Case:
- An Exporter Mr.Vijay of India had an order of 200 metric tonnes of sesame seeds to be sent in 8 containers with a contract value of USD 1.75 lakh to Buyer B in Vietnam.
- The Exporter Mr. Vijay had agreed to the advance payment of 10 % in TT (Telegraphic Transfer) and balance against BL( Bill of Lading ) and agreed to payment terms in DP ( Documents against Payment )
- As per the sales agreement signed between them, the Exporter Mr. Vijay promptly sent his shipment of four containers as agreed and at this point, the advance cover was over for further shipments.
- The Exporter Mr. Vijay received full payment for four containers and the rest of the four containers reached the port of Saigon, Vietnam. The Buyer delayed the further payments citing the market price drop as the reason. The Buyer pressurized the Exporter Mr. Vijay to release the containers which were at the Port of Saigon, Vietnam on a DA basis.
- Not knowing what to do, The Exporter approached the Indian Embassy in Vietnam for recovery.
- The Exporter Mr. Vijay fortunately revived the Arbitration clause in the agreement mentioned by Importer and approached the Arbitration Tribunal of Vietnam
- The Arbitration took place in Vietnam and Exporter Mr. Vijay received the remaining settlement within three months with an outstanding amount of 34 lakhs and Expenses amount of 6 lakhs
- The Exporter was further advised to add an Arbitration clause in the agreement as the settlement would have been much easier if the Arbitration was fixed in the Exporter’s country.
Note:
- ChaAT: Chamber Arbitration Tribunal ( ChaAT), Madurai is non-profit organisation established by Tamilnadu Chamber of Commerce and Industry in the year 2007 with the objective of dispute resolution settlements through Arbitration
