Nanjing Tianshun Shipbuilding Co Ltd v Orchard Tankers PTE Ltd

Nanjing Tianshun Shipbuilding Co Ltd v Orchard Tankers PTE Ltd

Failure by the sellers to commence arbitration within 30 days of the buyer's cancellation, as required by the contract, bars the right to dispute the cancellation. The arbitral tribunal's jurisdiction is not ousted by the sellers' late reference, and the application under section 67 and for leave to appeal under section 69 of the Arbitration Act 1996 is refused.

Parties
First Claimant: Nanjing Tianshun Shipbuilding Co Ltd; Second Claimant: Jiangsu Skyrun International Group Co Ltd; Defendant: Orchard Tankers PTE Ltd
Jurisdiction
England and Wales
Judgment Date
11 February 2011
Procedural Posture
Commercial Arbitration Challenge / Judgment on Application to Challenge Arbitral Tribunal Jurisdiction and for Leave to Appeal
Outcome
Application dismissed
Legal Topics
Time Bar Clauses, Jurisdiction of Arbitral Tribunal, Interpretation of Shipbuilding Contracts, Refund Guarantees
Arbitration Commercial Law Contract Law Time Bar Clauses Jurisdiction of Arbitral Tribunal Interpretation of Shipbuilding Contracts Refund Guarantees

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Parties

Nanjing Tianshun Shipbuilding Co Ltd

First Claimant

Jiangsu Skyrun International Group Co Ltd

Second Claimant

Orchard Tankers PTE Ltd

Defendant

Procedural Posture

Commercial Arbitration Challenge / Judgment on Application to Challenge Arbitral Tribunal Jurisdiction and for Leave to Appeal

Legal Issues

  1. 1 Whether failure to commence arbitration within 30 days bars the seller's right to dispute contract termination
  2. 2 Whether the arbitral tribunal has jurisdiction under section 67 of the Arbitration Act 1996
  3. 3 Whether leave to appeal under section 69 of the Arbitration Act should be granted

Ratio Decidendi

Failure by the sellers to commence arbitration within 30 days of the buyer's cancellation, as required by the contract, bars the right to dispute the cancellation. The arbitral tribunal's jurisdiction is not ousted by the sellers' late reference, and the application under section 67 and for leave to appeal under section 69 of the Arbitration Act 1996 is refused.

Court Disposition

Application dismissed

Orders

  • Application under section 67 of the Arbitration Act 1996 is refused
  • Leave to appeal under section 69 of the Arbitration Act 1996 is refused