The unilateral termination of a charterparty without proper notice or justification constitutes a breach of contract, allowing the aggrieved party to seek damages through admiralty law.

ORDER :

MAUNA M. BHATT, J.

1. Learned Advocate Mr. Pankeet Aundhiya, mentioned this matter for urgent circulation today and considering the urgency involved , the present matter is taken up for hearing today.

2. Heard Learned Mr. Pankeet Aundhiya for the Plaintiff.

3. Learned Advocate for the Plaintiff has placed reliance on the averments made in the plaint and submitted that Plaintiff as the Charterer and Longi Shipping Ltd as the owner and/or ship manager of the Defendant Vessel entered into a Charter Party agreement dated 15^th August 2024 for a period of about 12 months. After the execution of the said charter party, the Plaintiff was delivered with the vessel in August 2024 in China and the Plaintiff initiated its voyage from UAE to India. In accordance with the agreed terms for hire payment, the Plaintiff consistently made timely hire payments upon receipt of the corresponding invoices of 1^st Hire to 6^th Hire from the Owners evidenced by the confirmation email received from the Owners acknowledging the receipt of payment.

4. Learned Advocate for the Plaintiff submitted that on 17 February 2025, the Owners of the vessel, through their broker, issued the invoice for the 7^th hire covering the period from 18 February 2025 to 20 March 2025. Upon receipt of the invoice, the Plaintiff immediately took the necessary steps to ensure the timely payment of the hire charges as per the agreed terms. On 24 February 2025, the Plaintiff made the full payment of USD 510,000 for the hire charges to the Owners of the vessel. The Plaintiff has also processed the payment of remaining USD2400 which were miscellaneous charges and not on the account of the Plaintiff on 27 February 2025.

5. Learned Advocate for the Plaintiff further submitted that on 25 February 2025, to the Plaintiff's surprise, the Plaintiff’s agent received an email from the Master of the vessel stating that the ship owner had instructed to stop the vessel due to non-receipt of the charter hire charges. In response, the Plaintiff promptly sent an email on the same day to the Master of the vessel, clarifying that the payment had already been processed along with SWIFT copy previously shared with owners. On the same day the Plaintiff received another email from the Master of the vessel, stating that the Ship Owner had refused to proceed to the loading port. The Plaintiff was taken aback by this development, as the payment had already been processed and remitted. Despite the remittance, the Ship Owner refused to allow the vessel to proceed.

6. Learned Advocate for the Plaintiff further submitted that vide an email of even date, that the funds had been deposited into the owner's USD account on 24 February 2025 and also shared a copy of tracer with the Master. The same is produced herewith. The Plaintiff was surprised by the Owners incorrect allegations stating non-receipt of hire payment, especially given the remittance had already been completed. To safeguard its position, the Plaintiff further notified the Master and the Ship Owner that any stoppage of the vessel, despite the hire payment being made, would result in all associated time and fuel/bunker costs being charged to the Owner's account and time.

7. Learned Advocate for the Plaintiff further submitted that on 25 February 2025, the Plaintiff received an email from the Owner's broker stating that the Owner had not received the 7th hire payment. As a result, and in accordance with Clause 7(c) of the charter party, the Owners suspended operations and withdrew the vessel from the Charterers due to failure to pay hire charges in full, constituting a breach of the charter party. The Plaintiff responded via email, stating that the Plaintiff has paid USD 510,000, which are hir