Ok. As I see it the sword according to the descriptors: [quote]kiteha: Tomaru focuses his Ki tightly into the form of a blade. He can release that energy into a narrow plane of kinetic energy that can slice through all but the sturdiest substances; reinforced titanium probably wouldn’t be affected. Ikiteha requires devoted concentration before it is executed. [/quote]

Can cut through all but the hardest substance, so we can assume by the defensive action described the blade can cut through supernatural metal but would have a hard time cutting through a natural alloy. Iffy but I will allow it to cut through the metal that is the shell. The second issue is the kinetic and concussive damage that would occur the minute the first shell "detonated" since the descriptors for the Hellzooka rounds hold this: [quote]...It literally fires live rockets, inhabited by the souls of murderers and the likes, their faces attached to the front; screaming all the way from the moment they leave the barrel, until they blow up at will when they get close enough to a victim. They use their eyes to determine such, and if they're unable to see someone, they will not detonate themselves until they hit something.[/quote]

So the first time the blade gets close to the shell probably at the same moment the shell "sees" a target it explodes, but I didn't see any indication that Fuchsia actually charged the Hellzooka in any meaningful way, if I am wrong please show me where you have charged it. Since the Hellzooka is not charged (as of this ruling) the damage will not "hurt" Tomaru but Tomaru must deal with the kinetic impact of the exploding shells since he is the originator of the explosive impact. 

I also have a question how can one part of the blade be halted but the others continue? [quote]...The blade was angled so that these three points fell on the same line. Impact with one of the souls would likely halt a portion of the blade, but the majority of it would continue hurtling forward. [/quote]

If the object you created is a solid formation hows does the remainder continue forward? Even if you are claiming it to be energy, as solid energy would you not have by virtue of the disrupted blade "whole" by the sudden stopping of a portion of the blade, a loss of potential kinetic energy along the remainder?

Ruling: The blade can cut the rockets however the rockets will explode at the same time the shell/blade interact slowing the blade by loss of energy along the entire length. The increased concussive forces of the multiple exploding shells will affect both players to some degree via a knock back, knock down or some other displacement of position up to 5 meters distance.