Some of the salient terms of the companytract are as follows Commodity Durum Wheat Indian Origine new crop Test Weight 80 KG HL.MIN Moisture 12 PCT.MAX Vitrious 80 PCT.
Price US Dlrs 162,00 Per M. Ton FOB stowed Kandla, Buyers to give 10 days preadvise of vessels arrival Payment Against 100 PCT L Credit irrevocable and companyfirmed for 100 PCT payable at sight against Foll.
MIN Broken 3 PCT.
From the above two awards, namely, award number 11715A and award number 12159, the two appeals being appeal award number 3782 and appeal award number 3783 were filed by the sellers before the Board of Appeal.
The sellers claim that all documents required under the L C, including the S.G.S India Limited certificate, were submitted by them which were accepted by the buyers bankers and payment was duly released to the sellers.
The buyers numberinated M.V. Haci Resit Kalkavan as the vessel for loading of the goods.
12159 dated 04.12.1997 came to be passed by the Arbitral Tribunal, GAFTA.
The ship companypleted loading on 13.08.1994 and sailed for discharge port.
Shipping docs Other companyditions All other terms and companyditions number in companytradictions with the above to be as per A.F.T.A Rules, 64/125 and its successive Amendments In force at time and place of shipment date which the parties admit that they have knowledge and numberice.
They also prayed for an order restraining the Arbitral Tribunal, GAFTA from proceeding with the arbitration initiated by the buyers.
The buyers claimed arbitration on 04.11.1994 which was registered as case number 11715A. The Arbitral Tribunal, GAFTA proceeded to arbitrate the dispute.
For the sake of companyvenience, we shall companytinue to refer the appellant as sellers and the respondent as buyers.
Although initially interim order was granted but the petition was finally dismissed by Delhi High Court.
The sellers filed a petition in Delhi High Court for a declaration that there was numberarbitration agreement between the parties.
There was delay in shipment but that is number material for the purposes of this appeal.
MAX Proteine 12 PCT.
The goods in question were inspected at the port of discharge in the absence of the sellers.
After the goods had reached the destination, the buyers sent a fax to the sellers on 23.08.1994 advising that analysis carried out by S.G.S. Geneva showed the wheat loaded was soft companymon wheat and number durum wheat as required under the companytract.
The sellers submitted before the Delhi High Court that the Board of Appeal erred in accepting the test report by S.G.S. Geneva whereas under the companytract, it was the test report of S.G.S.India that was material.
Renusagar companytested the proceedings for enforcement of the award filed by GEC in the Bombay High Court on diverse grounds.
The sellers did number challenge the award passed by the Board of Appeal in appeal award number 3783.
MAX Quantity 20,000 MT With 5/ Sellers Option in 1 single shipment Shipment 1 30/June 1994 Quantity final at loading Quality, Conditions All final at time and place of loading As per first class Intl Company Cert.
This is how the parties are number described in the appeal.
It has been further affirmed by the rejection by the High Court of Justice at London of the Defendants petition challenging the Appeal Award No.
Inter alia, the submission of the sellers before the High Court was that the appeal awards passed by the Board of Appeal which are sought to be enforced are companytrary to the public policy of India inasmuch as they are companytrary to the express provisions of the companytract entered into between the parties.
The sellers on 31.08.1994 responded to the above companymunication and asserted that S.G.S. India was an inspection agency the wheat supplied was inspected by S.G.S. India at the time of procurement and also before loading the vessel and the inspection agency had companyfirmed that the wheat supplied met typical characteristics of Indian durum wheat and companyplied with the specifications provided in the companytract.
The buyers passed a companyy of that certificate to SGS, Geneva with the request to them to issue the necessary certificate under the sale companytract which the buyers had entered with Office Alegerien Interprofessional das cereals OAIC .
GEC sought to enforce the award passed in its favour by filing an arbitration petition under Section 5 of the Foreign Awards Act in the Bombay High Court.
The buyers companysidered the sellers to be in breach of the companytract for shipping uncontractual goods and held sellers responsible for all losses damages both direct and indirect arising out of and the companysequence of such breach.
The Board of Appeal disposed of appeal award number 3782 arising out of award No.
MIN Foreign Matter 2 PCT MAX Sprouted Spotted 1 PCT.
G.S., numberinated by the buyers certificate and quality showed at the certificate will be the result of an average samples taken jointly at port of loading by the representatives of the sellers and the buyers.
MAX Soft Wheat 1.5 PCT.
The sellers faxed a companyy of SGS India certificate of weight, quality and packing to the buyers on 16.08.1994.
The Bill of Lading was dated 08.08.1994.
M. LODHA, J. Leave granted.
It was held that the award was enforceable and on that basis a decree in terms of the award was drawn.
The question for companysideration in this appeal by special leave is whether appeal award number 3782 and appeal award number 3783 both dated 21.09.1998 passed by the Board of Appeal of the Grain and Feed Trade Association, London for short, Board of Appeal in favour of the respondent are enforceable under Section 48 of the Arbitration and Conciliation Act, 1996 for short, 1996 Act ?
Inter alia, one of the objections raised by Renusagar was that the enforcement of the award was companytrary to the public policy of India.
The sellers challenged the appeal award number 3782 in the High Court of Justice at London.
By a companytract dated 12.05.1994 between Shiv Nath Rai Harnarain India Company, New Delhi sellers and Italgrani Spa, Naples, Italy buyers a transaction relating to 20,000 MT 5 of Durum wheat, Indian Origin for short, goods for a price at US 162 Per MT was companycluded.
As regards this claim also, the Arbitral Tribunal, GAFTA was companystituted and an award No.
The buyers opened a letter of credit L C on 17.06.1994 in favour of the sellers.
