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2025 Supreme(Bom) 1861

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ABHAY AHUJA, J.
Irwin Edmund Sequeira and Others – Appellants
Versus
Sale Proceeds of MV Karnika – Respondent
Interim Application No. 4910 of 2025, Commercial Admiralty Suit No. 11 of 2021
Decided On : 12-12-2025

Advocates Appeared:
For the Appellants : Prashant Pratap, Kaushik S. Krishnaswamy, Prathamesh Kamat
For the Respondents: Ajai Fernandes, Motiwalla

The court affirmed that an intervenor in maritime suits can raise defenses relevant to their standing without restrictions, emphasizing the necessity of intervention to protect their interests against competing claims.

Headnote:(A) Admiralty (Jurisdiction and Settlement of Maritime Claims) Act 2017 - Section 4(1)(c) - Bombay High Court (Original Side) Rules, 1980 - Rule 1086 - Application for Intervention - Applicant seeks intervention in Commercial Admiralty Suit as a party Defendant as a competing maritime lien holder. Court observes that an intervenor must demonstrate interest in vessel or proceeds. The court elucidates that interventions are allowed for limited purposes of raising defenses specific to the intervenor's character, as per previous rulings. (Paras 1, 8, 23)

(B) Intervention - Nature and Scope - Restricting the defenses of an intervenor is not a bar as per Order 1 Rule 10, CPC. The Applicant argues against limitations proposed by the Plaintiff, underlining that there is no prescribed limitation for interventions as per the Rules. Intervention essential to guard against unwarranted claims by the Plaintiff that may negatively impact the Applicant's interests. (Paras 5, 9, 33)

Facts of the case:
The Applicant, a competing maritime claimant, seeks to be joined as a Defendant in a Commercial Admiralty suit regarding claims to the sale proceeds of a vessel. The Applicant is a mortgage holder with a significant maritime claim against the vessel, which has been sold, and its proceeds are under the court's jurisdiction.

Findings of Court:
The court finds sufficient interest on the part of the Applicant to intervene in the Suit for the limited purpose of addressing the Plaintiff's claims. The application for intervention is allowed, with the Applicant to file a written statement restricted to relevant defenses that align with their status.

Issues: The main issue was whether the restrictions proposed by the Plaintiff on the defenses the Applicant could raise were valid.

Ratio Decidendi: The court holds that an intervention may proceed without limiting the defenses, as long as the Applicant has a legitimate interest in the case. Intervention is necessary to prevent unjustified claims from affecting the rights of the Applicant.

Result: The Application is allowed; the Applicant is to be added as a Defendant.

Table of Content
1. intervention applications require showing of legitimate interest. (Para 1 , 2 , 5)
2. arguments against the scope of intervention limitations. (Para 3 , 4 , 10 , 11 , 12)
3. factual claims regarding the mortgage and maritime liens. (Para 6 , 7 , 8 , 9)
4. court clarifies rules for intervention under rule 1086. (Para 22 , 27 , 28)
5. court grants intervention allowing applicant as defendant. (Para 23 , 35)

ORDER :

1. By this Interim Application, the Applicant viz. Carnival PLC seeks intervention in Commercial Admiralty Suit No. 11 of 2021 and permission to be joined as party Defendant therein.

2. Earlier reply has been filed on behalf of the Plaintiffs in the Suit, opposing the Intervention Application. On the 28th November, 2025, Mr. Pratap, learned Senior Counsel for the Applicant had submitted that no rejoinder is necessary in the matter as the Interim Applicant has a decree in its favour and are interested in the outcome of the Suit and that this Court may allow the Interim Application for intervention of the Applicant. This Court had adjourned the matter to be listed on 5th December, 2025 and however also permitted rejoinder, if any, to be filed and served by the next date. Thereafter, the matter was listed on 5th December, 2025, when this Court was informed that no rejoinder would be filed. On the said date, Mr. Prathamesh Kamat, learned Counsel for the Plaintiff, had opposed the intervention and tendered across the bar two decisions of this Court in the cases of Axis Trustee Services Ltd. in the matter between Indian Oil Corporation Ltd. Vs. The Sale Proceeds of M.T. Prem Mala [Order dated 24th January 2023 in Interim Application No. 969 of 2022 in Commercial Admiralty Suit No. 35 of 2020] and The Board of Trustees of the Port of Mumbai in the matter between Irwin Edmund Sequeira & Ors. Vs. M.V. Karnika (IMO-8521220) [Order dated 22nd March 2022 in Interim Application No. 895 of 2021 in Commercial Admiralty Suit No. 11 of 2021] in support of his contentions.

3. Today when the matter is called out, Mr. Kamat, learned Counsel appearing for the Plaintiff submits on instructions that while he has no objection to the intervention being allowed, however, the intervenor be allowed to intervene in the Suit for the limited purpose of demonstrating that the Plaintiff is not entitled to a decree in excess of the genuine and sustainable claim and only raise those defences which are appropriate to his character as the competing maritime lien holder/claimant. Drawing this Court’s attention to paragraph 26 of the decision in Interim Application No. 895 of 202 (supra), Mr. Kamat submits that this Court has after considering Rule 1086 of the Bombay High Court (Original Side) Rules, 1980 (“ Rule 1086 ”), clearly observed that if the Court is satisfied that the Applicant has an interest in the vessel or the sale proceeds, he can be allowed to intervene in the Suit for the limited purpose of demonstrating that the Plaintiff is not entitled to a decree in excess of the genuine and sustainable claim and that a Claimant who is allowed to intervene cannot definitely step into the shoes of the original Defendant, vessel and or its owner, much less take all the defences which are open to such Defendant. Mr. Kamat submits that the intervenor would be entitled to raise only those defences which are appropriate to his character as the competent maritime lien holder/Claimant. Mr. Kamat has in support also drawn this Court’s attention to paragraph 27 (iii) of the order in the said decision to submit that although the Applicant was permitted to file written statement but was permitted to raise defences restricted to the extent indicated in paragraph 26 of the said decision. Mr. Kamat has also as noted above relied upon the decision in Interim Application No. 969 of 2022 (supra), and submits that while permitting intervention, the Court has relied upon the very same paragraph 26 and directed the Applicant therein to file written statement r

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