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2023 Supreme(Bom) 375

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
K.R. Shriram, Rajesh S. Patil, JJ.
Angsley Investments Limited. - Appellant
Versus
Jupiter Denizcilik Tasimacilik Mumessillik San. Ve Ticaret Limited – Respondent
Appeal No. 902 of 2006 In Admiralty Suit No.15 of 2001 With Notice of Motion No.4423 of 2006
Decided On : 08-03-2023

Advocates:
Advocate Appeared:
For the Appellant : Mr. Vishal Kanade a/w. Mr. Shadab Peerzade and Ms. Janhavee Joshi i/b. Mr. Munir Merchant
For the Respondent: Mr. Prathamesh Kamat, Amicus Curiae.

Headnote:

Company - Business of supplying bunkers - Committed default in payment - Defendant no.2 committed default in payment and plaintiff and defendant no.2 entered into a protocol in relation to payment that was to be made by defendant no.2 to plaintiff - According to plaintiff, despite entering into protocol, an amount of US$ 100,798/- remained unpaid - Plaintiff, filed Admiralty Suit No.to arrest defendant no.1 vessel which was at port of Kandla - Order of arrest was made on, which was served upon Port and Customs Authorities. So also upon agent of defendant no.1 vessel - Warrant of arrest could not be served on Master of m.v. LIMA II because she was in stream in outer anchorage. m.v. LIMA II jumped arrest and escaped from port of Kandla - Whether Plaintiff is entitled to a decree against Defendants for sum with interest at 30% per annum? - Whether MV Lima-I was sister ship of Defendant No.1 vessel at time of arrest of MV Lima-I on 31st October 2001? and Whether Plaintiff was entitled to arrest MV Lima-I in lieu of Defendant No.1 vessel? - Held, Court had already passed an order of arrest against m.v. LIMA II which was owned by defendant no.2 - Said finding is clearly erroneous - Court assumes jurisdiction over a vessel not by an order of injunction but by an order of arrest - Merely because the Court had ordered arrest of m.v. LIMA II (defendant no.1) does not mean that it can pass an injunction against another vessel - Assuming m.v. LIMA I was the sister-vessel of m.v. LIMA II, it would make very little or no difference - As suit is framed, would not entitle plaintiff to a decree against m.v. LIMA I or bail amount deposited by defendant no.3 (i.e., appellant) in lieu of m.v. LIMA I - Since plaintiff could not proceed against m.v. LIMA I itself - Even if m.v. LIMA I is held to be sister-vessel of m.v. LIMA II, plaintiff for reasons aforesaid, still cannot get decree against m.v. LIMA I or bail amount deposited - Appeal is liable to allowed and is hereby allowed.

JUDGMENT :

K.R. SHRIRAM, J.

1. Since nobody was appearing for respondent, this Court appointed Mr. Prathamesh Kamat, Advocate, as Amicus Curiae. We must express our appreciation for the assistance rendered and endeavour put forth by Mr. Prathamesh Kamat, learned Amicus Curiae, for it has been of immense value in rendering the judgment.

2. This appeal impugns an order and judgment dated 8th November 2006 passed by the learned Single Judge decreeing the suit in terms of prayer clauses – (c) and (i). Prayer clauses – (c) and (i) read as under :

    (c) For an order and decree in favour of the plaintiffs and against the defendants in the sum of US$ 100,798 as per the particulars of claim shown in Exhibit ‘A’ hereto with interest thereon at the rate of 30% p.a. from the date of institution of the suit till payment and/or realization.

(i) Costs of the suit may otherwise be provided for.

3. Plaintiff is a Turkish company carrying on business of supplying bunkers to various vessels. According to plaintiff, for the period between 9th October 2000 to 13th March 2001 plaintiff had supplied bunkers to defendant no.1 m.v. LIMA II on the basis of orders placed by defendant no.2, the owners of m.v. LIMA II.

4. As per the invoice raised, payment was to be made within 30 days or else plaintiff was entitled to charge interest at 30% p.a. Defendant no.2 committed default in payment and, therefore, plaintiff and defendant no.2 entered into a protocol in relation to the payment that was to be made by defendant no.2 to plaintiff. According to plaintiff, despite entering into the protocol, an amount of US$ 100,798/- remained unpaid. Plaintiff, therefore, filed Admiralty Suit No.15 of 2001 to arrest defendant no.1 vessel which was at port of Kandla. The order of arrest was made on 17th May 2001, which was served upon the Port and Customs Authorities. So also upon agent of defendant no.1 vessel. The warrant of arrest could not be served on Master of m.v. LIMA II because she was in stream in the outer anchorage. m.v. LIMA II jumped arrest and escaped from the port of Kandla.

5. Later plaintiff got information that a vessel by the name m.v. LIMA I, which according to plaintiff was owned by defendant no.2, was at the port of Calcutta and, therefore, plaintiff moved a Notice of Motion bearing No.1970 of 2001 before the Admiralty Court. By an ad-interim order dated 14th August 2001 m.v. LIMA I was restrained from leaving the port of Calcutta. The notice of motion was finally disposed by an order dated 31st October 2001 confirming the ad-interim order. The Court clarified that on furnishing of security to the satisfaction of the Prothonotary and Senior Master, the said interim order shall cease to operate.

6. Defendant no.3, the present appellant, furnished security in terms of the orders of the Court while disposing the Notice of Motion No.1970 of 2001 on 31st October 2001. As a result, m.v. LIMA I was allowed to sail. Defendant no.3, i.e., appellant, thereafter, took out Notice of Motion No.529 of 2002 seeking leave of the Court to intervene in the suit. It was appellant’s case that it was an interested party because it had purchased the vessel from Mercury Shipholding Inc. (Mercury) of London which had purchased the vessel from defendant no.2. It had thereafter, sold the vessel to one Jain Udyog for demolition and Jain Udyog had asked appellant to have the vessel m.v. LIMA I released from various legal proceedings.

The said notice of motion was allowed and plaintiff was directed to join appellant as defendant no.3.

No written statement has been filed by defendant no.1 or defendant no.2. Only appellant as defendant no.3 filed written statement. It was appellant’s case that :

(a) m.v. LIMA I is not the sister ship of m.v. LIMA II either at the time of filing the suit or at the time of grant of arrest (injunction) of m.v. LIMA I, i.e., 31st October 2001. m.v. LIMA I was sold by original defendant no.2 to Mercury under a Bill of Sale dated 10th April 2001 and was flying th

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