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1985 Supreme(Online)(Cal) 1

CALCUTTA HIGH COURT
, J
Subhas Mohan Gangahar – Appellant
Versus
State Bank of India – Respondent
Winding Up No. 123 of 1982



Claims for unpaid wages by the vessel's crew create maritime liens enforceable against the vessel under the Merchant Shipping Act.

Headnote:The case revolves around claims made by the Master and Officers of the vessel 'M. V. Sri Kailash' for unpaid wages, asserting maritime liens under the Merchant Shipping Act, 1958. The Court held that claims for wages constitute secured creditors’ claims enforceable against the vessel. The Court declined to adjudicate on the merits of claims, directing that appropriate proceedings should be instituted in the proper forum. The Receiver of the vessel must keep amounts set apart based on past orders for potential claims by parties involved.

Table of Content
1. claims made under maritime law for unpaid wages. (Para 1 , 2 , 3 , 5)
2. claims from the master and officers on their unpaid wages. (Para 6 , 7 , 8 , 9)
3. objections raised by the state bank regarding claims. (Para 10 , 11 , 12)
4. court's decision on adjudication of claims. (Para 14 , 17)
5. final directive on claims proceedings. (Para 19 , 20 , 21)

1. Himalaya Shipping Co. Ltd., now in liquidation, was the owner of "M. V. Sri Kailash." a sea going vessel The State Bank of India, in whose favour the said vessel had been mortgaged, instituted the present suit some time in 1982 for enforcement of the mortgage and a Receiver was appointed over the said vessel in the said suit to sell the same. More or less simultaneously, the crew and some of the officers of the said vessel initiated proceedings in the Court of the 16th Metropolitan Magistrate Bombay to recover their unpaid wages claiming a lien over the vessel for the same. The vessel was attached under the orders of the Magistrate in Bombay.

2. Under directions of this Court the Receiver paid off the claims of the crew and the officers of the vessel as determined in the proceedings before the Magistrate and signed off the crew, the officers arid the Master of the said vessel.

3. The Receiver obtained release of the attachment from the Magistrate's Court and took possession of the said vessel.

4. The Master of the vessel who had not been a party to the proceedings before the Magistrate at that stage sought to initiate fresh proceedings in the Magistrate's Court. But a Receiver having already been appointed in this suit such proceedings were withdrawn. Directions were obtained in this suit from time to time at the instance and / or with the consent of the parties as follows : -
"22nd June, 1982: The Master will obtain payment from the Receiver on his undertaking to refund any excess amount that will be finally determined.
The Receiver will pay to the Master Rs. 50,000/- on account of his remuneration in the first instance.
The Master will be entitled to seek further direction from the Court as regards balance payment."
"20th Aug., 1982 : The plaintiff is directed to pay to the Receiver in the first instance Rs. 96,000/- to be paid to the Master on account of the latter's claim.
In the event the Receiver sells such vessel the proceedings thereof will not be disbursed without leaving Rs. 65,000/- on account of further claims of the Master. Rs. 65,000/- will be disbursed according to further orders of this Court.
The application of the Master will remain part heard and is adjourned sine die with liberty to mention after the sale of the vessel."
"22nd Dec., 1983 : The Receiver is directed not to disburse any amount without setting apart a sum of Rs, 70,000/-.
The Receiver is directed not to disburse without setting apart a sum of Rs. 1,24,000/-".

5. It is a matter of record that the vessel has since been sold by the Receiver and delivered to the purchaser.

6. Two applications have been made on Notices of motion respectively dated the 11th Aug., 1982 and the 18th Jan., 1983. The first application is by the Master and the second by Saibal Kumar Sengupta, Samarendra Nath Ghose, Nirmalendu Bikash Saha, Govindarajapuram Chidambaram Kannan, D. Rakshit, Kamal Krishna Basu and P. C. Bhadra who claim to have been officers employed in the said vessel. The orders sought for are, inter alia.
(a) Leave be given to the petitioner to be examined pro interesse suo;.
(b) Alternatively, leave be given to the petitioners to intervene in the proceedings;
(c) The Receiver be directed to pay the claims of the petitioners out of the sale proceeds of the vessel in preference to any other claim:
(d) Alternatively, another Receiver be appointed in the suit over the suit vessel.

7. In the petition of the Master, Subhas Mohan Gangahar, it contended, inter alia, that the Master of a ship has the same rights, liens and remedies for recovery of his wages as a seaman under the Merchant Shipping Act, 1958 .

8. The pr

































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