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2007 Supreme(Bom) 1152

IN THE HIGH COURT OF BOMBAY
S.C.DHARMADHIKARI, J.
New Era Shipping Ltd. Plaintiffs
Versus
M.V.P.EXPRESS & Ors. Defendants
NOTICE OF MOTION NO.2728 OF 2007 WITH CHAMBER SUMMONS NO.1125 OF 2007 IN ADMIRALTY SUIT NO.32 OF 2007
Decided on: 21st August 2007.

Advocates:
Advocate Appeared
Ms.F.Sethna with Dipti Das & Suja T.
i/b.Duttmenon Dunmorr Sett for applicants/proposed defendants

Headnote:Ports Act, 1908 - Ship - Definition of - Ship brought to port for destruction - Evidence regarding corroborated by documentary evidence - Said vessel cannot to be a ship within meaning of said definition. - Thereafter for demonstrating the payment in respect of the vessel has been made as per the agreement dated 8th June, 2007 copies of Telex from Indian Overseas Bank, Hong Kong to Oriental Bank of Commerce, Mumbai is also produced. Copy of permission from Gujarat Maritime Board dated 23rd July, 2007 is also produced which shows that the vessel is beached for the purpose of its journey to the ship yard for breaking and is unfit for sea navigation. Copies of Letters of Credit established through Oriental Bank of Commerce and negotiating telex by this bank are also produced by way of further compilation. In the compilation of documents, relied upon by the applicants dated 21st July, 2007 copy of bill issued by the Gujarat Maritime Board evidencing payment of premium charges of Rs. 3,03,750/- is produced. The plot development fees have been deposited by the applicants with the Gujarat Maritime Board upon September 2007 is evidenced by the challan for Rs. 10,46,253. The plot rent is also paid to also water/electricity charges. The various expenses which have been incurred towards the vested are also sought to be proved by producing bills and vouchers so also the fact that the ship is beached is corroborated by the Bailiffs report. A perusal of this material would clearly go to show that arrangement is made for demolition of the vessel. In such circumstances there is much substance in the contention of Mr. Sethna that the first defendant vessel has ceased to be a ship within the meaning of the said definition. There is also substance in the contention that the title in the vessel has passed on to the applicants herein. There is an affidavit also filed by one Mr. Phillipos Mathai from Bhavnagar who claims to be in the employment of applicants. He is vested with the charge of billing excise and customs formalities in relation to the ship breaking activities of the applicant. He has confirmed that waterfront plot No. 55 is under lease to the applicants from Gujarat Maritime Board for the purpose of carrying out ship demolition activities from time to time. It is in these circumstances that I proceed to place reliance upon the statement on affidavit which are corroborated and supported by the documents referred to above.

ORAL JUDGEMENT :-

1. This chamber summons and the notice of motion in this Admiralty Suit can be disposed of by a common order, inasmuch as they were heard together so also similar contentions were 2 canvassed by parties.

2. The plaintiff has instituted this suit in the Admiralty & Vice Admiralty jurisdiction of this Court for the following reliefs:- "(a) For an order of Arrest of the 1st Defendant vessel for a sum of Rs.42,60,000/- as per the particulars of claim shown in Exh.N hereto; (b) That the defendants be ordered to permit the plaintiff’s a survey of the first defendant vessel; (c) For an order and decree in favour of the plaintiffs and against the first and second defendants for Rs.42,60,000/- as per the particulars of claim shown in Exh.N hereto;"

3. It is the case of plaintiff that it is a company engaged in business of owning barges and ships. The first defendant vessel is a foreign flag ship presently lying at Port Alang, Gujarat. The plaint proceeds on the basis that the vessel owners are unknown and she is presently on her final voyage for ship breaking operations. Second defendants are the representatives of the owners of the vessel. They are responsible and instrumental in vessel sailing into Alang for the proposed breaking of the same. Third defendants are Gujarat Maritime Board, a Statutory authority in the State of Gujarat, established, inter alia, to supervise and control ship breaking activities in that State.

4. It is contended that the vessel is currently under the jurisdiction of the third defendant. The suit has been filed seeking damages against the first and second defendants on account of collision of first defendant vessel with that of the vessel by name m.v.KINSHIP MODESTY. This vessel viz., KINSHIP MODESTY was chartered by the plaintiffs.

5. The vessel of plaintiffs was in Gujarat for charterers operations. She had completed discharge of her cargo at Port Bhavnagar and was waiting at the anchorage outside Bhavnagar port for her next cargo assignment. Her engines were off and her anchor was dropped as required for the vessel that would be waiting for her position to receive cargo.

6. At about 05.15 hrs. on 6th July 2007, the first defendant vessel came in physical contact with the plaintiff’s vessel. The first defendant vessel was on her journey to Alang and was on duty to look out for the vessels that are in anchor. Whilst the first defendant vessel was making her approach, the plaintiff’s Master apprehended that first defendant vessel was moving too close to the plaintiff’s vessel. He and the Chief Officer called on the first defendant vessel on VHF Channel No.16 and 17 and tried to get his attention by flashing lights. This was intended to warn the Master and crew of the first defendant vessel of their manoeuvre to avoid plaintiff’s vessel. Notwithstanding the same, the first defendant crew paid no heed to the warning signals and made unfortunate contact with plaintiff’s vessel arising out of their negligent and reckless navigation.

7. As a result of this contact, plaintiff’s vessel suffered damage and investigations revealed the extent of the same. The same is disclosed in a statement, a copy of which is annexed as Annexure "E" to the plaint. Plaintiffs’ vessel was, therefore, required to be repaired and the cost estimated for the same was Rs.25 lakhs. Plaintiff’s vessel will lose its six days before she enters her dry dock and, 6 thereafter, it is likely that the vessel will undertake repairs for 14 days in dry-dock after which only she will be able to undertake any commercial employment. Consequently, she will not be entitled to charter hire assignments for this period. The vessel was fixed for charter at Rs.88,000/- per day and it is expected to lose a sum of Rs.17,60,000/- towards loss of income and that is how the claim for damages has been made.

8. In paras 11 and 12 of the plaint, this is what is stated:- "11. In view of the foregoing, the plaintiff respectfully submits that this Hon’bl
































































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