Andhra Pradesh High Court - Amravati
Tata Nyk Shipping Pte. Ltd. vs Rashtriya Ispat Nigam Limited. Rinl on 26 September, 2022
HIGH COURT OF ANDHRA PRADESH AT AMARAVATHI
MAIN CASE No. ICOMA OA.No.4 of 2022
PROCEEDING SHEET
Sl.No DATE ORDER Office Note
26.09.2022 RRR, J
The petitioner, which is involved in the
business of providing carriage of cargo services for
dry bulk commodities through sailing vessels, had
entered into a Voyage Charterparty agreement with
the 1st respondent on 12.05.2022 for carriage of
82,203 metric ton of coal from Queensland, Australia to Gangavaram Port or Visakhapatnam Port at the option of the 1st respondent. The said voyage Charterparty dated 12.05.2022 contains a clause of referring the disputes arising out of the said contract to arbitration.
The 1st respondent, in terms of the voyage Charterparty, was to pay freight at the rate of 27.70 USD per metric ton. This would translate into a total freight amount of Rs.2,231,482.64 USD. The 1st respondent was to pay 90% of the said freight charges 1,919,632.94 USD within seven working days after the vessel and the cargo arrive safely at the port.
As the 1st respondent was not clearing the said freight dues, the petitioner addressed various communications, the 1st respondent including e-mail dated 29.08.2022. As there was no response to this 2 e-mail, the petitioner got a legal notice dated 12.09.2022 issued to the 1st respondent colling upon the 1st respondent to pay USD 1,919,632.94 along with interest at 12% p.a., on the unpaid amount failing which the petitioner would be taking necessary steps to recover the freight costs apart from taking steps fro attachment of property.
The petitioner has now approached this Court with the present arbitration application under Section 9 of the Arbitration and Conciliation Act, 1966.
It is the case of the petitioner that the respondent, by its own action, has effectively admitted that it is unable to pay the petitioner.
Sri V.R.N. Prasanth, learned counsel for the petitioner would contend that there is every danger of the petitioner not being able to recover its money from the 1st respondent even in the event of a favourable award being passed under the arbitral proceedings, which the petitioner intends to initiate at the earliest. He submits that the 2nd respondent is presently holding approximately 75,000 metric tons of coal belonging to the 1st respondent in its stockyards and / or will be shortly receiving the said coal, and unless attachment of this coal is given, there is every danger of the petitioner being unable to recover its money. He further submits that the 1st respondent would be shortly moving the entire coal 3 out of the said stockyards and unless this Court grants an order of attachment of the said coal, there is every danger of the petitioner losing a value security and its right to recover would be severely prejudiced.
In view of the non-payment of the dues of the petitioner, a prima facie case is made out by the petitioner for grant of attachment of the coal, belonging to the 1st respondent, which is stored / being discharged into the stockyards of the 2nd respondent.
Accordingly, there shall be an order of attachment of the coal belonging to the 1st respondent lying in the stockyards at the Gannavaram Port premises of the 2nd respondent.
The petitioner shall forthwith take out notice informing the 1st and 2nd respondents of the order passed by this Court and also serve a copy of all the papers filed before this Court on respondents 1 and 2 by registered post acknowledgement due and also by e-mail, and file a copy of the postal receipt by tomorrow.
Post on 29.09.2022.
_________ RRR, Js.