SHIPPING CORPORATION OF INDIA LTD. versus MARE SHIPPING INC.

SHIPPING CORPORATION OF INDIA LTD. versus MARE SHIPPING INC.

The vessel fulfilled its contractual obligation by arriving at customary anchorage at Vadinar and tendering Notice of Readiness, thereby starting lay time for demurrage calculation. Responsibility for the inability to safely moor at SBM and costs associated with diversion to Mumbai, including demurrage, lay with the Charterers who nominated the SBM despite knowledge of the vessel's mooring equipment. The parties' contractual agreements (including Addendum and Charter Party clauses) allocated such risks and obligations to Charterers.

Parties
Petitioner Charterer: Shipping Corporation of India Ltd.; Respondent Owner: Mare Shipping Inc.
Jurisdiction
India
Judgment Date
13 July 2011
Procedural Posture
Special Leave Petition (civil) / Supreme Court Judgment on SLP Against Division Bench of Bombay High Court Affirming Arbitral Award
Outcome
Special Leave Petition dismissed; arbitral award upheld
Legal Topics
Demurrage, Charter Party, Arbitration Under Arbitration & Conciliation Act, 1996, Notice of Readiness, Lay Time, Obligations Under Charter Party
Shipping Arbitration Demurrage Charter Party Arbitration Under Arbitration & Conciliation Act, 1996 Notice of Readiness Lay Time Obligations Under Charter Party

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Parties

Shipping Corporation of India Ltd.

Petitioner Charterer

Mare Shipping Inc.

Respondent Owner

Procedural Posture

Special Leave Petition (civil) / Supreme Court Judgment on SLP Against Division Bench of Bombay High Court Affirming Arbitral Award

Legal Issues

  1. 1 Whether the vessel was an 'arrived ship' at Vadinar port for the purpose of tendering Notice of Readiness under the Charter Party and thus entitled to commence lay time for demurrage calculation;
  2. 2 Whether the Charterers were liable for demurrage due to inability to moor at SBM based on the facts and contract terms;
  3. 3 Whether responsibility for diversion and associated costs lay with Owners or Charterers under the Charter Party and Addendum

Ratio Decidendi

The vessel fulfilled its contractual obligation by arriving at customary anchorage at Vadinar and tendering Notice of Readiness, thereby starting lay time for demurrage calculation. Responsibility for the inability to safely moor at SBM and costs associated with diversion to Mumbai, including demurrage, lay with the Charterers who nominated the SBM despite knowledge of the vessel's mooring equipment. The parties' contractual agreements (including Addendum and Charter Party clauses) allocated such risks and obligations to Charterers.

Court Disposition

Special Leave Petition dismissed; arbitral award upheld

Orders

  • No interference with the award of the Arbitral Tribunal or the High Court judgments.
  • Parties to bear their own costs for these proceedings.