Noble Chartering Inc v. Steel Authority of India Ltd

NAVIN CHAWLA, J FEBRUARY 28, 2019/rv/vp

Page 1 * IN THE HIGH COURT OF DELHI AT NEW DELHI Reserved on: 04.12.2018 Date of Decision :28.02.2019 + O.M.P. (COMM) 196/2018 & I.A. Nos.6150/2018, 9997-98/2018 NOBLE CHARTERING INC ..... Petitioner Through: Mr.V.K. Ramabhadran, Sr. Adv. with Mr.Jayesh Ashar, Mr.Bomi Patel, Mr.Dhaval Mehrotra and Mr.Sudhanshu Sikka, Advs. versus STEEL AUTHORITY OF INDIA LTD. ..... Respondent Through: Mr.Sandeep Sethi, Sr. Adv. with Mr.Santosh Kumar, Mr.Manav Gill and Ms.Bhabna Das, Advs. CORAM: HON'BLE MR. JUSTICE NAVIN CHAWLA 1. The present petition has been filed by the petitioner challenging the Arbitral Award dated 27.12.2017 passed by the Sole Arbitrator in Case No. 2 adjudicating the disputes that had arisen between the parties in relation to the Contract of Affreightment dated 27.07.2010 executed between the parties. 2. The Sole Arbitrator by way of the Impugned Award, while rejecting the claims filed by the petitioner, has allowed the Counter Claim of the respondent for a sum of USD 862,500.00 with interest at the rate of 3% from the date of the payment of the freight by the respondent for the two shipments where the petitioner was found in default and till the date of the Award. The Sole Arbitrator has further directed that incase the petitioner fails to make the payment of the awarded amount within a Page 2 period of three months from the date of the Award, the petitioner shall pay interest at the rate of 9% per annum on the amount awarded together with interest. 3. As stated above, the disputes between the parties arose in relation to the Contract for Affreightment dated 27.07.2010 (hereinafter referred to as the "COA"). In terms of Clause 1(a) of the COA, the respondent, as charterers, had agreed to ship 10,00,000 MT 5% more or less at Charterers" option of coking coal. The shipment period was agreed as two years from October, 2010 to September 2012, extendable by three months at charterer"s option which was to be declared latest by 30.06.2012. The shipment was to be evenly spread throughout the period on pro-rata basis. 4. The respondent had declared a total of fourteen Stems / shipments to the petitioner, the details whereof are mentioned hereinbelow:- SI. Vessel Name / Not nominated by Noble Laydays Quantity Declared Sailing Date 1. AVOCA Substitute / OF MILAGRO 20-30 Oct 2010 75,000 MT 26 Oct 2010 2. MAHATIS S/O AOM MILENA 20-30 Dec 2010 75,000 MT Dec 2010 3. S NICOLE S/O 18-28 Feb 75,000 MT Feb Page 3 GH FORTUNE 2011 2011 4. MEDI SENTOSA S/O BELMONTE 10-20 April 2011 75,000 MT 17 Apr 2011 5. AMALIA S/O BELMONTE 10-20 June 2011 75,000 MT 08 Jul 2011 6. KM HONG KONG S/O HONG DIA 20-30 Oct 2011 75,000 MT 24 Oct 2011 7. Not Nominate by Claimant 10-20 Nov 2011 75,000 MT No sailing 8. Not Nominated by Claimant 5-14 Dec 2011 75,000 MT No sailing 9. Not Nominated by Claimant 1-10 Feb 2012 75,000 MT No sailing 10. Not Nominated by Claimant 1-10 Mar 2012 75,000 MT No sailing 11. DIAMANTINA 30-9 May 2012 75,000 MT 2 May 2012 12. KEA S/O PINNACLE BLISS 15-25 June 2012 75,000 MT 24 Jun 2012 13. BELLEMAR S/O HONG SHENG 15-25 July 2012 75,000 MT 29 Jul 2012 Page 4 14. NAVIOS MARCO POLO S/O KEA 10-20 Sep 2012 75,000 MT 20 Sep 2012 5. The above table would show that six Stems had been declared by the respondent between the periods October 2010 to October 2011. There is no dispute between the parties in relation thereto. Between the periods November, 2011 to March, 2012 the respondent declared another four Stems, however, the same were not performed by the petitioner. From May, 2012 to September, 2012 the respondent declared another four Stems that were also duly performed by the petitioner. 6. By the e-mail dated 25.09.2012, the respondent sought to terminate the COA relying upon the "Default Clause", that is, Clause 62 of the COA. This e-mail is of some relevance to the disputes raised between the parties and is therefore reproduced hereinbelow:- "From: Jasmina SAIL Sent: Tuesday, September 25, 2012 5:31 PM To: Sh. T.R Krishnan Cc: CCC Trans