ISSUE: WHETHER BETA CAN INITIATE ARBITRATION PROCEEDING AGAINST GAMMA?

1. It is submitted before the arbitration tribunal that Beta can initiate arbitration proceeding against Gamma
because the contract of carriage contained in or evidenced by the bill of lading expressly contained an
arbitration clause[A] and the arbitration agreement incorporated in the bill of lading makes Gamma as a
party to arbitration.[B]
[A] THE BILL OF LADING INCORPORATED THE ARBITRATION CLAUSE
2. It is submitted that the B/L expressly incorporated the arbitration clause mentioned in the time charter
party. When parties expressly identify and specify the incorporation of the charter arbitration clause into
their contract, it signifies their clear intent and agreement to engage in arbitration. Consequently, for the
enforcement of this agreement, the language within the clause is to be read and construed as applying to
the contracting parties in the bill of lading agreement.1
3. The general terms
4. The precise wording and the width of the incorporation clause of the bill of lading plays a fundamental
role as to what terms are incorporated. If the intention is to incorporate all terms of the charterparty, use
of some standard form bills such as the Congenbill 2016 is a common practice. This form is designed to
include reference to terms, conditions, liberties, exceptions but also expressly refers to applicable law
and jurisdiction.2
5. In the present case, the parties had not used any general words of incorporation , they had expressly
identified and specified the charter arbitration clause as something to be incorporated into their contract,
which is evidenced by clause 1 of the B/L which states “ All terms and conditions, liberties and
exceptions of the Charter party , dated as overleaf, including the Law and Arbitration Clause /Dispute
Resolution Clause, are herewith incorporated.” 3
6. The charter party and its arbitration clause to be incorporated was specified in the B/L and by identifying
and specifying the charter-party arbitration clause it was clear that the parties to the bill of lading
contract did intend and agree to arbitration so that to give force to that intention and agreement , also the
use of standard form bill to incorporate all terms of charterparty depicts their intention to insert the
arbitration clause within the B/L.
7. It is therefore respectfully submitted before the arbitral tribunal that the B/L includes the arbitration
clause from the time charter party, demonstrating the parties' explicit commitment to arbitration. Clause
1 of the bill specifically incorporates "All terms and conditions, liberties and exceptions of the Charter
party," including the arbitration clause, creating a direct connection between the charter party and the bill
of lading. This intentional choice, coupled with using the Congenbill 2016 standard form, aligns with
industry practices and reinforces the case for incorporating the arbitration clause. In light of these
contractual details, the arbitral tribunal should acknowledge and uphold the parties' intent to resolve
disputes through arbitration.
8. COUNSEL for DEFENDANTS

1
The Re

na K, [1978] 1 Lloyd’s Rep. 545; applied.

2
Professor Yvonne Baatz, Maritime Law (5th Edition 2020) ch. 5, page 219
3
Clause 1 of B/L.