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2025 Supreme(Bom) 1694

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ABHAY AHUJA, J.
 
Valimohamed Hasher Khakhra - Applicant 
Versus
M. V. Labitra Carmel IMO 8739114 and Ors. – Respondents
Interim Application No. 1285 of 2025 In Execution Application No. 623 of 2024
Decided On : 10-10-2025

Advocates Appeared:
For the Applicant : MR. Kunal Damle with Mr. Rupesh Lanjekar.

Plaintiffs may recover claims from sale proceeds of other vessels owned by the same defendant if primary claims remain unsatisfied.

Headnote:In this case, the Interim Application was filed seeking the release of funds following a judicial decree. The court reviewed the applicability of maritime claims and the ability of a plaintiff to pursue recovery from sale proceeds of other vessels owned by the liable party if the primary claim cannot be satisfied. Key legal principles from case law illustrate that a plaintiff can assert their rights over the assets of a defendant where relevant judgments are made. The final ruling allows the applicant to receive an amount of Rs. 1,03,07,839.73/- with interest as previously ordered.

Table of Content
1. claim for funds under a judicial decree. (Para 1 , 2 , 3)
2. claims against sale proceeds of multiple vessels. (Para 4 , 5 , 12)
3. recognition of higher ranking maritime claims. (Para 6 , 7)
4. legal reasoning supporting execution of maritime claims on other vessels. (Para 8 , 9)
5. final ruling on allowed funds disbursement. (Para 10 , 11 , 13 , 14)

JUDGMENT :

ABHAY AHUJA, J.

1. This Interim Application seeks a direction to the Prothonotary & Senior Master to release the amount of Rs. 1,03,07,839.73/- along with interest as per the judgment and order dated 22nd February, 2022, passed in Admiralty Suit No. 64 of 2015 in favour of the Applicant, which is lying in this Court with respect to the sale proceeds of M. V. Labitra Kharisma and M. V. Betul SSA, which were owned by the very same ship owner viz. Jaisu Shipping Company Pvt. Ltd. and sold in auction in Admiralty Suit No. 12 of 2014 and Admiralty Suit No. 36 of 2014.

2. Mr. Damle, learned Counsel appearing for the Applicant submits that earlier, by order dated 22nd February, 2022, Suit in favour of the Applicant was decreed in terms of prayer Clause (a), except that interest on principal sum of Rs. 50,42,325/- from date of the Suit till payment or realisation would be at the rate of 12% per annum and it was directed that the decree be drawn up after giving credit to a sum of Rs.9,09,000/- admittedly received by the Plaintiff.

3. Mr. Damle submits that thereafter the decree was drawn up and as per the decree, the Defendants No. 1, 3 and 4 have been directed to pay to the Plaintiff a sum of Rs. 67,25,549.67 for debt and Rs. 43,81,435.06 for interest at the rate of 12% per annum on the sum of Rs. 50,42,325/- from the date of filing of the Suit i.e. 29th November, 2014 till 22nd February, 2022 and the sum of Rs. 1,09,855/- for costs of the Suit including Advocates fees quantified at Rs.15,000/- aggregating to Rs. 1,03,07,839.73, after giving credit of Rs. 9,09,000/- admittedly received by the Plaintiff along with interest at the rate of 12% per annum till payment and/or realisation.

4. Mr. Damle submits that although the decree relates to a claim of 12 Invoices in respect of supply of fresh water to vessel M. V. Labitra Carmel, which was the Defendant No. 1 in Admiralty Suit No. 64 of 2015, however, since after auction of the said vessel, the amount of Rs. 25,00,000/- received as sale proceeds was for satisfaction of the claim of the Mumbai Port Authority as the said claim ranked in priority as maritime lien and therefore, this Interim Application has been filed to make the claim against the sale proceeds of the other two vessels viz. M.V. Labitra Kharisma and M. V. Betul SSA, owned by the very same ship owner i.e. the Defendant No.3 in this Suit viz. Jaisu Shipping Company Pvt. Ltd.

5. Referring to the report of the Master & Assistant Prothonotary of this Court in compliance of the order dated 12th April, 2024 in the Execution Application No. 623 of 2024, Mr. Damle submits that the two reports: one in the case of M.V. Labitra Kharisma and other in the case of M. V. Betul SSA clearly indicate that there are sufficient amounts lying with the Prothonotary & Senior Master to satisfy the decree of the Plaintiff.

6. Referring to another report of the Master & Assistant Prothonotary, learned Counsel submits that pursuant to the order dated 9th May, 2024, the Master & Assistant Prothonotary has clearly stated in the report that no Suits and claims have been found to have been filed against the vessels M. V. Labitra Kharisma and M. V. Betul and against the sale proceeds thereof till date viz. 24th July, 2024.

7. This Court had earlier raised a query to Mr. Damle, as to the law under which the Applicant/Decree Holder is permitted to seek disbursal from other Suit accounts where the proceeds are lying after sale of vessels owned by the same ship owner, Mr. Damle has in response relied upon the following two decisions in support to submit that if the Plaintiff is unable to satisfy

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