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.