TRANSWORLD SHIPPING SERVICES IMP LTD Vs. OWNERS

JUDGEMENT

(1.) THIS appeal is directed against the order passed in Application No.4960 of 1984 in C.S.No.830 of 1984. That suit was filed by the appellant herein against the respondents herein inter alia alleging that the appellant has incurred an expense on behalf of the second respondent, who is the charterer of the first respondent vessel M.V.SISTER STAR to the tune of Rs.43,80,000, that he has received towards that expenditure a sum of Rs.25,80,000 and that the balance of Rs.18,00,000 is due to the appellant. It is further alleged that these expenses were incurred towards demurrage charges, customs penalty, port charges, stewarding and other miscellaneous charges on behalf of the second respondent, of whom the appellant is the agent. Therefore, the appellant in the suit prayed for a decree and judgment against both the respondents for rupees 18 lakhs plus interest at the rate 18% per annum from the date of filing of the suit and also for (0 costs and expenses for the arrest of the vessel M.V.SISTER', and (ii) charge over the vessel M.V.SISTER STAR of Korean Flag with Tackles, Apparels, Boats, machinery and furniture and/or its sale proceeds.

(2.) ALONG with the suit, the appellant filed Application No.4960 of 1984 praying to issue a warrant of arrest of the vessel 'M.V.SISTER STAR' including its tackles, apparels, boats, machinery and furniture, which is now lying at West Quay II of the Madras Port Trust pending disposal of the suit. In support of this application, the appellant has filed an affidavit stating that the appellant has incurred expenditure on behalf of the defendants, that out of such expenditure incurred, a sum of rupees 18 lakhs is due to the appellant and that the respondents have acknowledged the said dues by letter dated 5.11.1984. It has been further alleged that the suit has to be filed on the Admiralty Jurisdiction of this Hon'ble Court in order to arrest the vessel or otherwise, the appellant would suffer irreparable loss and injury if the vessel is allowed to be removed from the jurisdiction of this Honourable Court.

(3.) THE second respondent in his counter-affidavit inter alia alleged that the vessel M.V.Sister Star was let on a Time Trip Charter on a daily hire of U.S.$4,400 that according to clause 2 of the Charter Party, the Charterers have to pay all port charges, pilotages, agency commission and other expenses, that the second respondent had remitted so far a sum of U.S.$2,15,000 to the appellant for meeting the expenses for the discharge of the cargo, that the money alleged to have been expended is not accepted and that the appellant is not right in seeking the arrest of the vessel under the Admiralty Jurisdiction of this Hon'ble Court. With these averments, both the respondents prayed for the dismissal of Application No.4960 of 1984.