IMPORTANT POINT
The court held that once a vessel has been beached, purchased for scrapping, and its navigation system destroyed, it no longer retains its status as a vessel, and maritime jurisdiction cannot be exercised over it.

JUDGMENT :

NIRZAR S. DESAI, J.

1. By way of this Admiralty Suit, the plaintiff has prayed for the following reliefs:

“(a) That the Defendant be ordered and decreed to pay to the Plaintiff a sum of USD 780,386.96/- being the amounts paid by the Plaintiff for the Defendant Vessels maintenance, repair and crew wages, along with interest @ 5% p.a. on the said amount, being an amount of USD 30,574.06 (i.e. from 21.07.2023 which is the date of institution of the proceedings in Malaysia until 01.05.2024) and further interest pendente lite till the actual payment of the said amounts.

(b) That the Defendant be ordered and decreed to pay to the Plaintiff a sum of USD 87,074.57 being the costs and expenses incurred by the Plaintiff at the High Court of Malaya and thereafter incurred by the Plaintiff pursuant to the Defendant Vessel breaking arrest, along with interest @ 5% p.a. on the said amount, being an amount of USD 3,411.41 (i.e. from 21.07.2023 which is the date of institution of the proceedings in Malaysia until 01.05.2024) and further interest pendente lite till the actual payment of the said amounts.

(c) This Hon'ble Court may be pleased to order and direct the arrest of the Defendant Vessel MT KELSIE (IMO 9016923), along with its hull, engines, gears, tackles, bunkers, machinery, apparel, plant, furniture, fixtures, appurtenances and paraphernalia, plant & machinery which is presently in the territorial waters within the jurisdiction of this Hon'ble Court and at outer anchorage at Alang, Bhavnagar, within the territorial waters of India for satisfaction of the Plaintiff's claims and also be committed for sale and the same be sold under the orders and directions of this Hon’ble Court and the sale proceeds thereof be utilized towards the security of the Plaintiff’ claim, costs and poundage.

(d) Pending hearing and disposal of the present proceedings, be pleased to arrest of the Defendant Vessel MT KELSIE (IMO 9016923), along with its hull, engines, gears, tackles, bunkers, machinery, apparel, plant, furniture, fixtures, appurtenances and paraphernalia, plant & machinery which is presently in the territorial waters within the jurisdiction of this Hon'ble Court and at outer anchorage at Alang, Bhavnagar, within the territorial waters of India, until the satisfaction of the Plaintiff's claim as per the Particulars and also be committed for sale and the same be sold under the order and directions of this Hon'ble Court and the sale proceeds thereof be utilised in satisfaction of the Plaintiff's claim herein.

(e) For interim and ad-interim reliefs in terms of prayer clauses (d) above.

(f) For costs of this Suit.

(g) For such other and further reliefs as this Hon'ble Court may deem fit and proper in the facts and circumstances of the.”

2. Heard, learned Sr. Advocate, Mr. Desai, appearing with learned Advocate, Mr. Contractor, for the plaintiff and learned Sr. Advocate, Mr. Soparkar, appearing with learned Advocate, Mr. Mehta, for M/s. Unique Ship Breaking Corporation (in brief ‘USBC’) who has allegedly purchased the vessel in question for ship breaking purpose.

3. In view of the prayers made in the present Suit and reproduced herein above, this Court had issued notice on 03.05.2024, making the same returnable today, i.e. on 08.05.2024.

3.1 Today, when the matter was taken-up for hearing, no one appeared for the defendant-vessel, but, this Court was appraised of the fact that the vessel in question has already been purchased by the USBC, who has now become the owner of the said vessel. Learned Advocate, Mr. Mehta, appearing on behalf of the USBC produced on record a detailed affidavit-in-reply, describing the events that took place in the interregnum.

3.2 The aforesaid affidavit is ordered to be taken on record.

4. The brief facts, which has given rise to the present Suit, are as under:

The plaintiff is a Company incorporated in the Marshall Islands, having its registered address at Singapore, whereas, the defendant is a vessel within the meaning of Se