Case Note & Summary
The present matter was an Interim Application filed before the High Court of Judicature at Bombay in its Admiralty and Vice Admiralty Jurisdiction. The Applicant/Plaintiff, Angre Port Private Ltd, sought a summary judgment against the 1st Defendant Vessel, Tag 15 (IMO 9705550), under Order XIII-A read with Order XII Rule 6 of the Code of Civil Procedure, 1908. The claim was quantified at Rs.9,37,19,098 along with interest at 18% per annum from 18th December 2020 till payment or realization and poundage. The Plaintiff alleged that the dues were admitted or undisputed and that the Defendants had no real prospect of successfully defending the claim. The underlying suit was filed against the vessel invoking admiralty jurisdiction. The vessel had entered the Plaintiff's port on 13th February 2019 and occupied berth space. The Plaintiff rendered berthing and port services as per its Tariff Booklet and raised invoices from time to time. On 4th March 2019, EXIM Bank, a secured creditor of the vessel's owner Tag Offshore Ltd, filed a separate admiralty suit and obtained arrest of the vessel. Insolvency proceedings were initiated against Tag Offshore Ltd under Section 9 of the Insolvency and Bankruptcy Code, 2016 on 24th April 2019, and an Interim Resolution Professional was appointed. Due to lack of supplies and stores, the crew abandoned the vessel on 7th May 2019. On 16th June 2019, during monsoon, the vessel broke mooring lines and drifted, posing navigational hazards; the Plaintiff deployed a tug named TUG SHAMBHAVI to salvage and bring it back to safe harbour. The Resolution Professional was later appointed, and on 26th September 2019, the NCLT ordered liquidation of Tag Offshore Ltd, appointing Mr. Sudip Bhattacharya as liquidator. The Plaintiff filed the suit on 20th January 2020 and obtained arrest of the vessel on the same date. Subsequent orders permitted sale of the vessel, recorded undertakings by the liquidator regarding treatment of berthing, port and salvage charges as liquidation or IRP costs under Section 53(1)(a) of the IBC, directed appointment of a crew manning agency, and eventually directed sale of the vessel. On 22nd September 2020, the Court confirmed the highest bid of J.T. Marine Services Pvt Ltd for Rs.10,75,00,000, and a Bill of Sale was issued on 29th October 2020. The break-up of the Plaintiff's claim included port charges, berth hire, penal berth hire, salvage, mooring crew, GST, interest and legal costs across three periods. Plaintiff's counsel submitted that invoices were raised from time to time, no dispute was raised, and no payment was made. Defendant No.2, the liquidator, had earlier stated that there was no dispute regarding berth and port charges and that salvage charges would be treated as liquidation costs or IRP costs subject to scrutiny of quantum. The provided judgment excerpt ends at paragraph 16 before the final operative part; therefore, the final decision and reasoning of the Court on the summary judgment application are not available in the text.
Headnote
A) Civil Procedure - Summary Judgment - Order XIII-A read with Order XII Rule 6 of CPC - Plaintiff sought summary judgment against first defendant vessel for Rs.9,37,19,098 with interest at 18% p.a. from 18-12-2020 till payment/realization plus poundage on ground that dues were admitted and no real prospect of defending - Court recorded application and arguments; no final order in excerpt (Paras 1-2). B) Admiralty Law - Maritime Claim - Port Charges, Berth Hire, Penal Berth Hire, Salvage, Mooring Crew, GST, Interest, Legal Costs - Vessel occupied berth from 13-02-2019 and incurred charges; vessel abandoned on 07-05-2019, drifted on 16-06-2019, necessitating salvage by TUG SHAMBHAVI; plaintiff raised invoices for these amounts - Court noted factual backdrop including insolvency of owner and subsequent sale of vessel (Paras 4-9, 15-16). C) Insolvency and Bankruptcy Code, 2016 - Liquidation and IRP Costs - Section 53(1)(a) - Defendant No.2 as Liquidator of vessel owner undertook that costs/expenses incurred by plaintiff from 24-04-2019 till vessel leaves berth, including berthing, port and salvage charges, shall be treated as liquidation costs or IRP costs, subject to scrutiny of quantum for salvage - Court recorded this undertaking on 09-03-2020 (Paras 8, 11, 13). D) Admiralty Law - Arrest and Court Sale of Vessel - Court Sale Procedure - Arrest of vessel ordered on 20-01-2020; sale permitted on 29-01-2020; court directed sale on 09-07-2020; highest bid of J.T. Marine Services Pvt Ltd for Rs.10,75,00,000 confirmed on 22-09-2020; Bill of Sale issued on 29-10-2020 - Court recorded these procedural developments (Paras 11-15).
Issue of Consideration
Whether the Plaintiff is entitled to a summary judgment against the 1st Defendant Vessel under Order XIII-A read with Order XII Rule 6 of the Code of Civil Procedure, 1908, for Rs.9,37,19,098 with interest at 18% p.a. from 18-12-2020 till payment/realization plus poundage, on the ground that the claim is admitted/undisputed and the Defendants have no real prospect of successfully defending the suit.
Law Points
- Summary judgment under Order XIII-A CPC
- admission of dues
- no real prospect of defence
- admiralty jurisdiction
- maritime claim for port charges
- berth hire
- penal berth hire
- salvage
- mooring crew
- GST
- interest
- legal costs
- insolvency liquidation costs under Section 53(1)(a) IBC
- court sale of arrested vessel
