The DPC and IOC, in an agreement signed on January 13, have arrived at an consensus that they would jointly appoint the expert and determine his terms of reference. "If, within 14 days of the initiation of expert resolution, the parties have failed to appoint an expert or determine his terms or reference, then the International Chamber of Commerce may be requested by any party to do so as soon as possible."

According to the agreement, the expert should resolve disputes within 30 days of his appointment. The costs of the expert as determined by the expert should be paid jointly by the parties. "The decision of the expert shall be final and binding upon the parties, absent manifest error or fraud."

On arbitration, both the DPC and IOC have agreed that it would be conducted in London and in the English language. The choice of arbitrator would be agreed between both parties and failing such agreement the arbitrator would be appointed by UNCITRAL and the proceedings would be conducted in accordance with UNCITRAL rules in force at the date that arbitration is commenced.

According to an agreement, the naphtha to be delivered to DPC would be tested for all specifications at the loading port (all costs and expenses including survey fees, to be borne 100 per cent by IOC) and the delivery point (survey fees to be borne 50/50 by IOC and DPC and other costs and expenses to be borne 100 per cent by DPC). The IOC would transfer and store fuel intended for delivery to the DPC into a separate storage prior to loading at the loading port.

Furthermore, samples for quality testing would be taken at the loading port from this storage tank prior to loading and from the vessel carrying the fuel prior to discharge at the delivery point, "by an internationally recognised independent inspector acceptable to both parties."

The DPC would have the right not to accept any cargo not complying, in all respects, to the specifications on the basis of the test results on the samples taken from segregated store tank at the loading port and submitted to fuel manager prior to the loading of the vessel at the loading port. "The DPC would also have the right not to accept any cargo not complying, in all respects, to the specifications on the basis of the test results on he volumetrically correct samples taken from the vessel at the delivery point prior to discharge," the agreement said.

On taxes and levies, the agreement has made it clear that the IOC would be responsible for and would pay all taxes, levies and assessments made on or against it or DPC in connection with the sale and purchase of naphtha by any governmental authority, except for such taxes assessed or levied by the state of Maharashtra or political subdivision or any agencies or bodies of any of the foregoing.

The DPC would be responsible for an would pay and if actually paid by the IOC on behalf of it, reimburse for all taxes.

"The DPC would be responsible for the payment of the foregoing taxes only if and to the extent such taxes would have been assessed or levied on the import of naphtha by it from outside India directly through the port at Dabhol," the agreement said.