HARI & CO. Vs. CHENNAI PORT TRUST

JUDGEMENT

(1.) The lis on hand has been instituted questioning the validity of the demand notice dtd. 23/6/2011 issued by Chennai Port Trust to remit the outstanding amount of Rs.44,35,33,691.00 within 21 days from the date of receipt of the final demand notice.

(2.) In nutshell, the Vessel M.V. SAN GIORGIO sailed from the Port of West Africa with Cargo 12,800 Cbm of Timber developed sickness. Owner of Vessel failed to attend. M/s.Olam International Limited, owner of the Cargo towed her to Chennai. On the application moved by Bank of Beirut (UK) Ltd (Mortgagee of the Vessel), the Bombay High Court passed an order of arrest of the Vessel, M.V. SAN GIORGIO-1 in Admiralty Suit No.13/2007. M/s.Olam International Limited, Singapore (Sub-Charterer of the Vessel, M.V. SAN GIORGIO-1 and also the owner of Cargo in the said Vessel) requested Chenai Port Trust to permit the Vessel to discharge the Cargo and assured that the Vessel will be taken out of Port Trust once the Cargo is discharged. Further, M/s.Olam International Limited also expressed their willingness to give 'any suitable undertaking that the Port may require to protect its interest'. M/s.Olam International Limited on 11/4/2007 appointed the petitioner as its Steamer Agent to handle their Timber Cargo Vessel M.V. SAN GIORGIO-1 at Chennai Port. The petitioner-Agent was authorised to handle Customs/Port/Immigration/MMD and all ship related formalities.

(3.) On 12/4/2007, Chennai Port Trust also permitted the petitioner to act as a Steamer Agent. On 16/4/2007, M/s.Olam Export (India) Limited (a Sister/Subsidiary Company of M/s.Olam International Limited-R3) executed Indemnity Bond in favour of the Chennai Port Trust stating that 'they take full responsibility for payment of all dues, charges, expenses, accrued and accruing, including loss of revenue to the Port arising through berths/navigable approach channel not being available for use and any impediment caused for safe navigation/berthing of vessels through any mishap to the M.V. SAN GIORGIO-1'.