A claim for supply of necessaries does not constitute a maritime lien, influencing the application of admiralty jurisdiction and the decision to revoke the order of arrest of the vessel.

1. Application No.4337 of 2010 has been filed by the plaintiff to order interim arrest of the respondent vessel MV Dhuvaafaru Galaxy (Ex: MV Hikaadhoo carrier), a ship registered in Maldives together with engines, tackles, cranes, derricks, machinery and the paraphernalia and other articles on board the said vessel presently lying in the Indian waters at the Port of Kannur (Kerala), Azhikkal anchorage, Silk Yard, or wherever found within the territorial waters of India, pending disposal of the above suit.

2. Application No.4810 of 2010 has been filed by the impleaded second defendant to revoke the order of arrest of the vessel MV Dhuvaafaru Galaxy dated 11.08.2010 in Application No.4337 of 2010 in C.S.No.708 of 2010.

3. For the sake of convenience, the parties are referred to as per their rankings in the suit.

4. The plaintiff is a Partnership firm and they have filed the above suit for the following reliefs:

(a)For a sum of Rs.1,26,75,328.46 together with interest at the rate of 24% per annum from the date of plaint till the date of realization.

(b)For the arrest and sale of the defendant vessel MV Dhuvaafaru Galaxy (Ex: MV Hikaadhoo carrier) together with engines, tackles, cranes, derricks, machinery and the paraphernalia and other articles on board the said vessel presently lying in the Indian waters at the Port of Kannur (Kerala), Azhikkal anchorage, Silk Yard, or wherever found within the territorial waters of India.

(c)For a direction to adjust the sale proceeds of the defendant vessel MV Dhuvaafaru Galaxy (Ex: MV Hikaadhoo carrier) against the suit claim.

5. The plaint averments are as follows:

The plaintiff is an Import and Export Company and they are also engaged in the business of Clearing and Forwarding Agency which includes supply of various necessaries to Vessel in Dock. The defendant in the course of business would lie anchored in the Indian Ports at various places at various points of time, particularly in Chennai and Tuticorin Ports. When the ship is so anchored, the plaintiff would supply various necessaries to the defendant at the request of the Master of the Vessel. The plaintiff would raise invoices and as such, maintaining a Running Account with the defendant.

6. The plaintiff has been supplying necessaries to the defendant for several years and an outstanding amount to the credit of the plaintiff stood at US $270,386.56 as at 19.03.2009. The defendant confirmed the aforesaid dues by their fax letter dated 27.04.2009, sent by Mr.Asif, affixing the seal of the company. Even after such confirmation of balance outstanding, the defendant availed the services of the plaintiff for the value of US $28,519.93. The defendant after negotiations, issued a letter of authority dated 22.07.2009 to the plaintiff to authorize the plaintiff to sell its defendant’s sister vessel M.V.Maafaru. The plaintiff realized a sum of US $ 150,000 and out of the sale proceeds, a sum of US $ 27,000 towards release of the sister vessel from arrest of another creditor which was settled by the plaintiff was adjusted and interest charges and crew charges at US $ 48,669.58 and US $23,810.07 respectively were also adjusted. After adjusting the sale proceeds of M.V.Maafaru as stated above, the total outstanding of the defendant stood at US $ 248,386.14. The said amount is outstanding from 16.02.2010.

7. The defendant has not made any payment despite repeated demands and therefore, the plaintiff was forced to invoke the Admirality jurisdiction of this Court. According to the plaintiff, they supplied stores, lube oil and other essentials to the defendant and therefore, the plaintiff is having a Maritime lien as well as the action in right in rem against the defendant.

8. The defendant is in deep financial crisis and therefore, the defendant is not in a position to settle the confirmed debts of the plaintiff. The defendant vessel is now berthed in Kannur Port for loading cargo and it is expected to remain in the Port for about two