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Essar shipping files application in Delhi High Court for enforcement of arbitration award won by it

Team SoOLEGAL 5 Apr 2018 5:55pm

Essar shipping files application in Delhi High Court for enforcement of arbitration award won by it

New Delhi: Heavily indebted Essar shipping citing a recent Supreme Court order by which it allowed retrospectively enforcement of arbitration awards, has moved Delhi High Court asking for direction from the court for enforcement of arbitration award of Rs 260 crore it won against SAIL in 2016.

The company said that it intends to use this money to pay LIC of India which had lent loans to it. The court has fixed May 10 for hearing.

The dispute between Essar shipping and SAIL relates to the issue of supply of inferior quality of coal to SAIL by Essar shipping. Essar Shipping had signed a contract of afreightment with SAIL for supply of coal in 2013. . Later, some disagreement happened which led to pre mature termination of the contract. This was challenged by Essar shipping by filing for damages worth Rs 260 crore with arbitrator. Essar shipping won this case but the award has still not been enforced. The recent Supreme Court ruling by which it had said that the amendment to the Arbitration and Conciliation Act 1996 shall have retrospective effect made Essar shipping file an application with High Court.

“With the latest Supreme Court judgment, it is now clear that even if any arbitration process began before October 23, 2015, under the pre-amended act, the award that is challenged post amendment shall benefit from the Amended Act,” said Waseem Pangarkar, a partner at Mumbai-based law firm MZM Legal that deals in such cases.

Interesting twist in the case is that SAIL which had filed appeal against arbitrator award in the Delhi High Court, their case is having a final hearing on May 10.

Tagged: Essar Shipping   SAIL   SC   LIC  
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