ASIATIC SALVORS Vs. DODSAL PVT LTD

JUDGEMENT

(1.) RESPONDENTS M/s. Dodsal Private Ltd. had taken on hire on bareboat charter basis a dredger called 'Portos-I' from the Captain of Ports, Goa for assisting in construction work in river Mindhola near Surat, Gujarat. After the work was completed the respondents wanted the dredger returned to the Captain of Ports Goa. For this purpose they entered into a Towage Agreement dt/- 11th Nov. 1985 with the petitioners M/s. Asiatic Salvors under which the petitioners undertook to safely tow the dredger from its site near Surat to an anchorage site at Goa for a lump sum of Rs. 3.75 lacs. 25% of this payment was given as an advance with order. The balance amount was payable within 15 days of written acknowledgment from the Captain of Ports of safe arrival and anchorage at Goa Port. The agreement provided for preparation of the dredger for the voyage. In this connection under Cl.7 the towage contractor undertook to comply at his own expense with the requirements of dredger's insurance underwriters with reference to (i) warranty survey inspection of the towing vessel before commencement of towage and certification of it as fit and seaworthy by a surveyor approved by the Insurance; (ii) Warranty survey/inspection of the tow and towing arrangement by the surveyors appointed by the underwriters and certification of the same as fit for the intended tow. Under Cl. 15 of the contract it was provided as follows :

(2.) UNDER the contract the period of completion was 31 days from the date of signing of the agreement, though the contract provided that additional days of grace may be allowed at the sole discretion of the respondents within the validity period of various certificates which were required in connection with towage. It seems that the petitioners were unable to arrange for towage or complete the towage within the contract period.

(3.) THE claim of the respondents against the petitioners as filed before the arbitrator was for damages for breach of contract. THE petitioners (respondents) made a claim for special damages in the form of additional insurance premium paid due to delay and non-compliance on the part of the petitioners, additional rental paid to the Captain of Ports, Goa and various other charges incurred by the petitioners. THEy also asked for general damages to the tune of Rs. 50,000 and refund of Rs. 93,750 paid as advance 25% of towing contract to the petitioners at the time of entering into contract. THE claim of the respondents was filed before the arbitrator on or about 2nd May, 1986.