Calcutta High Court
Rigveda Maritime Pte. Ltd vs Sohom Shipping Pvt. Ltd. & Ors on 12 February, 2020
Author: Sanjib Banerjee
Bench: Sanjib Banerjee, Kausik Chanda
OD-1
APO No.180 of 2019
GA No.2789 of 2019
GA No.204 of 2020
GA No.151 of 2020
In
AS No.11 of 2018
IN THE HIGH COURT AT CALCUTTA
Civil Appellate Jurisdiction
ORIGINAL SIDE
RIGVEDA MARITIME PTE. LTD.
Versus
SOHOM SHIPPING PVT. LTD. & ORS.
BEFORE:
The Hon'ble JUSTICE SANJIB BANERJEE
And The Hon'ble JUSTICE KAUSIK CHANDA Date : 12th February, 2020.
Appearance:
Mr. Reetobrata Mitra, Adv.
Mr. Suvasish Sengupta, Adv.
Mr. Pawan Maheshwari, Adv.
Mr. Sarosij Dasgupta, Adv.
Mr. Joydeep Mukhopadhyay, Adv.
Mr. Tilak Kr. Bose, Sr. Adv.
Mr. Ashok Kr. Jena, Adv.
Ms. M. Manot, Adv.
Mr. Debnath Ghosh, Adv.
Ms. H. Ginodia, Adv.
Mr. Aniruddha Mitra, Adv.
Ms. Rituparna Saha, Adv.
Ms. K. Chowdhury, Adv.2
The Court : The matter was directed to appear today in the hope that the bad dream which has lasted far too long would go away. A working berth at the Haldia Port has been lying unused with a seemingly defunct vessel parked thereat for more than two years.
The initial sale was conducted by the Admiralty Court at a price of slightly over Rs.25 crore though the vessel was valued at over Rs.58 crore. After the sale was confirmed by the Admiralty Court, there were higher offers which bettered the bid put in by the purchaser by several crores; but the Admiralty Court perceived that the matter could not be reopened once the sale had been confirmed.
In the resultant appeals, the sale of the vessel at about Rs.25 crore was set aside. Fresh directions for publication of advertisements were issued by an order of September 30, 2019. Such order of September 30, 2019 envisaged the sale to be completed immediately after the Court reopened following the puja vacation. However, till the end of January, no progress was made and it was felt necessary to conclude the sale in the present appeal. The highest price now offered and at which the sale has been confirmed is Rs.40.73 crore. The second highest bid was of Rs.40.72 crore. Considering that the vessel has been lying berthed for over two years and the subsequent highest bid was a substantial improvement on the previous highest bid of about Rs.25 crore, it was deemed fit to confirm the sale in favour of the bidder who had offered Rs.40.73 crore, notwithstanding the estimated value of the vessel appearing to be in excess of Rs.58 crore. It does not appear feasible to the Court that if the process is repeated, any better offer may be forthcoming. In any event, the cost and charges would have increased by the delay in the process and there may not be any meaningful purpose in waiting for a better offer to match the estimated value of the vessel. 3
The sale was confirmed in favour of Glory Shipping Management Pte Limited of Singapore on January 27, 2020. Such highest bidder was allowed till February 11, 2020 to put in the entire consideration. In default, the second highest bidder was given the opportunity of purchasing the vessel on similar lines. What must also be remembered is that the previous highest bidder has continued to remain in the fray and the sum in excess of Rs.25 crore remains deposited for several months.
Prior to the expiry of the time to put in the balance consideration by the purchaser, such purchaser had mentioned the matter before this Court since such purchaser could not arrange for a rupee payment to be made in favour of the Registrar, Original Side. The purchaser was permitted to make a dollar payment, subject to the Registrar being able to receive the same. It now transpires that the Registrar, Original Side cannot receive payments in foreign currency. A supplementary affidavit has been filed on behalf of the purchaser today. Such supplementary affidavit seeks leave for the payment to be made on behalf of the purchaser by an entity by the name of Synergy Seaports Private Limited.
In course of the hearing, it is submitted on behalf of the purchaser that it is possible for a foreign entity to open a dollar account with a bank in India for the payment to be made to an Indian entity out of such account in rupees. It will be open for the purchaser to explore such possibility. However, the entire balance consideration due from the purchaser must have been deposited with the Registrar, Original Side before the matter appears next on March 4, 2020. It will be open to the purchaser to either cause the payment to be made through Synergy Seaports Private Limited or directly by opening the account in dollars as recorded above. It is made clear that no further time would be granted to the purchaser, particularly, since the Port rightly contends that 4 when the purchaser bid in Indian rupees, the purchaser ought to have arranged its affairs so that the tender could be in Indian rupees.
The Port should ensure that a copy of this order is forwarded to the second highest bidder, so that the second highest bidder may avail of the opportunity to obtain the vessel in the event the purchaser here fails to meet the terms.
In the event the purchaser is able to discharge its payment obligations sooner, it will be entitled to take charge of the vessel within twelve hours of the payment being made and the Port should facilitate the process.
Let the matter appear on March 4, 2020.
(SANJIB BANERJEE, J.) (KAUSIK CHANDA, J.) sg.