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2017 Supreme(SC) 390

SUPREME COURT OF INDIA
Dipak Misra, R. Banumathi, JJ.
Halliburton Offshore Services INC & Anr. - Appellants
Versus
Principal Officer of Mercantile Marine Department & Ors. - Respondents
Civil Appeal No. 5428 of 2017 (arising out of S.L.P. (Civil) No. 25015 of 2016)
Decided On : 20-04-2017

IMPORTANT POINTS
Court is the final interpreter of a legislation.
Unless the ship is completely built and ready sea-going, the owner cannot apply for provisional registration certificate.
Section 40 has to be read with the preceding provisions contained in Section 34 onwards till Section 41.
Registration and maritime flag are important for ascertainment of jurisdiction.
Validity of six months for PCOR is only to ensure that a ship in abroad, becoming Indian ship is able to travel and get itself permanently registered at the port of registry in India. There is no provision for renewal or extension.

Headnote:Per Dipak Mishra, J.

       (a) Interpretation of statute – To interpret a legislation is the duty of the court – Court is the final interpreter. (Para 25)

       (1983) 1 SCC 147; (2016) 3 SCC 183 – Relied upon

       (b) Merchant Shipping Act, 1958 – Section 40 r/w Rule 11, Merchant Shipping (Registration of Indian Ships) Rules, 1960 – Requirements for grant of registration and provisional registration are the same – Surveyor’s report and the ownership – Unless the ship is completely built and ready sea-going, the owner cannot apply for provisional registration certificate. (Para 39, 42)

       (1997) 2 SCC 577 – Relied upon

       (c) Merchant Shipping Act, 1958 – Section 40(2) – Provisional certificate – Validity only six months – Therefore ship has to be completely built and ready for sailing into the sea. (Para 40)

       (d) Interpretation of statute – Section 40, Merchant Shipping Act, 1958 – Provision is plain, clear and unambiguous – It has to be read with the preceding provisions contained in Section 34 onwards till Section 41. (Para 43)

       Per R. Banumathi, J. (Concurring)

       (e) Merchant Shipping Act, 1958 – Sections 21 to 32 and 40 – Registration and maritime flag – Important for ascertainment of jurisdiction. (Para 6, 9, 11)

       (f) Merchant Shipping Act, 1958 – Section 20 to 32 – Permanent certificate of registry – Essentials – Ownership – Completely built – Other requirements of sections 20 to 32. (Para 31)

       (g) Merchant Shipping Act, 1958 – Section 20 to 22 and 40 r/w Rule 11 and 12, Merchant Shipping (Registration of Indian Ships) Rules, 1960 – Issue of PCOR – Conditions – Ship built or acquired out of India; becomes property of persons qualified to own an Indian ship and entitlement of the ship to be registered as an Indian ship; application by owner or master of the ship to the Indian Consular Officer at the nearest port; the ship is sea-going, fitted with mechanical means of propulsion. (Para 34)

       (h) Merchant Shipping Act, 1958 – Section 40(2) – Requisites for permanent registration of a ship must be fulfilled for provisional registration also. (Para 38)

       (i) Merchant Shipping Act, 1958 – Section 40(2) r/w Rule 12, Merchant Shipping (Registration of Indian Ships) Rules, 1960 – PCOR – Validity of six months – Only to ensure that a ship in abroad, becoming Indian ship is able to travel and get itself permanently registered at the port of registry in India – No provision for renewal or extension. (Para 45, 46)

       Facts of the case:

       Oil and Natural Gas Corporation Limited (ONGC) had issued a tender inviting competitive bids for the charter hire of a stimulation vessel for Mumbai Offshore for three years. One of the terms and conditions basically related to get a PCOR.

       The Principal Officer, Mercantile Marine Department, the first respondent herein, had grated PCOR to the appellant on16.10.2015. However, the same was revoked on 13.04.2016.

