PT Putrabali Adyamulia v Société Est Epices [2003] EWHC 3089 (Comm) (19 May 2003)

PT Putrabali Adyamulia v Société Est Epices [2003] EWHC 3089 (Comm) (19 May 2003)

A declaration of shipment under IGPA contract no. 5 is valid if made in the correct form and at the correct time, regardless of whether the ship is later found not to be a first class ship, unless the declaration itself expressly shows non-compliance. Buyers must object within the stipulated period or the declaration is deemed valid. The Board of Appeal was wrong to hold the declarations defective and buyers not in breach for non-payment; the awards must be set aside and damages assessed.

Citation
[2003] EWHC 3089 (Comm)
Parties
Applicant/seller: P. T. Putrabali Adyamulia; Respondent/buyer: Société Est Epices
Jurisdiction
England and Wales
Judgment Date
19 May 2003
Procedural Posture
Appeal From Arbitral Award (commercial Court) / Judgment on Appeal
Outcome
Appeals allowed; arbitral awards set aside; matters remitted to Board of Appeal for assessment of damages and determination of counterclaim.
Legal Topics
CIF and C&f Contracts, Declaration of Shipment, Validity of Shipping Documents, Conditions and Innominate Terms, Remission of Arbitral Awards
Commercial Law Arbitration International Trade CIF and C&f Contracts Declaration of Shipment Validity of Shipping Documents Conditions and Innominate Terms Remission of Arbitral Awards

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Parties

P. T. Putrabali Adyamulia

Applicant/seller

Société Est Epices

Respondent/buyer

Procedural Posture

Appeal From Arbitral Award (commercial Court) / Judgment on Appeal

Legal Issues

  1. 1 Whether a declaration of shipment is invalid if it does not specify the classification of the ship
  2. 2 Whether a declaration naming an unpowered barge is valid under IGPA contract no. 5
  3. 3 Whether buyers' failure to object within 3 days precludes them from treating the declaration as invalid

Ratio Decidendi

A declaration of shipment under IGPA contract no. 5 is valid if made in the correct form and at the correct time, regardless of whether the ship is later found not to be a first class ship, unless the declaration itself expressly shows non-compliance. Buyers must object within the stipulated period or the declaration is deemed valid. The Board of Appeal was wrong to hold the declarations defective and buyers not in breach for non-payment; the awards must be set aside and damages assessed.

Court Disposition

Appeals allowed; arbitral awards set aside; matters remitted to Board of Appeal for assessment of damages and determination of counterclaim.

Orders

  • Awards of the IGPA Board of Appeal set aside.
  • Appeals remitted to the Board of Appeal to assess damages due from buyers to sellers for non-payment of price.