Bombay High Court
James Joseph vs Sale Proceeds Of Mv Tag Navya Imo No. ... on 26 September, 2025
Author: Abhay Ahuja
Bench: Abhay Ahuja
2025:BHC-OS:16668
1. COMAS 36-24.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ADMIRALTY AND VICE ADMIRALTY JURISDICTION
COMMERCIAL ADMIRALTY SUIT NO. 36 OF 2024
James Joseph
Son of Mariadas Joseph, aged 60 years,
Residing at 4B, Mountfort Apartments,
St. Joseph Junction, Near Collectorate's Office,
Kottayam, Kerala-686001.
Email: [email protected]
Phone: 9447725737 ...Plaintiff
V/s.
Sale Proceeds of MV Tag Mavya IMO 8819081,
Presently lying with the Prothonotary and Senior
Master of the Bombay High Court. ...Defendant
Mr. Ranit Basu with Ms. Maitri Malde, Mr. Dua Shaikh and Ms.
Harshada Nirmal for the Plaintiff.
None for the Defendant.
CORAM : ABHAY AHUJA, J.
DATE : 26th SEPTEMBER, 2025
ORAL JUDGMENT. :
1. On 22nd August, 2025, Mr. Basu, learned Counsel appearing for
the Plaintiff had concluded his final arguments in the Suit.
2. Today the matter is listed for passing orders. Accordingly, this
Court proceeds to pass the order in the matter.
1. COMAS 36-24.doc
3. The Plaintiff's case is that he was serving as a Master of a vessel
being MV Tag Navya bearing IMO No. 8819081 (the "Vessel") and has
filed the Suit for unpaid wages from October, 2018 to January, 2019 of
Rs. 16,36,200 along with interest @ 18% per annum under section
9(1)(a) and 10(1)(a) of the Admiralty (Jurisdiction and Settlement of
Maritime Claims) Act, 2017 (the "Admiralty Act").
4. The vessel was arrested and auctioned by an order of this Court
and the sale proceeds of the Vessel are lying in this Court and
accordingly, the Suit has been filed by the Plaintiff against the sale
proceeds.
5. Although not necessary, the writ of summons has been served
upon the Defendant on 15th January 2025. Obviously, since the Suit is
against the sale proceeds of the vessel, there is no written statement
filed in this suit and the suit has proceeded undefended against the
Defendant.
6. The Plaintiff has submitted that the ship owner Company had
paid wages for the period of 8 th June 2018 to 30th September 2018,
however, wages for the period of October 2018 to January 2019
1. COMAS 36-24.doc
amounting to Rs. 16,36,200 (Rupees Sixteen Lakhs Thirty Six
Thousand Two Hundred) remained unpaid.
7. Being aggrieved by the delay in payment of wages, the Plaintiff
followed up with the company, for disbursement of the outstanding
wages. That despite repeated follow ups, the Company failed to pay the
outstanding wages.
8. It is submitted that Plaintiff thereafter approached the Shipping
Master under Section 132(1)(a) of the Merchant Shipping Act, 1958
for non-payment of his wages. The Shipping Master passed an order on
11th April 2019, recording that since the claim is exceeding the
pecuniary jurisdiction of the Shipping Master under Section 132(1)(a),
Plaintiff's representation for non-payment of wages cannot be acceded
to.
9. It has been submitted that, in the meanwhile, one R H Petroleum
Pvt Ltd filed a Company Petition bearing no. 54 of 2019 against Tag
Offshore Limited under Section 9 of the Insolvency and Bankruptcy
Code, 2016 (the "Code") before the National Company Law Tribunal
Mumbai Bench, (the "NCLT") was admitted by the NCLT on 24 th April
1. COMAS 36-24.doc
2019 and the Corporate Insolvency Resolution Process commenced.
Thereafter, on 26th September 2019, the NCLT ordered liquidation of
the Company under Section 33 of the Code and appointed the
liquidator of the Company.
10. That the liquidator issued a public announcement calling upon
the creditors of Tag Offshore Limited to submit proof of their claims on
or before 16th October 2019. The Plaintiff submitted his claim on 16 th
October 2019 but the same came to be rejected.
11. That the vessel was arrested pursuant to an Order dated 20 th
January 2020 in Commercial Admiralty Suit No. 85 of 2021 and by an
order dated 22nd May 2020 the Vessel was sold. By a subsequent order
dated 20th August 2020, Talent Mile Ltd was identified as the successful
purchaser of the vessel. The Prothonotary and Senior Master of the
Bombay High Court received Rs.14,00,59,238/- (Rupees Fourteen
Crores Fifty Nine Thousand Two Hundred and Thirty Eight Only) as
sale proceeds.
