Bombay High Court
Axis Trustee Services Limited vs M. T. Prem Mala, Imo No. 9209972 And 4 Ors on 7 December, 2020
Author: B. P. Colabawalla
Bench: B. P. Colabawalla
7.ld.vc.ia.21-b.2020.doc
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ADMIRALTY AND VICE ADMIRALTY JURISDICTION
Dhanappa IN ITS COMMERCIAL DIVISION
I. Koshti
Digitally signed by LD/VC/IA/21-B/2020
Dhanappa I. Koshti
Date: 2020.12.08
IN
10:34:20 +0530
LD/VC/GSP/21/2020
State Bank of India ...Applicant/Plaintiff.
Vs
MT PREM MALA (IMP No.9209972) & Ors. ...Defendants
WITH
COMMERCIAL ADMIRALTY SUIT (L) NO. 3242 OF 2020
Indian Oil Corporation Ltd. ...Applicant/Plaintiff.
vs
The State Proceeds of MT PREM MALA
(IMP No.9209972) ...Defendant
INTERIM APPLICATION (L) NO. 4299 OF 2020
IN
COMM. ADMIRALTY SUIT (L) NO. 3242 OF 2020
State Bank of India ...Applicant
In the matter between
Indian Oil Corporation Ltd. ...Plaintiff
Vs
The Sale Proceeds of M.T.Prem Mala
(IMO 9209972) ...Defendant.
WITH
IA(L) NO. 3434/2020
A/W
LD/VC/IA/1/2020
WITH
INTERIM APPLICATION (L) NO. 2620 OF 2020
IN
COMMERCIAL ADMIRALTY SUIT (L) NO. 7 OF 2020
AND
COMMERCIAL ADMIRALTY SUIT (L) NO.7 OF 2020
Axis Trustees Services Ltd. ...Applicant/Plaintiff.
Pg 1 of 6
7.ld.vc.ia.21-b.2020.doc
vs
MT PREM MALA (IMP No.9209972) & Ors. ...Defendants
.....
Mr Zahir Bharucha and Mr. Niloufer Lam, Rishi Thakur and Umang
Thakur i/b ZBA Asso. for the applicant in LD/VC/IA/21-B/2020 and
for D-5 in IA(L) / 3434/2020 and LD/VC/IA/1/2020 in COMAS(L) No.
7 of 2020
Mr. Ashish Kamat i/b Ms. Punthi Shah i/b Aarna Law LLP for
Defendant No.3 in LD/VC/IA/21-B/2020 in LD/VC/GSP/21/2020 and
for Defendant No.2 and 3 in IA(L) / 3434/2020 in COMAS(L) No.7 of
2020
Mr. Venkatesh Dhond, Sr. Counsel and Mr. Ashwin Shankar and Ms.
Shweta Sadanandan for Defendant Nos.1 and 2 in LD/VC/IA/21-B
2020 and for applicant in IA(L) 3434/2020 and LD/VC/IA/1/2020 in
COMAS(L)/7/2020
Ms. Rutuja Patil and Ms. Niyathi Kalra and Ms. Sonu Bhansi i/b
Negandhi Shah and Himayatullah for Plaintiff in COMAS(L) No.3242
of 2020.
.....
CORAM : B. P. COLABAWALLA, J.
7th DECEMBER, 2020.
P.C. :
Interim Application (L) No. 2620 of 2020 not on board. As
per the report of the Prothonotary and Senior Master of this Court,
taken on board.
