Sinosteel Equipment & Engineering, a Chinese firm, recently won an arbitral award in international arbitration of the International Chamber of Commerce(ICC) versus the Indian iron ore processor and explorer, MSPL Limited.
The Indian law firm Singhania & Partners represented Sinosteel during the case during the arbitration. The company's defense was led by the company's managing partner, Ravi Singhania together with its partner Shambhu Sharan and the senior associate Shashank Bhansali. Singhania told China Business Law Journal as the firm discusses the key points that other companies can learn from the case that if they have claims against a contractor, they should make the first move for arbitration within the limitation period, and not wait for [the] contractor to commence arbitration to claim outstanding dues.
The case between the companies started when they entered three contracts relating to the design, equipment supply, and technical services with respect to the construction of a pellet plant in the state of Karnataka. The contract said that the equipment testing needs to follow three stages that include a cold test run, a hot test run, and the performance guarantee test. According to reports, the first two tests were successful but the last test was never made.
According to Singhania, the conflict between them started after the MSPL failed to pay Sinosteel under the agreements. The case was then referred by Sinosteel to arbitration before the ICC. The main issue discussed during the arbitration relates to the responsibility for the delay of the projects, and for missing the deadlines.