Gujarat High Court
National Insurance Company vs Mv Royal Arsenal (Imo No 9186766) on 23 May, 2019
Author: Bhargav D. Karia
Bench: Bhargav D. Karia
C/AS/27/2019 ORDER
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/ADMIRALITY SUIT NO. 27 of 2019
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NATIONAL INSURANCE COMPANY
Versus
MV ROYAL ARSENAL (IMO NO 9186766)
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Appearance:
for the Defendant(s) No. 1
MR ADITYA KRISHNAMURTHY, MR RISHABH SAXENA, AND MR. RAVI
KIRAN FOR MR HARSH N PAREKH(6951) for the Plaintiff(s) No. 1
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CORAM: HONOURABLE MR. JUSTICE BHARGAV D. KARIA
Date : 23/05/2019
ORAL ORDER
1. Learned Advocate for the plaintiff mentioned the matter for urgent circulation today. The permission is granted for urgent circulation today and suit is taken up for hearing of urgent interim orders.
2. Learned Advocate Mr. Aditya Krishnamurthy has submitted that the Plaintiff (a public sector insurance company/ state owned entity of the Ministry of Finance, Republic of Iraq in its capacity as an assignee and subrogee for General Company for Ports of Iraq) has a claim of USD 2,270,000 against the Defendant Vessel on account of the collision that took place between the Defendant Vessel and the OSV Al Misbar, in a channel leading to the Umm Qasr Port, Iraq which unfortunately resulted in the death of about 21 seafarers onboard the OSV Misbar and causing OSV Misbar to capsize and being rendered into a constructive total loss. It has been submitted that as per Page 1 of 4 Downloaded on : Tue Jul 02 23:17:53 IST 2019 C/AS/27/2019 ORDER the Port's Investigation Report, there exists a case of contributory negligence and the percentage of error attributed to the Defendant Vessel post investigation comes out to 75%. It is for this reason, that the Plaintiff has sought 75% of the claim amount that came to be paid to the assured. The Plaintiff thus submits that it has a valid maritime lien and maritime claim under the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017 and hence filed the present suit and inter alia prayed for arrest of the Defendant Vessel for the outstanding amounts.
3. On hearing Mr. Aditya Krishnamurthy, learned Advocate for the Plaintiff and upon reading the Plaint herein declared at Ahmedabad on 23.05.2019 filed by the advocate for the Plaintiff herein and the affidavit of Mr. Siddhesh Sham Kshirsagar, Constituted Attorney for the Plaintiff above named affirmed on 23.05.2019 and upon hearing Counsel for the Plaintiff and upon the Plaintiff giving undertaking in writing to the Registrar of this Court to pay such sums by way of damages as this Court may award as compensation in the event of the Defendant Vessel sustaining prejudice by this order, I do hereby order that the Registrar of this Court do issue a warrant for the arrest of the Defendant Vessel MV Royal Arsenal (IMO No. 9186766) along with her hull, engines, gears, tackles, bunkers, machinery, apparel, plant, furniture, equipment's and all appurtenances, at present lying at the Anchorage or yard of Alang or such other place wherever she may be within the territorial waters of India AND I DO further order that in the event of the Defendant and/or those interested in her depositing in this Hon'ble Court a Page 2 of 4 Downloaded on : Tue Jul 02 23:17:53 IST 2019 C/AS/27/2019 ORDER sum of USD 2,270,000, the said Warrant of Arrest shall not be executed against the Defendant Vessel MV Royal Arsenal.
4. The plaintiff is directed to deposit an amount of USD 25,000 as counter security in the United States Dollar Account maintained by the Registrar, High Court of Gujarat (i.e. Punjab National Bank, NRI Branch, Pelican Building, Ashram Road, Ahmedabad in Account No. 740600VQ00000013, SWIFT CODE NO. PUNBINBBAIB and AD Code No. 0303969) within a period of 07 days i.e. on or before 30th May, 2019. Should the Plaintiff fail to make remittance of counter security of USD 25,000 within 07 days, the order of arrest would stand automatically vacated.
5. The Port Officer and the Customs Authorities at Alang are directed to arrest the Vessel at present lying at the Anchorage or Yard of Alang within the territorial waters of India and to keep the Vessel under arrest until further orders of this Court. It is further ordered that the Port Officer and the Customs Officer and other regulatory authorities at Alang/Bhavnagar shall render all assistance to the Plaintiff or its representative in effecting the warrant of arrest on the Vessel MV Royal Arsenal.
6. It is open for the Plaintiff's advocate to communicate the above order by fax message/email at their own cost and the authorities are directed to act on an ordinary copy of this order by fax/email message.
7. The undertaking by Mr. Siddhesh Sham Kshirsagar, Constituted Attorney (authorized by letter dated 21 st May 2019 Page 3 of 4 Downloaded on : Tue Jul 02 23:17:53 IST 2019 C/AS/27/2019 ORDER issued by Ms Hafaa Essa Chairman of the Board of Directors off the Plaintiff) for and on behalf of the Plaintiff is taken on record.
8. Notice to the Defendant returnable on 30.05.2019. It is made clear that it will be open for the Defendant to approach this Court even prior to the returnable date with adequate notice to the Plaintiff.
9. The Port Officer is directed to serve the warrant of arrest on the Master of the Vessel MV Royal Arsenal or through the agent of the Vessel MV Royal Arsenal and send copy thereof to the Port and Customs Authorities at Alang.
Direct Service is permitted today.
(BHARGAV D. KARIA, J) SINDHU NAIR Page 4 of 4 Downloaded on : Tue Jul 02 23:17:53 IST 2019