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2021 Supreme(Bom) 696

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
S.C. Gupte, Surendra P Tavade, JJ.
The Board Of Trustees Of The Port Of Mumbai - Appellant
Versus
Nkd Maritime Ltd & Ors. - Respondents
Commercial Appeal (L) No. 1577 of 2021; Interim Application (L) No. 6531 of 2020; Sheriffs Report No. 53 of 2020; Commercial Admiralty Suit (L) No. 3579 of 2020; Cross Objection (L) No. 2057 of 2021
Decided On : 12-02-2021

Advocates appeared:
Umesh Shetty, Advocate, Ajai Fernandes, Advocate, Sneha B Pandey, Advocate, Motiwalla & Co, Advocate, Prathamesh Kamat, Advocate, Vikrant Shetty Gurdeep Singh Sachar, Advocate

Charges for anchorage of the vessel after the date of bill of sale and delivery of its possession unto the purchaser were not in the nature of an encumbrance and were to be borne by the purchaser. Port dues and anchorage fees were separate charges governed by separate clauses of the Tariff notification.

Headnote:

Anchorage Charges - Commercial Admiralty Suit - Major Port Trusts Act, 1963, Sections 48, 49, 50 - The court discussed the applicability of anchorage fees and port dues under the Major Port Trusts Act, 1963, and the Admiralty Act, 2017, in the context of a dispute over charges raised by the Port of Mumbai against an auction purchaser of a vessel. The court clarified that the charges for anchorage of the vessel after the date of bill of sale and delivery of its possession unto the purchaser were not in the nature of an encumbrance and were to be borne by the purchaser. The court also ruled that port dues and anchorage fees were separate charges governed by separate clauses of the Tariff notification.

Fact of the Case:

The dispute involved the bill of charges raised by the Port of Mumbai for port dues and anchorage charges against an auction purchaser of a vessel. The purchaser contested the quantum of charges and sought rectification of the bill.

Finding of the Court:

The court ruled in favor of the Port of Mumbai, stating that the charges for anchorage of the vessel after the date of bill of sale and delivery of its possession unto the purchaser were not in the nature of an encumbrance and were to be borne by the purchaser. The court also clarified that port dues and anchorage fees were separate charges governed by separate clauses of the Tariff notification.

Issues: The issues involved the applicability of anchorage fees and port dues under the Major Port Trusts Act, 1963, and the Admiralty Act, 2017, in the context of a dispute over charges raised by the Port of Mumbai against an auction purchaser of a vessel.

Ratio Decidendi: The court clarified that charges for anchorage of the vessel after the date of bill of sale and delivery of its possession unto the purchaser were not in the nature of an encumbrance and were to be borne by the purchaser. The court also ruled that port dues and anchorage fees were separate charges governed by separate clauses of the Tariff notification.

Final Decision: The commercial appeal was allowed by quashing and setting aside the impugned order of the learned Single Judge. The amount deposited by the Applicant as a condition of interim relief in its favor may now be withdrawn by the Port of Mumbai. The cross objection was dismissed. Costs to be costs in the cause.

JUDGMENT

S.C. Gupte, J. - This commercial appeal challenges an order passed by a learned Single Judge of this court on an interim application in a Sheriff's report filed in a commercial admiralty suit. The controversy concerns the bill of charges raised by the Appellant herein (original defendant No.2 and Respondent No.2 in the interim application), who is the Board of Trustees of the Port of Mumbai, for port dues and anchorage charges against Respondent No.1 herein (original Applicant), who is an auction purchaser of the defendant vessel. The parties to this appeal are hereinafter referred to by their nomenclature in the interim application out of which the present appeal arises.

2. The defendant vessel arrived within the port and harbour of Mumbai and was docked at Y1 anchorage on 23 March 2020. After 2 June 2020, it was shifted to Port Lighterage Anchorage and then, from 13 June 2020 onwards, it was at V1/Y anchorage. It remained at this anchorage by the time the vessel, originally arrested on the orders of the Admiralty Court, was ordered to be sold. The Applicant was the successful auction purchaser. The defendant vessel was sold on "as is where is" basis, but free of all encumbrances to the Applicant on 9 November 2020. The Applicant took its delivery on 11 November 2020 and caused the vessel to sail out on 20 November 2020. For the period between the date of delivery of its possession and till it sailed out (i.e. for 11 days), Respondent No.2 (MbPT) raised a bill inter alia for port dues and anchorage charges. The Applicant, being dissatisfied with the quantum of the charges, prayed for issuance of a rectified bill. In particular reference to the anchorage charges, it was the Applicant's case that the vessel was at the anchorage during the time of the Applicant's ownership only for a period of 11 days and for which MbPT could only have charged a rate applicable upto 30 days and not the rate applicable beyond 30 days. The learned Single Judge ordered rectification of the bill as claimed by the Applicant.

3. Briefly, the controversy may be stated thus : In exercise of powers under Sections 48, 49 and 50 of the Major Port Trusts Act, 1963, Tariff Authority for Major Ports has issued a notification notifying inter alia scale of rates for major ports. Clause 2.15 of this notification provides for a schedule of anchorage fees. Any vessel or self propelled barge, except lash barge or dumb barge, remaining at any anchorage point shown in this schedule attracts anchorage fees in accordance with the rate shown in it. For anchorage point V1/Y, with which we are concerned in the present case, the rate per GRT (Gross Registered Tonnage) per hour or part thereof for a foreign going vessel is 0.0047 USD from first day onwards and upto 30 days. If the vessel is docked at such anchorage point for more than 30 days, the applicable rate beyond the 30th day is 0.0118 USD. In this case, the vessel was at V1/Y anchorage with effect from 13 June 2020. More than 30 days had already elapsed, since it was brought to this anchorage, by the time the vessel was sold under orders of this court and purchased by the Applicant under bill of sale dated 9 November 2020. At the time of its sale, the vessel was already paying anchorage fees at the rate applicable beyond 30th day. MbPT, accordingly, charged the Applicant for anchorage at the rate of 0.0118 USD per GRT, which was the applicable rate beyond 30th day. The Applicant disputes the rate applied on the ground that the vessel was at the concerned anchorage point at its instance only between 11 November 2020, when it obtained its possession and 20 November 2020 it caused the vessel to sail out of anchorage. MbPT, on the other hand, claims that the vessel being at the anchorage point for over 30 days, the applicable rate was the rate beyond 30th day, i.e. 0.0118 USD per GRT, and it is that rate which they have claimed in the bill raised on the Applicant. The learned Single Judge was called upon to decide

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