ALCARI S A Vs. M M T C

JUDGEMENT

(1.) By way of present application, objections under Sections 30 and 33 of Arbitration Act, 1940 (hereinafter referred to as "Act, 1940") have been filed by the respondent-objector challenging the Award dated 17th February, 2000 passed by Mr. Justice (Retd.) H.L. Anand.

(2.) Briefly stated the facts relevant for this case are that the respondent- objector-MMTC issued a tender for purchase of 4,00,000 MT of Urea. This was under a World Bank loan. The contract contained an ICC arbitration clause. The petitioner-claimant made a bid for 45,000 MT of Urea.

(3.) On 30th June, 1992, petitioner-claimants bid to the extent of 15,000 MT was accepted by the respondent-objector in principle but subject to clearance by the World Bank. The final acceptance of petitioner-claimants offer came in the late afternoon of 7th July, 1992. The shipment date as per the contract was 10th July, 1992. Amongst the various terms of the contract, Clause 26 pertained to the age of the vessel, which stated that it should not be more than 15 years of age. However, in case of necessity, an older vessel could be booked with prior approval of the buyers. It is petitioner-claimants case that due to the last minute acceptance of its tender, petitioner-claimant booked a vessel of more than 15 years of age and requested the respondent- objector for approval in terms of Clause 26 of the Contract. Clauses 9 and 26 of the Contract read as under:-