M/S Caravel Shipping Services Pvt. Ltd. vs M/S Premier Sea Foods Exim Pvt. Ltd.
[2018] 14 S.C.R. 289; 2018 INSC 1008
Coram: Hon’ble Justice Rohinton Fali Nariman & Hon’ble Justice Navin Sinha
Forum: Hon’ble Supreme Court of India
Case No.: Civil Appeal No. 10800-10801 of 2018
Date of Decision: October 29, 2018

Facts & Background:

  • The transport facilitator, the M/s Caravel Shipping Services Private Limited, was the Appellant.
  • The Respondent was the M/s Premier Seafoods Exim Private Limited of Kerala, the consignor/Shipper.
  • The Appellant and Respondent entered into a transportation contract for the transportation of the Respondent's consignment under a document titled "Multimodal Transport Document/Bill of Lading," dated 25.10.2008.
  • The Respondent filed a Suit, O.S. No. 9 of 2009, before the Sub-Judge’s Court in Kochi to recover Rs. 26,53,593/- with the Bill of Lading explicitly mentioned as part of the cause of action.
  • The Appellant filed I.A. No. 486 of 2009 under Section 8 of the Arbitration and Conciliation Act, 1996, invoking the arbitration clause in the printed terms of the Bill of Lading and referencing a Section 11 petition for Arbitrator appointment in Chennai.
  • The Sub-Court in Kochi dismissed the I.A. on 08.01.2013, ruling that the printed conditions annexed to the Bill of Lading were not binding on the parties and that no part of the cause of action arose in Chennai.
  • The Appellant filed under Article 227 of the Constitution of India before the Madras High Court, invoking the Multimodal Transportation of Goods Act, 1993, which affirmed the Sub-Court's decision. A subsequent Review was dismissed on 14.06.2016.
  • Hence the present appeal.

Main Issue:

  • Whether the arbitration clause in an unsigned Bill of Lading could be enforced under Section 7 of the Arbitration Act?