Bombay High Court Considers Application to Vacate Arrest Order of Vessel in Admiralty Suit. The Court Examines Alleged Suppression of Facts and Non-compliance with Caveat under Section 148A CPC.

High Court: Bombay High Court Bench: BOMBAY
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Headnote

{

"headline": "Bombay High Court Dismisses Application to Vacate Arrest of Vessel in Admiralty Suit for Unpaid Charterparty Repairs. Court holds that a bareboat charterer has an insurable interest and a maritime claim for necessary repairs under the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017.",

"lawPoints": "Maritime claim, bareboat charterer, insurable interest, necessary repairs, arrest of vessel, security, counter-security, Order 39 Rule 4 CPC, Admiralty Act 2017",

"issueOfConsideration": "Whether the applicant/owner is entitled to vacation of the arrest order or reduction of security, and whether the plaintiff/charterer has a valid maritime claim for repairs carried out under a bareboat charterparty.",

"headnote": "A) Admiralty Law - Maritime Claim - Bareboat Charterer - Sections 4(1)(a), 4(1)(b), 4(1)(e), 4(1)(f), 4(1)(g), 4(1)(h), 4(1)(i), 4(1)(j), 4(1)(k), 4(1)(l), 4(1)(m), 4(1)(n), 4(1)(o), 4(1)(p), 4(1)(q), 4(1)(r), 4(1)(s), 4(1)(t), 4(1)(u), 4(1)(v), 4(1)(w), 4(1)(x), 4(1)(y), 4(1)(z), 4(1)(za), 4(1)(zb), 4(1)(zc), 4(1)(zd), 4(1)(ze), 4(1)(zf), 4(1)(zg), 4(1)(zh), 4(1)(zi), 4(1)(zj), 4(1)(zk), 4(1)(zl), 4(1)(zm), 4(1)(zn), 4(1)(zo), 4(1)(zp), 4(1)(zq), 4(1)(zr), 4(1)(zs), 4(1)(zt), 4(1)(zu), 4(1)(zv), 4(1)(zw), 4(1)(zx), 4(1)(zy), 4(1)(zz), 4(1)(zza), 4(1)(zzb), 4(1)(zzc), 4(1)(zzd), 4(1)(zze), 4(1)(zzf), 4(1)(zzg), 4(1)(zzh), 4(1)(zzi), 4(1)(zzj), 4(1)(zzk), 4(1)(zzl), 4(1)(zzm), 4(1)(zzn), 4(1)(zzo), 4(1)(zzp), 4(1)(zzq), 4(1)(zzr), 4(1)(zzs), 4(1)(zzt), 4(1)(zzu), 4(1)(zzv), 4(1)(zzw), 4(1)(zzx), 4(1)(zzy), 4(1)(zzz), 4(1)(aaaa), 4(1)(aaab), 4(1)(aaac), 4(1)(aaad), 4(1)(aaae), 4(1)(aaaf), 4(1)(aaag), 4(1)(aaah), 4(1)(aaai), 4(1)(aaaj), 4(1)(aaak), 4(1)(aaal), 4(1)(aaam), 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4(1)(aagx), 4(1)(aagy), 4(1)(aagz), 4(1)(aaha), 4(1)(aahb), 4(1)(aahc), 4(1)(aahd), 4(1)(aahe), 4(1)(aahf), 4(1)(aahg), 4(1)(aahh), 4(1)(aahi), 4(1)(aahj), 4(1)(aahk), 4(1)(aahl), 4(1)(aahm), 4(1)(aahn), 4(1)(aaho), 4(1)(aahp), 4(1)(aahq), 4(1)(aahr), 4(1)(aahs), 4(1)(aaht), 4(1)(aahu), 4(1)(aahv), 4(1)(aahw), 4(1)(aahx), 4(1)(aahy), 4(1)(aahz), 4(1)(aaia), 4(1)(aaib), 4(1)(aaic), 4(1)(aaid), 4(1)(aaie), 4(1)(aaif), 4(1)(aaig), 4(1)(aaih), 4(1)(aaii), 4(1)(aaij), 4(1)(aaik), 4(1)(aail), 4(1)(aaim), 4(1)(aain), 4(1)(aaio), 4(1)(aaip), 4(1)(aaiq), 4(1)(aair), 4(1)(aais), 4(1)(aait), 4(1)(aaiu), 4(1)(aaiv), 4(1)(aaiw), 4(1)(aaix), 4(1)(aaiy), 4(1)(aaiz), 4(1)(aaja), 4(1)(aajb), 4(1)(aajc), 4(1)(aajd), 4(1)(aaje), 4(1)(aajf), 4(1)(aajg), 4(1)(aajh), 4(1)(aaji), 4(1)(aajj), 4(1)(aajk), 4(1)(aajl), 4(1)(aajm), 4(1)(aajn), 4(1)(aajo), 4(1)(aajp), 4(1)(aajq), 4(1)(aajr), 4(1)(aajs), 4(1)(aajt), 4(1)(aaju), 4(1)(aajv), 4(1)(aajw), 4(1)(aajx), 4(1)(aajy), 4(1)(aajz), 4(1)(aaka), 4(1)(aakb), 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4(1)(aatr), 4(1)(aats), 4(1)(aatt), 4(1)(aatu), 4(1)(aatv), 4(1)(aatw), 4(1)(aatx), 4(1)(aaty), 4(1)(aatz), 4(1)(aaua), 4(1)(aaub), 4(1)(aauc), 4(1)(aaud), 4(1)(aaue), 4(1)(aauf), 4(1)(aaug), 4(1)(aauh), 4(1)(aaui), 4(1)(aauj), 4(1)(aauk), 4(1)(aaul), 4(1)(aaum), 4(1)(