       High Court quashed the order dated 13.04.2016 passed by the Principal Officer, Mercantile Marine Department, the first respondent herein, revoking the Provisional Certificate of Registration (PCOR) dated 16.10.2015 issued in respect of “Vessel Sita Devi”

       Finding of the Court:

       The ship in question has not arrived at the port within the mandatory period of six months. Therefore, the PCOR that had been granted in favour of “Vessel Sita Devi” has ceased to exist. It has lost its validity.

       Result:

       Held, PCOR has lost its validity.

       

JUDGMENT :

Dipak Misra, J.

Leave granted.

2. The assail in the present appeal, by special leave, is to the judgment and order dated 25.07.2016 passed by the High Court of Judicature at Bombay in Writ Petition No. 1668 of 2016 whereby it has quashed the order dated 13.04.2016 passed by the Principal Officer, Mercantile Marine Department, the first respondent herein, revoking the Provisional Certificate of Registration (PCOR) dated 16.10.2015 issued in respect of “Vessel Sita Devi” on the basis of materials coming to its notice.

It is necessary to state here that the 4th respondent, Oil and Natural Gas Corporation Limited (ONGC) had issued a tender inviting competitive bids for the charter hire of a stimulation vessel for Mumbai Offshore for three years on the terms and conditions set out in the tender. One of the terms and conditions basically related to get a PCOR. For the present, I am not concerned with the tender conditions and compliance thereof, for this Court though heard the learned counsel appearing for the parties on facts as well as on law, but at the subsequent stage, it was thought apposite that the Court should answer the issue relating to law inasmuch as it is fundamentally required to be dealt with what are the requirements to get a PCOR under Section 40 of the Merchant Shipping Act, 1958 (for brevity, “the Act”). Therefore, I shall advert to the law in that regard and answer the same and, thereafter the controversy shall be dealt with on the basis of the judgment presently rendered and other facts, if required.

3. For the determination of the issue, I have heard Shri Kapil Sibal, learned senior counsel for the appellants, Shri Mukul Rohatgi, learned Attorney General for India and Shri Ajit Kumar Sinha, learned senior counsel for the Union of India, Shri C.A. Sundaram, learned senior counsel for the respondent No. 5 and Dr. Abhishek Manu Singhvi, learned senior counsel for respondent No. 7. It is worthy to mention that Shri Mukul Rohatgi has also addressed the Court on behalf of ONGC.

4. To appreciate the controversy in proper perspective, it is necessitous to appreciate and interpret certain provisions of the Act commencing from Section 2 to Section 41. I shall also refer to other provisions of the Act as my attention has been drawn to some of them for scrutinizing the marrows of Section 40 of the Act and not merely to dissect it. I also make it clear that the provisions which are required to be focussed from Section 2 to Section 41 shall only be delved upon.

5. Prior to referring to the provisions, I think it pertinent to refer to statement of objects and reasons. It reads as follows:-

“An Act to foster the development and ensure the efficient maintenance of an Indian Mercantile marine in a manner best suited to serve the national interests and for that purpose to establish a National Shipping Board to provide for the registration, certification, safety and security of Indian ships and generally to amend and consolidate the law relating to merchant shipping.”

6. Section 2 deals with application of the Act. It is as follows:-

Section 2. Application of Act.–

(1) Unless otherwise expressly provided, the provisions of this Act will apply to-

(a) any vessel which is registered in India; or

(b) any vessel which is required by this Act to be so registered; or

(c) any other vessel which is owned wholly by persons to each of whom any of the descriptions specified in clause (a) or in clause (b) or in clause (c), as the case may be, of section 21 applies, shall so apply wherever the vessel may be.

(2) Unless otherwise expressly provided, the provisions of this Act which apply to vessels other than those referred to in sub-section (1) shall so apply only while any such vessel is within India, including the territorial waters thereof.”

7. Section 3 is the dictionary provision. Sub-section (23) defines “owner” as follows:-

“(23) "own











































































































































































































































































































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