IMPORTANT POINT
The main legal point established is that under the Admiralty Act, 2017 and English Law, a wrongful arrest of a vessel may lead to damages being awarded if the arresting party acted negligently, unwarrantably, or with little foundation.

JUDGMENT :

(Prayer: Civil Suit is filed under Order IV Rule 1 of High Court O.S. Rules and Order VII Rule 1 of CPC and the provisions of the Commercial Courts Act, 2015, praying:-

(a) to pay as damages of a sum USD 146836.54 equivalent to Rs.1,07,07,467.33/- (calculated at the rate of Rs.72.92 per USD as on 5 th February, 2021), as compensation to the plaintiff for losses suffered by the plaintiff due to wrongful arrest and detention of the plaintiff's vessel MV Violet Ace on 8th September, 2017, and other claims listed above;

(b) for interest at the rate of 24% per annum from 8th September, 2017, on the aforesaid amount i.e. the date of the defendants wrongfully arresting and detaining the plaintiff's vessel MV Violet Ace, till the date of payment/realization, which as on date amounts to a sum of Rs.87,79,536/-; and

(c) to pay the plaintiff the costs of the suit.)

1. The suit has been filed seeking for damages on account of the wrongful arrest of the plaintiff's vessel by name MV VIOLET ACE by the defendants.

2. The suit claim of USD 1,46,836.54/-, equivalent to Rs.1,07,07,467.33/- (calculated at the rate of Rs.72.92 per USD as on 05.02.2021) together with interest at 24% per annum from 08.09.2017 till the date of the plaint, comprises of the following:-

3. Apart from the above, the plaintiff has also claimed interest on Rs.1,07,07,467.33/- at 24% per annum from 08.09.2017 till 06.02.2021, which works out to Rs.87,79,536/-. The plaintiff has also claimed further interest at 24% per annum on the total suit claim and has also sought for the costs of the suit from the defendants.

4. The plaintiff is the owner of the vessel MV VIOLET ACE. The said vessel had arrived at the Port of Ennore on 08.09.2017. The said vessel was ordered to be arrested by this Court at the instance of the defendants herein on 08.09.2017 in A.No.5436 of 2017 in C.S.No.705 of 2017. It was an exparte order of arrest.

5. The plaintiff, who is the owner of the vessel MV VIOLET ACE and who was the first defendant in C.S.No.705 of 2017, had entered appearance in the said suit.

6. According to the plaintiff, after coming to know that there is no cause of action for filing the suit against MV VIOLET ACE, the plaintiffs in C.S.No.705 of 2017/the defendants herein had sought permission of this Court to withdraw the said suit and also sought for release of the vessel from arrest. The defendants herein had also filed a memo before this Court in C.S.No.705 of 2017 seeking permission of the Court for withdrawal of the said suit and for obtaining warrant of release to release the plaintiff's vessel from arrest. Based on the said memo, the suit was dismissed by this Court by order dated 11.09.2017. Warrant of release was also ordered and the vessel MV VIOLET ACE owned by the plaintiff was allowed to sail out of the Port of Ennore on 12.09.2017.

7. The plaintiff, who is the owner of the vessel MV VIOLET ACE, which was subjected to wrongful arrest in the said suit filed by the defendants herein, has pleaded that on account of wrongful arrest made at the instance of the defendants herein, they have suffered losses, for which, the present suit has been filed. Infact, as seen from the order dated 11.09.2017 passed by this Court in C.S.No.705 of 2017, the plaintiff herein was granted liberty to initi