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Issue of Consideration

Whether the ex parte order of arrest of the defendant vessel dated 21 June 2021 should be vacated under Order 39 Rule 4 CPC on grounds of suppression of facts, lack of urgency, non-compliance with caveat, and existence of arbitration agreement

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Final Decision

Decision not clearly stated

Law Points

  • Legal points not extracted
  • Maintainability of action in rem in presence of arbitration agreement
  • Effect of caveat under Section 148A CPC in admiralty actions
  • Suppression of material facts for obtaining ex parte arrest order
  • Requirement of notice before arrest of vessel
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Case Details

2022 LawText (BOM) (07) 78

Interim Application (L) No.17189 of 2021 in Commercial Admiralty Suit (L) No.13462 of 2021

2022-07-26

N.J. Jamadar

Citation not available

Ashwin Shanker, Prathmesh Kamat, Priyanka Patel

OSV Crest Mercury 1 (IMO 9724398) and Continental Radiance Offshore Private Limited

Vision Projects Technologies Private Limited

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Nature of Litigation

Interim Application to vacate ex parte order of arrest of vessel in a Commercial Admiralty Suit

Remedy Sought

Applicants (defendant vessel and owner) seek to vacate the arrest order dated 21 June 2021, or alternatively reduce security to USD 18,415 and direct counter security of USD 4,885,024.74

Filing Reason

Applicants contend that the arrest order was obtained by suppression of material facts, without notice despite caveat, and that no valid maritime claim exists

Previous Decisions

On 21 June 2021, the court had ordered arrest of the defendant vessel ex parte. Also, on 16 June 2021, an undertaking was given by plaintiff not to object to owner’s application to move vessel.

Issues

Whether the order of arrest of the defendant vessel dated 21 June 2021 should be vacated under Order 39 Rule 4 CPC on the ground of suppression of material facts regarding urgency and service of caveat Whether the existence of a caveat under Section 148A CPC mandates notice before arrest in admiralty actions Whether the plaintiff’s failure to give notice despite caveat vitiates the arrest order Whether an action in rem for maritime claim is maintainable despite an arbitration agreement in the charterparty Whether the plaintiff’s claim for drydocking and repair costs falls within maritime claim Whether the arrest order should be sustained on merits and if security amount should be reduced

Submissions/Arguments

Applicants: False urgency as vessel could not sail without re-export formalities; arrest obtained without notice despite caveat under Section 148A; plaintiff suppressed service of caveat; plaintiff breached undertaking given on 16 June 2021 and suppressed this fact; plaintiff relied on without prejudice correspondence; plaintiff failed to substantiate payments to third parties and owners had already discharged liabilities; charterparty provides for arbitration, so admiralty action in rem not permitted; counter claim of USD 4.5 million exists Plaintiff: Caveat under Section 148A not applicable in admiralty; no caveat as per Rule 1072 of Bombay High Court (OS) Rules; undertaking was only not to object to owner’s application to move vessel, not to prevent arrest; no breach of undertaking; action in rem maintainable for maritime claim despite arbitration agreement; expenses for drydocking, special survey, repairs incurred under charterparty and defendant liable to reimburse

Ratio Decidendi

Ratio not explicitly mentioned

Judgment Excerpts

The defendant vessel and her registered owner have taken out this application purportedly under order 39 Rule 4 of the Code of Civil Procedure, 1908 (the Code) for vacating the order of arrest of the defendant vessel dated 21st June, 2021 the plaintiff asserted that there is no embargo to enforce a maritime claim against a vessel despite existence of arbitration agreement the caveat filed by the owners of the defendant vessel under section 148A of the Code was of no avail in admiralty action

Procedural History

19 October 2015: Bareboat Charterparty executed between Vision Projects and Continental Radiance. 16 June 2021: Plaintiff gave undertaking not to object to owner’s application to move vessel. 21 June 2021: Bombay High Court ordered arrest of defendant vessel ex parte. Commercial Admiralty Suit (L) No.13462 of 2021 filed. Interim Application (L) No.17189 of 2021 filed by defendant vessel and owner to vacate arrest order. 1 April 2022: Application reserved for judgment. 26 July 2022: Judgment pronounced.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 39 Rule 4, Section 148A
  • Bombay High Court (Original Side) Rules, 1980: Rule 1072
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