Enforcement of A Foreign Award & Public Policy of India under Arbitration Act

National Agricultural Cooperative Marketing Federation of India v. Alimenta S.A. (Supreme Court); Civil Appeal No. 667 of 2012; 22/04/2020

FACTS

The parties in question i.e. the Appellant and the Respondent entered into a contract dated 12.01.1980 (“first agreement”) for supply of 5000 metric tons of India HPS groundnut (“the said goods”) at the rate of USD 765 PMT for the season 1979-1980.  The Contract was not a Free on Board contract but a CIF contract as per the terms of Federation of Oils, Seeds and Fats Association (“FOSFA”).

The Appellant was a canalizing agency for the Government of India for exports of the said goods. The Appellant therefore, required an express permission from the government while carrying forward any export quantity from the previous year to the coming year.

On 03.04.1980, the Appellant entered into another agreement for export of 4000 MT at the rate of USD 770 PMT (“second agreement”), the shipment period for which was August-September, 1980. This agreement is not the subject matter of dispute in this appeal.

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