The Court emphasized the need to ensure compliance with the order of arrest and the priorities of maritime claims, and held that there were no special reasons to permit the vessel to sail under arrest.

1. The Plaintiff has filed the present suit to recover a maritime claim against the 1st Defendant vessel, which is a foreign flag flying vessel, claimed to be of the beneficial ownership of the 2nd Defendant. The claim arises under a time – charter party, by which the Plaintiff had given its vessel, M. V. Cygnus Ocean, to the 2nd Defendant on a time charter. The claim is in respect of breach of the charter party including non-payment of hire charges and aggregates to over USD 2 Million. It is the case of the Plaintiff that the 2nd Defendant has filed for bankruptcy in Korea. On these facts, the 1st Defendant vessel, which was within the port and harbour of Visakhapatnam, was arrested by the Plaintiff in the present suit, under an order of arrest dated 17 March 2015. There is no application as yet from the owners of the vessel to vacate the arrest by payment of any security or otherwise. The 1st Defendant vessel is, accordingly, awaiting an order of sale.

2. The Applicant herein claims to be a voyage charterer of the 1st Defendant vessel with M/S Hyundai Glovis Co. Ltd., the purported disponent owner of the vessel. This charter was on a back to back basis of a voyage charter-party between the Applicant and Steel Authority of India Ltd. (“SAIL”) for transportation of coal from the Port of Hay Point in Australia for discharge at “East Coast of India Port (s)”. In pursuance of these charter-parties, 78, 745 MT of Coaking Coal (“cargo”) was loaded on board the vessel at the Port of Hay Point. SAIL had nominated two ports on the east coast of India as ports of discharge, namely, Visakhapatnam and Haldia. The instructions were finally issued by SAIL to the Master of the vessel to discharge the cargo of not less than 45,000 MT at Visakhapatnam and the remaining cargo at Haldia. The vessel arrived at the Port of Visakhapatnam on 17 March 2015 and discharged 52,774 MT out of the total cargo of 78,745 MT there. Before the vessel could thereafter proceed to Haldia for discharge of the balance cargo, it was arrested under the orders of this Court as noted above.

3. In the premises, the Applicant has moved the present Notice of Motion for permission to intervene in the suit herein and for leave of this Court for the vessel to sail under arrest from the Port of Visakhapatnam to Haldia, Port of Kolkata and discharge the balance cargo. It is submitted that SAIL, a Government of India undertaking, requires the cargo on urgent basis to service its steel plants along the east coast of India; and the Applicant faces huge claims of damages as a result of late delivery or non-delivery. It is submitted that appropriate arrangements can be made to allow the vessel to sail under arrest including deputation of a bailiff on board the vessel, handing over of the documents of the vessel to the port authorities at Haldia, etc. The Applicant offers to bear the expenses for such arrangements. It is submitted that there have been precedents by way of similar orders passed by this Court permitting the vessel to sail under arrest.

4. The application is strenuously contested by the Plaintiff. It is submitted on its behalf that this Court ought not to permit the vessel to sail to Haldia, since such journey involves sailing outside the territorial waters of India, i.e. outside the jurisdiction of this Court. It is submitted that the head owners of the vessel are in the midst of bankruptcy proceedings; one is not sure whether even the wages of the crew have been paid; there is no guarantee that the crew co-operate with the Applicant by transporting the cargo at Haldia and submitting to the authorities at Haldia so as to continue the arrest. It is submitted that the 1st Defendant vessel is the only security of the Plaintiff for a claim of over USD 2 Million and that this security cannot be put to risk, including the various maritime risks which create further lien upon the vessel. It is submitted that the Applicant's balance freight to be earned is approxima