GLANDER INTERNATIONAL BUNKERING DMCC Vs. M.V. KARNIKA

JUDGEMENT

(1.) Pursuant to the order dated 7th October, 2020, the defendant-vessel M.V. KARNIKA (IMO No.8521220) was directed to be sold by public auction and the Sheriff of Mumbai was asked to advertise the same in the requisite newspapers. As per the aforesaid directions, the auction notice for sale of the defendant- vessel was published in the Free Press Journal (English), Navshakti (Marathi), and Gujarat Samachar. In response to the aforesaid advertisements, thirteen bidders have come forward to purchase the defendant-vessel. They are as under:

(2.) As per the order dated 7th October, 2020, M/s. Ericson & Richards Surveyors Private Limited (Valuer) were also asked to appraise and value the defendant-vessel. The Valuation Report given by M/s. Ericson & Richards Surveyors Private Limited has been opened by me in Court today. Once the valuation Report as well as the bids of the abovementioned 13 bidders were opened in Court, open bidding was conducted by me in Court. In the first round of bidding itself, the bidders at item Nos. i, ii, viii, ix, x, xi, xii and xiii opted out and did not increase their bid. The remaining bidders bid in open Court and which has finally culminated in the highest bid of USD 11.65 million given by M/s. NKD Maritime Limited (highest bidder).

(3.) I have perused the Valuation Report. Though the bid received from M/s. NKD Maritime Limited is lesser than the trading value as given by the Valuer, it is commensurate with the scrap value as reflected in the Valuation Report. The highest bidder, namely M/s. NKD Maritime Limited, has also stated before the Court that they are bidding for the defendant-vessel only for the purposes of scrapping and not for trading purposes.