Beruflich Dokumente
Kultur Dokumente
Vs.
ANANYA MOHAPATRA
SAAVI DHADDHA
TABLE OF CONTENTS
INDEX OF ABBREVIATIONS
& And
¶ Paragraph
Art. Articles
Ltd. Limited
vs. Versus
Cited in ¶:31
The Bank of India The Bank of India Ltd. vs. Rustom Fakirji
Cowasjee
AIR 1955 Bombay 419
Cited in ¶:43
Travaux Travaux préparatoires, United Nations
Conference on International Commercial
Arbitration, Recognition and Enforcement of
Foreign Arbitral Awards, Comments by
Governments on the draft Convention on the
Recognition and Enforcement of Foreign
Arbitral Awards
E/CONF.26/3/Add.1
Cited in ¶:59
1. Cooper and Hofstader Architecture and Engineering Services ltd (The CLAIMANT) is a
highly profitable partnership firm comprising of two partners which is based in the
Republic of Narnia. It provides architecture service and consultancy for home and office
décor.
2. The RESPONDENT, Koothrappali and Wolowitz foods ltd. (The RESPONDENT) is one
of the biggest and internationally recognized food chains is based in Zindia and the state
of Zindia is a majority shareholder in it. RESPONDENT is building a new restaurant for
which it approached CLAIMANT and two other firms for providing services for the
same.
3. RESPONDENT requested for proposal regarding the services from all the three firms.
CLAIMANT was already going through a tender process to provide services to Datsun
Inc, their regular customer, in connection with a new automobile plant that it was
building in Zindia. The project would have yielded a profit of Rs. 100 million and
revenue of Rs. 500 million to CLAIMANT, but upon the request for proposal from
RESPONDENT, it withdrew its offer from Datsun.
4. RESPONDENT and CLAIMANT entered into an agreement on 15th September 2018,
where the stages of agreement were specified and price of Rs 150 million was fixed to be
paid over two years. RESPONDENT had to also pay CLAIMANT a guarantee amount of
Rs 5 lakhs within two weeks of entering into agreement. The stage 1 of the agreement
which involved delivery of an area plan and the budget for such a plan which required
cooperation between both the firms for on-site and off-site visits was priced at Rs.
10,00,000. CLAIMANT realized that there were a number of requirements of
RESPONDENT which were not specified by them at the time of agreement.
The arbitrator has the jurisdiction to hear the suit under Article 7(2) UNCITRAL Arbitration
Rule and Article 16 of the UNCITRAL Model Law and the prior negotiation between the parties as
per the Article 15, the governing law and dispute resolution clause of the agreement between the
parties.
It is humbly submitted that there was lack of communication and non-participation of the
respondent with regard to performance of the contract. even after several mails from the
Claimant, the respondent did not put ibn their best effort to amicably resolve the issue. The
claimants were not paid their lawful dues mentioned under the agreement due to which the
claimants had to incur additional expenses on their behalf. Therefore, the respondent should be
made liable for breach of contract.
16. DAMAGES ARE DUE UNDER THE AGREEMENT FROM THE RESPONDENT
The respondent had a laid-back attitude from the very start. several emails and other
communication remained unanswered till the passing of the procedural order. The claimant had to
bear the brunt of the respondent’s delayed responses. Thereby claimant has the right to be provided
with the accrued amount.
There was no breach of the standard for enforcement of arbitral award in pursuance to
international law as the grounds for refusal of enforcement and recognition of award given under
Article V of the New York Convention cannot be challenged by the respondent on any valid
reasons, therefore there is no risk of enforcement of award if delivered in favour of claimant.
RESPONDENT’s side. Also, the invoices sent by the CLAIMANTS via email dated 20 th
December, 2018 wherein the CLAIMANTS submitted the Area plan and the budget were
also left unanswered by the RESPONDENTS.
Even after the repeated reminders, the RESPONDENTS seemed extremely uninterested
as well as the RESPONDENTS defaulted in the payment of the work which was duly
completed by the CLAIMANTS. Thus, there was a breach of contract committed by the
RESPONDENTS as they defaulted in timely payments and meetings which was to be
carried out as per the terms of the contract.
43. In the case of Bharat Petroleum Corpn. Ltd. vs. Great Eastern Shipping Co. Ltd. [AIR
2008 S.C. 357] and The Bank of India Ltd. vs. Rustom Fakirji Cowasjee [AIR 1955
Bombay 419] it was stated that mere silence does not amount to assent in a contract. But
in certain situations, silence coupled with the conduct of the person, takes the form of a
positive act, which may constitute an acceptance. This is the principle of an agreement
‘sub silentio’ which was substantiated in these cases.
a) There were a number of mails sent by the CLAIMANT to the RESPONDENT for a
very long period of time.
