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NINALA JAYASURYA
Steel Authority of India Limited – Appellant
Versus
Union of India – Respondent
JUDGMENT
1. The brief facts which are relevant for adjudication of the above Miscellaneous Petitions may be stated as follows:
2. The petitioner, a Maharatna Company of the Government of India Enterprise, entered into an Agreement No.243/2017 dtd. 1/9/2017 with the respondent No.3 for supply of 'Red Ash Coking Coal' of US origin as an industrial trial shipment.
3. Clause No.1 of the Contract deals with Materials, Quantity, Quality and Delivery Period. On 21/11/2017, the respondent No.3 forwarded an e-mail received from Carter Resources LLC (the producer of the contracted coal) that shortly before loading of the final barges, some barges were mistakenly contaminated with coal meant for another client and due to contamination some barges did not meet the required specifications and therefore, would not meet SAIL's requirements. Thereafter, the vessel arrived at Visakhapatnam Port on 2/1/2018 and upon berthing of the vessel, joint sampling was carried out by the parties along with CSIR-Central Institute of Mining and Fuel Research ('CIMFR'), Dhanbad. The coal was discharged and stored at EQ-8 berth of respondent No.2 i.e., M/s.Vizag Sea Port Private Ltd., ('VSPL'). Likewise, the coal w
The interpretation of the contract terms, rejection of coal rakes based on single parameter, and the grant of interest at 10% per annum were the central legal points established in the judgment.
The court emphasized the necessity to resolve contempt allegations before proceeding with arbitration to uphold the integrity of the judicial process and ensure fairness.
An arbitral tribunal's jurisdiction is limited to the matters that are submitted to it for arbitration and that an arbitrator cannot exceed his or her jurisdiction by deciding matters that are not wi....
The court upheld the arbitral award, confirming that the petitioner breached the contract and consent orders, making them liable for damages.
The court held that the cancellation of a Letter of Acceptance was arbitrary as it was based on a miscalculation of the 30-day compliance period, violating principles of natural justice.
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