M V NORDLAKE A MOTOR VESSEL FLYING ON THE FLAG OF CYPRUS AND A REGISTERED AT A PORT OUTSIDE INDIA Vs. UNION OF INDIA

JUDGEMENT

(1.) This appeal raises interesting question about the extent of minimum security which in Admiralty Court must require the owner of an arrested vessel (which has caused damage to the plaintiff's property) to furnish in order to get the vessel released from from the order of arrest passed by the Admiralty Court.

(2.) This appeal is directed against the order dated 16 November 2011 of the learned Admiralty Judge dismissing the Notice of Motion taken out by the appellants herein, defendants in the Admiralty Suit. The suit is filed by the respondent herein for arrest and sale of the ship M.V. Nardlake, (hereinafter referred to as "the vessel" or "the 1st defendant vessel") and for claiming damages to the tune of Rs.1058.54 crores together with interest at 18% per annum from the date of suit till payment.

(3.) The 1st defendant vessel collided with the plaintiff's vessel INS Vindhyagiri on 30 January 2011 near Sunk Rock Light House, Mumbai. The plaintiffs have arrested 1st defendant vessel by virtue of an order dated 23 February 2011 in Admiralty Suit Lodging No.436 of 2011. The 2nd defendant MS Nordlake GMBH has filed Admiralty Suit Lodging No.1012 of 2011 under part XA of the Merchant Shipping Act, 1958 to limit their liability in respect of claims of whatsoever nature in the aggregate of Rs.20,01,86,113/- (rounded off to Rupees twenty crores for the present appeal) being the limit prescribed by Part XA of the Merchant Shipping Act, 1958.