High Court Of Calcutta
Ashim Kumar Banerjee
G.FUEL PVT LTD - Appellant
Versus
OWNERS AND PARTIES INTERESTED IN THE VESSEL M.T."New NANYANG NO.1." - Respondent
A. S. 25 Of 1999
Decided On : 10/06/2004
ADMIRALTY JURISDICTION - ARREST OF VESSEL - SUPPLY OF GAS OIL - MARITIME CLAIM - GLOBAL ARREST CONVENTION 1952 AND 1999 - INTERPRETATION - SISTER SHIP - OWNERSHIP - LIABILITY - MAINTAINABILITY OF SUIT - ENTITLEMENT TO ARREST - LEGAL PROVISIONS AND PRINCIPLES DISCUSSED.
Fact of the Case:
Plaintiff supplied gas oil to M.V. Yang Pu at the instance of M/s. Hainan Nayan Shipping Industrial Pte. Ltd. The vessel M.T. "new Nanyang No. 1" was arrested at the instance of the plaintiff on the ground that the supply was made at the instance of Hainan, the owner of the vessel on the relevant date. Power Steamship Co. Ltd., claiming to be the owner of M.T. "new Nanyang No. 1", filed a written statement contending that the vessel did not belong to Hainan on the relevant date and that it had no nexus with M.V. Yang Pu.
Finding of the Court:
The court found that on the date of arrest, M.T. "new Nanyang No. 1" still belonged to Hainan. The sale contract entered into on 1st September 1999 between Golden Specific and Hainan did not pass title to Golden Specific. The court also held that the present suit for enforcing the maritime claim against M.T. "new Nanyang No. 1" was maintainable under the Global Arrest Convention 1952 and 1999.
Issues: 1. Whether the suit against the vessel M.T. "new Nanyang No. 1" was maintainable in respect of supplies made to vessel M.V. Yang Pu? 2. Whether the cause of action of the plaintiff in the instant suit was maintainable in admiralty jurisdiction?
Ratio Decidendi: 1. The court held that the supply of gas oil to M.V. Yang Pu at the instance of Hainan entitled the plaintiff to sue M.T. "new Nanyang No. 1" as the ownership had not changed on the date of arrest. 2. The court relied on the Global Arrest Convention 1952 and 1999, which allows for the arrest of a sister ship owned by the person liable for the maritime claim or was liable for the claim when it arose. In this case, Hainan was the person responsible for the maritime claim as it ordered the supply to M.V. Yang Pu.
Final Decision: The court allowed issues 3 and 4, holding that the present suit initiated by the plaintiff for enforcing their maritime claim, as against the vessel M.T. "new Nanyang No. 1" was maintainable. A decree was passed in favor of the plaintiff for US$ 34,393.53 on the exchange rate of 1 US$ = Rs. 43.60, with interest @ 6% per annum from 14th August 1999 until payment.
( 1 ) THE plaintiff supplied gas oil to M. V. Yang Pu at the instance of M/s. Hainan Nayan Shipping Industrial Pte. Ltd. . The said sale was confirmed by a fax communication dated 27th July, 1999. The supply was made on 14th August, 1999. As the money was not forthcoming, despite reminders, plaintiff filed the suit in this Court on 12th November, 1999 inter alia for arrest of a vessel M. T. "new Nanyang No. 1" on the ground that the supply was made at the instance of M/s. Hainan Nayan Shipping Industrial pte. Ltd. who was the owner of the vessel M. T. "new Nanyang No. 1" on the relevant date being the date of institution of the suit. The vessel got arrested at the instance of the plaintiff on the said date being 12th November, 1999.
( 2 ) ON 18th November, 1999 the vessel was released by furnishing of a security of Rs. 15. 00 lacs at the instance of Power Steamship Co. Ltd. claiming to be the owner of the vessel M. T. "new Nanyang No. 1".
( 3 ) THE said Power Steamship Co. Ltd. filed written statement contending that the said vessel did not belong to Hainan on the relevant date and it belonged to the Power Steamship Co. Ltd. which had no nexus with M. V. Yang Pu for which the present suit could be instituted and the vessel M. T. "new Nanyang no. 1" could be arrested.
( 4 ) THE following issues were settled :"1. Is the plaintiff entitled to claim the sum of US$ 34,393. 53 at the exchange rate of Rs. 43. 60 or any other rate ? 2. Is the plaintiff entitled to claim interest @20% per annum or at any other rate ? 3. Is the suit against the vessel M. T. "new Nanyang No. 1" maintainable in respect of supplies made to vessel M. V. Yang Pu ? 4. Is the cause of action of plaintiff in the instant suit maintainable in admiralty Jurisdiction ? 5. To what other relief is the plaintiff entitled to ?"
( 5 ) ON behalf of the plaintiff one Mr. Go Soon Siew deposed. On behalf of the defendant one Mr. Wang Wai Kwok deposed. The plaintiff proved the supply as well as the invoices. In cross-examination the plaintiffs witness contended that the change of ownership of the vessel was not known to them on the date of arrest. They later on came to know that there was a change of ownership. He denied that when the claim arose M. T. "new Nanyang No. 1" was not the sister of M. V. Yang Pu.
( 6 ) THE defendant's witness contended that there was an agreement for change of ownership. The sale contract was entered into on September 1, 1999. He proved the original sale contract in Chinese language as well as English translation thereof. He, however, could not prove the fax message sent to the plaintiffs lawyer which was kept as "marked for identification". He contended that he did not know about any ship called M. V. Yang Pu. He contended that he took part in the negotiation and witnessed the execution of the contract.
( 7 ) FROM the documents exhibited by the parties though their witness the following sequence of events are not disputed: supply was made to Yang Pu at the instance of Hainan. The invoices were raised on Hainan. At least on September 1, 1998 M. T. "new Nanyang No. 1" was a sister of yang Pu as would appear from the defendant's disclosure being a certificate dated June 5, 1998 valid till 1st September, 1998 pertaining to the sea worthiness of the vessel M. V. Yang Pu. The vessel M. T. "new Nanyang No. 1" was sold to M/s. Power Steamship limited on 15th December, 1999. The Power Steamship Limited was incorporated in November 25, 1999 (Question No. 8) as would appear from the evidence of the defendant's witness. Sale contract was entered into by Hainan with Golden Specific Ring international Limited whereas Deed of Sale was executed in favour of Power steamship Company Ltd.
( 8 ) ON a careful analysis of the written statement it appears that the defendant Power Steamship Co. Ltd. claimed ownership of the vessel on the basis of the contract for sale entered into on 1st September, 1999. On that date the agreement was en
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