MUNNA SCRAP TRADERS Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner was required to approach this Court under unusual and peculiar circumstances, by invoking the provisions of Art. 226 of the Constitution of India, under following circumstances which are broadly admitted.

(2.) The petitioner under an agreement dated 20.7.1998, purchased a Liquefied Gas Tanker, "ML. Manuel Belgrano". This vessel was purchased by the petitioner for the purpose of breaking. Prior thereto, the vessel arrived within the territorial waters of customs at Along Port. On or about 27.5.1998, the vessel arrived on its own steam to Along Anchorage. On 28.5.1998, rummaging clearance was granted as nothing objectionable was found. On 29.5.1998, beaching permission was also granted to M/s. Kathiawar Steels. Bill of Entry for home consumption which was for the purpose of breaking ship was filed by M/s. Kathiawar Steels on 29.5.1998 which was accepted by the concerned authority.

(3.) From the record, it appears that it is the case of the petitioner and accepted by the respondents that on account of extremely high current at the time of beaching activity. The ship broke anchor and started drifting southward. All attempts made by the crew to restart the engine failed as a result of which, it continued to drift and went out of control. Ultimately, it drifted towards the Bay of Cambay and got grounded in the sea at Tankaria point. The vessel was badly damaged and almost broken half and started to sink. It was not possible to make the vessel again float in the water and, therefore, the members of the crew abandoned the vessel. M/s. Kathiawar Steels informed the Authorities that it was not interested any more in the vessel and requested to treat the Bill of entry as cancelled. M/s. Kathiawar Steels also cancelled the transaction with the seller. A note known as sea protest setting out the aforside facts was filed by the master of vessel on 2.6.1998, stating that the vessel is abandoned.