M/S. Sree Lekshmi Cashew Enterprises … vs M/S Barrow Lane And Ballard Ltd on 20 August, 2025

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Dated : 20th August, 2025

The plaintiff who filed an anti-international arbitration suit as OS 108 of

2024, before the Additional Sub Court, Kollam, is the appellant herein. (For the

purpose of convenience, the parties are hereafter referred to, as per their rank

before the trial court.).

2. FACTS OF THE CASE:- The plaintiff is a company incorporated

under the Indian Companies Act, having its registered office at Kollam. The 1 st

defendant is a Private Limited company, having registered office at London,

UK. The 2nd defendant is the authorized agent and broker of the 1st defendant,

acting on behalf of the 1 st defendant. The plaintiff company is engaged in the

business of cashew processing and exports. The 1 st defendant company is

engaged in the business of supplying various types of nuts to processors,

packers and wholesalers. The 2nd defendant claiming to be the authorized agent

of the 1st defendant, approached the plaintiff for the purchase of Indian

American Standard Current crop whole 320 cashew kernels, and a deal was

negotiated and confirmed by the 2nd defendant on behalf of the 1st defendant at

Kollam. Accordingly, on 10.04.2024, the 2 nd defendant on behalf of the 1st

defendant, had given a confirmation letter regarding the deal for sale of Indian

American Standard Current crop, whole 320 cashew kernel, one full container

2025:KER:62893

load containing about 700 cartons for price USD 2.86 per 1b with the shipment

period May 2024. The mode of payment was fixed by cash against the

document on presentation. On the same day, another deal was also confirmed

at Kollam, on same terms, with the shipment period June, 2024. In both the

deals, there was specific understanding to execute a proper contract, containing

all the details such as price, advance payment if any, disputes, redressal clauses

etc. But after issuing the confirmation letters (Ext.A2 and A3), no such contract

was executed between the parties. Since the entire transaction was held in

Kollam and the confirmation letter was also signed and delivered at Kollam, in

case of any dispute with regard to the above deal, the courts at Kollam alone

have jurisdiction. After the confirmation letter, the price of raw cashew nuts in

international markets skyrocketed, for no fault of the plaintiff. The raw cashew

nuts expected by the plaintiff from overseas were not delivered by the overseas

shipper because they had backed out from the same due to sudden and huge

price inflation. Therefore, the plaintiff was unable to fulfill the agreed terms in

the confirmation letter, due to a force majeure event. Since the confirmation

letter issued by the 2nd defendant was not signed by the plaintiff and no

payment was received by the plaintiff, it is only an offer and has not yet

evolved into an enforceable and binding contract between the parties. The

confirmation letter also lacks clarity concerning arbitration clause, including

the selection of arbitrators, mode of arbitration and other essential details.



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