[Cites 4, Cited by 0]
Calcutta High Court
Salt Trading Corporation Limited vs The Owners And Parties Interested In The ... on 20 March, 2026
Author: Arindam Mukherjee
Bench: Arindam Mukherjee
IN THE HIGH COURT AT CALCUTTA
ADMIRALTY JURISDICTION
(COMMERCIAL DIVISION)
ORIGINAL SIDE
AS-COM/3/2026
IA No.GA-COM/1/2026
SALT TRADING CORPORATION LIMITED
VS
THE OWNERS AND PARTIES INTERESTED IN THE VESSEL MV MAGMA
TENACITY - (IMO NO.9967689)
BEFORE
THE HON'BLE JUSTICE ARINDAM MUKHERJEE
Date: 20th March, 2026
Appearance:
Mr. K. Thaker, Sr. Adv.
Ms. Sreenita Ghoshdastidar, Adv.
Mr. Rohan Thakur, Adv.
Ms. Sneha Singhania, Adv.
Mr. Harshvardhan Gupta, Adv.
Ms. Shahana Khatun, Adv.
....for the plaintiff.
Re : AS-COM/3/2026
The Court : On perusal of the plaint it appears that the plaintiff has a
maritime claim for loss and damages caused to its goods against the owners
and parties interested in the vessel MV Magma Tenacity (IMO No.9967689)
which is scheduled to sail away from Diamond Harbour Anchorage of Syama
Prasad Mookerji Port, Kolkata in late hours of this date (20th March, 2026). In
the event the said vessel is successful in leaving the territorial waters of this
Court, the plaintiff will not only be remediless but also the suit will become
infructuous to a great extent.
Considering the urgency, the plaint is presented and admitted subject
to scrutiny by the department upon dispensing with the formalities required to
be complied with under Section 12A of the Commercial Courts Act, 2015 and
upon granting leave under Order II Rule 2 of the Code of Civil Procedure,
1908.
The plaint is presented with deficit court fees and as such Ms. Sreenita
Ghoshdastidar, learned Advocate is appointed as Receiver without
remuneration to collect the court fees and deposit the same by 24th March,
2026, failing which the plaint shall stand automatically rejected and the suit
will stand dismissed without any further order.
Re : IA No.GA-COM/1/2026
The plaintiff is a company constituted under the relevant laws of Nepal
with its central office at Kalimati, Kathmandu, Nepal and have filed this
application for arrest of the vessel.
The plaintiff entered into an agreement for procurement of 25500 MT of
diammonium phosphate 18:46:00 (hereinafter referred to as the said goods)
with Indian Potash Limited having its office at Potash Bhawan, 10-B, Rajendra
Park, Pusa Road, New Delhi - 110060 on 13th February, 2026 from Saudi
Arabia. In terms of the said contract the plaintiff has opened a Letter of
Credit through its banker in favour of India Potash Limited. The goods were
loaded in the said vessel at Ras Al Khair, Saudi Arabia for being carried to
without transhipment and discharged at Sagar and Diamond Harbour,
Kolkata, India. The goods were covered by 12 separate bills of lading which
are annexed at pages 42 to 53 of the application. It is the case of the plaintiff
that the goods reached the Diamond Harbour Anchorage on 10th March,
2026. At the time of initial survey of the goods prior to taking delivery thereof
on the goods having reached the Diamond Harbour Anchorage there was a
discrepancy noticed by the surveyor engaged by the plaintiff in the total
quantity of goods. The surveyor appointed by the plaintiff had made a note of
protest with the Master of the said vessel prior to taking delivery of the goods.
The Master did not agree to such discrepancy and as such the goods were
discharged from the vessel under protest. The said letter of protest is at page
57 of the application. The goods were finally discharged today (20th March,
2026) in the morning. The plaintiff had engaged the two surveyors, namely,
ARNA Surveillance and Inspection India Pvt. Ltd. (in short ARNA) and TCRC
Quality Controls LLP (in short TCRC). The said two surveyors have found that
the aggregate quantity of goods discharged from the said vessel is 25374 MT
and not 25500 MT as provided under the bills of lading. There is thus a
shortfall of 126 MT. The plaintiff says that the price of each metric tonne of
the goods as per the contract is USD 810.90. On the basis of such price the
aggregate value of the shortlanding of goods i.e. 126 MT comes to USD
102,173.40. The plaintiff also says that the shortlanding of goods has caused
loss and damage to the plaintiff in connection with the goods entrusted to be
transported by the vessel MV Magma Tenacity (IMO NO.9967689 ) which
carries a Liberian flag which has given rise to a maritime claim under Section
4(1)(f) of the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act,
2017 (hereinafter referred to as the 'said Act'). The plaintiff, however, says
that the defendant has also engaged two surveyors according to whom there
is no shortlanding of goods but such reports have not been given to the
plaintiff. The plaintiff, therefore submits that it is entitled to seek arrest of the
said vessel which is to sail away from the Diamond Harbour Anchorage in the
late hours of this date (20.03.2026).
