IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/ADMIRALTY SUIT NO. 4 of 2021 ==========================================================

CELESTIAL SHIP MANAGEMENT PTE LTD Versus MT GP B4 (IMO NO. 9246487)

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Appearance:

for the Defendant(s) No. 1,2 MR MANAV A MEHTA(3246) for the Plaintiff(s) No. 1 ==========================================================

CORAM: HONOURABLE MR. JUSTICE BIREN VAISHNAV Date : 03/02/2021

ORAL ORDER

1 Learned Advocate Mr. Manav A Mehta is permitted to pay Court fees within 3 days from availability of the same.

2.Learned Advocate Mr. Manav A Mehta submitted that Plaintiff (as managers) entered into Ship Management Agreement dated 15 January, 2020 with Defendant no.2 (registered owners) for providing services relating to technical management, crew management, accounting services and provisions for the crew members. Learned Advocate further submitted that the salient terms of the Ship Management relating to the present suit were: “8.1 The Owners shall pay to the Managers for their services as Managers under this Agreement an annual management fee as stated in Box 15 which shall be payable by equal calendar – monthly installments in advance, the first installments being payable pro rata on the commencement of this Agreement (see Clause 2 and Box 4) and subsequent installments being

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5.1 The Owners shall pay all the sums due to Manager punctually in accordance with the terms of this agreement.

5.3 The Owners shall be liable to the Managers for a default interest at a LIBOR rate plus 1% per annum on the outstanding amount for nonpayment of any money by the Owners to the Managers under or in connection with this Agreement.”

3.Learned Mr. Manav Mehta further submitted that under the Ship Management Agreement, the Plaintiff was entitled to be put in funds for incurring the expenses relating to the services provided to the Defendant Vessel. After signing of the Agreement, the Plaintiff inter alia rendered variety of services to the Defendant Vessel, the same included ensuring that the Defendant Vessel complies with the laws of the flag state, arranging and supervising repairs, alterations and maintenance of the vessel, arranging for necessary stores, spares and lubricating oil, appointing surveyors and consultants, selecting, engaging and providing for administration of crew, arranging for transportation of crew, arranging for embarking and disembarking of surveyors to board the Defendant Vessel, boat hire, transportation services, agency, spare clearance, Inmarsat services, repairs, provisions and supplies for the crew members, providing spare parts, airfare and hotel accommodation for joining and repatriation of crew members etc. Learned Advocate further

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used to approach various vendors/suppliers for arranging necessaries/provisions etc. as per the Ship Management Agreement and thereafter the vendors used to supply the requested products/services and raise an invoice in name of the Plaintiff for the work undertaken.

4.Learned Advocate Mr. Manav Mehta further submitted that on receipt of invoices from various vendors, the Plaintiff used to prepare a monthly account of the expense incurred and placed the same before Defendant No. 2 for making payment along with the supporting documents and also uploading the invoices along with supporting document on the portal. Learned Advocate further submitted that Defendant No. 2 made payment of a few invoices/monthly account to the Plaintiff, however, over the last year Defendant No. 2 has defaulted in making payment to the Plaintiff.

5.Learned Advocate further submitted Mr. Manav Mehta that as on date of filing of the suit, 146 invoices have not been paid by Defendants and remains outstanding, which includes invoices raised by the vendors and Plaintiff’s invoices for management fee. Learned Advocate further submitted that to ensure regular supplies to the

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