12. This Court vide its order dated 18th December 2020 in Interim
Application (L) No. 8364 of 2020 in Commercial Admiralty Suit No. 85
1. COMAS 36-24.doc
of 2021 had directed the Sheriff of Mumbai to publish a notice under
Rule 1088 of the Bombay High Court (Original Side) Rules 1980
inviting claims against the vessel or sale proceeds of the Vessel. The
said notice was published on 22nd December 2020 (P-1/7), calling upon
persons to lodge claims within 90 (Ninety Days) from the date of
publication of the said notice. On 18 th January 2021, the Plaintiff filed
an affidavit of proof of debt in the said matter pursuant to notice dated
22nd December 2020, published by Sheriff's office.
13. Although this Plaintiff did not file an Interim Application, the
Plaintiff made a representation along with other crew members at the
time of hearing and the same has been recorded in the Order dated
22nd November 2022. By the said order, the Court has determined the
priorities of the claimants and the Plaintiff's claim has been identified
as having first priority under Section 10(1)(a) read with Section 9 (1)
(a) under the Admiralty Act with a note that the Plaintiff has not filed a
Suit/Proceeding.
14. The Plaintiff instituted this Suit on 18th April 2023. By an order
dated 9th May 2024, this Court (R.I Chagla, J.) has condoned the delay
of 756 days in filing the suit.
1. COMAS 36-24.doc
15. Mr. Basu, learned Counsel for the Plaintiff, would submit that the
Company has availed services of the Plaintiff and has never raised any
dispute regarding his performance or efficiency and therefore, the
Plaintiff is entitled to claim the outstanding wages. Mr. Basu would
submit that the wages of the Plaintiff are maritime lien over the sale
proceeds of the vessel as per Section 9(1)(a) of the Admiralty Act and
the Plaintiff is entitled to proceed against the sale proceeds of the
vessel.
16. I have heard Mr. Ranit Basu, learned Counsel appearing for the
Plaintiff and considered his submissions.
17. The Plaintiff has in support of his claim filed evidence of six
documents, the following documents have been admitted and marked
as Exhibits on 10th and 11th July, 2025:
Sr No. Particulars Exhibit
1. Original Articles of Agreement for P-1/2
Employment of Seafarers dated
08.06.2018
2. Original Seafarers Employment P-1/3
Agreement dated 08.06.2018
3. Original Time Sheet dated 09.01.2019 P-1/4
4. Original Letter dated 10.01.2019 P-1/5
5. Original Continuous Discharge P-1/6
1. COMAS 36-24.doc
Certificate (CDC) cum seafarer's
identity document
6. Photocopy of notice along with the P-1/7
typed copy/english translation
18. The Plaintiff, Mr James Joseph during his examination in Chief
on 10th July 2025 shown his Affidavit in lieu of examination-in-chief
dated 21st March 2025 under Order XVIII Rule 4 of the Code of Civil
Procedure, 1908 and also the compilation of documents and he has on
oath in his Examination-in-Chief on the said date deposed that he has
affirmed and verified the affidavit by signing at the foot of the affidavit
and has also identified his signature on the said affidavit and stated
that he has produced the compilation of documents comprising of the
aforesaid six documents and also deposed to the truth and contents of
the said affidavit with respect to his evidence which contains the
aforesaid six documents. Accordingly, the said Affidavit in lieu of
examination-in-chief was marked as Exhibit P-1/1.
19. The Plaintiff was appointed in the capacity of a 'Master' by the
owner of the Vessel viz. by Tag Offshore Limited (the "Company"). The
Plaintiff and the Company entered into Articles of Agreement for
employment of Seafarers on 8th June 2018 (P-1/2) contains the details
of the ship owner company, ship, details of employment. The document
1. COMAS 36-24.doc
highlights the signed on ashore and signed on ship date of the Plaintiff
which is 8th June 2018 and the Signed off from ship and signed off
ashore date of the Plaintiff which is 9 th January 2019 and 10th January
2019 respectively. The said document also contains the signatures of
the shipowner agent and the Master. It is signed by the Plaintiff, Mr.
Arjun Singh i.e. the then Master of the Vessel who was signing off and
the Company through its authorized representative. On the date of
signing off from the vessel i.e. 9th January, 2019, it was again signed by
the Plaintiff, the Company through its authorized representative, and
Mr. Arjun Singh who was signing on as the Master of the Vessel. It also
bears the stamp of the Company. It provides for a term of employment
as 2 (two) months, which was extended mutually by the Company and
Plaintiff.
