ZENITH LTD Vs. M V PONTOPOROS

JUDGEMENT

(1.) These two arbitration petitions are instituted under the provisions of section 45 of the Arbitration and Conciliation Act, 1996 inter alia seeking that the Admiralty Suit being Suit No. 23 of 2004 be referred to the arbitration in view of the arbitration agreement between the parties. Some of the material facts in the present case are as under :-

(2.) The respondents have instituted a suit being Admiralty Suit No. 23 of 2004 against the vessel being defendant no. 1, Patvolk, a division of Forbes gokak Limited being defendant No. 2 and Oldendorff Carriers, a company incorporated under foreign laws and carrying on their business through their agents the 2nd defendant in India being defendant No. 3.

(3.) By the said suit the respondents are seeking that the said vessel which is the first defendant be ordered to be arrested and sold as and when she enters into the territorial waters of India and sale proceeds thereof should be applied towards the satisfaction of the plaintiffs claim in the suit. By the said suit the respondents are also seeking an order and decree in the sum of US dollars 1,30,017.16, US Dollars 33,859.58 and Rs. 1,50,00,000. 00 in accordance with the particulars of claim set out therein with interest at the rate of 12% per annum. The particulars of claim inter alia indicates that the amount of US Dollars 130,017.16 is claimed as and by way of loss suffered by the plaintiffs in respect of the said goods. A further sum of US dollars 33,859.58 is claimed towards the expenses incurred by the plaintiffs in mitigating the losses and an amount of Rs. 1,50,00,000. 00 is claimed towards loss of business opportunity and other expenses. The said suit has been filed by the plaintiffs in the background of the facts which are briefly enumerated as under:-