IN THE HIGH COURT OF JUDICATURE AT BOMBAY
K.R. SHRIRAM, RAJESH S. PATIL, JJ.
MV Golden Pride – Appellant
Versus
GAC Shipping (India) Pvt. Ltd. – Respondent
Commercial Appeal No. 55 of 2022, Commercial Appeal No. 12 of 2023, Interim Application (L) Nos. 7724, 8290 of 2021, Commercial Admiralty Suit No. 7 of 2021, Interim Application No. 1676 of 2022
Decided On : 02-05-2023
Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017 - Section 4(1)(n) and 4(1)(p) - Major Port Trusts Act, 1963 - Section 64 - Federal Rules - Rule 9(h) - Demand notice - Distrainment/arrest - Security/put up bail - Maintainable - Admiralty Registrar - Port Trust - Maritime claim - Whether claim of port was entitled to receive requisite part of security amount deposited by appellant - Held, Court submissions of appellant that Respondent claim being a claim in nature of indemnity would not be a maritime claim has to be rejected - As regards submissions that both an agent of vessel and port cannot maintain an action simultaneously on first blush looks interesting - But that is a non-starter when court have held that an indemnity action is maintainable - Moreover both are separate causes of action available to both parties one in nature of a maritime claim and other a maritime lien - Appeal Dismissed.
JUDGMENT :
K.R. SHRIRAM, J.
COMMERCIAL APPEAL NO. 55 OF 2022
1. Appellant in both these appeals is impugning a common order and judgment passed by the learned single Judge of this court on 24th March 2021 in two Interim Applications, viz. Interim Application (L) No. 8290 of 2021 and Interim Application (L) No. 7724 of 2021. Interim Application (L) No. 7724 of 2021 was filed by the auction purchaser of appellant/vessel MV Golden Pride which was allegedly owned by one Golden Star Marine FZE. Interim Application (L) No. 8290 of 2021 is filed at the instance of one Golden Star Marine FZE allegedly the owner of MV Golden Pride. Though it is not clear why two separate appeals have been filed, we are only concerned with the impugned order so far as it relates to Interim Application (L) No. 8290 of 2021 filed by Golden Star Marine FZE. The vessel MV Golden Pride (the said vessel) is no more a vessel since it has been sold in auction by the court and the said vessel has already been scrapped. Mr. Kapadia stated he was not pressing that issue of said vessel being sold for scrapping and not as a trading vessel.
2. It is the case of Golden Star Marine FZE (hereinafter referred to as “appellant”) that the order dated 24th August 2020 passed by this court arresting the said vessel could not have been passed since the claim of Respondent No. 1 was not a maritime claim under Section 4 of the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017 (the Admiralty Act).
3. The second part of appellant’s case is impugning the order of the learned single Judge in permitting Mumbai Port Trust, viz. Respondent No. 2, to withdraw an amount of Rs. 1,31,27,146/- out of a sum of Rs. 1.50 Crores that appellant had deposited in the Hon’ble Apex Court, later transferred pursuant to the directions/order passed by the Hon’ble Apex Court on 12th March 2021 to the Prothonotary and Senior Master, High Court, Mumbai who is also the Admiralty Registrar.
4. Respondent No. 1/Original Plaintiff had filed this Admiralty suit against the said vessel MV Golden Pride claiming indemnity for unpaid port charges with regard to the said vessel which Respondent No. 2 may look to them for payment. Respondent No. 1 was of course denying that it had any personal liability to the port.
5. Respondent No. 1 was the agent of appellant. Towards the end of May 2018 Respondent No. 1 was appointed to provide agency services to the said vessel during her stay at Mumbai. The agency charges were agreed and appellant was to pay port charges to Respondent No. 2. Port charges were to be paid in advance but despite repeated reminders appellant did not pay port charges. Port raised invoice on Respondent No. 1 and also threatened legal action. Respondent No. 1 informed appellant that as on 31st July 2020 the estimated port charges would be approximately Rs. 46,00,000/- but still only a sum of Rs. 10,000/- was paid. Respondent No. 1 had also given an undertaking to the Port – Respondent No. 2 to pay all its dues for all vessels calling under its agency. As Respondent No. 1 feared the port will look to it for payment of its charges and may even not permit vessels to call under its agency, Respondent No. 1 called upon appellant to pay. As appellant was not paying either the Port or Respondent No. 1, Respondent No. 1 filed an action in rem against the said vessel claiming that it is liable to pay the port the dues for the said vessel. According to Respondent No. 1, though it would be in the nature of indemnity, the underlying claim would be a maritime claim against the said vessel, inter-alia, under Section 4(1)(n) and 4(1)(p) of the Admiralty Act. It is averred in the plaint that (a) Respondent No. 1’s claim arises out of port dues payable in respect of the said vessel and it is not liable to pay the port for the same, (b) Respondent No. 1 reasonably apprehends that the port will look to it directly for payment of its dues, and (c) hence, Respondent No. 1 is entitled to be indemnified by the
Mansukhlal Dhanraj Jain and Others. vs. Eknath Vithal Ogale
Renusagar Power Co. Ltd. vs. General Electric Co. (1984) 4 SCC 679
Maritime liens, while surviving ownership changes, are extinguished after six months unless the vessel is arrested, and claims must be filed within this period to be maintainable.
A claim for refund of detention charges does not fall within admiralty jurisdiction if it is not connected to a maritime claim involving a vessel.
The court confirmed that maritime claims under the Admiralty Act, 2017 allow arresting a vessel for dues irrespective of ownership, emphasizing the ship's distinct legal personality.
The court affirmed that a breach of contract under the Admiralty Act justifies a maritime claim, requiring the defendant to furnish security for damages due to failure in contractual obligations.
A breach of contract in maritime agreements may support claims for damages and penalties under the Admiralty Act 2017, classifying such disputes as maritime claims.
A maritime claim can be pursued in rem against a vessel owned by a time charterer, provided the owner is liable for the claim, regardless of applicable insolvency laws.
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