20. On the same date viz. on 8th June 2018 itself, the Company
provided Seafarer employment Agreement to the Plaintiff, which was
signed by the Plaintiff and the Company through its authorized
representative and also bears the stamp of the Company (P-1/3) which
contains the details of the nature of engagement of the Plaintiff and the
Emoluments Plaintiff was to receive. The said terms clearly set out that
the Plaintiff was entitled to Rs.5,40,000/- Per Month.
1. COMAS 36-24.doc
21. The Original Time Sheet (P-1/4) indicates that the Plaintiff
served on the said vessel from 8th June 2018 to 9th January 2019 i.e. for
a period of 216 days. On the date of signing off, the Plaintiff was issued
the said time sheet recording the duration of the Plaintiff's service as
Master of the Vessel. The said sheet also lists the number of days served
in a particular month and is signed by another crew member Shri Arjun
Singh, the successor of the Plaintiff.
22. On 10 January 2019, the Company issued a letter (P-1/5) to the
Mercantile Marine Department certifying that the Plaintiff has served
the Company and sailed as a Master on its vessel. The service period of
8 June 2018 to 9 January 2019 is clearly reflected in the said letter. It
bears the stamp of the Company, signature of the authorised signatory
of the company i.e. Baldev Singh Saddal and the signature of the
Plaintiff. The Company has certified that the Plaintiff has worked with
the Company and sailed as Master on the Defendant Vessel from 9 th
December, 2016 to 9th January, 2019.
23. The Continuous Discharge Certificate cum see Seafarer's identity
document (P-1/6) issued by the Government of India under the
Merchant Shipping (Continuous Discharge Certificate cum Seafarer's
1. COMAS 36-24.doc
identity document) Rules, 2001 records the Plaintiff's service as Master
on the Vessel, sign on date as 8th of June 2018 and sign off date as 9
January 2019.
24. The aforesaid clearly proves the fact that the Plaintiff has served
on the said vessel from 8th June 2018 to 9th January 2019 i.e. for a
period of 216 days and has not been paid for the said period. There is
neither any contrary material nor any contest to the evidence filed by
the Plaintiff that has come to my notice to contest the Plaintiff's claim.
25. The Plaintiff's claim for the outstanding wages is maritime lien as
per Section 9 (1) (a) of the Admiralty Act and has priority as crew
wages under Section 10(1)(a) of the Admiralty Act. The Order dated
22nd November 2022, has determined the priority of the Plaintiff as first
and has also kept aside Rs. 5 Crores of the total sale proceeds credited
to satisfy the decrees which may be eventually be passed in favour of
the crew members and the Port authority.
26. Since despite an opportunity granted to Mr Basu, Learned
Counsel for the Plaintiff, no material has been brought before me to
demonstrate that the unpaid wages would be liable for interest at the
1. COMAS 36-24.doc
rate of 18% per annum, I am inclined to grant interest at the rate of 6%
per annum (which is the prevailing bank rate) from the date on which
the Plaintiff filed Affidavit of proof of debt viz. from 18 th January 2021
till payment and/or realisation.
27. On the basis of the findings above, I hold that the Plaintiff is
entitled to recover its claim for unpaid wages of Rs. 16,36,200 along
with interest @ 6% per annum from 18 th January 2021 till payment
and/or realization.
28. Accordingly, this Court directs that the Defendant to pay to the
Plaintiff a sum of Rs.16,36,200 (Rupees Sixteen Lakhs Thirty Six
Thousand Two Hundred) together with further interest thereon on the
principal amount at 6% per annum from 18 th January, 2021 until
payment and poundage as may be determined subsequently from the
sale proceeds of the vessel MV Tag Navya presently lying with the
Prothonotary and Senior Master of Bombay High Court.
29. Suit is accordingly decreed as above. Considering that this is a
wage claim due since more than five years, in the interest of justice,
drawn up decree is dispensed with.
1. COMAS 36-24.doc
30. Further, in view of order dated 22nd November 2022, in the
Interim Application (L) No. 25181 of 2022 deciding that the Plaintiff
has first priority under Section 10(1)(a) read with Section 9(1)(a)
under the Admiralty Act, 2017, payout to be made to the Plaintiff
within a period of one month.
(ABHAY AHUJA, J.)
Digitally
signed by
NIKITA
NIKITA YOGESH
YOGESH GADGIL
GADGIL Date:
2025.09.29
19:33:40
+0530
