ArcelorMittal Nippon Steel India Ltd (AM/NS) on Monday approached the Gujarat high court against a Surat court’s order rejecting its request to transfer proceedings over dispute arising out of Cargo Handling Agreement (CHA) and non-payment with Essar Bulk Terminal Ltd (EBTL) to an arbitration tribunal constituted by the high court.
The dispute arose with regard to an agreement that took place in February 2011. The company initiated arbitration proceedings including issuance of notice in 2020. It approached a court in Surat. While the case was pending in Surat court, both the companies agreed for an arbitration tribunal in July 2021.
On July 17, a commercial court in Surat rejected AM/NS’s application to shift the proceedings to the tribunal, which the HC constituted on July 9. The court dismissed the application. It termed the application misconceived.
The application for transfer of the proceedings to the tribunal was objected by EBTL and it insisted that the court should pronounce its verdict, though the tribunal consisting three retired Supreme Court judges was formed with mutual understanding. While rejecting AM/NS’s application, the Surat court deferred its judgment for 10 days saying that an issue of interpretation of law was involved in the case and the parties can appeal in a higher forum.
The bench of Justice R M Chhaya and Justice Nirzar Desai heard the issue for some time and posted further hearing on August 2 saying that there is a substantial question of law involved in the case and it requires an elaborate hearing.
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