ASHAPURA MINECHEM LTD Vs. PACIFIC BASIN IHX LTD

JUDGEMENT

(1.) This Appeal arises from a judgment of a learned Single Judge dated 4 October 2012 by which a motion seeking a direction under Order 39 Rule 11 of the Code of Civil Procedure, 1908 striking off the defence of the Appellant to a Petition for enforcing a foreign award was allowed. The learned Single Judge has directed that the defence filed by the Appellant to the Petition instituted by the Respondent under Section 47 of the Arbitration and Conciliation Act, 1996 be struck off.

(2.) The facts before the Court lie in a narrow compass. On 25 October 2007 a contract of affreightment was entered into between the Appellant and the Respondent for shipment of a certain consignment of Bauxite from the west coast of India to China. One of the ports of dispatch was Okha which, the Court is informed, falls within the territorial jurisdiction of the District Court of Jamkhambhalia in the District of Jamnagar. The Respondent lodged a claim against the Appellant in arbitration in pursuance of an arbitration agreement between the parties before an Arbitral Tribunal consisting of a sole arbitrator, Mr. Alan Oakley in London. The reference to arbitration was in pursuance of Clause 28 of the contract of affreightment. The Arbitrator made and declared his Award on 8 July 2009 in favour of the Respondent, directing the Appellant to forthwith pay a sum of US Dollars 24,157,442 together with interest.

(3.) The Appellant has filed a Petition under Section 34 of the Arbitration and Conciliation Act, 1996 in the Court of the District Judge at Jamkhambhalia. In November 2009, the Respondent filed two Petitions before this Court under Sections 47 and 9 respectively, the former seeking a declaration of enforceability of the arbitral Award as a decree of this court and the latter, interim reliefs.1 On 20 December 2010 a learned Single Judge of this Court passed orders on the Arbitration Petitions. The learned Single Judge was of the view that the question as to whether the Court at Jamkhambhalia did or did not have jurisdiction to entertain the Petition under Section 34 was not a matter which could be addressed before this Court. The Appellant had sought an adjournment of the Petition seeking enforcement of the foreign arbitral Award pending the disposal of the challenge preferred by the Appellant to the Award in the District Court at Jamkhambhalia. The learned Single Judge adjourned the hearing of the two 1 Arbitration Petition Nos. 24 and 25 of 2010.