Demurrage Denied – Bombay HC Upholds Limitation Bar in Charterparty Dispute
The demurrage claim charged and suffered by NITC on BPCL was in respect of a time charterparty relating to MT Sima Vessel chartered on 5.7.2010.
The vessel was loaded in South Korea for Vadinar Gujarat and at Mumbai Port.
The contracted laytime was 96 hours. However, there was excess time wait at Mumbai Port on 7.8.2010 owing to a collision between two vessels.
The total laytime was 329 hours and the time on demurrage was computed at 233 hours and 35 minutes.
On 4.2.2011 the BPCL repudiated the claim on account of force majeure clause.
On 18.6.2014, the NTPC invoked arbitration by filing statement of claim before the Indian Council of Arbitration.
The Arbitral Tribunal held that the claim was time barred since the original invoice dated 9.9.2010 was disputed & denied on 29.9.2010.
Judgment dated 8.10.2025 (uploaded on 27.10.2025) of the High Court of Bombay in Commercial Arbitration Petition No.1050 of 2018 of National Iranian Tanker Company Vs. Bharat Petroleum Corporation Ltd
