Bombay HC Clarifies Limits of Section 9 in Enforcement of Foreign Award of Singapore Maritime Arbitration
Section 9 Petition for Enforcement of Foreign Award of Singapore Chamber of Maritime Arbitration
Singapore Chamber of Maritime Arbitration – Arbitration Rules
Section 9 petition for deposit of the arbitral award sum and to restrain the respondents from selling transferring, leasing mortgaging or encumbering the vessel for securing the award.
On 27.6.2022, the petitioner had sub-time charter contract of the vessel with the respondent. Clause 37(c) provided for arbitration in Singapore under Singapore Arbitration Act as per the Arbitration Rules of Singapore Chamber of Maritime Arbitration.
On 29.9.2022 in an incident of collision of vessel with Floating Production Storage and Offloading Platform, the vessel was damaged and rendered inoperable.
On 31.10.2024, the first arbitral award was passed rejecting various counter claims of the respondent.
On 22.6.2022, the second partial award in favour of the petitioner for USD 11,079,802,88/- and contractual interest was passed.
The respondent did not comply with the second partial award. Therefore, section 9 petition was filed only against respondent no.1.
However, it was informed at the time of hearing that the vessel was sold by the respondent no.1. The High Court directed the respondent no.1 to file affidavit of its assets.
The issue of permissibility to make interim measures in India under Section 9 of the Arbitration Act in the light of introduction of Proviso to Section 2(2) of the Act in relation to an award made in a foreign seated arbitration is no longer res integra and is covered by Division Bench judgment of this Court in Heligo Charters Pvt. Ltd. Vs,Aircon Feibars FZE (2018 SCC OnLine Bom 1388)
The remedy under Section 9 is not a standalone remedy where the award-creditor has no intention of taking any steps for enforcement of the award and seeks to recover the awarded amount indirectly by seeking interim measures under Section 9 of the Arbitration Act.
Transaction of sale of the vessel and effecting transfer of registration of the vessel are different concepts. Section 43 of the Merchants Shipping Act provides for Registry of transfer by making entry of instrument of transfer in the register book. Merely because such entry in the register in the name of Respondent No.2 -transferee is yet to occur, it is difficult to hold, particularly in this limited inquiry, that the transaction of sale itself is sham or bogus.
Section 42(2)(2A) of the Merchant Shipping Act.
Judgment dated 21.1.2026 of the High Court of Bombay in Commercial Arbitration Petition No.727 of 2025 of TELEFORD MARINE DMCC Vs. BHAMBHANI SHIPPING LIMITED
