 "Quad alleges non-payment by Datawind; to countersue")
**New Delhi:**Quad Electronics, the contractmanufacturer of world’s cheapest tablet Aakash, today said ithas not been paid for its work by the tablet maker, Datawind.
Quad alleged that the letter of credit issued by Datawindwas dishonoured and it has not received any payment for itswork.
“The letter of credit (LC) given was not honoured byBarclays bank as our bank (Bank of Bahrain and Kuwait) is yetto receive a single dollar on the LC given by them. The bankshave proof of non-payments,” Quad’s Managing Director RaminderSingh Soin said in an e-mail query.
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Datawind CEO Suneet Singh Tuli had yesterday claimed thathis company has cleared all the payments that was due to Quad, except for the 600 units that remain unpaid by IIT-Rajasthan.
According to Quad, Datawind has to pay for 8,000 unitssupplied and additional inventory already procured. Datawind,it said, has only paid about $60,000 for 1,500 samples thatwere billed directly to the company and were not part of theLC.
Quad has served a legal notice to Datawind on 30 March fornon-payment and breach of contract for total of $1.12million, which includes outstanding dues and inventory procuredon behalf of Datawind against its purchase orders.
“If they had paid, why (would) our company will give legalnotice for non payments to datawind in UK,” Soin said.
Quad MD denied Datawind’s allegation of violating itsIntellectual Property Right on Aakash by signing directagreement with IIT Rajasthan for development of next generation device.
“The software and PCB Gerber (printed circuit board fileformat) required to design a product were not given to Quadand therefore there is no question of infringement since Quadwas restricted to only manufacturing as per the specificationsand instructions received from Datawind,” Quad MD said.
Soin said that the design of the tablet belongs toDatawind and there is no reason for a manufacturing company tobreach the MSA (Manufacturing supplier agreement) thatrestricts it to manufacturing only.
Hesaid Quad has freedom of action and can manufacture ordesign similar products as per agreement signed with Datawind.“We signed MoU with IIT fordevelopment of convergence products not for LCAD (Low CostAccess Device). This is known to Datawind,” Soin said.
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