HARI AND COMPANY Vs. ST ANTONYS TRADERS

JUDGEMENT

(1.) THESE appeals arise out of the order of learned single Judge in A.Nos.4337 and 4810 of 2010 whereby the learned single Judge declined to pass an order of arrest of Vessel MV Dhuvaafaru Galaxy holding that claim of supply of necessaries do not constitute a "maritime lien".

(2.) PLAINTIFF is an Import and Export Company and they are also engaged in the business of Clearing and Forwarding Agency which includes supply of various necessaries to Vessel in Dock. Case of PLAINTIFF is that Defendant in the course of business would lie anchored in the Indian Ports at various places at various points of time, particularly in Chennai and Tuticorin Ports. When the ship is so anchored, the PLAINTIFF would supply various necessaries to the Defendant at the request of the Master of the Vessel. PLAINTIFF would raise invoices and as such, maintaining a running Account with the Defendant. It is averred that PLAINTIFF has been supplying necessaries to the Defendant for several years and an outstanding amount to the credit of the PLAINTIFF stood at US $270,386.56 as at 19.3.2009. Defendant confirmed the aforesaid dues by their fax letter dated 27.4.2009 sent by one Asif, affixing the seal of the company. Even after such confirmation of balance outstanding, the Defendant availed the services of the PLAINTIFF for the value of US $28,519.93. After negotiations, Defendant issued a letter of authority dated 22.7.2009 to the PLAINTIFF to authorize the PLAINTIFF to sell Defendant's sister Vessel MV Maafaru. PLAINTIFF realized a sum of US $150,000 and out of the sale proceeds, a sum of US $27,000 towards release of the sister Vessel from the arrest of another creditor which was settled by the PLAINTIFF was adjusted and interest charges and crew charges at US $48,669.58 and US $23,810.07 respectively were also adjusted. After adjusting the sale proceeds of MV Maafaru as stated above, the total outstanding of the Defendant stood at US $248, 386.14 and the said amount is outstanding from 16.2.2010.

(3.) UPON consideration of the rival contention of parties and after referring to the decision reported in Interaccess case [2009 (3) CTC 611], learned single Judge held that Plaintiff is seeking recovery of money from the Defendant for various necessaries supplied to the Defendant which means that Plaintiff cannot seek for an order of arrest of the Vessel MV Dhuvaafaru as the claim for supply of necessaries do not constitute a maritime lien though it certainly constituted a maritime claim.