In Brief
Anglo American Metallurgical Coal Pty. Ltd. supplied coking coal to MMTC Ltd. under a Long Term Agreement (LTA) for five delivery periods ending in June 2009 (extended to September 2009). The Fifth Delivery Period required MMTC to lift 466,000 MT at USD 300/MT, but MMTC lifted only 11,966 MT, leaving 454,034 MT unlifted. An arbitral tribunal found MMTC in breach. MMTC challenged the award citing three emails in which the supplier stated it lacked coal availability. The High Court's Division Bench set aside the award, finding 'no evidence' to support the tribunal's interpretation. The Supreme Court held the tribunal's reading of the three emails in the context of entire correspondence (using section 95 of the Evidence Act regarding latent ambiguity) was a possible view. The arbitral award was restored: MMTC liable for USD 78.72 crores in damages plus interest and costs.
The lawyer headnote and full judgment text are available to registered users.