Bombay High Court
Tirupati Vessel Private Ltd vs Kreuz Subsea Pte. Ltd. And Anr on 23 June, 2021
Author: K.R. Shriram
Bench: K.R.Shriram
1/4 9 - IAL-12756-2021.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ADMIRALTY AND VICE ADMIRALTY JURISDICTION
IN
ITS COMMERCIAL DIVISION
INTERIM APPLICATION (L) NO. 12756 OF 2021
IN
COMMERCIAL ADMIRALTY SUIT NO. 27 OF 2019
Tirupati Vessel Private Ltd. ... Applicant
In the Matter Between
Kreuz Subsea Pte. Ltd. ... Plaintiff
V/s.
AWB Gal Constructor (IMO No.87583574) ... Defendant
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Mr. Rahul Narichania, Senior Advocate a/w Mr. Krishnaraj Thakker,
Ms.Monika Tanna, Mr. Pawan Maheshwari i/b Singhania Legal Services for
Applicant.
Mr. Prashant Pratap, Senior Advocate a/w Ms. Simantini Mohite and
Ms.Megharanjani Chandu i/b Crawford Bayley and Co. for Plaintiff.
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CORAM : K.R.SHRIRAM, J.
DATED : 23rd JUNE 2021.
P.C. :
1. Plaintiff had initially filed the suit on 08/03/2019. Defendant/ vessel came to be arrested by an order dated 08/03/2019.
2. On 02/04/2019 plaintiff invoked arbitration before the Sole Arbitrator Hon'ble Mr. Justice S.J. Vazifdar (Retd.). The arbitral proceedings are still pending. In the meanwhile, parties entered into Minutes of Order dated 24/07/2019 and further Minutes of Order was entered into on Purti Parab ::: Uploaded on - 23/06/2021 ::: Downloaded on - 24/06/2021 05:38:00 ::: 2/4 9 - IAL-12756-2021.doc 22/10/2019. By their further consent Minutes of Order defendant/vessel was allowed to sail out of Mumbai Port under arrest to the offshore location at Bombay High to perform operations whilst under arrest by ONGC under charter party dated 26th August, 2019 as more particularly stated in the said consent Minutes of Order.
3. According to applicant defendant/vessel is hit by Cyclone Tauktae on 17/05/2021 and is severely damaged. In paragraph no.13 of the application it is stated that defendant/vessel is being salvaged by applicant but the same is no longer in a sea worthy condition and is a total loss.
Mr. Narichania states that applicant may also, if advised, decide to declare the vessel as a constructive total loss. Mr. Thakker who is appearing with Mr. Narichania states that applicant has paid all the premium and call money for defendant/vessel. Statement accepted.
4. Applicants have prayed for various reliefs in the application but today Mr. Narichania states, on instructions, that original claim of plaintiff, admittedly, is for Rs.5,35,52,107/- and US$ 55,393 which applicant is willing to secure by way of bank guarantee of a Nationalised Bank issued in favour of Prothontary and Senior Master, High Court, Bombay as per the usual format.
Mr. Narichania also states that until the bank guarantee is given any amount applicant may receive from the insurance company or P & I will Purti Parab ::: Uploaded on - 23/06/2021 ::: Downloaded on - 24/06/2021 05:38:00 ::: 3/4 9 - IAL-12756-2021.doc be deposited with Prothontary and Senior Master, High Court, Bombay to the extent of plaintiff's claim.
5. Mr. Pratap states that plaintiff's have come to know that defendant's have breached orders of this court and are guilty of contempt.
In my view that is not a subject matter of the present application and it will be open for plaintiff to take such steps as advised if plaintiff's feel defendant's have deliberately and willfully disobeyed orders of this court or committed breach of orders of this court.
6. In the circumstances, keeping open all rights and contentions of the parties including that of defendants to apply to the Learned Arbitrator for reduction of the security being provided by defendants, following order is passed :-
(a) Defendant's owners shall provide a bank guarantee of a Nationalised Bank within two weeks from today and the bank guarantee shall be for a sum of Rs.5,35,52,107/- plus the rupee equivalent of US$ 55,393. The rate of exchange to be applied will be the selling rate on the date of issuance of bank guarantee. Bank guarantee shall also provide for interest which is fixed at 9% per annum payable from 08/03/2019 until payment/realisation. This rate of interest is adhoc and is subject to final order of the Learned Arbitrator in his final award. The bank guarantee shall be issued initially for a Purti Parab ::: Uploaded on - 23/06/2021 ::: Downloaded on - 24/06/2021 05:38:00 ::: 4/4 9 - IAL-12756-2021.doc period of one year to be renewed from time to time unless otherwise ordered by this court and shall be strictly in the format prescribed by the Admiralty Registrar of this court.
(b) Upon furnishing the bank guarantee as noted above, applicant may move the court for release of other vessels from arrest and return of amounts deposited as stated in para (4) above, as the case may be.
7. Mr. Narichania states that in the rejoinder filed by Mr. Rajiv Agarwal, Director of applicant due to oversight he has not mentioned that he affirms the contents of the Interim Application though the court had directed that such affidavit has to be filed. Mr. Narichania states that within one week from today such affidavit will be filed, under advise to plaintiff's advocate. Mr. Narichania also states that original copy of the rejoinder shall also be filed in the Registry within one week from today.
8. Interim Application (L) No. 12756 of 2021 accordingly stands disposed.
(K.R. SHRIRAM, J.) Purti Parab ::: Uploaded on - 23/06/2021 ::: Downloaded on - 24/06/2021 05:38:00 :::