On 31.8.1991, the vessel M.V. DIGNITY was arrested pursuant to an order passed by this court in this suit at the instance of the plaintiff. The vessel was released subject to the Jordan Shipping S.A. (referred to as the applicant) furnishing a bank guarantee for Rs.22,48,003.06 in favour of the Registrar (O.S.) of this Court. The guarantee was duly furnished. The applicant now claims that the suit should be dismissed and the bank guarantee should be discharged.

2. The suit has been filed by way of an action in rem in this Court's Admiralty Jurisdiction. The plaintiff's claim in the suit is on account of the price of bunkers supplied by the plaintiff between 2-5-90 and 19-9-90 to Neptune Shipping Co. Ltd. as agents of the shipowners. The applicant claims that it had purchased the vessel on 21-11-90 from the original owner of the vessel namely Branjo Shipping S.A. It is stated that the plaintiff had been put on notice of this change of ownership of the vessel as far back as on 16.01.91, when in answer to a demand from the plaintiff for payment of its claim the applicant's agent had stated that the vessel had been sold since the date of the supply in question.

3. It is stated that