High Court of Judicature at Madras
The Honourable Mr. Justice A.S. Venkatachalamoorthy and The Honourable Mr. Justice C. Nagappan
The Commander Coast Guard Region (East), Fort St. George, Chennai-9 and another
Versus
O. Konavalov and others
O.S.A. No. 309 & 350 of 2000
Decided on: 10-01-2001
A.S. Venkatachalamoorthy. J.
1. The vessel Kobe Queen 1 is an ocean carrier registered in Panama. The vessel was loaded with cargo steel products in Istanbul. Turkey in or about June, 1999 and the port of discharge was Montego Jamaica in the Caribean Islands. A part of the cargo consisting of 49,450 Metric Tons was consigned to the Order of Global Marketing Services Inc. having office at 420, Lexhind Avenue Site 607, New Your, New York with the notifying party as TW Metals Limited, Kingston, Jamaica. The vessel sailed from Istanbul in or about 3rd August, 1999 and proceeded to Darkar. There was inordinate delay in its voyage and the receiver of the cargo made frantic efforts to locate the vessel and finally an advertisement was caused to be made on 8.11.1999 in the Lloyds List, enquiring about the vessel's whereabouts. It appears that the vessel called at St. Vincent, Cape Verde island between 29th August, 1999 and 4th September, 1999 and subsequently at Laos on 18th October, 1999. The above ports were not the Port of Call as the vessel did not carry any cargo to be discharged for delivery in the said Ports. Probably, the vessel had been kept at sea, allegedly drifting in the area between Senegalese Coast and Cape Verde Islands.
2. The Officers of the Customs Department, Cuddalore, on 21.12.1999 spotted this Vessel bearing a different name Gloria Kopp anchored at about 6.5 nautical miles off Bommiyarpalayam Shore, near Pondicherry Coast. The Officers board the vessel in the afternoon of 22.12.1999 and noticed that the vessel was loaded with steel products.
3. M/s. Inter Cargo Insurance Company acting as underwriters and agents of M/s. T.W. Metals Limited (Owners of the Cargo) filed a suit in the admirality jurisdiction of this Court in C.S.No.1020 of 1999 on 23rd December, 1999 under Order 4, Rule 1 read with Order 42, Rule 2 of the Original Side Rules against the defendants viz., (i) the owners of the vessel of all persons interested in the vessel, (ii) Nominator Shipping Corporation, Liberia, (iii) Chairman, Madras Port Trust, (iv) Deputy Port Conservator. Pondicherry and (v) Commander, Coast Guard, Chennai Port, for the reliefs namely:
(a) decree against the defendants making them jointly and severally for a sum of USD 1,038,735.62 equivalent to Indian Rupees 4,51,85,000 calculated at the rate of 1 USD = Rs.43.50, with further interest at 18% per annum till the date of payment; (b) Arrest of the Ship MV Gloria Kopp alias Kobe Queen and detention of the vessel until the claim of the Insurance Company (Plaintiff) is satisfied in full; (c) for the sale of the vessel M V Gloria Kopp/Kobe Queen with tackles, apparels, boats, machineries and furnitures, banker cargo and to adjust the sale proceeds towards the suit claim. On 24.12.1999, this Court passed an interim order in application No.4591 of 1999 arresting the vessel. A Receiver was appointed and he was directed to inspect the cargo and take possession of the same.
4. On 1 1th February, 2000, the first respondent herein viz., the Chief Officer of the vessel on his behalf and on behalf of the crew of the vessel, filed an application under Order 14, Rule 8 of Original side Rules read with Section 125 of the Merchant Shipping Act, 1958 application No.633 of 2000 praying the Court to direct the Advocate Receiver to pay the wages to them out of the proceeds of the sale of the vessel.
5. Theship was towed off coast of Pondicherry to Chennai by the Coast Guard. The learned single Judge on 14.1.2000 in application No.4594 of 1999 ordered the sale of the ship. On 25th February, 2000, the learned single Judge ordered that the earlier order of sale of ship not to be given effect to.
6. As per the Order of this Court dated 25.2.2000, investigations were taken up by the Joint Investigation Team, comprising of Customs, DRI and NCB. While investigations were in progress, on 23.3.2000, M/s. Inter Cargo Insurance Company which has filed the Civil Suit, moved this Court, for with
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