- (1.) This petition under Sections 11(5) and (9) of the Arbitration and Conciliation Act, 1996 read with paragraphs 2 and 3 of the appointment of the Arbitrators by the Chief Justice of India Scheme, 1996 seeks appointment of an independent and impartial person as an Arbitrator.
(2.) The applicant is a Company incorporated in Oman having Registration No.1550438 and having its registered office at Sohar Industrial Estate, PO Box 40, PC 327, Sohar, Sultanate of Oman. The respondent is an Indian Company incorporated under the provisions of the Companies Act, 1956 and having its registered office at Shanti Heights, 32/2, South Tukoganj, 2nd Floor, Above Cosmos Bank, Indore 452001 (Madhya Pradesh).
(3.) The applicant entered into a Sale Purchase Contract dated 18th June, 2008 bearing No.MIPSL/BILLET/EXP/08-09/003 (hereinafter referred to as the 'Contract') with the respondent for supply of 2000 metric ton Prime Alloy Steel Billets of specific chemical composition and physical specifications more particularly described in Article 3 of the Contract. In accordance with the terms and conditions of the Contract, the applicant had opened a Letter of Credit bearing No. DC BAF 080939 through HSBC Bank Middle East Limited Muscat. The Letter of Credit was encashed by the respondent on 21st August, 2008 through its bankers, State Bank of Travancore. On 23rd August, 2008, the applicant took delivery of first shipment of 243.2 Metric Ton of Billets at Sohar Port. Upon unloading the containers, the applicant noticed that far from complying with the specifications mentioned in the Contract, the Billets supplied by the respondents were of a very poor quality. The Billets had cracks which were visible to naked eyes. Even then, to confirm the defects, the applicant chose some random Billets and sent the same to two independent laboratories for testing. Both the laboratories, after conducting the requisite tests, confirmed that the Billets supplied by the respondent did not comply with the specifications mentioned in the Contract. The applicant sent an e-mail dated 31st August, 2008, informed the respondent about the non-conformity and made it clear that the same were not acceptable. On the same day, i.e., 31st August, 2008, another e-mail was sent setting out in detail the defects in the Billets. It was also mentioned that the applicant had done random cross verifications on chemical composition, and the respondents will be intimated after getting results. It is further stated that the applicant has stopped de-stuffing of containers, the respondent was requested to kindly arrange to take back the rejected goods urgently and arrange for the refund of the amount paid at the earliest. The applicant informed the respondent that all unloading, loading and demurrage at Port and with the shipping company will be to your account.;