Nigerian National Petroleum Corporation V. Roven Shipping Limited (2014)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

RITA NOSAKHARE PEMU, J.C.A. (Delivering the Leading Judgment)

The action, subject matter of this appeal was commenced by motion on notice dated 27th July, 2004 and filed on same date.

The motion on notice sought an order of Court (the Federal High Court, Lagos) that the “Partial Award” made between the parties to the above mentioned arbitration, and in respect of which reasons for the award were given on 23rd June, 2004 be set aside on the grounds stated hereunder…”

The Applicant (Appellant in this Appeal) relied on four grounds in support of his motion on notice – pages 3-4 of the Record of Appeal.

Ex-facie, that very originating process was signed by an unknown person for Seyi Sowemimo SAN, which should have rendered the process incompetent, but I shall come back to this issue.

The Applicant had filed written submission in support of his application. The Respondents did same and on the 14th of March, 2005, the application was taken.

On the 6th of February, 2006, the learned trial Judge ruled on the application, and refused the application to set aside the arbitral award on all the grounds canvassed by the Applicant, including that of against public policy.

The Appellant is dissatisfied with the decision, and consequent on this, and pursuant to the Practice Direction of this Honourable Court, filed a Notice of Appeal on the 26th of April, 2012 with four (4) Grounds of Appeal – pages 105-107 of the Record of Appeal.

FACTS

The Respondents had, by Charter Party on the “SHELLTIME 3″ Form dated 1st November 1995, in Lagos, agreed to Charter to the Appellant their motor tanker ‘MT VENTURER” for the carriage of petroleum products from the coastal refineries to some designated places both in and out of Nigeria.

By an addendum dated 2nd December, 1996, the Charter party of MT Venturer was amended by substituting it with “MT DIGNITY”, and the effective date for this substitution was the 1st day of August, 1996.

At the end of this assignment, and upon determination of the Charter party, the Respondents submitted their final hire invoice, which included claim for interest on hire payments delayed by the Appellant in excess of 90 days.

The Appellant refused to pay, and the ensuing dispute was referred to arbitration in the manner agreed in the Charter Party Contract.

One of the issues submitted to the arbitrator is whether, having regard to the terms of the Charter Party, the Appellant herein (i.e. NNPC) is obliged to pay interest on delayed hire to the Respondents. This was an issue of construction.