Section 5 in The Paradip Port Trust (Distraint or Arrest and Sale of Vessels) Regulations, 1988
5. Sale of distrained or arrested vessel.
(1)The Deputy Conservator shall have a valuation survey of the vessel carried out by approved surveyors to ascertain the reserve sale price of the distrained vessel.(2)The Deputy Conservator shall obtain the permission of the Director-General, Shipping before putting the vessel and the tackle, apparel and furniture belonging thereto, to sale.(3)The sale shall be held in accordance with the provision of the Sale of Goods Act, 1930 and also, in terms of the conditions of sale as per Tender Notice.(4)Sealed tenders shall be invited from the prospective buyers through press advertisement, as in Form III, at least in four leading newspapers, including Hindi and one regional language daily, specifying the last date for the receipt of tenders.(5)The prospective buyer shall be permitted to inspect the vessel after the sale notice is published in the press, during a specified period which shall be fixed by the Deputy Conservator.(6)Each tender shall be accompanied by an earnest money deposit, to be paid by bank draft, to be fixed by the Deputy Conservator in each case.(7)The tenders received after the due date and time, shall be summarily rejected.(8)The Sealed tenders shall be opened in the presence of tenderers present on the date and time fixed by the Deputy Conservator for opening the tenders and if any tenderer is not present at the time fixed for opening the tenders, his tender may be rejected without opening, giving the reasons.(9)The acceptance of the offer shall be communicated to the successful tenderer.(10)The successful tenderer shall pay 25% of the bid amount within five days from the date of acceptance of the tender and the balance amount within 15 days from the date. In addition to the tender value the successful tenderers will also deposit such money/bank guarantee for a value as determined by the Deputy Conservator as security deposit which will be returned within a period of 3 months after successful completion. However, no interest shall be paid by the Port on the deposit so made.(11)In default of payment of 25% of the bid amount within five days from the date of acceptance of the tender, the sale shall, unless otherwise ordered, stand automatically revoked and the earnest money shall be forfeited, and the vessel shall be resold at the risk of the tenderer whose tender was accepted.(12)If the vessel is not removed from the harbour for any reason within 30 days' additional berth hire charges beyond the normal charges, as laid down in the Port's Scale of rates, shall be levied.(13)Under no circumstances, the buyer shall be permitted to dismantle or break the ship inside the harbour or within the Port limits, unless or otherwise it is specifically permitted to do so.
