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ABDUL QUDDHOSE
Value Shipping Limited – Appellant
Versus
Owners and parties interested in the Vessel MV Nadhenu Purna – Respondent
ORDER :
For the sake of convenience and clarity, the parties are referred to by their respective ranks in the main suit.
The issues that arise for consideration in these applications are as follows:-
(b) Whether the owners of the defendant vessel have committed breach of contract under Memorandum of Agreement (MoA) dated 31.10.2023?
(c) Whether the defendant is required to furnish security to vacate the order of arrest dated 08.01.2024 passed against the defendant vessel?
2. The suit has been filed under the admiralty jurisdiction of this Court. The plaintiff had entered into a MoA dated 31.10.2023 with M/s.Arcadia Shipping Limited, the owner of the defendant vessel. Under the MoA, the plaintiff agreed to purchase the defendant vessel-MV Navdhenu Purna for a total consideration of USD 8.3 million. As per the terms and conditions of MoA, the plaintiff by way of security deposit lodged a deposit of 15% of the total sale consideration amounting to USD 1.245 million with the Escrow Agent, namely,
The court affirmed that a breach of contract under the Admiralty Act justifies a maritime claim, requiring the defendant to furnish security for damages due to failure in contractual obligations.
A breach of contract in maritime agreements may support claims for damages and penalties under the Admiralty Act 2017, classifying such disputes as maritime claims.
A claim for refund of detention charges does not fall within admiralty jurisdiction if it is not connected to a maritime claim involving a vessel.
A maritime claim can be pursued in rem against a vessel owned by a time charterer, provided the owner is liable for the claim, regardless of applicable insolvency laws.
An action in rem against a vessel can coexist with arbitration proceedings, and the arrest of the vessel is permissible despite the invocation of arbitration.
The court held that a plaintiff designated as a 'U.S. Persons' under U.S. Sanctions Laws cannot invoke admiralty jurisdiction for arresting a vessel as security for arbitration, rendering the arrest ....
The court confirmed that maritime claims under the Admiralty Act, 2017 allow arresting a vessel for dues irrespective of ownership, emphasizing the ship's distinct legal personality.
A maritime lien for bunker supplies requires a direct contractual relationship between the supplier and the vessel owner; the absence of such a relationship negates liability.
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