Case Note & Summary
The matter concerned an arbitration petition filed under Section 9 of the Arbitration and Conciliation Act, 1996 by COAF FZE, a company incorporated in the United Arab Emirates, seeking interim measures to protect 386.541 metric tonnes of raw cashew nuts in shell that were part of a consignment allegedly fraudulently diverted from its intended destination in Vietnam to New Mangalore Port, Karnataka, India. The petition was initially filed against Avanikailani Commodities LLC, a UAE company, and New Mangalore Port Authority. Subsequently, JSW Mangalore Container Terminal Private Limited, the Office of the Commissioner of Customs, Sindhu Cashew India Private Limited, Mr. Deekshith Ananta Poojary and Mrs. Likhitha were impleaded as respondents. The petitioner claimed it had entered into a contract No.2026-P0112 dated 06.04.2026 with respondent No.1 for purchase of 500 metric tonnes of raw cashew nuts to be delivered to Ho Chi Minh City, Vietnam. The petitioner asserted it had made full payment for two invoices: Invoice No.2026-RCN-004A dated 28.04.2026 for 386.541 metric tonnes and Invoice No.2026-RCN-004B dated 04.05.2026 for 112.072 metric tonnes. The second consignment was delivered, but the first consignment, comprising 15 high-cube containers, was allegedly diverted by respondent No.6, a director of respondent No.1, who altered shipping documents and routed the cargo to Mangalore instead of Vietnam. The petitioner contended that the cargo was loaded at Tema, Ghana on 24.04.2026 and that tracking records showed unauthorized diversion with transshipment stops at Vung Tau, Vietnam and Colombo, Sri Lanka. Respondent No.1 admitted receiving full payment and that the cargo was fraudulently diverted by respondent No.6, and sought confirmation of the interim order granted on 28.07.2026. Respondent No.5, Sindhu Cashew India Pvt. Ltd., claimed to have purchased 400 metric tonnes of raw cashew nuts from Wincom Trading FZC LLC under a sale contract dated 19.03.2026, paid 30% advance, and possessed original Bill of Lading. Respondent No.5 filed applications for impleadment, vacation of the interim order and questioning maintainability. The High Court allowed impleadment of respondent No.5 and recorded the conflicting claims over the undelivered cargo. The petition was heard and reserved on 19.08.2026 and pronounced on 27.08.2026, but the available excerpt does not contain the final operative directions.
Headnote
A) Arbitration Law - Interim Measures - Section 9, Arbitration and Conciliation Act, 1996 - Preservation of Cargo Pending Arbitration - The petition sought injunction against disposal of 386.541 metric tonnes of undelivered raw cashew nuts pending constitution of arbitral tribunal; petitioner claimed full payment and fraudulent diversion of cargo from Vietnam to Mangalore Port; respondent No.1 admitted payment and diversion; court had earlier granted interim order on 28.07.2026 and reserved judgment on 19.08.2026; Held that interim protection was sought and matter reserved for final orders (Paras 1-5). B) Civil Procedure - Impleadment and Vacation of Interim Order - Order I Rule 10, Code of Civil Procedure, 1908 - Respondent No.5 filed I.A.Nos.6, 7 and 8 of 2026 seeking impleadment, vacation of interim order and questioning maintainability; court allowed impleadment of Sindhu Cashew India Pvt. Ltd. as respondent No.5; Held that impleadment was allowed and applications for vacation and maintainability were pending consideration (Para 6). C) Contract Law - Sale of Goods - Ownership and Bill of Lading - Petitioner claimed ownership of cargo based on full payment and draft Bill of Lading No. MEDUTM439682; respondent No.5 claimed purchase from Wincom Trading FZC LLC and possession of original Bill of Lading; court noted conflicting claims over undelivered cargo; Held that determination of rights over undelivered cargo involved resolution of competing claims (Paras 4.7-4.8, 6.3-6.6).
Issue of Consideration
Whether the petitioner is entitled to interim measures under Section 9 of the Arbitration and Conciliation Act, 1996 for preservation of undelivered cargo pending arbitration; and whether respondent No.5 is entitled to impleadment and vacation of the interim order dated 28.07.2026.
Law Points
- Section 9 Arbitration and Conciliation Act 1996 interim measures
- preservation of cargo
- fraudulent diversion
- third-party claimant
- impleadment
- vacation of interim order
- maintainability of Section 9 petition
