UNION OF INDIA Vs. SCINDIA STEAM NAVIGATION CO. LTD
LAWS(BOM)-1972-10-23
HIGH COURT OF BOMBAY
Decided on October 12,1972

UNION OF INDIA Appellant
VERSUS
SCINDIA STEAM NAVIGATION CO. LTD Respondents

JUDGEMENT

NAIN,J. - (1.) DEFENDANTS No. 1 have taken out this Motion for stay of the suit under Section 34 of the Arbitration Act, 1940 (hereinafter referred to as 'the Arbitration Act'), to compel the plaintiffs to refer the suit disputes to arbitration as between the plaintiffs and defendants No. 1 pursuant to Clause 17 of the Charter Party dated November 6, 1970. Defendants No. 2 are not parties to the said Charter Party.
(2.) PLAINTIFFS No. 1 are the Union of India. Plaintiffs No. 2 are The Food Corporation of India and are a Government of India undertaking. Defendants No. 1 are the owners of a steam ship called s.s. Jal -jawahar. Defendants No. 2 are the Bombay Port Trust. On November 6, 1970 a Charter Party was entered into between plaintiffs No. 1 and defendants No. 1 whereby defendants No. 1 agreed to carry on board s.s. Jal -jawahar between November 15, 1970 and November 30, 1970, 3000 metric tonnes of Urea in bags from United States to ports in India. The said Charter Party contains the following arbitration clause: 17. Any dispute arising tinder this Charter Party shall be settled in accordance with the provisions of the Arbitration Act, 1940 in India, each party appointing an Arbitrator, and the two Arbitrators in the event of disagreement appointing an Umpire whose decision shall be final and binding upon both parties hereto. The Arbitrators shall be commercial men.
(3.) PURSUANT to the said Charter Party, plaintiffs No. 1 put on board s.s. Jal -jawahar 8350.06 metric tonnes of Urea in 167012 bags at New Orleans in United States on or about December 2, 1970. Out of the said quantity, a quantity of 162799 bags of Urea in sound condition was delivered to the plaintiffs. The plaintiffs also received 1623 bags of Urea in slack and torn condition, making an aggregate receipt of 164422 bags. There was a short delivery of 2590 bags.;


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