Dubai-based minerals trading company Trimex International EZE Ltd today moved the Supreme Court claiming $600,000 as damages from Vedanta Aluminium Ltd, a subsidiary of London Stock Exchange-listed Vedanta Resources. In its petition, Trimex sought appointment of the second arbitrator and the presiding arbitrator as per the clause in a contract entered between the two parties for supply of 45,000 tonnes of bauxite in September 2007.
It further said that it had nominated a retired Karnataka High Court judge as the arbitrator from its side, a contention rejected by Vedanta on the ground that there was no concluded contract between the parties.
A bench headed by Justice K G Balakrishnan has posted the matter for hearing on November 9. Earlier, it had issued a notice to Vedanta. Trimex, in its petition, said Vedanta has to pay damages to the extent of $600,000 to the shipowners besides loss of profit incurred by it due to breach of the contract.
According to the trading company, it had no alternative other than to claim damages for non-performance of the contract which resulted in cancellation of five shipments of 45,000 metric tonnes of bauxite besides 10 per cent which was confirmed by Vedanta through an email on October 16, 2007.
However, Vedanta has denied all liabilities and also disputed the existence of the contract for supply of bauxite on the ground that the agreement between the parties was only at a draft stage and, as such, no concluded contract, including the arbitration clause, had not come into existence.
Trimex submitted that Vedanta’s stand that no arbitration clause existed was without substance and was only an attempt to drive.