BULK CHARTERING AND CONSULTANTS AUSTRALIA PTY LTD v T AND T METAL TRADING PTY LTD [1992] NSWCA 33
NSW Caselaw
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BULK CHARTERING AND CONSULTANTS AUSTRALIA PTY LTD v T
AND T METAL TRADING PTY LTD
SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL
HANDLEY JA
16 October 1992
[1992] NSWCA 33
Handley JA This matter was before me last on 21 September when I was
sitting asa single judge in the motion list. On my then understanding of the
proceedings before the Honourable David Yeldham QC, as arbitrator, Bryson J as
a judge of the Equity Division and the proceedings pending in the Federal Court,
I thought the convenient course was to allow the respondent's application to
strike out the Federal Court proceedings on grounds based on Port of Melbourne
Authority v Anshun No 2 to be heard first. I also thought that there was no utility
in this Court expediting the appeal until the Federal Court had disposed of the
strike out application.
This morning, Mr Rayment QC and Mr Sexton have appeared for the appellant
and I have been more fully informed of the proceedings before the arbitrator, and
before Bryson J and the pending Federal Court proceedings. I am now informed
that the appellant challenges the validity of the agreement to refer disputes under
the charterparty to the Honourable David Yeldham QC on the ground that it is
contrary to s9 of the Sea Carriage of Goods Act 1924 (Commonwealth).
The point taken is that the section which clearly invalidates agreements to refer
future disputes to arbitration also invalidates ad hoc agreements to refer disputes
which have actually arisen. Apparently this view has been taken by the English
Court of Appeal in a recent decision. Bryson J declined to follow this decision
and held that the ad hoc agreement to refer the dispute to the Honourable David
Yeldham QC was valid under Commonwealth law. On that basis he upheld the
petitioning creditor's debt and made the winding-up order which is under appeal.
Now that I more fully understand the interrelationship of the various
proceedings it has become clear that this Court must determine the appeal before
the Federal Court can properly be asked to hear and determine either the motion
to strike out or, indeed, the principal proceedings.
Accordingly, the case is one for expedition and since it is an appeal from the
winding up order as much expedition should be granted as possible. Mr Rayment
QC informs me that the appeal would take less than a day. Miss Scaysbrook
confirms this estimate. The appeal papers will apparently be of modest size. I,
therefore, order category B expedition and I give leave to the parties to approach
the Registrar of this Court for an early appointment to settle the appeal papers.
I direct that if possible the appeal be listed for hearing this year. Costs of today
are costs in the appeal.
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