(b) What was the primary, basic legal issue in contention between the parties, what were the relevant legal principles relied upon by the Court?
The primary legal issue that is in contention of Armada Pte Ltd and Gujarat NRE Coke Limited is that while Armada was under judicial management, Gujarat breached the terms of a contract and ceased supply of coking coal which lead to armada losing a great deal through the damages of Gujarat. There are many factors to consider when considering whether Gujarat was obliged to fulfill his contract commitments. Gujarat contends that the company is not responsible or liable for the damages to Armada. This however led to other legal issues such as the validity of the arbitration, arbitrators and the breach of contract law. Ultimately, the primary legal issue debates whether the contract was still binding when the contract was breached, and the calculation of the damages that Gujarat is obliged to pay.
According to Federal Court of Australia (2012), there were numerous legal principles which the Federal court of Australia had to rely on. The first relevant legal principle was the DampskibsselskabetNorden A/S v Beach Building & Civil Group Pty Ltd (2012) case to determine the legibility for the Mr Hill QC and Mr Isaacs QC to be “commercial men”. Another legal principle was section 9 of the International Arbitration Act 1974 which was also reviewed to determine the legibility for the Mr Hill QC and Mr Isaacs QC to be “commercial men”. This was not vital for the court as the claims made by Gujarat would have been irrelevant because of the fact that Gujarat waived the rights to challenge the arbitral tribunal.
The federal court also had to rely on the principle of contract law in several countries such as Singapore, India and Australia, to get an understanding of the binding obligations of these companies. It is important that Justice Foster considered the variances of contract law and the legal principles which contributed to the validity of the control. The section 11 of the Carriage of Goods by Sea Act 1991 (Cth) was also relied upon by the federal court and by Justice Foster.
All these legal principles were used to build a case for the Armada (Singapore) Pte Ltd (Under Judicial Management) v Gujarat NRE Coke Limited [2014] FCA 636judgement. Courts must build evidence and arguments which can be used to make more valid orders and determine the best decisions for a case. Courts must rely on legal principles more than ethical believes, which can be difficult as it conflicts with human’s nature to make ethical decisions.
(b) What was the primary, basic legal issue in contention between the parties, what were the relevant legal principles relied upon by the Court?
The primary legal issue that is in contention of Armada Pte Ltd and Gujarat NRE Coke Limited is that while Armada was under judicial management, Gujarat breached the terms of a contract and ceased supply of coking coal which lead to armada losing a great deal through the damages of Gujarat. There are many factors to consider when considering whether Gujarat was obliged to fulfill his contract commitments. Gujarat contends that the company is not responsible or liable for the damages to Armada. This however led to other legal issues such as the validity of the arbitration, arbitrators and the breach of contract law. Ultimately, the primary legal issue debates whether the contract was still binding when the contract was breached, and the calculation of the damages that Gujarat is obliged to pay.
According to Federal Court of Australia (2012), there were numerous legal principles which the Federal court of Australia had to rely on. The first relevant legal principle was the DampskibsselskabetNorden A/S v Beach Building & Civil Group Pty Ltd (2012) case to determine the legibility for the Mr Hill QC and Mr Isaacs QC to be “commercial men”. Another legal principle was section 9 of the International Arbitration Act 1974 which was also reviewed to determine the legibility for the Mr Hill QC and Mr Isaacs QC to be “commercial men”. This was not vital for the court as the claims made by Gujarat would have been irrelevant because of the fact that Gujarat waived the rights to challenge the arbitral tribunal.
The federal court also had to rely on the principle of contract law in several countries such as Singapore, India and Australia, to get an understanding of the binding obligations of these companies. It is important that Justice Foster considered the variances of contract law and the legal principles which contributed to the validity of the control. The section 11 of the Carriage of Goods by Sea Act 1991 (Cth) was also relied upon by the federal court and by Justice Foster.
All these legal principles were used to build a case for the Armada (Singapore) Pte Ltd (Under Judicial Management) v Gujarat NRE Coke Limited [2014] FCA 636judgement. Courts must build evidence and arguments which can be used to make more valid orders and determine the best decisions for a case. Courts must rely on legal principles more than ethical believes, which can be difficult as it conflicts with human’s nature to make ethical decisions.
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