ALPHA OIL INTERNATIONAL Vs. CHEM LILY

JUDGEMENT

(1.) THIS Notice of Motion is taken out on behalf of the defendant praying for (a) an order and direction to the plaintiff to deposit sum of Rs. 24 lakhs as security for costs incurred and likely to be incurred by the defendant or such other amount as this Hon'ble Court deems fit and proper and (b) dismiss the suit in the event the plaintiff fails to furnish security should the Court decide to allow the prayer for security for costs.

(2.) MR . Pratap Senior Counsel for the defendant submitted that this Notice of Motion should be heard and disposed before the matter proceeds further.

(3.) PURSUANT to an Order dated 19.3.2008 the applicant as the owner of the defendant -vessel furnished security in the sum of USD 460,000 + interest at 6% p. a as security for release of the defendant vessel. This was despite the fact that the original order of arrest required the defendant to furnish security in the sum of USD 12,24,976.12 which was shown to be incorrect at the time of applying for release of the vessel. The defendant had furnished security without prejudice to their rights and contentions in the matter. The defendant is disputing their liability in respect of bunkers alleged to have been supplied to the defendant vessel