Steel Authority of India Ltd Vs Uniper Global Commodities (Delhi High Court)
Court’s powers under section 27 of Arbitration Act are not adjudicatory in nature and the arbitral tribunal must adjudicate the relevancy and materiality of the evidence
Introduction: In a notable judgment, the Delhi High Court addressed the application of Section 27 of the Arbitration and Conciliation Act 1996, focusing on the court’s assistance in evidence collection during arbitration proceedings. This case, involving Steel Authority of India Ltd and Uniper Global Commodities, revolved around a charter party agreement dispute and the subsequent arbitration process. The crux of the matter was the relevancy and materiality of the evidence proposed by the petitioner, which led to a detailed examination of the arbitral tribunal’s and the court’s roles under the Arbitration Act.
“In this case Hon’ble Delhi High Court dismissed an application under section 27 of the Arbitration act holding that the Court’s powers under section 27 are not adjudicatory in nature and the arbitral tribunal must adjudicate the relevancy and materiality of the evidence.”
Facts of the Case:
The Petitioner and respondent entered into a charter party agreement wherein the Petitioner had chartered a vessel from the respondent for the carriage of the Petitioner’s cargo from the port of DTA Terminal New Port News on the East Coast of the United States of America to the destination ports of Vizag (Visakhapatnam) and Haldia in India.
Disputes having arisen between the parties, the respondent (the claimant in the arbitration) has made a reference to Arbitration under the Rules of the Indian Council of Arbitration, New Delhi, in accordance with the relevant terms of the subject Charter Party Agreement.
The respondent is seeking a monetary claim against the Petitioner for demurrage allegedly incurred by a vessel at Haldia Port, India, from May 7, 2019, to May 20, 2019. The Petitioner, in response, contested the claim of the respondent, arguing that the vessel had suffered infrastructure damages, specifically regarding a damaged pilot ladder on its starboard side. Consequently, river pilots from the Haldia Dock Complex refused to board the vessel until May 20, 2019, deeming it unfit for berthing.
The petition states that an official from the Kolkata Port Trust emailed the Petitioner on May 19, 2022, confirming that river pilots declined to board the vessel due to the non-functional combined pilot ladder on its starboard side, rendering the vessel unfit for boarding.
On account of the same, an application was filed by the Petitioner before the Arbitral Tribunal, seeking its approval for moving the Court seeking the Court’s assistance in taking evidence of the concerned officer of the Kolkata Port Trust who is an independent third-party witness, and pursuant to which the arbitral tribunal allowed the said application.
Issues
Whether the arbitral tribunal can a particular witness or material is relevant or simply an abuse of process, it is necessary to examine the pleadings of the parties and the material/evidence already available.
Laws Applied:
