011, according to which KSF is bound to procure all its rice from KFL for its India operations. McCormick owns 85 percent of KSF. KFL in its exchange filing said, "In terms of the Rice Supply Agreement, our Company M/s Kohinoor Foods Ltd.(KFL) is exclusive rice supplier of KSF to sell within the Territory of India for a period of 7 (Seven) Years including a lock in period of 5 (Five) years."
"However we 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. We have been objecting to this violation through various communications last being our email dated 26.06.2015. To pre-empt the charges leveled by us of continuous violation/breach of RSA, KSF unilaterally sent us a notice of termination of RSA alleging that the termination is with cause," the statement read.
Denying all allegation made by KSF, Kohinoor Foods told the authorities: "A suitable reply based on facts has already been sent to KSF and their attorney. In our reply we have established that the agreement has been breached by the KSF by souring supplies from an alternate supplier, during the lock in period. We 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."
