The Hindu : Andhra Pradesh News : Nalco wins case in UK

Online edition of India's National Newspaper
Sunday, May 29, 2005

Andhra Pradesh

Andhra Pradesh

Nalco wins case in UK

Staff Reporter

VISAKHAPATNAM: The public sector aluminium giant, National Aluminium Company (Nalco), has won a case against Gerald Metals by a unanimous award by a tribunal consisting of three arbitrators in London.

The award came recently after the hearing of the case in the last week of February and first week of March. As Gerald could not bring the ship within the agreed `lay days' and contract period, Nalco refused to deliver alumina under an export sales contract of 1998.

Gerald initiated arbitration proceedings in London claiming that Nalco was obliged to deliver the goods at the contract rate of $173 per tonne.

Nalco contested this and the arbitrators by their recent award held that Nalco was entitled for a rate of $420 per tonne as against contract rate of $173 on the finding that Gerald was in `breach of contract,' sources told The Hindu on Saturday.

Gerald had initially sought relief from Indian courts and the Supreme Court had directed them to pay at the rate of $430 pending a decision in arbitration. Gerald had taken delivery of 33,300 tonnes of alumina by paying $430 per tonne as per the apex court order.

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