2 In this matter, an order was passed on 7 th September,
2020. The operative part of that order reads thus :-
"17. In these circumstances and considering
the totality of the facts and circumstances of the case,
the following order is passed:-
Pg 2 of 6
7.ld.vc.ia.21-b.2020.doc
ORDER
(i) The applicant/ plaintiff shall be allowed to withdraw the sale proceeds of the 1 st defendant vessel MT Prem Mala (IMO 9209927) lying with the Prothonotary and Senior Master of this Court, on them:-
(a) giving a written undertaking to this Court that they will bring back the sale proceeds together with interest @ 5.65 % per annum compounded annually as and when called upon by this Court;
and
(b) giving an unconditional Bank Guarantee in favour of the Prothonotary and Senior Master, High Court, Bombay, of any nationalized bank, or Kotak Mahindra Bank Ltd., or HDFC Bank Ltd., for the amount of the sale proceeds together with interest @ 5.65% p.a. compounded annually. In other words, the Bank Guarantee shall clearly state that the amounts payable thereunder, if invoked, will cover the sale proceeds together with interest @ 5.65 % per annum compounded annually, till invocation.
(ii) The aforesaid unconditional Bank Guarantee shall be kept alive until further orders of this Court. If the applicant/ plaintiff fails to do so, or refuses to do so, the Prothonotary and Senior Master of this Court shall, without further reference to the Court, forthwith invoke the Bank Guarantee and the applicant/ plaintiff agrees that it shall not, in any way Pg 3 of 6
7.ld.vc.ia.21-b.2020.doc whatsoever, object to the said invocation;
(iii) The exercise of furnishing the written undertaking as well as the unconditional Bank Guarantee shall be done by the applicant/ plaintiff within a period of six weeks from today;
(iv) If the aforesaid time schedule of six weeks is not adhered to by the applicant/plaintiff, the Prothonotary and Senior Master of this Court shall invest the sale proceeds of the 1 st defendant vessel in a Fixed Deposit with Kotak Mahindra Bank Ltd. The tenure of the Fixed Deposit shall be initially for a period of 390 days, unless ordered to be broken earlier."
2 As can be seen from the operative part, it was directed that if the moneys were not withdrawn by the applicant/ plaintiff within the time stipulated in the order, the sale proceeds of the frst defendant-vessel were to be invested in a Fixed Deposit/s with Kotak Mahindra Bank Ltd. The tenure of the Fixed Deposit/s was initially for a period of 390 days, unless ordered to be broken earlier. 3 The offce of the Prothonotary and Senior Master has brought to my attention that the sale proceeds of the frst defendant vessel amounting to Rs.29,96,77,322.75/- was deposited by the offce of the Sheriff of Mumbai with the Prothonotary and Senior Master on Pg 4 of 6
7.ld.vc.ia.21-b.2020.doc 28th August, 2020. This was done pursuant to an order passed by this Court on 7th August, 2020 (S.C.Gupte, J.). This order of 7 th August, 2020 further directed the offce of the Prothonotary and Senior Master to invest the amount in a Fixed Deposit/s of a Nationalized Bank initially for a period of one year and to be renewed thereafter from time to time. Accordingly, the Prothonotary and Senior Master of this Court has invested the amounts in the Bank of Baroda @ 3.75 % p.a. on 5th September, 2020.
4 Today, it has been brought to my attention that the Kotak Mahindra Bank Ltd. is giving a rate 4.90 % p.a. on fxed deposit/s for a tenure of 390 days. In these circumstances, all parties before me, including the learned advocate appearing for Indian Oil Corporation Ltd. (Comm. Admiralty Suit (L) No. 3242 of 2020), agrees that the moneys deposited by the Prothonotary and Senior Master be reinvested with the Kotak Mahindra Bank Ltd. as per the order of this Court dated 7th September, 2020 by breaking the deposit/s with the Bank of Baroda. In these circumstances and considering the consensus, it is directed that the Prothonotary and Senior Master of this Court shall break the Fixed Deposit/s with the Bank of Baroda and reinvest the same in a Fixed Deposit/s with the Kotak Mahindra Bank Ltd. initially for a period of 390 days unless ordered to be Pg 5 of 6
7.ld.vc.ia.21-b.2020.doc broken earlier.
5 List the above matters on board on 10 th December, 2020 at 5.00 p.m. in Chamber.
6 This order shall be digitally signed by the Private Secretary/Personal Assistant of this Court. All concerned shall act on production by fax or e-mail of a digitally signed copy of this order.
(B. P. COLABAWALLA ,J.) Pg 6 of 6