LIBERTY COMMODITIES LTD Vs. RELIANCE TRADE CRPORATION

JUDGEMENT

(1.) This is a Revision filed under Article 227 of the Constitution of India by the 1st respondent in O.P.No.50 of 2005 on the file of the Court of the III-Addl. District Judge, Kakinada, aggrieved by the order dated 28-2-2005 in having entertained O.P.No.50 of 2005 and also granting ad interim injunction restraining the Revision Petitioner from alienating, transferring, encumbering or creating third party rights in the Cargo which is on board the m.v. ORMOS and further directing not to move the cargo until and unless the Revision petitionerfurnishes Bank Guarantee to a sum of US $ 2,171,411.39,

(2.) The facts in brief may be noted as under: The Revision petitioner (Liberty Commodities Limited) and the first respondent herein (Reliance Trade Corporation) are the Companies incorporated under the Laws of England, carrying on trading activities having their registered offices at London. By Voyage Charter-party dated 17-9-2004, the owners of m.v. SEA ORCHID viz Bayfield Shipping agreed with the first respondent Company to carry a cargo of rice from Bangkok in Thailand to Ward in Nizeria. The first respondent Company in turn entered into Sub-charter party dated 20-9-2004 with the Revision petitioner for the carriage of the said cargo of rice from Bangkok to Warri in Nizeria. It is not in dispute that in terms of the arbitration clause contained in the respective Charter Parties, all the disputes between the first respondent Company and the owners of m.v. SEA ORCHID on the one hand and the first respondent Company and the Revision petitioneron the otherare liable to be resolved by arbitration in London and all disputes shall be subject to English law.

(3.) It appears that as agreed m.v. SEA ORCHID sailed from Bangkok for Warri on 2-10-2004, however certain disputes arose between the first respondent and the Revision petitioner with regard to carriage of cargo of rice on board the m.v. SEA ORCHID and consequently as per the arbitration clauses provided underthe agreements, an Arbitrator has been appointed and the arbitration proceedings are in progress in England.