1992 Supreme(Bom) 359
IN THE HIGH COURT OF BOMBAY
M.L. Pendse V.V. Kamat, JJ.
M/s. CNA Peejay Exports Pvt. Ltd..... Appellants.
Versus
M.V. Nikolay Maksinov and others.... Respondents.
Appeal No. 286 of 1991 in Admiralty Suit No. 8 of 1980, decided on 30-7-1992.
Advocates appeared :
G.A. Rebello with Ms. Sharon D’Sa, for appellants.
V.R. Dhond with S.C. Chakravorthy, for respondents.
Headnote:ADMIRALITY COURT ACT, 1861 (24 AND 25 VICTORIAE CH. 10).
Section 6 and Merchant Shipping Act (44 of 1958)-Section 443-Admirality Jurisdiction of High Court-Jurisdiction under Section 6-ScopeImport of certain goods in three containers-Containers entrusted to shipping company defendant No.3 to he delivered to plaintiff at Bombay by first defendant-vessel flying USSR flag in whose name necessary bill of lading issued No. 1-Out of three only one container was carried by defendant No. 1 vessel to Port of Naples-Thereafter defendant No. 1 loaded one container on another vessel of another shipping company-And carried to Bombay Port Payment of Customs duty-On basis of Bill of Entry for all three containers Two containers unloaded at Bombay Port two months later-Toll duty un all three containers paid fresh - Refunded, however to plaintiff after nine months-Admiralty suit to claim damages against vessel defendant No. 1 after its arrival at Bombay Port-Maintainability of.
Held-It was not correct to suggest that unless and until defendant No.1 vessel brought consignment into Indian Port, Jurisdiction under Section 6 could not be exercised. Once it was accepted by defendants that consignment or part thereof was loaded on board of defendant No. 1 vessel and carried upto port of Naples then claim for damages against vessel when it arrived in Port of Bombay was perfectly entertain able by Admira1ity Court. The expression of the ship occurring in Section 6 of Admira1ity Courts should be given a wider interpretation to sub serve ends of justice. It was possible that in a given case the consignment might never arrive at the destination Port and the liability of the vessel on which the consignment was loaded and which was reflected in the bill of lading could not be avoided and it was also open for the consignee to proceed against the vessel whenever it was found in Indian Port.
There was one more circumstance which could be overlooked. The challenge to the jurisdiction at the behest of the defendants was only to exercise of powers of the Admiralty Court and not to the original civil jurisdiction of High Court. The Single Judge held that the Admiralty Court had no jurisdiction and returned the plaint for presentation to the original civil jurisdiction of High Court only. In fact the distinction between the admiralty jurisdiction and civil jurisdiction of High Court disappeared after the decisions of the Supreme Court and consequently the order of return of plaint could be sustained.
Hence, the order of the Single Judge declining to entertain suit by Admira1ity Court and for presenting to original civil jurisdiction of High Court was not correct.
2. The appellants-plaintiffs are private limited company incorporated under the Companies Act and inter alia carry on business of import and export. Respondent No.1 is a vessel flying U.S.S.R. Flag and respondent No.3 are the owners of the said vessel. Respondent No.2 are the general agents in Bombay and elsewhere in India in respect of respondent No.1 vessel as well as other vessels belonging to respondent No.3. Respondent 2 as the general agents of respondent No.3 are responsible for all matters concerning respondent No.1 vessel.
The plaintiffs had imported 1360 bags of High Density Polythene Moulding Powder in three containers from M/s George Woollock Allan, United States of America. The three containers bearing distinctive marks containing 160 bags, 600 bags and 600 bags were entrusted to defendant No.3 by the shippers to be shipped and delivered to the plaintiffs in Bombay by the 1st defendant vessel. The necessary bill of lading dated June 4, 1979 was issued by and in the name of defendant No.1 vessel Nikelay Maksinov. The bill of lading clearly gives the description of the containers, their number and quality. Out of the three containers only one container was loaded on board defendant No.1 vessel and that container carrying 160 bags was carried by defendant No.1 vessel to the Port of Naples. The container was then transhipped from defendant No.1 vessel and loaded on another vessel M.V. Inzhewer Yamburenko belonging to defendant No.3, and carried to Bombay Port. The vessel arrived at Port of Bombay on August 7, 1979 and discharged the container. The plaintiffs filed bill of entry for all the three containers on August 8, 1979 and thereafter paid the customs duty. The customs duty paid was Rs.1,47,087.65. The plaintiffs thereafter found out that only one container was delivered vessel INZHEWER YAMBURENKO. The plaintiffs thereupon made enquiries and learnt from defendant No.2 that the remaining two containers were brought by the same vessel and unloaded in Bombay Port in the last week of September 1979. The plaintiffs approached the authorities to take delivery and the Customs authorities demanded full duty on the three containers afresh. The plaintiffs were compelled by pay the duty all over again for clearing the three containers. The duty paid by the plaintiffs on second occasion was Rs.1,30,769.40. The duty was refunded to the plaintiffs after about nine months and the plaintiffs claim that they had lost interest on the said amount to the tune of Rs.11,700/-. The plaintiffs were also required to pay the demurrage and wherefage charges amounting to Rs.99,791.09. The plaintiffs claimed that the containers were lying exposed to the elements in Dock for several months and suffered in quality. About 100 and odd bags were badly damaged and several bags were pilfered from the Docks. The plaintiffs claimed damages to the tune of Rs.1,00,000/-. The plaintiffs thereupon demanded total sum of Rs.2,11,491.09 from the defendants and on the defendants refusal to pay the same, instituted Admiralty Suit No.8 of 1980 on May 12, 1980 for realisation of the amount. In the meanwhile defendant No.1 vessel had arrived in Bombay Port and the plaintiffs sought relief for arrest of the said vessel together with gear, tackle, plant etc. for payment of the plaintiffs claim. The plaintiffs claimed that they are entitled to proceed against the 1st defendant vessel in rem.
3. Defendants filed their written statement and claimed that the Ad