Calcutta High Court Detains Panamanian Ship For Alleged Supply Of Damaged Goods, Orders Deposit Of ₹7 Crores For Its Release

The Calcutta High Court in an urgent hearing on Saturday evening, directed the detention of a vessel bearing the flag of Panama, namely M.V. PH GIANG MINH for the alleged supply of damaged goods in an admiralty suit by Emami Paper Mills Limited.

The order was passed by a single bench of Justice Arindam Mukherjee.

It was claimed that the the plaintiff purchased 8000 MT of Bleached Hardwood, Kraft, Pulp, and Acacia ('goods') of particular specification which was loaded at Futong Port, Indonesia in the said vessel to be discharged at the Haldia Dock Complex.

The aggregate value of the said goods is USD 5422356.68. The plaintiff said that the goods were loaded in the vessel in apparently good condition as will appear from the Mate's receipts issued at the time of loading as also from the statement of facts and final stowage which has been signed by\ the owners of the vessel (defendant No.1), Disponent Owners (defendant No.2) as also the charterer (plaintiff).

It was stated that the goods reached the Haldia Dock Complex on 25th July 2024, when it was found that the cargo in one of the Holds was damaged.

According to the plaintiff, the damaged quantity was assessed at 1312 MT, the value of which is USD 88560 equivalent to INR7,48,77,480. The plaintiff said that the part cargo reached in damaged condition at Haldia Dock Complex.

The plaintiff also claimed legal costs of INR 15,00,000 and as such, the total claim was INR 76377480 being the amount claimed in the suit along with other consequential reliefs.

The plaintiff stated that loss or damage to or in connection with any goods is a maritime claim under Section 4(1)(f) of the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017.

The plaintiff said that the vessel is to sail out of Haldia Dock Complex by 7:18 am on 5th August 2024 and unless the said vessel is arrested and detained, the plaintiff will be remediless and the suit will become infructuous.

After considering the submissions made by the plaintiff, materials on record and the provisions of law cited by the plaintiff, the court found that the plaintiff had made out a strong prima facie case and the balance of convenience and inconvenience was also in favour of the plaintiff.

It was found that the plaintiff would be greatly prejudiced if the said vessel was allowed to leave the Haldia Dock Complex.

It is, therefore, clear that both the defendants prima facie have equal liability for the damage of the goods. It will be a fruitless venture at this stage to enquire into the fact as to who is actually liable. However, on the basis of the bill of lading, the statement of facts and mate's receipts it is found that the goods at the time of being loaded were in apparent good order and condition. At this stage it has to be, therefore, accepted that both the defendants are liable for the claim made by the plaintiff on account of damage of the goods, the Court held.

Accordingly, it directed the arrest of the vessel and for the deposit of INR 7 crores for its release,

Case: EMAMI PAPER MILLS LTD VS THE OWNERS AND PARTIES INTERESTED IN THE VESSEL M.V. PH GIANG MINH ( IMO NO 9481623) AND ANR.

Case No: AS-COM 4 of 2024

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