GLENCORE INTERNATIONAL AG Vs. DALMIA CEMENT

JUDGEMENT

(1.) This petition is filed to strike off the petition in Arb.O.P.No.5 of 2015, on file of the learned Principal District Judge, Trichy.

(2.) The respondent herein is the petitioner and the petitioner herein is the respondent in Ar.O.P.No.5 of 2015. The respondent herein has filed an Arbitration O.P.No.5 of 2015 before the learned Principal District Judge, Tirchy under Sec. 34 of the Arbitration and Conciliation Act, to set aside the award dtd. 17/11/2014 passed by the London Court of International Arbitration in Case NO.132448 dtd. 17/11/2014 and prayed that Arb. O.P.No.5 of 2015 is to be strike off and that there is fault and illegality in the award and the Tribunal has violated the principles of natural justice and acted in the biased manner and that the Tribunal has wrote the conclusion in arbitrary manner.

(3.) The facts of the case is that the petitioner and the respondent have entered into a sale agreement. The respondent is a cement manufacturing Company and Steam Coal is a major raw material for manufacturing cement and an agreement for sale of shipments of Steam Coal was executed between the petitioner and the respondent on 22/2/2012. An addendum, dtd. 19/7/2012 and another addendum, dtd. 6/9/2012 were executed between the parties and the Contract is for nine shipments of Coal between March 2011 till January 2012. The contract has stipulated the Coal quality in accordance with specifications and quality parameters were fixed and ceiling quality parameters as to rejection also was fixed. If the Coal was superior to the typical specifications, the petitioner will be entitled for bonus in payment and if the quality of Coal was inferior to the technical specifications, the petitioner herein will be penalised for the same and standard price was agreed to be USD 100 per MT of coal, subject to increase or decrease on the basis of the quality of the coal. It is stated that sampling, testing and analysis of the coal to determine the weight of the consignments was to be in accordance with the American Standard for Testing and Materials and the testing and analysis was agreed to be carried out by Independent Inspection Agencies appointed by the petitioner.