Case Note & Summary
The State of Maharashtra filed an appeal against an order dated 3rd March 2008 passed by a learned Single Judge of the Bombay High Court in Notice of Motion No.2565 of 2008 in Admiralty Suit No.5 of 2008. The State was not a party to the suit but had been issued notice in the Notice of Motion. The suit was filed by the first respondent (Quesham Bonyad Ship Management Co.) against the second respondent (m.v. Ocean Frontier ex MV Parsian) and an order of arrest of the vessel was passed on 14th January 2008. Subsequently, the parties referred their disputes to mediation and the plaintiff sought to withdraw the suit. By the impugned order, the learned Single Judge permitted withdrawal of the suit, ordered release of the vessel from arrest, and directed the plaintiff to pay Sheriff's poundage as per Rules. The plaintiff paid a sum of Rs.3,99,800/- to the Sheriff by cheque without any protest. The State of Maharashtra appealed, challenging the order. The Division Bench held that the State was not a party to the suit and had no locus standi to challenge the order, as the order only directed the plaintiff to pay poundage and did not impose any liability on the State. The appeal was dismissed with no order as to costs.
Headnote
A) Civil Procedure - Locus Standi - Party to Suit - State not a party to suit cannot challenge order permitting withdrawal and directing payment of Sheriff's poundage by plaintiff - The State of Maharashtra was not a party to the admiralty suit but was only issued notice in the Notice of Motion. The order dated 3rd March 2008 permitted the plaintiff to withdraw the suit and directed the plaintiff to pay Sheriff's poundage. The State has no locus standi to appeal against such order as it is not aggrieved by the direction to pay poundage by the plaintiff. (Paras 1-8)
B) Admiralty Law - Withdrawal of Suit - Release of Vessel - Court permitted withdrawal of suit and release of vessel from arrest upon plaintiff's request - The suit was withdrawn as disputes were referred to mediation. The court ordered release of the vessel and directed plaintiff to pay Sheriff's poundage. The State's appeal against this order was dismissed. (Paras 2-8)
Issue of Consideration
Whether the State of Maharashtra, which was not a party to the admiralty suit, has locus standi to challenge the order permitting withdrawal of the suit and directing the plaintiff to pay Sheriff's poundage.
Final Decision
The appeal is dismissed. No order as to costs.
Law Points
- Locus standi
- Admiralty suit
- Withdrawal of suit
- Sheriff's poundage
- Costs
- Party to suit
Case Details
2016 LawText (BOM) (12) 36
APPEAL NO.397 OF 2009 IN NOTICE OF MOTION NO.2565 OF 2008 IN ADMIRALITY SUIT NO.5 OF 2008
A.S. Oka, Smt. Anuja Prabhudessai
Shri G.W. Mattos, AGP for the Appellant. None for the Respondents.
1. Quesham Bonyad Ship Management Co., 2. m.v. Ocean Frontier ex MV Parsian (and her owners and all other persons concerned and/or interested in her)
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Nature of Litigation
Appeal against order permitting withdrawal of admiralty suit and directing payment of Sheriff's poundage.
Remedy Sought
The State of Maharashtra sought to challenge the order dated 3rd March 2008 permitting withdrawal of the suit and directing the plaintiff to pay Sheriff's poundage.
Filing Reason
The State of Maharashtra, though not a party to the suit, was issued notice in the Notice of Motion and appealed against the order.
Previous Decisions
On 14th January 2008, the learned Single Judge passed an order of arrest of the vessel. On 3rd March 2008, the learned Single Judge permitted withdrawal of the suit and ordered release of the vessel, directing the plaintiff to pay Sheriff's poundage.
Issues
Whether the State of Maharashtra has locus standi to challenge the order dated 3rd March 2008?
Submissions/Arguments
The learned AGP for the Appellant argued the appeal. None appeared for the Respondents.
Ratio Decidendi
A person who is not a party to a suit has no locus standi to challenge an order passed in the suit, especially when the order does not impose any liability on such person. The State of Maharashtra was not a party to the admiralty suit and the impugned order only directed the plaintiff to pay Sheriff's poundage, not the State. Hence, the State has no locus standi to appeal.
Judgment Excerpts
The present Appellant State of Maharashtra is not a party to the suit, but a notice was issued to the Appellant in Notice of Motion No.2565 of 2008 in which the impugned order has been passed.
The suit allowed to be withdrawn with no order as to costs.
We may note here that the cheque was forwarded to the Sheriff of Mumbai in terms of the directions issued in Paragraph 7 of the order dated 3rd March 2008.
Procedural History
Admiralty Suit No.5 of 2008 was filed by the first respondent. On 14th January 2008, an order of arrest of the vessel was passed. On 3rd March 2008, the learned Single Judge permitted withdrawal of the suit and ordered release of the vessel, directing the plaintiff to pay Sheriff's poundage. The State of Maharashtra filed Appeal No.397 of 2009 against that order. The appeal was heard and dismissed on 16th and 19th December 2016.
