A ship loaded with thousands of tons of coal for Pakistan Steel Mills has been detained at a Canadian port. Sources told Business Recorder on Wednesday night that MV Thorasace loaded with 50,000 tons of coal was ready for sail to Pakistan, when detained by the Canadian authorities. The loaded commodity has a value of over Rs 1.5 billion.
They said that ship was arrested reportedly on the request of an Indian company, Ms Fominto, which have a claim of $13 million against Pakistan Steel Mills. Pakistan Steel lost this case in July 2010 and an international arbitration issued a decree in favour of the Indian company.
"An arbitration of International Chamber of Commerce has issued judgement in favour of Ms Fominto and payment was not made by the Pakistan mills," they informed. The ship has been arrested on the basis of a decree issued by a Colombian court in favour of Indian company which presented it to the Canadian authorities. Sources said bill of lading has already been issued. Therefore, Pakistan Steel Mills is now bound to make Rs 1.5 billion payment for coal.
During the last one month, this is the second shock for Pakistan Steel, as earlier a ship carrying 27,000 tons of iron ore sank in the deep sea and now another ship was detained at a Canadian port. A high official of Pakistan Steel on condition of anonymity confirmed the incident. However, he said that this was an illegal action by the Indian company aimed to create trouble for Pakistan Steel.
Normally, in arbitration cases, the judgment is presented in the relevant court of second party and court gives its ruling after hearing second party version. While in this case, the right procedure has not been adopted, he mentioned. Terms and conditions of the Letter of Credit will clarify the actual position of Pakistan Steel, he said. Sources said Pakistan Steel was already facing serious shortage of coal and delay in the shipment might result in millions of rupees loss in term of production.
Several attempts were made for Pakistan Steel mill's comments; however relevant officers including Tariq Ilyas Abro did not attended their cell phones. While, acting Chief Executive Officer (CEO) Wasif Mehmood and chairman board of directors Fazal-ul-lah Qureshi are aboard. Wasif Mehmood is on an official visit of Russia with President Asif Ali Zardari.
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