The mere silence of the RESPONDENTS was construed as an action of ‘sub silentio’,
since in the email dated 25th January, 2019 sent by the RESPONDENTS to the
CLAIMANTS in reply to the mail dated 20 th December, 2019, the RESPONDENTS
46. In the case of Strategic Outsourcing, Inc. vs. Continental Casualty Company [414 F.
Supp. 2d 545] the Court of Appeal stated that when a party loses a substantial amount of
money under the contract and the negotiation is impossible, then a motive to terminate the
contract is neither wrongful nor unconscionable. It further specifically held that "a party's
desire to avoid financial losses constitutes reasonable grounds for declining to perform
otherwise applicable contractual obligations."
47. The CLAIMANT sent a number of mails to the RESPONDENT which remained
unanswered. The invoice sent by the CLAIMANT to the RESPONDENT also remained
unpaid as well as there was no reply to the Area Plan and Budget which was sent along
with invoice. Being aggrieved by this behaviour and non-payment from
RESPONDENT’s side, CLAIMANT sent a notice to RESPONDENT on 15th April,
2019 declaring the termination Agreement terminated and claiming payment of the
invoice of Rs. 50, 00, 000 along with the payment of additional costs of Rs. 2,00,000
incurred by CLAIMANT between October 2018 to April 2019. Furthermore, they also
demanded damages Rs. 30 Million for the failure of RESPONDENT to perform its
contractual obligations in relation to Stage I and loss of profits. Though according to
Article 15 of agreement, there should have been best efforts made by the parties to
negotiate an amicable solution in occurrence of any dispute, it was impossible to get into
any kind of negotiations with the RESPONDENTS as there was no response from the
RESPONDENT’s side to any of the mails as well as the notice sent to the
RESPONDENTS. Hence it can be said that the CLAIMANTS approaching the Arbitral
III. THERE ARE SUMS/ DAMAGES DUE FROM THE RESPONDENT UNDER THE
AGREEMENT
49. The CLAIMANT is a highly profitable partnership firm and specialises in providing
architectural services. It provides assistance on a fixed-price contract basis. In the
agreement, the price fixed for providing the consultancy services was a fixed sum of Rs.
150 million, plus a guarantee amount of Rs. 5 lakhs were required to be paid within two
weeks of entering into the agreement.
50. The stage I which involved the delivery of budget and area plan was priced at a
consideration of Rs. 10 lakhs. However, during this stage, CLAIMANT realised that
RESPONDENT had a few other requirements which were not anticipated at the time
of entering into the agreement. Nonetheless, CLAIMANT decided to pursue their
30(2): If a party, duly notified under these Rules, fails to appear at a hearing, without
showing sufficient cause for such failure, the arbitral tribunal may proceed with the
arbitration.
30(3): If a party, duly invited by the arbitral tribunal to produce documents, exhibits or
other evidence, fails to do so within the established period of time, without showing
sufficient cause for such failure, the arbitral tribunal may make the award on the
evidence before it.
56. Since the RESPONDENT did not reply to CLAIMANT’s mails, the CLAIMANT had
sent an Arbitration Notice to the RESPONDENTS on 10 th June, 2019 being aggrieved by
the unprofessional behaviour of the RESPONDENTS. Subsequently, on 5 th July, 2019
having not heard from RESPONDENT nor having received indications that the emails
sent by the CLAIMANTS had bounced back, the Director of Narnia International Centre
for Arbitration (NICA) appointed Ms. Amy Farah Fowler as the Sole Arbitrator. Even
after repeated reminders from the Arbitral Tribunal the RESPONDENTS never showed
up for pleadings. Eventually after the time had lapsed, the RESPONDENTS appeared
before the Arbitral Tribunal through Baker Mckenzie, a law firm. The period for
appearance before the Tribunal has already been lapsed and the RESPONDENTS do not
have a sufficient cause for their delayed appearance. These actions of the
RESPONDENTS have already caused major losses to the CLAIMANTS and hence, the
RESPONDENTS should be directed to pay for the damages caused to the CLAIMANT.
Also, since the period for appearance has already lapsed, the Tribunal shall stand by its
Procedural Order passed on 5th August, 2019 wherein it was stated that the award shall be
58. There was no breach of the standard for enforcement of arbitral award in pursuance to
International law.
59. Article V of the New York Convention sets forth the grounds on which recognition and
enforcement of an arbitral award may be refused by a competent authority in the
Contracting State where recognition and enforcement is sought. The final text of Article
V reflects the recommendation of the Dutch delegation to eliminate the requirement of
60. The New York Convention contains an exhaustive list of the grounds upon which courts
in the Contracting States may refuse recognition and enforcement. The grounds for
refusal under Article V do not include an erroneous decision in law or in fact by the
Arbitral tribunal. A court seized with an application for recognition and enforcement
under the Convention may not review the merits of the arbitral tribunal’s decision. This
principle is unanimously confirmed in the case [Trading company (Israel) v. Buyer
(Germany)]. Courts of the Contracting States have also consistently found that the
Convention does not allow refusal to recognize and enforce based on procedural grounds
other than those listed in article V.
61. As discussed earlier the claimants are not found to be in breach of any of the conditions
as mentioned in the Article V of the New York convention and hence there shall be no
risk of enforcement if the award is delivered in favour of the claimant.
62. In pursuance to the breach of Contractual obligations, the CLAIMANT has requested to
declare the contract as terminated which they have an absolute right to as derived by the
Lex Mercatoria referring to the OHADAC principles on International commercial
contracts article 7.1.2 and UNIDROIT Principles of International Commercial Contracts
2016 section 7.3.1.
65. In this instant case, it is not established that there has been any breach under the listed
grounds in article 34 and 36 of the UNCITRAL Model law. The party against whom the
award is invoked was given proper notice of the appointment of an arbitrator or of the
arbitral proceedings and it cannot be established from the facts that the RESPONDENT
was unable to present his case due to valid reasons; the arbitral procedure was in
accordance with the agreement of the parties as indicated by Article 15(¶16 of the moot
problem) in the contract between the two parties.
66. Hence there are no grounds under which the RESPONDENT may approach the court to
set aside the given order hence there shall be no risk in the enforcement of the given
order.
67. In the case of [Ronald Elwyn Lister Ltd. v. Dunlop Canada Ltd., [1982] 1 S.C.R. 726], it
was again emphasized about the enforcement of contracts and has stated that, “Where
parties experienced in business have entered into a commercial transaction and then set
out to crystallize their respective rights and obligations in written contract drawn up by
their respective solicitors, it is very difficult to find or to expect to find a legal principle
in the law of contract which will vitiate the resultant contracts. Certainly where the
parties have capacity in law to enter into the contract, where the terms of the contract are
clear and unambiguous, where there is a valid consideration passing between the parties,
and where there is no evidence of oppression or operative misrepresentation, the law
68. The notion that the declaration of award for the CLAIMANT would be bad in public
policy and the case that there were no hearings and the matter would be decided based on
pleadings is unmerited. In the case of [Corporacion Transnacional de Inversiones, S.A.
de C.V. v. STET International, S.p.A. (2000), 49 O.R. (3d) 414] is was quoted that :
Article 15(2) of the International Chamber of Commerce Rules of Arbitration provides
that if one of the parties is absent without valid excuse the arbitrator shall proceed with
the arbitration and “such proceedings shall be deemed to have been conducted in the
presence of all parties”. It hardly offends our notions of fundamental justice if a party
that had the opportunity to present its case and meet the opposing case forfeits that
opportunity by withdrawing from the arbitration.
69. The final relief claimed by CLAIMANT is to order RESPONDENT to pay to
CLAIMANT Rs. 30 million in lost profits that CLAIMANT undoubtedly would have
earned had it pursued the contract with Datsun instead of entering into a contract with
RESPONDENT. In pursuance to this claim it is necessary to establish that the future
profit is certain in nature and not just a mere speculation. To substantiate the same the
counsel would like to refer to the strong relations of CLAIMANT with Datsun Inc (¶3 of
the moot problem). In the words of the Tribunal in [East Mediterranean Gas S.A.E. vs.
Egyptian General Petroleum Corporation and Egyptian Natural Gas Holding Company
and Israel Electric Corporation Ltd.] (ICC, 18215/GZ/MHM): The important fact is not
whether [Claimant] can prove its profitability in the past, but rather whether it is
reasonable to presume that, were it not for [Respondent]’s wrongdoing, it would have
obtained a foreseeable stream of income in the future.
70. This approach is illustrated in [Process and Industrial Developments Ltd. vs. The
Ministry of Petroleum Resources of the Federal Republic of Nigeria] (January 2017). In
that case, the parties entered into a 20-year Gas Supply and Processing Agreement
72. The CLAIMANT put forth the argument to apply the international principle of lucrum
cessans. The term ‘income’ covers both positive income, which is to be construed as a
gain for the individual concerned, and negative income, which denotes a loss or lucrum
cessans for that individual. The CLAIMANT asserts that the damage suffered by it
consists of three elements, namely, the loss sustained (damnum emergens), loss of profit
(lucrum cessans) and harm to its image.
73. In breach of contract cases, not involving any expropriation, the value of the loss will
often be computed on the basis of loss of profits or consequential liability to a third
party. The alternative of capital expenditure will not be relevant. Thus, in the case of a
sale of goods, a purchaser who has not received the goods will be entitled to the loss of
profits which he could have made from the resale. Similar law would apply to services.
74. An example of this principle in practice is the decision of [Yusuf Ahmed Alghanim &
Sons WLL v Toys "R" Us Inc] (RU (HK) Ltd 126 F.3d 15). The dispute concerned a
Supply Agreement and a License and Technical Assistance agreement through which the
CLAIMANT, a privately-owned Kuwaiti business opened a Toys "R" Us store in Kuwait
75. Hence the enforcement of the relief is not in contravention of any lex marcatoria law and
the enforcement of the same is not at any foreseeable risk.
For the above reasons, Counsel for the CLAIMANT respectfully requests that the Tribunal:
And pass any such order or direction as the Tribunal deems fit and proper, for this the
CLAIMANT duty bound prays.