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2019 Supreme(Mad) 2932

IN THE HIGH COURT OF MADRAS (MADURAI BENCH)
R. THARANI, J.
Glencore International AG - Appellant
Versus
Dalmia Cement (Bharat) Ltd. - Respondent
C.R.P.(MD) No. 916 of 2015
Decided On : 04-01-2019

Advocates Appeared:
For the Appellant : Raguvaran Gopalan.
For the Respondents: S. Anwar Sameem.

Headnote:

Arbitration and Conciliation Act – Section 34 – London Court of International Arbitration – English Arbitration Act, 1996 – Sections 67, 68 or 69 – London Court of International Arbitration – Illegality – Respondent petitioner and petitioner is respondent herein has filed an Arbitration before learned Principal District Judge Tirchy to set aside award passed by London Court of International Arbitration in Case and prayed that be strike off and that there is fault and illegality in award and Tribunal has violated principles of natural justice and acted in biased manner and that Tribunal has wrote conclusion in arbitrary manner – Held, Petitioner stated that Delhi High Court has decided applicable and Not applicable and Honble Supreme Court has upheld this and dismissed SLP and there is nothing survives for adjudication respondent it is stated that execution petition disposed of by Delhi High Court – On side of respondent further stated that award was not challenged in Supreme Court only petition was challenged before Honble Supreme Court stated that applicability alone is decided and applicability is not decided petitioner it is stated that Delhi High Court has decided applicable and not applicable and Honble Supreme Court has upheld this and dismissed SLP and there is nothing survives for adjudication – Civil Revision Petition is allowed.

ORDER :

R. Tharani, J.

1. This petition is filed to strike off the petition in Arb.O.P. No. 5 of 2015, on file of the learned Principal District Judge, Trichy.

2. The respondent herein is the petitioner and the petitioner herein is the respondent in Ar.O.P. No. 5 of 2015. The respondent herein has filed an Arbitration O.P. No. 5 of 2015 before the learned Principal District Judge, Tirchy under Section 34 of the Arbitration and Conciliation Act, to set aside the award dated 17.11.2014 passed by the London Court of International Arbitration in Case No. 132448 dated 17.11.2014 and prayed that Arb. O.P. No. 5 of 2015 is to be strike off and that there is fault and illegality in the award and the Tribunal has violated the principles of natural justice and acted in the biased manner and that the Tribunal has wrote the conclusion in arbitrary manner.

3. The facts of the case is that the petitioner and the respondent have entered into a sale agreement. The respondent is a cement manufacturing Company and Steam Coal is a major raw material for manufacturing cement and an agreement for sale of shipments of Steam Coal was executed between the petitioner and the respondent on 22.02.2012. An addendum, dated 19.07.2012 and another addendum, dated 06.09.2012 were executed between the parties and the Contract is for nine shipments of Coal between March 2011 till January 2012. The contract has stipulated the Coal quality in accordance with specifications and quality parameters were fixed and ceiling quality parameters as to rejection also was fixed. If the Coal was superior to the typical specifications, the petitioner will be entitled for bonus in payment and if the quality of Coal was inferior to the technical specifications, the petitioner herein will be penalised for the same and standard price was agreed to be USD 100 per MT of coal, subject to increase or decrease on the basis of the quality of the coal. It is stated that sampling, testing and analysis of the coal to determine the weight of the consignments was to be in accordance with the American Standard for Testing and Materials and the testing and analysis was agreed to be carried out by Independent Inspection Agencies appointed by the petitioner.

4. It was stated that all the shipments were supplied to the respondent through various ports in India. It is stated that shipments 1 to 5 were supplied between March and October 2011.

5. On the side of the respondent, it is stated that the quality was below the quality parameter. The petitioner has belatedly delivered those shipments between 15.09.2012 to 17.09.2012 and the quality was below the typical specifications. The petitioner has pressurized the respondent to accept the same and to accept the further shipments of low quality coal. When negotiations were going on to fix the price, the petitioner herein has terminated the contract and initiated arbitrary proceedings before the London Court of International Arbitration. The Arbitration Tribunal has passed an order without looking into the merits of the case but simply dismissed the request of the respondent irrespective of the self serving documents produced by the petitioner herein. An arbitral award was passed against the respondent herein and that the arbitral award was passed in a biased manner without following the principles of natural justice and the arbitral award is to be strike off and filed a petition under Section 34 of Arbitration Act.

6. On the side of the petitioner, it is stated that this award was a foreign award and Section 48(1)(e) of the Arbitration and Conciliation Act, 1996 is not applicable and the learned Principal District Judge, Trichy has erred in taking the arbitration O.P. On file.

7. It is stated that the petitioner has filed an execution petition in E.P. No. 78 of 2015 before the Delhi High Court for enforcement and for execution of the award and the Delhi High Court has declined to accept the above contention of the respondent under Arbitration and Conciliatio

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