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Chennai Port Seizure: Madras HC Halts Panama Vessel Over $2.6M Charter Dispute
In a swift admiralty move, the has ordered the arrest of the Panama-flagged vessel M/V Zhong Peng You Yi (IMO No. 1016161) docked at Chennai port. Justice Senthilkumar Ramamoorthy granted interim relief to Dubai-based and Russian firm , who claim over USD 2.6 million in unpaid dues from a breached . The single-judge bench acted on , amid warnings that the ship could soon sail beyond Indian waters.
From Russian Charter to Dubai Assignment: The Voyage to Litigation
The dispute traces back to a between and the vessel's owners—originally named M/V HT Ingots . The 12+3 month agreement saw Eurotrans deposit USD 100,000 and pay for bunkers, settling 11 hire invoices up to . Tensions escalated when owners allegedly whisked the vessel to China for "repairs," rendering it unavailable and declaring it from . Eurotrans later assigned its rights to .
Plaintiffs allege wrongful withdrawal, seeking recovery of the deposit, bunker costs as of , and damages computed at USD 1,730,025—based on market hire rates of USD 22,291/day versus the contract's USD 16,000/day. Earlier arrest bids in Djibouti and Egypt failed, making Chennai's arrival a critical window, especially amid global shipping rate spikes from Red Sea disruptions.
Plaintiffs' Urgent Hail: Deposit, Bunkers, and Lost Profits
Represented by , the plaintiffs painted a picture of bad faith. They highlighted paid hires, the vessel's sudden unavailability, and owners' pivot to higher-rate charters exploiting market surges. The total claim: USD 2,615,036.65, qualifying as a under the . With the vessel in Chennai for cargo ops, they urged immediate arrest to secure the debt before it slipped away—no response yet from owners or the Master representing the ship .
Court's Green Light: Admiralty Act in Action
Justice Ramamoorthy found
validity in the claim, noting its fit within the 2017 Act's maritime claims framework. No precedents were invoked, but the reasoning hinged on the risk of the vessel exiting jurisdiction. The order emphasizes urgency:
"It is also stated that the vessel is likely to sail out of the
of this Court very soon."
Key Observations
"I amsatisfied that the suit claim relates to aas per the."
"In an admiraltyfor recovery of a sum of USD 2,615,036.65 towards an alleged, the plaintiffs seek security for such claim, including by arrest of the defendant vessel."
"Considering the aforesaid... Therefore, I direct that abe issued in accordance with the Admiralty Rules of this Court in respect of the vessel M/V ZHONG PENG YOU YI (IMO No.1016161)."
Arrest Warrant Issued: Next Stop, April Hearing
The court directed immediate issuance of the arrest warrant and notice to respondents, returnable . Private notice was allowed, with plaintiffs notifying port authorities. This action targets the vessel itself as security, a cornerstone of admiralty practice. For future disputes, it signals courts' readiness to act decisively on credible charter breaches, potentially deterring opportunistic off-hires in volatile markets. Owners must now respond, or face prolonged detention at Chennai.
