OWNERS AND PARTIES INTERESTED IN THE VESSEL MV NEETU NOW LYING AT THE PORT OF VISAKHAPATTINAM ARE Vs. MAYAR HK LIMITED

JUDGEMENT

(1.) THIS judgment shall govern these three appeals.

(2.) IT was a suit filed by the respondents herein, seeking damages for a sum of Rs.1,14,95,000.00 equivalent to US 2,42,000.00 calculated as per the prevailing exchange rate of USD 1 = Rs.47.50 together with interest at the rate of 18% p.a. from the date of this plaint till date of realisation and also seeking for arrest and sale of the vessel MV NEETU in as is where is condition, presently in Indian Waters at the Port of Visakhapatnam and also for a direction to adjust the sale proceeds against the suit claim with interest and costs.

(3.) AT the time when the matter was taken up before this Court, the learned counsel for the respondents/plaintiffs brought to the notice of the Court that at the time when Application No.2221 of 2003 for arrest of vessel was taken up for consideration, the Court has found that prima facie there was liability to an extent of Rs.21,21,000/- and therefore, a direction was given by the Court for furnishing security. Accordingly, the defendant had furnished bank guarantee to that extent. While the matter stood thus, he has preferred an appeal challenging the said order. The learned counsel would further add that though the said bank guarantee was furnished before the Court, it was only for a stipulated period and thereafter, it was not extended and thus, there was breach of the order and therefore, the circumstances warranted for initiating contempt proceedings. Accordingly, contempt proceedings were made in Contempt Petition No.634 of 2007 and the same is also pending before the learned Single Judge. The contemnor has not appeared before the Court. The learned counsel further reiterated that the bank guarantee originally given was not extended. On the basis of the bank guarantee originally furnished, the interim order of arrest of ship was also annulled and the ship was allowed to move and the ship was also released. Under these circumstances, now the respondents/plaintiffs are without remedy in respect of Rs.21,21,000/-, which according to the learned Single Judge, prima facie proof was also available and hence necessary orders have got to be passed.