Rustal Trading Ltd v Gill & Duffus SA - QBD (Com Ct)(Moore-Bick J) - 13 October 1999

Arbitration - Appearance of bias - Losing party bringing application to set aside award on ground of serious irregularity based on apparent bias of arbitrator - Whether apparent bias made out - Whether application precluded by reason of failure to object during the course of the arbitration

A dispute arose under a contract for the sale of a cargo of white crystal sugar c&f free out Karachi or Port Qasim. The contract provided for the vessel to be discharged within an agreed period and for demurrage to be paid by the buyer in accordance with the terms of the charterparty governing the carriage of the goods if that period was exceeded. There was a delay in berthing at Port Qasim, and the sellers claimed demurrage from the buyers. The buyers said that the delay was caused as a result of two stowaways who had been found by the Master during the voyage. The buyers said that the vessel lost her turn to berth when the port authority learned of the existence of the stowaways.