IMPORTANT POINT
The main legal point established in the judgment is the applicability of Section 9 of the Arbitration and Conciliation Act, 1996 to international commercial arbitration, and the court's authority to grant interim relief before the enforcement of foreign awards under Section 48.

ORDER :

This application is filed under Section 9 of the Arbitration and Conciliation Act, 1996 (for short ‘the Act’), seeking the following reliefs:

(a) An order directing the Respondent to secure the Petitioner’s claim by furnishing security in the form of a cash deposit or an unconditional Bank Guarantee of a notarized bank for a sum of USD 3,233,062.79 (United States Dollars Three Million, Two Hundred and Thirty-Three Thousand and Sixty Two and Seventy-Nine Cents Only) and GBP 18,708.34 (Eighteen Thousand Seven Hundred Eight Pounds and Thirty-Four pence).

(b) An order appointing a Court Receiver or Court Commissioner to take possession of the Respondent company’s assets that is equivalent to the awarded sum by the Sole Arbitrator and in the interim to direct the Respondent to not dissipate or deal with any of its assets.

(c) For awarding costs of the present proceedings and

(d) Pass such other Order or Orders as this Hon’ble Court may deem fit and proper in the facts and circumstances of the case.

2.1 The petitioner (owner) and the respondent (charterer) entered into a charterparty agreement evidenced by signed fixture note dated 26.08.2021 (herein after referred to as “the Charterparty") incorporating the terms of a charter relating to the vessel “M.V. Faith” by time charter document of 30.06.2020.

The charter party provided that it should be subject to English Law and for any disputes arising to be referred to arbitration in London. The Charterparty entered between the parties was for the shipment of Bagged Rice (24INX36INX26IN 5OKG BAGS) from Krishnapatnam, India to Cotonou (Benin) and Tema (Ghana) and the time period was for about 80 days without guarantee.

2.2. It is claimed by the petitioner that the Charterparty entered between the parties on a daily hire rate of USD 38,500 PDPR INCLOT (Per Day Pro Rata Including Overtime) was agreed and fixed under Clause 30 of the Charterparty. Clause 31 of the Charterparty provided that the first 45 days of hire was to be paid within five (5) banking days after delivery into the charter service and thereafter, hire was payable every fifteen (15) days in advance. The Charterparty provided for an arbitration clause at Clause 38 of the fixture Note. The parties, in furtherance to the arbitration clause, also incorporated the BIMCO Standard Dispute Resolution Clause which stood incorporated into the Charterparty

2.3. According the petitioner, the respondent delayed made payment of its first hire charges and subsequently made payment of the second hire. The respondent had since then failed to make payment of the outstanding hire in terms of the Charterparty. Thus, after the payment of the first and the second hire payment the respondents became obliged to make payment of hire of a net USD 556.593.75 each from 15.12.2021 on each 15 day anniversary thereafter. However, the respondent failed to make payment of hire in time with the Charterparty.

2.4. Due to the breach of the respondent for non-payment of the charter hire, the petitioner on 04.01.2022 invoked arbitration against the respondent and appointed Mr. Bruce Harris as petitioner's arbitrator in terms of the arbitration clause as set out under Clause 38 of the Charterparty and the BIMCO Standard Dispute Resolution Clause incorporated into the Charterparty. The petitioner, thereafter, called upon the respondent to appoint its arbitrator within fourteen (14) days. It was clearly stated by the petitioner in its notice invoking arbitration that in case the respondent fails to appoint an arbitrator within fourteen (14 days), Mr. Bruce Harris will be appointed as a Sole Arbitrator as per the arbitration clause in the Charterparty. The respondent failed to appoint/nominate an arbitrator within fourteen (14) days and accordingly, the Petitioner that Mr. Bruce Harris has been appointed as the Sole Arbitrator as per the arbitration clause provided under the Charterparty.

2.5. It is stated that in the meantime while the hire payment became outstanding