The Tuyuti Q.B.D. (Adm.Ct.) (Sheen J.) - 29 March 1984

Party’s impecuniosity does not mean arbitration is incapable of being performed

Plaintiff cargo owners instituted English proceedings against the owners of the Tuyuti in respect of lost and damaged cargo shipped under two bills of lading. On the day the writ was issued, the plaintiffs obtained a warrant for the arrest of the Tuyuti . The vessel did not come within the jurisdiction of the court but the defendants voluntarily filed acknowledgment of service, so they became parties to an action in personam . A few days later, the solicitors for each side agreed by telex to submit their differences arising out of the carriage of the two cargoes in question to arbitration in London. The agreement was not a domestic arbitration agreement as defined in section 1(4) of the Arbitration Act 1975.