ARBAZA ALIMENTOS LTDA Vs. MAC IMPEX

JUDGEMENT

(1.) The petitioner is seeking enforcement of foreign arbitral award dtd. 24/9/2020, passed by a learned sole arbitrator, who was appointed by the Grain and Feed Trade Association (GAFTA), with the arbitration being held in the United Kingdom (UK). It is an admitted position that the respondents did not challenge the said arbitral award on merits before the competent courts in UK.

(2.) The petitioner is a company registered under the laws of Brazil and it is engaged in the business of export of various agricultural products to number of countries including India. Respondent No.1 is a partnership firm registered in India, engaged in the business of trading, including import / export of agricultural products. Respondent Nos.2 to 4 are the partners of respondent No.1 firm. The respondents are resisting enforcement of the aforesaid foreign arbitral award on various grounds. Before referring to the said grounds, it would be appropriate to first refer to the chronology of events, leading upto filing of the present petition.

(3.) On 4/9/2019, the petitioner and respondent No.1 entered into a contract whereby the said respondent agreed to buy and the petitioner agreed to sell 780 Metric Tonnes (MT) of Brazilian Brown Eyed Beans. The consignments were to be dispatched in 3 shipments / parcels of 10 containers each from Brazil to India. The contract was executed under the aegis of the Global Pulse Confederation and GAFTA. The agreed payment terms were to be 'cash against documents'. As per the contract, the quality of the aforesaid goods was to be determined finally at the time of loading, with respondent No.1 as the buyer having right to attend the loading and to inspect the same. It was specifically agreed between the parties under the said contract that if any conflict arose at the destination i.e. in India about the standard of the goods imported or if it was to be in conflict with any regulation or law, the buyer was to be fully liable for the consequences. The goods were required to be dispatched on Cost Insurance Freight basis to Nhava Sheva, India.