Trimex International seeks damages from Vedanta Aluminium

Business Standard reported that Dubai based minerals trading company Trimex International EZE Limited moved the Supreme Court claiming USD 600,000 as damages from Vedanta Aluminium Limited a subsidiary of London Stock Exchange listed Vedanta Resources. In its petition, Trimex sought appointment of the second arbitrator and the presiding arbitrator as per the clause in a contract entered between the 2 parties for supply of 45,000 tonnes of bauxite in September 2007. It further said that it had nominated a retired Karnataka High Court judge as the arbitrator from its side, a contention rejected by Vedanta on the ground that there was no concluded contract between the parties. A bench headed by Justice K G Balakrishnan has posted the matter for hearing on November 9th 2009. Earlier it had issued a notice to Vedanta. Trimex said that Vedanta has to pay damages to the extent of USD 600,000 to the ship owners besides loss of profit incurred by it due to breach of the contract. According to the trading company, it had no alternative other than to claim damages for non performance of the contract which resulted in cancellation of 5 shipments of 45,000 tonnes of bauxite besides 10% which was confirmed by Vedanta through an email on October 16th 2007. However, Vedanta has denied all liabilities and also disputed the existence of the contract for supply of bauxite on the ground that the agreement between the parties was only at a draft stage and, as such, no concluded contract including the arbitration clause, had not come into existence. (Sourced from Business Standard)