[2025] EWHC 2126 (Comm)

The Award given by Mr Martin-Clark on 9 July 2024 found that the Respondent, as the disponent owners of the MV “Bharadwaj” (the “Vessel”), time-trip chartered the Vessel to Charterers under a fixture note and amended New York Produce Exchange time charter 1946 (“NYPE 1946”) form, both dated 5 July 2023 (the “Charterparty”). He found the Charterparty contained a London-seated arbitration governed by English law. He found the Charterparty was partially performed, but that the Vessel was subsequently withdrawn on 22 September 2023 due to Charterers’ non-payment of hire. At the time of withdrawal, Charterers had accrued a liability to Owners, predominantly in respect of hire and bunkers, of USD 304,912.75.

Owners commenced arbitration against Charterers on 6 November 2023, and appointed Mr Martin-Clark as the Tribunal’s sole arbitrator. Charterers served an “interim response” on Owners, and sought and received an extension of time in which to file submissions, but ultimately did not do so. In their interim response (the “Interim Response”), Charterers alleged the Charterparty had been procured by fraud between Sashank Puria (one of two of Charterers’ directors) and Owners, and was therefore void. The Tribunal subsequently issued a peremptory order that it would treat the Interim Response as the defence in the arbitration if no further defence was received.

Owners entered a reply dealing with the various arguments put forward in the Interim Response. In particular, they said that (a) there was no fraud by Owners, nor any basis on which to allege it; (b) Mr Puria at all times had actual authority, alternatively apparent authority, to enter into the Charterparty (being just one of two directors of Charterers); and (c) in any event, the Charterparty had been affirmed by Charterers’ conduct (including people other than Mr Puria) and unambiguous commitments to Owners to perform the Charterparty. The Tribunal proceeded, treating the Interim Response as Charterers’ defence. It reviewed Charterers’ allegations and accepted Owners’ arguments, including as to affirmation. On 9 July 2024, the Tribunal made an award of USD 295,508.13.

Charterers’ position is that they did not take part in the arbitration proceedings, and that Owners’ argument that the Tribunal was entitled to treat the Interim Response and surrounding correspondence as taking part in the proceedings is wrong.