JUDGEMNT

K.M. THAKER, J.

1. The applicant No. 1 in present application is the original defendant No. 1 and applicant No. 2 is the original defendant No. 2 in the Admiralty Suit No. 9 of 2009.

2. In present application, the applicants have prayed, inter alia, that:-

“10. (a) The Admiralty Suit No. 9 of 2009 filed by the opponents in this Hon'ble Court be stayed in view of the binding arbitration agreement between the parties.

(b) The Letter of Undertaking dated 12th August, 2009 furnished by the London Steam-ship Owners' Mutual Insurance Association Ltd. in favour of the opponents to secure the release of the first applicant vessel be returned to the applicants duly discharged.”

3. The original defendants i.e. present applicants have taken out present application in the pending Admiralty Suit filed by present opponent against present applicants wherein present opponent has, inter alia, prayed for arrest of the applicant No. 1 vessel and other relief including the request for order and decree in its favour and against present applicants in the sum of Rs. 15,43,78,835/-.

4. In the suit taken out by present opponent, the Court granted ex-parte order dated 29.7.2009 whereby direction for arrest of first applicant vessel was issued. Subsequently when the applicants furnished security in form of bank guarantee in the sum of Rs. 1,54,37,883/- further order releasing the vessel was passed. Subsequently, present applicants had taken out application which was considered by the Court and vide order dated 3.8.2009 the Court modified the order and reduced the amount of security to the sum of Rs. 15,43,788/-.

5. The original plaintiff i.e. present opponent felt aggrieved by said order dated 3.8.2009 and preferred O.J. Appeal being Appeal No. 44 of 2009. The opponent also preferred Civil Application No. 305 of 2009 in the said Appeal. After hearing parties to the said appeal, Division Bench vide order dated 10.8.2009 directed present applicants i.e. original defendants to furnish security in form of bank guarantee in the sum of Rs. 13 crores. In compliance of the said order the original defendants i.e. present applicants submitted a letter of undertaking dated 12.8.2009 issued, on behalf of the applicants, by their Protection and Indemnity Club viz. London Steam-ship Owners' Mutual Insurance Association Ltd whereby Indemnity Club secured claim in sum of Rs. 13 Crores.

6. Thereafter, now the applicants have taken out subject application and prayed for the above quoted reliefs.

7. The facts in light of which the proceedings viz. Admiralty Suit and this application, have arisen are stated by the applicants thus:-

5. The applicants further submit that the opponents have approached this Hon'ble Court claiming that they are the holders of the Bills of Lading. These Bills of Lading have been issued and signed for an on behalf of the master of vessel. On the face of all the 5 Bills of Lading it is printed thus:-

“Freight payable as per charter-party dated. On the reverse of each of these Bills of Lading the conditions of carriage has been printed and the first of such conditions states all terms and conditions, liberties and exceptions of the charter party as stated overleaf including law of Arbitration clause, are herewith incorporated.”

6. The applicants therefore state and submit that though the charter-party is not identified in the Bills of Lading the applicable charter-party is and could only be the Voyage charter party dated 9th May, 2008. In the box on the first page of the said charter-party it is written thus:

“Clause 25 Law and Arbitration.

Arbitration/General Average London

English law to apply. See also clause 41 Clause 41

Arbitration Arbitration in London.”

“Any dispute arising out of present contract shall be referred to Arbitration in London; the decision rendered according to rules of same shall be final and binding upon both the parties. The right of both the parties to refer any disputes to Arbitration ceases 12 months after date of comp