Van Oil Petroleum Ltd vs Mv Denali (Imo No 8438016) on 6 April, 2018

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Gujarat High Court

Van Oil Petroleum Ltd vs Mv Denali (Imo No 8438016) on 6 April, 2018

Bench: R.M.Chhaya

          C/AS/12/2018                                 ORDER




         IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                    R/ADMIRALITY SUIT NO. 12 of 2018

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                          VAN OIL PETROLEUM LTD
                                   Versus
                         MV DENALI (IMO NO 8438016)
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Appearance:
MS PAURAMIB SHETH(841) for the Plaintiff(s) No. 1
for the Defendant(s) No. 1
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 CORAM: HONOURABLE MR.JUSTICE R.M.CHHAYA

                              Date : 06/04/2018

                               ORAL ORDER

1 Learned Advocate Ms. Paurami Sheth mentioned this matter for urgent circulation today. The permission is granted for urgent circulation and suit is taken up for hearing for urgent interim orders as the Defendant Vessel is likely to sail away.

2. Learned Advocate Ms. Paurami Sheth submitted that the Plaintiff's claim arises by reason of bunkers supplied by the Plaintiff to the Defendant Vessel which are essential for her operation or maintenance, that as such the Owners and/or managers of the Defendant Vessel have played fraud on the Plaintiff inasmuch knowing fully well that they are liable for the claim of the Plaintiff for supply made to the defendant Page 1 of 5 C/AS/12/2018 ORDER Vessel, the vessel has undergone change in name and ownership with sole aim to defeat Plaintiff's claim and claims of other identically situated creditors, that the said registered owners of the vessel are alteregos and enjoy identity and commonality of interest and functional integrity with each other, and are in law and effect, one entity, only incorporated with an intention to defraud their creditors that in any case the defendant Vessel is in rem responsible for the outstanding payments of the Plaintiff towards supply of bunkers which were supplied at her faith and credit and used by her during her voyages, that under the circumstances the Plaintiff is entitled to initiate action even if the ownership for the Defendant Vessel is changed fraudulently as to frustrate the claim of the Plaintiff for its maritime claim/lien on the vessel which travels with the vessel, that the Plaintiff's General Terms and Conditions for sale of the Marine Fuel provides that the supply was governed by English Law, that the Plaintiff has therefore filed the present suit and interalia prayed for arrest of the Defendant Vessel.

3. Upon hearing Ms. Paurami Sheth, Learned Advocate for the plaintiff and upon reading the plaint herein declared at Ahmedabad on 06.04.2018 filed by the advocate for the Page 2 of 5 C/AS/12/2018 ORDER plaintiff herein and the affidavit of Mr. Raju Prabhatbhai Desai, Authorised Signatory of the Plaintiff above named affirmed on 06.04.2018 and upon hearing counsel for the plaintiff and upon the Plaintiff giving an 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 sustaining prejudice by this order, I do order that the Registrar of this Court do issue a warrant for the arrest of the defendant Vessel M.V. DENALI (IMO No: 9438016) (exname MV MariePaule) along with her hull, engines, gears, tackles, bunkers, machinery, apparel, plant, furnitures, equipments and all appurtenances, at present lying at Navlakhi Port within the Indian territorial waters and that the Warrant of Arrest be executed at any time of the day or night or on Sundays or holidays and I do further order that the Port Officer and the Customs Authorities at Navlakhi Port do effect the arrest, seizure or detention of the Defendant Vessel M.V. DENALI at present lying Navlakhi Port within the Indian territorial waters 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 Court the principal amount of USD 975,600 and annual interest of 5% from due Page 3 of 5 C/AS/12/2018 ORDER date of each Invoice till filing of the present Plaint being USD 326,965 from due date of invoice till date and USD 20,000 for cost of litigation in India aggregating USD USD 1,322,565 with further interest at the rate of 5% per year from date of suit till its realization as per particulars of claim, the said Warrant of Arrest shall not be executed against the defendant Vessel M.V. DENALI at present lying at Navlakhi Port within the Indian territorial waters.

4. The Port Officer and the Customs Authorities at Navlakhi are directed to arrest the Vessel M.V. DENALI at present lying at Navlakhi within the Indian territorial waters 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 at Navlakhi shall render all assistance to the plaintiff or its representative in effecting the warrant of arrest for the vessel .

5. 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 fax/Email message with an ordinary copy of this order.

6. The undertaking filed by Mr. Raju Prabhatbhai Desai, Authorised Signatory of the plaintiff is Page 4 of 5 C/AS/12/2018 ORDER taken on record.

7. Notice to the Defendants returnable on 13.04.2018. 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.

8. Office is directed to serve the warrant of arrest on the Defendant Vessel through Agent/ Master and send copy thereof to Port and Customs Authorities at Navlakhi.

Direct service is permitted today.

(R.M.CHHAYA, J) mrp Page 5 of 5

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