Madras High Court
Banque Cantonale De Geneve vs Owners And Parties Interested In ... on 30 April, 2021
O.S.A.No.207 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 30.04.2021
CORAM :
THE HON'BLE MR.SANJIB BANERJEE, CHIEF JUSTICE
AND
THE HON'BLE MR.JUSTICE SENTHILKUMAR RAMAMOORTHY
O.S.A.No.207 of 2021
Banque Cantonale De Geneve,
having its office at
Case Postale 2251, 1211 Geneve 2,
rep. herein by its Power of Attorney
Agent V.Padmanabhan ... Appellant
Vs.
Owners and Parties interested in the
Vessel M V POLARIS GALAXY,
having IMO: 9339648,
now lying at the outer anchorage of
the Port of Tuticorin (V.O.Chidambaranar Port),
Tuticorin-628 004,
rep. herein by its Master. ... Respondent
PRAYER: Appeal filed under Section 14 of the Admiralty (Jurisdiction
and Settlement of Maritime Claims Act, 2017 against the order dated
26.04.2021 passed in A.No.1855 of 2021 in C.S. (Comm. Div) No.96
of 2021.
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O.S.A.No.207 of 2021
For Appellant : Mr.Z.Bharucha
For Respondent : Mr.Amitava Majumdar
JUDGMENT
(Delivered by the Hon'ble Chief Justice)
The appeal is of limited import. The appellant says that contrary
to the practice in admiralty matters, the entire claim of the appellant
as plaintiff in the admiralty suit has not been covered by the quantum
of security directed to be furnished for the arrest order to stand
discharged and the vessel to sail.
2. Vessel M V POLARIS GALAXY remains arrested at the port of
Tuticorin since March 9, 2021. The owners have applied for furnishing
a bank guarantee through Doha Bank for the principal quantum of the
claim. The twin grievances of the appellant are that the offer has been
accepted by the Court despite the appellant's protest that the entire
claim was required to be secured and the guarantee ought to be
furnished through some other bank.
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https://www.mhc.tn.gov.in/judis/
O.S.A.No.207 of 2021
3. Ordinarily, upon a prima facie assessment of the best
arguable case, the quantum of security is directed to be furnished.
Invariably, the quantum of security takes into account the claim on
account of interest, the costs that may have been incurred by the
claimant and the period for which the claim may remain pending. In
the present case, the quantum of the bank guarantee has been fixed
at USD 6,705,357.38 without taking into account the claim on account
of interest and costs that the plaintiff will invariably be entitled to if the
suit succeeds.
4. The order impugned dated April 26, 2021 is modified by
requiring the defendants to put in a bank guarantee in the sum of USD
7.30 million which, approximately, would cover any reasonable
interest that may be awarded together with the costs on account of
court-fees and the like. On the other aspect, since Doha Bank is a
scheduled bank and recognised by the Reserve Bank of India, the
appellant's reservations in such regard cannot be countenanced.
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https://www.mhc.tn.gov.in/judis/
O.S.A.No.207 of 2021
5. O.S.A.No.207 of 2021 is disposed of by modifying the
judgment and order impugned dated April 26, 2021 and requiring the
defendant to furnish bank guarantee for a sum of USD 7.30 million as
indicated. It is made clear that it is only upon the bank guarantee
being furnished, will the vessel be allowed to sail. The bank guarantee
will be kept renewed till the disposal of the suit.
6. This order is made without prejudice to the rights and
contentions of the parties and does not reflect any pronouncement on
the merits of the claim or defence.
Consequently, C.M.P.No.8473 of 2021 is closed. There will be no
order as to costs.
(S.B., CJ.) (S.K.R., J.)
30.04.2021
Index : No
bbr
To:
The Sub Assistant Registrar
Original Side
High Court, Madras.
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https://www.mhc.tn.gov.in/judis/
O.S.A.No.207 of 2021
THE HON'BLE CHIEF JUSTICE
AND
SENTHILKUMAR RAMAMOORTHY, J.
bbr
O.S.A.No.207 of 2021
30.04.2021
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