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PEC Ltd v Asia Golden Rice Company Ltd

2014

COMMERCIAL COURT

United Kingdom

CORAM

  • MR JUSTICE ANDREW SMITH

Areas of Law

  • Alternative dispute resolution
  • Conflict of Laws
  • Contract Law
  • Commercial Law
  • Civil Procedure

AI Generated Summary

The High Court (Mr Justice Andrew Smith) heard PEC Limiteds section 67 Arbitration Act challenge to GAFTA tribunal jurisdiction arising from an alleged rice purchase with Asia Golden Rice Company Limited. AGR said Pawan Jain of PJS orally committed PEC on 15 May 2008 to buy 25,000mt and the contract was confirmed in writing on 16 May 2008, signed by PECs Chief General Manager, Ravi Kumar, and calling for London as per GAFTA 125 arbitration. PEC denied Jain or Kumar had authority. After reviewing PECs Articles, delegation Schedule, committee practices, and prior AGR/PEC dealings through PJS, the court found Ravi Kumar lacked actual or implied authority; COM/Board did not approve; and PECs conduct did not represent that Jain had apparent authority to conclude or to communicate acceptance of the contract. Applying English law to apparent authority, the court held PEC did not enter any arbitration agreement; the section 67 challenge succeeded.