The present application has been filed by the applicant/plaintiff to grant an order of arrest of the defendant Dredger CSD MARG CAUVERY, lying at the Karaikal Port, India or wherever available together with her engines, gears, tackles, apparel, plant, machinery, furniture and fittings and paraphernalia pending disposal of the suit.

2. The suit has been filed by the plaintiff for the following reliefs:-

(i) For recovery of a sum of Rs.6,47,67,717/- with interest at the rate of 18% per annum from the date of plaint till the date of realization in full;

(ii) For arrest and sale of the defendant Dredger CSD MARG CAUVERY in as is where is condition, now lying at the Karaikal Port, India, or wherever available together with her engines, gears, tackles, apparel, plant, machinery, furniture and fittings and paraphernalia;

(iii) For a direction to adjust the sale proceeds of the defendant Dredger CSD MARG CAUVERY against the suit claim of the plaintiff; and

(iv) For costs of the suit.

3. The averments made in the plaint, in brief, are as follows:-

(a) The plaintiff is a private company incorporated under the Companies Act, 1956, having its Administrative Office at Block B, Kakatiya Nagar, Habsiguda, Hyderabad. The defendant is the Owners and Parties interested in the Dredger CSD MARG CAUVERY, which is a Dredging Vessel presently lying at the Karaikal Port, India.

(b) The plaintiff is carrying on business of excavation, Dredging and other allied works in all Ports in India. The owners of the defendant Dredger are M/s. Marg International Dredging Pte. Ltd., a company registered under the laws of Singapore. The Dredging Vessel CSD MARG CAUVERY has been chartered to M/s. Marg Limited, Chennai under demise charter/Bareboat charter and flying the flag of Republic of Comotose. Though M/s. Marg Limited is the owner of the Dredging Vessel, they have authorized the employees of Karaikal Port to sign all letters and communications through the employees of Karaikal Port, in view of the fact that the entire Operation, Manning, Repair and Maintenance of the Dredging Vessel CSD MARG CAUVERY was communicated, looked after by both Karaikal Port and M/s. Marg Limited as the Directors in both the companies are one and the same and the Karaikal Port being the subsidiary of M/s. Marg Limited. For all practical purposes M/s. Mark Limited was in Control, Management of the defendant Dredging Vessel CSD MARG CAUVERY.

(c) The owners of the defendant dredger entered into an agreement for the period from 1.4.2010 to 31.3.2011 with the plaintiff by which it required services of the plaintiff for Operation, Manning, Repair and Maintenance of CSD MARG CAUVERY for the purpose of deep excavation, dredging related works, in Port / Harbour at Karaikal Port. The plaintiff is entitled to payment as per clause 2 of the said agreement. The scope of the owners of the defendant dredger are referred to clause 4 of the said agreement. As per clause 15 of the agreement, the parties are at liberty to terminate the agreement dated 1.4.2010 and upon termination, the plaintiff is entitled for payment on pro-rata basis for the completed work and the plaintiff shall hand over the Dredging Vessel CSD MARG CAUVERY together with all other items as mentioned in clause 15.

(d) After signing the agreement dated 1.4.2010, the plaintiff had periodically rendered the services of Operation, Manning, Repair and Maintenance of the Dredging Vessel CSD MARG CAUVERY. The plaintiff has been raising invoices for the work done as per clause 2 of the payment terms. The Owners of the defendant dredger have also been making payment as and when the invoices were raised and prior to payment, the work done was verified by the representatives of the defendant and survey carried by them. Subsequently, by an addendum dated 1.4.2011 to the contract dated 1.4.2010, the contract was further extended in respect of the defendant Dredging Vessel CSD MARG CAUVERY for a further period from 1.4.2011 to 31.3.2012. Likew