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2026 Supreme(Mad) 225

IN THE HIGH COURT OF JUDICATURE AT MADRAS
N.ANAND VENKATESH, J.
Om Freight Forwarders Limited – Appellant
Versus
Owners and Parties Interested in M.V. Nereus Progress [IMO 9170913] – Respondent
Application Nos. 6081 of 2025, 155 of 2026, C.S. (Comm. Div.) No. 314 of 2025
Decided On : 06-02-2026

Advocates Appeared:
For the Appellants : Aswin Shankar, P. Giridharan, H. Siddharth, Sunand Subramanian
For the Respondents: Dhruva Gandhi, Deepika Murali, R. Anila, K. Harinarayanan, Naishad Bharia

A bareboat charter-party can only be effectively terminated by actual recovery of possession; mere notice of termination without overt acts does not suffice, affording protection under maritime law.

Headnote:(A) Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017 - Sections 4(1)(h), 5(1)(b) - Civil Procedure Code, 1908 - Order VII Rule 1 and Order XIV Rule 8 - Maritime claim for recovery and vessel arrest - Plaintiff sought arrest of vessel due to non-payment of hire by bareboat charterer, establishing prima facie case and balance of convenience in favor of the arrest. (Paras 8, 10, 36)

(B) Termination of Charter-party - Validity of termination without repossession - Court concluded that mere notice of termination without overt act to reclaim possession does not suffice for effective termination under maritime law; strong emphasis on the necessity for actual recovery of possession. (Paras 27, 32, 36)

Facts of the case:
The plaintiff, the owner of the vessel, sought to arrest the vessel MV Nereus Progress due to the charterer's failure to make payments under a bareboat charter. Defendant argued termination of the charter-party was valid; however, failure to demonstrate lawful repossession negated this claim. (Paras 1, 6, 21)

Findings of Court:
The court found in favor of the plaintiff, clarifying the need for actual possession to terminate the charter-party effectively and ruled that the interim order of arrest be made absolute. (Paras 38, 39)

Issues: Main issues addressed include the validity of the termination of the charter-party, whether mere notice suffices for termination, and the ownership rights in the context of maritime law. (Paras 21, 36)

Ratio Decidendi: The court determined that in the context of a demise charter, possession must be reclaimed physically or through demonstrative acts to effectuate termination, reaffirming that the plaintiff had established a prima facie case for arrest. (Paras 32, 36)

Result: Application No. 6081 of 2025 allowed; interim order made absolute; Application No. 155 of 2026 dismissed.

Table of Content
1. introduction of parties and application. (Para 1 , 2 , 3)
2. background facts of maritime claim. (Para 4 , 5 , 6 , 7 , 8)
3. plaintiff presents claim and seeks arrest. (Para 9)
4. defendant challenges arrest and raises arguments. (Para 10 , 11 , 12 , 30)
5. court's considerations on interim orders. (Para 15 , 19 , 21)
6. key points regarding termination and possession. (Para 22 , 29 , 32)
7. court's determination on prima facie case. (Para 34 , 36)
8. order issued: interim order made absolute. (Para 39)

ORDER :

1. In this common order, the parties will be referred to as they are arrayed in the civil suit.

2. A.No.6081 of 2025 has been filed by the plaintiff seeking for arrest of the vessel lying at V.O. Chidambaranar Port, Tuticorin pending disposal of C.S.(C.D.) No.314 of 2025.

3. When A.No.6081 of 2025 came up for hearing on 04.12.2025, this Court passed the following order:

“This application has been filed for arrest of the vessel MV NEREUS PROGRESS, flying a flag of St.Kitts and Nevis and having IMO No.9170913 together with engines, tackles, cranes, derricks, machinery and other paraphernalia and articles on board the said vessel, presently lying in the V.O.Chidambaranar Port or wherever she is found within the territorial waters of India, pending disposal of the above suit.

2. Heard the learned counsel for the applicant/plaintiff and carefully perused the materials available on record.

3. The applicant is the registered owner of the vessel MV NEREUS PROGRESS, The respondent/defendant is the motor vessel NEREUS PROGRESS. The respondent vessel registered owner is HK Shipping Limited.

4. The applicant has obtained the respondent Vessel’s Transcript, as of 27.11.2025 from St.Kitts and Nevis International Ship Registry. The further case of the applicant is that Nereides Marine Services is nothing but the Bareboard Charterer of HK Shipping Limited and it continues to be a Bareboat Charterer of the Vessel and the present Voyage for which the respondent vessel is calling at V.O.Chidambaranar Port, is based on the instructions of the Nereides Marine Services.

5. The case of the applicant is that on 24.7.2024, the applicant as the owner of the vessel MV.Bharadwaj Bareboard Chartered MV. Bharadwaj to Nareides Marine Services, UAE for a period of 4 years. The parties were governed by the terms of the Charterparty. Between September 2024 and August 2025, the Bareboard Charterer delayed in making payments of certain hire payment to the applicant under the Charterparty. Hence, on 26.8.2024, Nereus Marine Private Limited which is an affiliate Company of the Bareboard Charterer, agreed to act as a guarantor of the Bareboat Charterers’ obligations under the Charterparty. Pursuant to the guarantee undertaking, the applicant raised invoices upon the Bareboard Charterer to the total tune of USD353,293.92 and there was an outstanding of USD73,550.06. Insofar the invoices that was raised on the guarantor, it was for the total amount to the tune of Rs.7,92,52,462.20 out of which there was a total outstanding of Rs.6,90,18,750.20.

6. According to the applicant, as of 30.11.2025, a principal sum of USD73,550.06 and Rs.6,90,18,750.20 which approximately aggregates to Rs.7,56,29,429.59 is due and payable by the Bareboard Charterer to the applicant. The demand that was raised by the applicant upon the Bareboard Charterer and the guarantor did not evoke any response. In fact, the cheques issued in this regard were dishonored due to insufficient funds/closed account.

7. It is under these circumstances, the present suit has been filed for recovery of money and for arrest and sale of the Vessel belonging to the defendant.

8. The learned counsel for the applicant submitted that the applicant has a maritime claim against the respondent Vessel under Section 4 (1)(h) r/w Section 5 (1)(b) and 5(2) of the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017 and therefore is entitled to assert its maritime claim for t he recovery of the amounts

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