Karnataka High Court Orders Arrest Of Merchant Ship MT Windsor On Patanjali's Plea Alleging Short-Supply By Its Sister Vessel

The Karnataka High Court has directed the arrest of vessel MT Windsor, which is at New Mangalore Port Trust within Indian territorial waters.

A single judge bench of Justice S G Pandit passed the order on an application filed by M/s Patanjali Foods Limited. It said,

“The claim of the petitioner would amount to a maritime claim. To secure recovery of loss suffered, the petitioner would be entitled to arrest of respondent Vessel M.T.WINDSOR (IMO No.9542130). It is also made clear that the petitioner would be liable to pay damages, if ultimately the arrest is found to be wrongful or unjustified or if the arrest is of excessive security.”

Patanjali claims that it had entered into a sales contract with Semi Darby Oils Trading Private Limited for a supply of 6,000 metric tonnes +/- 2.00 Pct at the seller's option. Accordingly, Semi Darby Oils had loaded 6000.326 metric tons to ASP Sunrise, the sister-Vessel of the respondent. However, it is alleged that ASP sunrise short supplied 73.763 metric tonnes.

To support its claims, the company placed on record a survey report dated 09.05.2023 along with memo dated 04.09.2023. Patanjali claims it suffered loss to the tune of Rs.64,89,741/-. It seeks a direction upon the respondent vessel and all persons interested in her to repay the Principal sum with interest and cost of Rs.18,00,000/-.

Patanjali has invoked Section 5 read with Section 3 of the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017, read with Order VII Rule 1 read with Section 26 of the Code of Civil Procedure.

Senior Advocate Dhyan Chinnappa appearing for the company argued that Vessel MT WINDSOR is a sister ship of ASP Sunrise and since the former has entered into the territorial waters of the Karnataka High Court, it is seeking for the arrest of the ship so as to realise the amount due from its sister ship ASP Sunrise.

The bench noted that Section 3 of the 2017 Act confers jurisdiction on the High Court in respect of all maritime claims, over the waters up to and including territorial waters of their respective jurisdictions in accordance with the provisions contained in the Act. Section 4 deals with maritime claims.

From the material on record and the survey report dated 09.05.2023, the Court took the prima facie view that the respondent vessel's sister has short-supplied 73.763 metric tons of RBD Palm oil.

Accordingly, it allowed the application and issued an emergent notice to the respondent. Further, it clarified that it is open for the respondent vessel to seek for vacating or modification of the order passed.

Case Title: M/s Patanjali Foods Limited v. M T Windsor (IMO No.9542130)

Case No: CP 367/2023

Date of Order: 04-09-2023

Appearance: Senior Advocate Dhyan Chinnappa for Advocates Arjun Rao, Maitreyi Bhat, Aishwarya Prasad, Sai Preethi Kasireddy, Abhijeeth Suresh & Shrikanth Hathi for Petitioner.

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