Judgment

BHARUCHA, J.:- Leave granted.

2. Heard

3. These appeals raise an interesting question relating to the Foreign Awards (Recognition and Enforcement) Act 1981 (now referred to as the said Act),

4. The appeals concern what was an ocean going vessel originally called Leda Maersk and thereafter Saudi Cloud. The appellant, M/s. Brace Transport Corporation of Monrovia a Corporation incorporated under the laws of Liberia was the owner of the said vessel. It agreed to sell the same in an amended Norwegian sale form dated 24th February, 1981 to the second respondent. M/s. Orri Navigation Lines, Saudi Arabia, Jeddah. or its nominee for the sum of (sic) 15,50,000. Clause 15 of the sale form provided that disputes arising thereunder would be referred to arbitration in England. The nominee of the second respondent who purchased the said vessel was the first respondent, Orient Middle East Lines Ltd., Saudi Arabia, Jeddah. Disputes having arisen they were referred to arbitration. The Arbitrators appointed by the parties made an award on 25th August, 1983, holding that:

(a) the Claimants succeed in their claim for the balance of the purchase price in the sum of US $ 155000;

(b) the claimants succeed in their claim for damaged for late acceptance of the ship by the Buyers in the sum of US $ 24,262,

(c) the Claimants succeed in their claim for the cost diesel on board at delivery in the sum of US $ 3280;

(d) the Claimants succeed in their claim for expenses paid on behalf of the Buyers in respect of Polish Officers in the sum of US $ 2,976.

Pursuant thereto the appellant recovered a part of the amount awarded, leaving unpaid the amount of US $ 5678747 and interest and costs. The cost of the award was taxed and settled at US $ 1172 and the appellants costs in the reference at US $ 10,000.

5. On or about 15th December 1983, the appellant learnt that the said vessel was being sold to the third respondent an Indian Government company. The appellant gave notice to the third respondent of its aforementioned claim. However the said vessel was purchased by the third respondent and sold by the third respondent, in turn to the fourth respondent, a partnership firm having its office at Bhavnagar in the State of Gujarat for the purposes of being broken up at the port of Alang near Bhavnagar. We are informed that the said vessel is now beached at Alang.

6. On 6th January, 1984, the appellant filed a petition in the court of the Civil Judge, Senior Division, Bhavanagar. and prayed for the following reliefs under the said Act:

(a) That the notice of this petition/ application be directed to be given to the respondents requiring them to show cause why the said (Exhibit O) should not be filed in this Honble Court within the time specified by this Honble Court;

(b) That this Honble Court may be pleased to order that the said award (Exhibit (sic)) be filed in this Honble Court;

(c) That judgment be pronounced and decree passed in terms of the award in favour of the petitioners ordering the respondents Nos. 1 and/or 2 to pay to the petitioners a sum of US dollars 56,789.47 equivalent to Indian Rs. 5,84,931.54 with interest at 15% per annum from the date of the award until payment/ realisation;

(d) For costs of the award in the sum of US dollars 1,172.00 equivalent to Indian Rs. 17,908,16 as taxed and settled by the learned arbitrators in terms of the said award;

(e) For the petitioners cost of reference to arbitration being US Dollars 10,000000 equivalent to Indian Rs. 152,800,00.

(f) For a permanent order and injunction of this Honble Court restraining the respondents their servants from sailing or causing to sale the said vessel SAUDI CLOUD at present lying in the port of Alang in. the district of Bhavagar, Gujarat and/ or receiving or (sic) withdrawing any amount out of the sale proceeds are lying with the respondents No. 3 and /or No. 4 unless and until the award, the costs of the award and the petitioners costs of reference in this Honble Court and/or execute the neces