Steel Authority Of India Limited vs Indian Council Of Arbitration & … on 16 November, 2015

VIBHU BAKHRU, J

1. This petition, under Article 226 of the Constitution of India, has been

filed by Steel Authority of India Limited (hereafter ‘SAIL’), inter alia,

praying as under:-

2. The controversy involved in the present petition relates to the

arbitration proceedings commenced by the Respondent No.2, Great Eastern

Shipping Ltd. (hereafter GE Shipping) in relations to a Charter Party dated

19th December, 2007 entered into between the SAIL and GE Shipping

whereby GE Shipping had agreed to carry a cargo of bulk coking coal from

1/2 safe berth(s) Haypoint, Australia to 1/2 safe berth(s),

Visakhapatnam/Paradip/Haldia, India. Disputes arose between SAIL and

GE Shipping in relation to the aforesaid Charter Party and that led GE

Shipping to invoke the alternate dispute resolution mechanism of

arbitration in terms of the Charter Party. GE Shipping made claims for

freight, demurrage and interest amounting to an aggregate sum of

Rs.2,33,11,846.22 as on 30.06.2012, which were rejected by the Arbitral

Tribunal. Aggrieved by the same, GE Shipping filed a petition under

Section 34 of the Arbitration and Conciliation Act, 1996 (hereafter the

‘Act’) before this court. GE Shipping prevailed in the said petition and the

arbitration award rejecting the claims made by GE Shipping was set aside.

In the circumstances, GE Shipping has once again initiated arbitration

proceedings. According to SAIL the Arbitration proceedings are not

W.P.(C) 3013/2013 Page 2 of 32
maintainable in view of the disputes having been subject matter of the

earlier arbitration proceedings that culminated in an arbitration award.

SAIL also assails the appointment of Arbitrator by respondent no. 1, Indian

Council of Arbitration (hereafter ‘ICA’), which SAIL contends as being

contrary to the provisions of Section 11 of the Act.

Source: Indian Kanoon

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