KHANIJ EXPORTS P LTD Vs. SHIP TRADE INC

JUDGEMENT

(1.) IN this proceeding under Sections 30 and 33 of the Arbitration act, 1940 (hereafter called "the Act"), the petitioner challenges the legality of an order dated 21. 05. 1999 (where the arbitral tribunal upheld its earlier order temporarily staying the counter claim, but granted further time to the petitioner to provide security); an order dated 29. 12. 1999 directing the petitioner to pay to the Respondent costs of the hearing held on 19. 05. 1999 at the petitioner"s instance; and a third order, dated 3. 02. 2000 whereby the arbitral tribunal tribunal reiterated its previous finding and rejected the contentions of the petitioner, vis a vis the request that the respondent should deposit security for the petitioner"s participation in the arbitration proceeding.

(2.) THE facts briefly are that on 2. 08. 1995, the petitioner and the respondent entered into a Charter Party Agreement, whereby the respondent, (hereafter called "the carrier") agreed to ship the petitioner"s goods to a buyer in Venezuela in consideration of payment of agreed freight. The carrier alleged to having shipped the goods to the consignee at Venezuela, who rejected the cargo on the ground that they did not meet the specifications mentioned in the Purchase Order. The carrier sold the goods in Canada. It sought to recover amounts alleged to be freight payable, from the petitioner who refused liability.

(3.) THE Charter Party contained an arbitration clause which obliged parties to resolve their disputes through arbitration was