PODAR TRADING COMPANY, LTD. v. FRANCOIS TAGHER.

(1948) 82 Ll.L.Rep. 705

KING'S BENCH DIVISION.(DIVISIONAL COURT).

Before Lord Goddard (Lord Chief Justice), Mr. Justice Birkett and Mr. Justice Lynskey.

Contract-Breach-Arbitration-Award- Interest-Liverpool Cotton Association Rules - Sale by Indian sellers of 5000 bales of Indian cotton "equal to Type 21 Bilas new crop" - Price: 18.25d. per lb. net c.i.f. Barcelona- Contract subject to Rules and Regulations of Liverpool Cotton Association, which provided (inter alia): 48. If, owing to any circumstances whatsoever, any such contract has not been or is not to be performed it shall not be treated as cancelled, but shall be closed by being invoiced back to the seller in accordance with the Rules in force at the date of the contract . . . 53. Should the seller be able to produce satisfactory evidence that the timely fulfilment of any contract for the purchase or sale of cotton was rendered impossible owing to unforeseen obstruction to traffic, strike, lock-out, riot, war, quarantine, or force majeure, or should the buyer be unable to take delivery of the cotton owing to such unforeseen contingencies, and should the buyer and seller be unable to come to a mutual agreement, then the arbitrators shall take such facts into consideration in making their award. 227 (8). In cases where a contract made subsequent to 12th June, 1947, is to be closed by invoicing back, the invoicing back price for such purpose shall be based upon the ascertained exporting value of the cotton contracted for on the appropriate date in the market appropriate to the country of origin of such cotton, Podar Trading Company, Ltd. v. Francois Tagher. K.B.(Div.Ct.) 706 translated to the value at the port of destination and subject to any variation that may have taken place in the costs of freight and insurance and in the rates of exchange, import and export duty or tax or any other charges. In so far as the provisions of this sub-clause are in conflict with any of the preceding sub-clauses in this rule the provisions of this sub-clause shall prevail.

Failure of cotton crop-Sellers unable to make delivery-Arbitration-Award of damages to buyer-Consultative case stated by arbitrators-Whether sellers relieved from liability (under Rule 53) by reason of force majeure; if not, whether arbitrators had power to award interest on sum found to be due to buyers - Measure of damages - "Invoicing back price"-Arbitration Act, 1934, Sect. 11-Law Reform (Miscellaneous Provisions) Act, 1934, Sect. 3 (1).