After hearing the plaintiff and considering the materials on record, I find
that the case made out by the plaintiff is borne out from the records. The
plaintiff has been able to make out a strong prima facie case to go to trial. The
balance of convenience and inconvenience is in favour of the plaintiff as the
said vessel bearing a foreign flag if is permitted to leave the territorial water of
this Court, the plaintiff will suffer further loss and prejudice. The plaintiff will
also not be in a position to realise its loss and damages arising out of
shortlanding of goods in an efficacious manner if the said vessel leaves the
territorial water of this Court. There is also every likelihood of multiplicity of
judicial proceedings once the money is remitted through the Letter of Credit
opened by the plaintiff.
At this stage one has to take the statements made in the plaint to be true
and correct. The issue as to controversy with the reports of the Surveyors
engaged by the plaintiff and the defendant requires further scrutiny which is
not possible at this stage. In any event the plaintiff will have to give an
undertaking to compensate the defendant if the said defendant suffers any
loss or damage.
In the aforesaid facts and circumstances, there shall be an order
directing the arrest of the vessel MV MAGMA TENACITY (IMO NO.9967689)
along with her hull, tackle, engines, gears, bunkers, apparel, equipment and
all paraphernalia lying on board the vessel.
The Marshall shall forthwith communicate the order to the concerned
port authorities at Diamond Harbour Anchorage of Syama Prasad Mookerji
Port, Kolkata, the Customs Authorities, the administration at 24 Parganas
(South), the Coast Guard Authorities, Central Industrial Security Force (in
short CISF) and the Marine Police, if any, by fax message or electronic mail
or by any other electronic mode of communication.
Upon payment of necessary charges by the plaintiff, the Marshall shall
also serve a copy of the arrest order including a copy of the affidavit of arrest
on the Master of the vessel MV MAGMA TENACITY (IMO NO.9967689). The
Marshall's communication shall be affixed on the MAST of the vessel MV
MAGMA TENACITY (IMO NO.9967689).
This order of arrest and/or detention of the said vessel will continue
unconditionally till 25th March, 2026. If the plaintiff files an undertaking in
terms of section 11 of the said Act by 25th March, 2026 to the effect that the
plaintiff shall compensate the defendant's vessel and/or the owners and
parties interested therein for any loss or damage which may be suffered by
the defendant as a result of any wrongful arrest and for which the plaintiff
may be found liable, by reason of the arrest having been found to be
wrongful or unjustified or excessive security having been demanded by the
plaintiff, the order of arrest shall continue till 31st March, 2026 or until
further orders whichever is earlier.
In the event of the plaintiff's failure to file such undertaking, this order
shall stand vacated automatically on expiry of 25th March, 2026.
It is clarified that in the event the defendant depositing an aggregate
sum of USD 102,172.40 or INR 9560365 being the sums equivalent thereto
calculated on the previously exchange rate to the credit of the suit as
security with the Registrar,Original Side of this Court on or before 27th
March, 2026, this order of arrest of the vessel MV MAGMA TENACITY (IMO
NO.9967689) shall stand automatically vacated.
The Port Authorities at Diamond Harbour Anchorage of Syama Prasad
Mookerji Port, Kolkata, the Customs Authorities, the administration at 24
Parganas (South), the Coast Guard Authorities, Central Industrial Security
Force (in short CISF) and the Marine Police are directed to render assistance
to the Marshall for entry inside the port premises as also to the said vessel at
Diamond Harbour Anchorage of Syama Prasad Mookerji Port, Kolkata or any
other place within the territorial waters of this Court and to any other place
within the jurisdiction of the Port Authorities for the purpose of
implementing this order.
The Marshall and all concerned including the Port Authorities at
Kolkata, Diamond Harbour Anchorage of Syama Prasad Mookerji Port,
Kolkata, the Customs Authorities, the administration at 24 Parganas
(South), the Coast Guard Authorities, Central Industrial Security Force (in
short CISF) and the Marine Police shall act in terms of a communication of
this order to be made by the Marshall to them.
The application for arrest is made returnable on 30th March, 2026.
(ARINDAM MUKHERJEE, J.)
Snn/sb/pa
