Citation : 2024 Latest Caselaw 668 AP
Judgement Date : 24 January, 2024
HIGH COURT OF ANDHRA PRADESH : AT AMARAVATI
MAIN CASE No.: Commercial Suit No.1 of 2024
PROCEEDING SHEET
SL. DATE ORDER OFFICE NO. NOTE
1) 24.01.2024 SRK, J
Issue notice to the defendant.
Learned counsel for the plaintiff is permitted to take out personal notice on the defendant by registered post with acknowledgment due and file proof of service before the Registry within a period of three (3) weeks.
The plaintiff filed the present suit invoking the jurisdiction of this Court under Section 5(1)(a) of the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017, as the claim of the plaintiff falls under Section 2(1)(c)(iii) of the Commercial Courts Act, 2015, stating that the plaintiff entered into series of sale purchase contracts for purchase of Crude Sunflower Seeds Oil of edible grade in bulk which is fit for human consumption (hereinafter referred to as Cargo) from 2019 to 2021 with a Company namely Avere Commodities SA, which is a group company of Kernel Group of Companies. The disponent owner or charterer of the defendant vessel, upon receiving the total sum amount towards the total quantity of cargoes from the plaintiff, failed to deliver total quantity of cargoes as per the executed contracts and made short- landing in delivery causing huge loss and damage to
SL. DATE ORDER OFFICE NO. NOTE the plaintiff. The plaintiff intimated about the short- landing/loss of cargo through joint survey and raised debit notes for such short-landing/loss of cargoes. The disponent owner or charterer of the defendant vessel, having received and acknowledged the debit notes, made part payments till 2021 and failed to pay the admitted due amount of Rs.2,09,69,751/- in spite of several reminders and phone calls made by the plaintiff. The disponent owner or charterer of the defendant vessel, without making the pending payment on several requests, chartered the defendant vessel through its subsidiary group company and berthed into the port of Kakinada for delivery of cargoes. Hence, he filed the present suit for judgment and decree against the defendant for recovery of a sum of Rs.2,09,69,751/- with interest @ 36% p.a., from the date of suit till the date of realization in full and for arrest and sale of the defendant vessel MT WHITE PEACH (IMO 9328144), in as is where is condition, together with her hull, tackle, machinery, boats, bunkers equipment, paraphernalia and all other appurtenances presently in the Indian Waters at the port of Kakinada, Andhra Pradesh State, India.
Heard Sri D.S. Siva Darshan, learned counsel for the plaintiff. In support of his contention, he relied on a decision of the Hon‟ble Supreme Court in the case of 2014 SCC Online Mad 12328, wherein the Hon‟ble Apex Court referred to the judgment of the Hon‟ble Supreme Court in M.V. Elizabet v. Harwan Investment
SL. DATE ORDER OFFICE NO. NOTE and Trading (1993 Supp (2) SCC 433) and held thus:
"These provisions (Sections 443 and 444 of the Merchant Shipping Act) relate to detention by reason of damage caused in any part o the world by a foreign ship to property belonging to the Government of India or to an Indian citizen or company. The sections are wide in terms and the expression „damage‟ is not necessarily confined to physical damage. Ordinarily damage is caused by physical contact of the ship, such as in collision. But damage can also be caused to property by breach of contract or acts of commission or omission on the part of the carrier or his agents or servants by reason of the negligent operation and management of the vessel."
"All that the Supreme Court said was that the expression "damage done by a ship" appearing in Section 443 is so elastic as to include even the breach of obligations created by contracts and that the powers of the Court are not limited by colonial practices. A reading of the judgment of the Supreme Court in M.V. Elisabeth, in totality, would show that there are a wide range of claims, in respect of which an action in rem could be
SL. DATE ORDER OFFICE NO. NOTE initiated and the arrest of the vessel sought."
This Court, having considered the submissions of the learned counsel for the plaintiff and on perusal of the material on record, is satisfied that the plaintiff has shown prima facie case, balance of convenience and irreparable loss and injury for grant of ad-interim order of arrest of the defendant vessel MT WHITE PEACH (IMO 9328144).
This Court exercising the Admiralty jurisdiction under Section 5 of the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017, hereby order the arrest of the defendant vessel MT WHITE PEACH (IMO 9328144) in as is where is condition, together with the hull, tackle, machinery, boats, bunkers equipment, paraphernalia and all other appurtenances presently in the Indian Waters at the port of Kakinada, Andhra Pradesh State, India, for a period of six (6) weeks.
List the matter after four (4) weeks.
______ SRK, J Note:
Issue CC today (B/O) Nsr
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