Court affirmed enforceability of foreign arbitral award despite objections on notice, establishing party's responsibility to engage in proceedings despite received communications.

ORDER :

N.ANAND VENKATESH, J.

This petition has been filed under Sections 47 to 49 of the Arbitration and Conciliation Act, 1996 (in short “the Act”) for declaring that the Arbitral Award dated 07.02.2025 read with the Arbitral Award on costs dated 13.03.2025, passed by the Arbitral Tribunal, is enforceable in accordance with to 49 of the Act and for other consequential reliefs.

2.Heard both sides and perused the materials available on record.

3.The brief facts of the case are:

3.1.On 24.01.2024, the petitioner and the respondent entered into a Sales Agreement for very low sulphur fuel oil and low sulphur marine gas oil, which can be collectively called as bunkers. The petitioner addressed a sales confirmation by e-mail to the respondent contending inter alia, the details of the vessel to which the aforesaid bunkers were to be supplied, the place of supply, the manner of supply, the date of supply and the cost of the bunkers and supplies thereof.

3.2.As per the agreement, the governing law and arbitration clauses were contained in the sales confirmation e-mail. It also incorporated the general terms and conditions of sale.

3.3.The sales confirmation was confirmed by the respondent by e-mail and the petitioner arranged for delivery of the bunkers to the respondent on26.01.2024.

3.4.On 30.01.2024, the petitioner raised an invoice to the respondent to a total amount of USD 513,362.20, which payment was falling due on 09.02.2024. The respondent by way of acknowledging the liability, made a payment of USD 300,000.

3.5.The balance amount was delayed and hence, a demand notice dated 13.02.2024, came to be issued to the respondent. On 14.05.2024, the petitioner invoked arbitration and appointed their nominee and requested the respondent to appoint their nominee.

3.6.The respondent, in spite of service of notice, did not appoint their arbitrator within the time frame fixed under the Arbitration Rules of the German Maritime Arbitration Association (GMAA) and hence, the Board of GMAA appointed the second arbitrator on behalf of the respondent and it was informed to the respondent. On 31.07.2024, the Arbitral Tribunal informed both the parties about its constitution and requested the petitioner to file its statement of claim. Accordingly, on 16.08.2024, the petitioner filed its statement of claim and the respondent was requested to file statement of defence by 31.10.2024. The respondent did not file any statement of defence.

3.7.On 22.11.2024, the Tribunal set the hearing for 23.12.2024, with a request for depositing the Tribunal’s fees by both parties. The information in this regard was also received by the respondent on 28.11.2024.

3.8.On 23.12.2024, the respondent did not attend the hearing and therefore, oral hearing was conducted on that day as scheduled. The parties were provided an opportunity to provide further submissions by 02.01.2025 and once again, the respondent failed to make any further submissions.

3.9.In view of the above, the Arbitral Tribunal, on considering the claim made by the petitioner and the materials that were placed before the Tribunal, passed the Foreign Award dated 07.02.2025. Further, on 13.03.2025, the Tribunal published the Costs Award.

3.10.After the Foreign Award was passed, the demand notice dated 14.03.2025, was issued to the respondent through e-mail, calling upon the respondent to pay the award amount. Even though e-mail was received, the respondent did not make the payment and hence, the present petition has been filed for declaring the Arbitral Award as enforceable and for other consequential reliefs against the respondent.

4.Prior to the filing of this petition, O.A.Nos.598 and 599 of 2025 were filed under Section 9 of the Act, seeking for certain interim reliefs. Notice was issued in tho