Arbitral Award – Marine Salvage contract – Claim for idle time charges – Challenge to the Award in Section 37 appeal is not maintainable
The appellant is engaged in marine salvage. The respondent is in the business of offshore logistics including dredging and is owner of dredging vessel.
On 7.11.2009, the salvage agreement was executed to salvage the dredging vessel on “no cure no pay” basis.
However, the respondent did not furnish security as required by the contract but made payment of Rs.40 lakhs.
On 1.12.2009, the appellant terminated the contract for not furnishing security and claimed idle time charges.
Thereafter, the respondent furnished the security and the appellant decided to re-commence salvage operations.
The appellant completed the salvage work as per the certificate dated 22.12.2009 and invoice for Rs.8,04,25,000/- was issued. The said amount was paid.
On 13.1.2010 the appellant claimed idle time charges for 17th November to 9th December 2009 vide invoice of Rs.7,72,10,000/-.
In the Admiralty Suit of the appellant, the dispute was referred to arbitration.
In all 13 issues were framed. By the Arbitral Award dated 18.4.2015, the claim and also counter claim were dismissed.
The appellant had challenged the said award in section 34 petition but it was dismissed.
This was challenged in section 37 appeal before the Division Bench.
HELD the entire challenge in section 37 appeal was to the award and not to the impugned order which is not open to the appeal court. Section 37 Court cannot make independent assessment of award. The appellant has failed to show that the impugned order is bad in law. Even otherwise, the Award is detailed and well-reasoned, the view taken by Arbitral Tribunal is certainly plausible view and within the four corners of the contract. Same is the case with the order of the learned Single Judge.
Judgment dated 30.11.2023 in Commercial Appeal No.555 of 2019 in Commercial Arbitration Petition No.13 of 2015 of Madgavkar Salvage Vs. Bergen Offshore Logistics Pvt Ltd.
