Tyre company asked to pay `58 lakhs

Oct 10, 2010 - Age Correspondent |

New Delhi

The Delhi high court has directed MRF to pay `58 lakh to an advertisement agency in a 10-year-old dispute over services rendered to the tyre manufacturer.
A single member bench, comprising Justice Anil Kumar, directed MRF to pay the disputed amount after it found that there was a contract between the tyre manufacturer and the agency over display of advertisements across the city.

The radial company had been contending that there was no such agreement with the agency.
“With the finding that there had been concluded agreements between the parties, pursuant to which the advertisements were displayed by the plaintiffs (ad agency), they would be entitled to claim the amounts,” the court said, directing MRF to pay `58 lakh to Vasudeva Publicity Service.
The court also directed MRF to pay a 9 per cent interest to the agency till the date of filing of the petition before it, and 6 per cent during the pendency of the suit.
The court’s direction came over a petition filed by Vasudeva Publicity Service, demanding a payment of `58 lakh by MRF for displaying its ads. The court rejected MRF’s contention that there was no such agreement with the agency. Also, it did not agree with the tyre manufacturer’s contention that there was no “discussion, understanding, agreement or approval” for the display of ads.

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