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2. In 1999, ONGC wanted to upgrade one of it seismic survey vessels and for that purpose, certain equipment-Streamers fitted with hydrophones-was needed. WesternGeco-a world
2. In 1999, ONGC wanted to upgrade one of it seismic survey vessels and for that purpose, certain equipment-Streamers fitted with hydrophones-was needed. WesternGeco-a world famous company manufacturing seismic equipment and headquartered in the UK-entered into a contract with ONGC after bidding successfully for supply of the equipment of US origin. Interestingly, the tender conditions, according to ONGC did not mention the national origin of the equipment. Thereafter, 9/11 World Trade Centre terrorist attack happened and WesternGeco was not able to get the equipment from the US. There was delay in supply of the equipment and WesternGeco suggested procuring the equipment from Canada instead of US, with no financial implications for ONGC. To this proposal, ONGC agreed, but with a condition that for the delay Liquidated Damages (LD) would be deducted as per the contract. There was considerable delay on account of late reply by ONGC to the offer made by WesternGeco to supply Canadian equipment in place of the American one. ONGC deducted LD for the entire period of delay, and attributed it to WesternGeco, which used the force majeure clause-things beyond one's control-to justify the delay. Explain with reasons whether ONGC could deduct this LD? If so, whether such deduction is justifiable or not?2. Tricolour Garments Pvt. Ltd. Co. has 7 directors. In the said company= certain companies such as Trilo Fashions have 30% shares and have 4 nominated directors out of 10 directors. Discuss whether there is a nexus between both the companies under Companies Act, 2013
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