MARCO SHIPPING AGENCY Vs. R PIYARELAL INTERNATIONAL

JUDGEMENT

(1.) BY a chartered party dated January 29, 1996 Marco Shipping Agency the appellant abovcnamed chartered a motor vessel "harvest" to the respondent for carrying rice from India to Bangladesh. The charter party contained an arbitration clause. Under the arbitration clause each party in case of a dispute would nominate their representative as Arbitrator and the Arbitrators would appoint an Umpire whose decision would be final and binding upon the parties. It was agreed that the arbitration would be held at London. Disputes and differences arose by and between the parties. Marco Shipping Agency appointed their nominee, Mr. Patrick O'donovan as Arbitrator and asked the respondent to appoint their nominee. Respondent appointed Mr. Zahid Vohra, as their nominee at a belated stage. By that time arbitration already commenced. The Arbitrator, Mr. Patrick O'donovan so nominated by the appellant entered upon reference as sole Arbitrator as the respondent failed to appoint their nominee in time. Respondent's nominee after perusing the arbitration clause and the agreement also observed that since the sole arbitrator started functioning he should continue as sole Arbitrator. The respondent appeared before the sole Arbitrator filed their counter statement. The hearing was concluded on April 20, 1997. Before the Arbitrator published his award the respondent had approached the learned Single Judge by filing a civil suit in this Court as against the appellant and obtained an ex parte order of injunction restraining the appellant from giving any effect to the letter dated August 6, 1996. The contents of the said letter is quoted below:

(2.) THE order of the learned Single Judge was communicated to the arbitrator vide letter dated May 24, 1997. The relevant extract of the letter is quoted below:

(3.) M/s Middleton Potts, solicitors for the appellant then wrote a letter to the Arbitrator vide fax message dated May 23, 1997 to the following effect: