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Jaisu Shipping, whose dredgers were detained by the Kochi port following a court injunction for non-completion of dredging works, got a reprieve with the Ernakulam District Court vacating the temporary injunction in this regard.
The court also dismissed an arbitration petition filed by the Board of Trustees of the Kochi Port (petitioner) seeking an order for perpetual injunction restraining Jaisu Shipping from removing the scheduled properties from the port till the disposal of arbitration proceedings between the parties.
seeking other reliefs
However, the District Judge, Mr Kemal Pasha, made it clear that the dismissal of arbitration petition will not stand in the way of Board of Trustees of Kochi Port to approach the court or appropriate forum seeking other reliefs by way of interim protection under the Arbitration and Conciliation Act.
Vacating the temporary injunction, the judge observed that the petitioner has not approached the court with clean hands especially when they have chosen to terminate the dredging contract on April 2 itself immediately after they got the interim injunction.
In such case, the petitioner cannot enjoy an order of temporary injunction from the court when it has no case that it wants to get the contract specifically enforced.
Unequivocal terms
Through the letter, the Chairman of the petitioner has made it clear that they were not ready and willing to continue with the arrangement of contract with the respondent.
In unequivocal terms, it reveals that the petitioner is terminating the contract.
The conduct of the petitioner clearly reveals that they want to employ some other contractors or they want to make some alternate arrangements for the remaining works of dredging.
The letter clearly reads the intention of the petitioner to terminate the contract with the respondent, the court said.
Non-completion of dredging
The petitioner had entered into an agreement with Jaisu Shipping on December 15, 2008 for carrying out the work of capital dredging of the approach channel and ICTT berth basin for providing depth as required for 14.5 metre draft and maintenance dredging during the period from September 1, 2008 to December 31, 2010.
Even as the period of contract, the petitioner submitted that the company has failed to complete the work entrusted with them.
Jaisu Shipping, in its counter, contended that the petitioner has defaulted payment to it and it was not able to continue with the dredging operations without payment for the work done in February.
As the payment has been withheld, there is no point in keeping the vessels and other equipments idle at the site.
Even though the company is ready and willing to carry out the work provided the payment is made, the petitioner was not keen on continuing with the work or paving the way for settlement through arbitration.
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