Dispute Resolution And Arbitration Monthly Update | September 2020

DISPUTE RESOLUTION AND ARBITRATION UPDATE

Balasore Alloys Ltd v M/s. Medima LLC

G.A. No. 871 of 2020 with G.A. No. 872 of 2020 in C.S. No. 59 of 2020

Background facts

• The Plaintiff is a company engaged in the business of manufacturing and exporting ferro-alloys. M/s Medima LLC (Defendant) is a limited liability company incorporated under New York (USA) State laws and is engaged in the business of trading of ferro-chrome.
• In 2017, the parties entered into an arrangement whereby high carbon ferro chrome (Goods) would be manufactured by the Plaintiff which would in turn be sold and distributed exclusively by the Defendant in USA and Canada. This arrangement was governed by an Agreement dated June 19, 2017 (2017 Agreement) for the period of June-July 2017. Clause 14 of the agreement clearly stated that the Agreement and formal agency agreement to be executed in furtherance of the same would be governed by the laws of India and in event any disputes were