FORYSTHE TRANDING SERVICE LTD Vs. M V NIZURU

JUDGEMENT

(1.) THIS suit has been filed in the admiralty jurisdiction of this Court for recovery of the price of the bunkers supplied to the defendant/vessel with interest.

(2.) THE plaintiff is a company registered and incorporated in Cyprus. The plaintiff carries on trade of supply of bunkers.

(3.) THE defendant is the vessel which flies a Panamanian Flag and is registered at a port other than one in India. At the relevant time the defendant vessel "niizuru" was owned by M/s. Karander Maritime Inc. One M/s. Zodiac maritime Agencies Ltd. were agents appointed by the owners of the defendant/vessel and were in charge of the operation of the defendant/vessel. The registered manager of the vessel at the relevant time were SAMAMA (M/s. Society Anoyme Monegasque D' Administration Maritime et Aerienre ). The zodiac Maritime Agencies Ltd. , the agent of the defendant/vessel on behalf of the vessel placed an order with one Maritime Brokers Ltd. of UK for supply of bunkers to the defendant/vessel. The Maritime Brokers of Hull transferred that order to South Pacific Energy Trading, who in their turn transferred the order to the WM Scollay and Co. They in their turn transferred the order for supply of bunkers to Forsythe Internation (UK) Ltd. , who transferred that order to the plaintiff namely M/s. Forsythe Trading Services Ltd. The plaintiff placed the order for supply of bunkers to the defendant/vessel to one M/s. Petro Trade Services. The bunkers were accordingly supplied by Petro Trade services to the defendant/vessel at Piraeus. It appears that for supplying the bunkers to the defendant/vessel, M/s. Petro Trade Services purchased the same from M/s. Elda which is a refinery in Greece. There is no dispute between the parties that the bunkers were received by the defendant/vessel and necessary receipts were passed. The bunkers were supplied on 15-1-1996 and 16-1-1996. After effecting the supply M/s. Petro Trade demanded payment from the agent of the defendant/vessel namely M/s. Zodiac Maritime. According to the plaintiff, the agent of the defendant/vessel by fax dated 21-2-1996 admitted their liability to make the payment for bunkers, but stated that since number of intermediate parties were involved in the transaction, it was necessary to secure assurances from other parties that they had no claims in respect of the supply. In reply M/s. Petro Trade by their fax dated 23-2-1996 stated that only intermediate party they knew was Forsythe Trading services Ltd. /plaintiff. They stated that as they had supplied the bunkers they are entitled to receive the payment. According to the plaintiffs, the Solicitor of the defendant/vessel by fax dated 1-3-1996 admitted their liability to make payment for the value of the bunkers, but stated that they had received a similar demand from the Maritime Brokers Ltd. Hull and therefore before making payment it was necessary for an agreement to be reached as to who was entitled for payment. It appears that there was some correspondence regarding making payment into escrow for providing for a guarantee. But ultimately, no payment was made, therefore Petro Trade, physical supplier, approached the plaintiff because it was the plaintiff who had ordered them to make the supply and therefore the plaintiff made payment to Petro Trade. Petro Trade in their turn passed necessary receipts and also assigned their rights to receive payment for the supply in favour of the plaintiff. As no payment was made the plaintiff has filed this suit for recovery of the value of the bunkers with interest at the rate of 20% p. a.