GNG EXPORTS Vs. SINOSTEEL PVT LTD

JUDGEMENT

(1.) This is an application, at instance of the respondent in the arbitral proceeding for setting aside of the award dated April 9, 2018 made by the sole arbitrator directing it to pay Rs. 61,15,659 to the claimant, the respondent herein. The petitioner has also prayed for stay of operation of the arbitral award. Since the petitioner has filed the application within 90 days from the date of receipt of the award, the application for setting of the arbitral award is admitted. However, with regard to the relief claimed for stay of operation of the arbitral award learned counsel appearing for the respective parties raised various contentions which are required to be considered by this Court.

(2.) In the arbitral proceeding before the arbitrator, the present respondent and the petitioner were the claimant and the respondent, respectively.

(3.) The disputes between the parties arose out of the sale and purchase contract dated December 27, 2011 (hereinafter referred to as "the said contract"), under which the present respondent agreed to purchase 10,000 MT of Mill Scale (hereinafter referred to as "the said goods") from the petitioner. The port of loading of the said goods was Kakinada Port and the destination port was either Nanjing Port or Tianjin Port, in China. Clause 07 of the said contract provided that within seven working days after signing of the contract the respondent would issue an irrevocable and non-transferable sight LC in favour of the petitioner, in an amount of 100% CFR contract value including 95% CFRE contract value for provisional payment and 5% for balance payment. According to the petitioner, the respondent committed breaches of its obligations under the contract and wrongfully terminated the said contract. The respondent, however, invoked the arbitration agreement between the parties contained in the said contract and filed an application under Section 11 of the Act of 1996, before this High Court, seeking for appointment of an arbitrator to adjudicate the claims raised by it against the petitioner. The said application was allowed and the soles arbitrator was appointed to adjudicate the disputes between the parties.