Wattle Health launches legal action against Indian importer
18 July 2019, Written by Business News Australia
Organic infant food producer Wattle Health (ASX: WHA) has initiated legal action against an Indian importer for money owed.
Wattle Health alleges baby food importer Vasudevan and Sons Exim Private (VSEP) has not provided the full bank guarantee to Wattle Health as required under a supply agreement.
The pair entered into a supply agreement for Wattle Health's natural baby food range in September 2018.
Wattle Health has developed packaging for the product and submitted product registration since then.
The product registration has been completed in India and as a consequence Wattle Health has demanded VSEP provide its bank guarantee.
"Despite the company's request, VSEP has not yet provided the full amount of the bank guarantee and VSEP is in breach of the VSEP supply agreement," says Wattle Health.
Wattle Health has thus commenced legal action in India against VSEP to recover losses.
The Australian company has already received a deposit of $100,000 from VSEP in December 2018, which is not refundable.
Business News Australia
Author: Business News Australia