Originally from: French International Arbitration Law Reports

 

 

 

On all three arguments:

 

Whereas, according to the challenged decision (Paris, 31 Mars 2005), the Indonesian company PT Putrabali Adyamulia sold to the French company Est Epices (which became Rena Holding) white pepper, which was lost in a shipwreck during transport. In accordance with the arbitration agreement found in the contract, referring to the arbitration rules of the International General Produce Association (IGPA), Putrabali petitioned this body. The IGPA organised an arbitration in London which gave rise to an award rendered on 10 April 2001, by which a panel of arbitrators, ruling on the second degree, held that Rena’s refusal to pay was well-founded. Regarding the motion initiated by Rena on “a point on law” before the London High Court by virtue of the 1996 Arbitration Act, the Court partially set aside the award and held that the refusal to pay the price constituted a breach of contract. As the matter was remitted to an arbitral tribunal, a second award was rendered on 21 August 2003 ordering Rena Holding to pay Putrabali an amount of €163,086.04;