IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Niral R. Mehta, J.
Five Element Industry Limited – Plaintiff
Versus
MV Honcho (IMO 9602978) – Respondent
R/Admiralty Suit No. 22 of 2026
Decided On : 06-03-2026
| Table of Content |
|---|
| 1. tripartite agreement obligations and breach (Para 2 , 3 , 5 , 6) |
| 2. maritime claim rights and vessel arrest (Para 7 , 8) |
| 3. claim nature established (Para 9) |
| 4. order for arrest of defendant vessel (Para 10 , 11 , 12 , 13 , 14) |
| 5. notice to defendant and service permission (Para 15) |
ORDER :
Niral R. Mehta, J.
1. Heard Learned Advocate Mr. Ishan Joshi for the Plaintiff.
2. Learned Advocate Mr. Ishan Joshi for the Plaintiff has placed reliance on the averments made in the plaint and submitted that the Plaintiff had entered into a Tripartite Agreement dated 14.10.2025 with one Eastmed Ship Holdings Inc., which was the Second Disponent Owner of the Defendant Vessel and with AUM Commodities FZCO, which was the Charterer and Cargo Owner, for the shipment of the Steam Coal in Bulk from Puerto Bolivar Port, Colombia to Fujairah Port, United Arab Emirates.
3. Learned Advocate Ms. Joshi further submitted that under the Tripartite Agreement, the Plaintiff had agreed to finance the freight charges amounting to USD 2 Million per vessel for three vessels namely, MV Honcho, MV Kuai Bang Hai 18 and MV Capricon Honour. As per Clause 3 of the Tripartite Agreement, the aforesaid amount was to be repaid to the Plaintiff within 90 days period in five equal installments along with interest as specified in the said clause. The payment was to be made directly to the Plaintiff by the Disponent Owner – Eastmed Ship Holdings Inc. in accordance with Clause 4 of the Tripartite Agreement. 4. Learned Advocate Mr. Joshi further submitted that as mandated under Clause 7 of the Tripartite Agreement, in the event of failure to make payment, the Plaintiff was entitled to withhold the NOC for discharge of cargo. The said discharge mechanism was integral to the voyage structure and formed part of the maritime commercial arrangement governing the voyage of the Defendant Vessel. The said condition was also stipulated in the Charter Party Agreement dated 12.10.2025.
5. Learned Advocate Mr. Joshi further submitted that the Disponent Owner had vide its email dated 15.10.2025 specifically instructed the Master of Defendant Vessel to allow discharge of any cargo loaded on board the Defendant Vessel at the port of destination only against presentation of NOC issued from the registered email ID of Mr. Rajesh S. Jain, the Managing Director of the Plaintiff. The said instructions were acknowledged, and the Master of Defendant Vessel had confirmed to adhere to the aforesaid instructions vide his email dated 15.10.2025. However, despite clear instructions to not discharge the cargo without obtaining the NOC from the Plaintiff, the Master of Defendant Vessel did not comply with the said instructions a13 ptnd the entire cargo of Steam Coal in Bulk weighing around 37,248 MT was discharged/unloaded at Fujairah Port between 07.02.2026 and 11.02.2026.
6. Learned Advocate Mr. Joshi further submitted that the Defendant vessel and her Owner have acted in breach of their duties and obligations, inasmuch as, the Defendant Vessel and/or the Master or the Owner of the Defendant Vessel or the Disponent Owner failed and/or refused to adhere to the terms of the Tripartite Agreement and failed to obtain Plaintiff’s NOC prior to discharge of the cargo causing loss of contractual right to control cargo release and thereby destroyed the Plaintiff’s maritime security interest linked to the voyage. The Plaintiff has suffered a loss of USD 2 Million for non-payment of freight charges, due to the non-compliance of Defendant Vessel, therefore, the Defendant Vessel and her owners are jointly and severally liable to pay to the Plaintiff together with cost and further interest.
7. Learned Advocate Mr. Joshi also submitted that the Plaintiff’s claim arises on account of employment and operation of Defendant Vessel, non- cooperation and negligence of the Master and others and hence, amounts to a maritime claim against Defendant Vessel. The claim of the Plaintiff falls under Sections 4(1)(f) and 4(1)
The court reinforced that non-compliance with maritime contract terms grants the claimant the right to secure an arrest of the vessel to recover losses incurred due to breach.
The court held that a maritime claim under the Admiralty Act justifies the arrest of a vessel to secure a buyer's interests in case of the seller's breach of agreement.
The supply of bunkers constitutes a maritime claim enforceable in rem under the Admiralty Act, justifying the arrest of the vessel for non-payment.
The Plaintiff established a prima facie maritime claim for total loss of cargo, warranting arrest of the Defendant Vessel under the Admiralty Act, 2017.
The court affirmed that a maritime claim exists against a vessel when contractual obligations are not met, allowing for the arrest of the vessel to secure the claim.
The court affirmed the Plaintiff's right to arrest the Defendant vessel based on maritime claim provisions, affirming that contractual breaches and associated sanctions justified immediate action.
The court established that a maritime claim for lost cargo under the Admiralty Act justifies vessel arrest, with jurisdiction confirmed as the vessel is present within the territorial waters.
The court upheld maritime law providing for vessel arrest to secure claims arising from misdelivery of cargo without original Bills of Lading, establishing the defendants' liability for financial los....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.