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Informist, Wednesday, Dec. 18, 2024

 

NEW DELHI – The Supreme Court has issued a notice to Noble Chartering Inc. on a petition by Steel Authority of India Ltd against an order of the Delhi High Court to uphold an arbitral award favouring Noble Chartering. The high court placed the case for final hearing on Mar. 18.

 

In the meanwhile, 50% of the awarded amount, including interest, has to be deposited by the petitioner within a period of four weeks from its order, the court said. The amount may be withdrawn by the respondent, subject to furnishing of bank guarantee. 

 

In 2017, the arbitral tribunal had awarded a sum of $8.6 million along with interest at the rate of 3% per annum from the date of termination of the contract in 2013 till the date of award. It also gave future interest at the rate of 9% per annum on the awarded amount in the event that the same was not paid within three months from the date of the award. 

 

The case pertains to a contract of affreightment, entered into between Noble Chartering as owners and Steel Authority of India as charterers, for shipment of coking coal from ports in the US to India for a shipment period of three years from September 2008 to August 2011. After some disputes between the parties, they moved the arbitration tribunal in 2016. 

 

In 2019, a single judge of the Delhi High Court partially set aside the arbitral award and reduced the damages to be given to Noble Chartering. The single judge also allowed the objection raised by Steel Authority regarding the rate of interest on the awarded amount. Consequently, cross-appeals were filed by both parties before the division bench of the court. Steel Authority filed the plea to set aside the arbitral award, whereas Noble Chartering filed a petition seeking that the original arbitral award be upheld. In July, the division bench of the Delhi High Court upheld the original arbitral award, favouring Noble Chartering.

 

On Wednesday, shares of Steel Authority of India Ltd. ended 1.1% lower at INR 119.81 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Avishek Dutta

 

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