Indian Oil Corporation v. Coastal (Bermuda) Ltd. - Q.B.D. (Com.Ct.) (Evans J.) - 2 May 1990

Arbitration - Defence not correctly formulated in pleadings - Respondent declines to amend Defence despite being invited by arbitrators to do so - Whether award should be remitted

Disputes arose under a contract for the sale of 1.5 million tons of Bombay High Grade Oil on f.o.b. terms during the period 1 September 1984 to 31 March 1985. The contract required the buyers to nominate the carrying vessels and to establish a period of laytime within which each vessel was to be loaded. For five of the voyages the sellers failed to complete loading within the laytime period. The buyers consequently incurred a liability for demurrage towards the owners of the vessels, and they also became liable to pay a greater price to the sellers for the oil shipped on those vessels.