Orissa High Court Orders Release Of Singaporean Cargo Vessel A Day After Its Arrest At Paradip Port

The Orissa High Court has ordered release of Singaporean cargo ship 'MV Propel Fortune (IMO 9500699)' a day after its arrest it at the Paradip Port for non-payment of dues against supply of necessaries.

The Court agreed to release the vessel after it offered to draw a demand draft of Rs.15,56,100/- in favour of the Registrar (Judicial) of the Court.

The matter was initially mentioned on 30.12.2024 before the vacation bench of Justice Murahari Sri Raman citing urgency. By way of an interim application, it was pleaded on behalf of the plaintiff port agency MH Bland S.L. that unless the matter is taken up instantaneously, the suit shall be rendered infructuous as the ship was scheduled to leave the territorial waters contiguous to the land of Paradeep at 06:00 a.m. on December 31. 

The plaintiff claimed to have received an indent for supply of necessaries by the defendant via e-mail on 06.05.2024. Accordingly, the plaintiff had made supplies of the necessaries to the defendant. It was certified to have been delivered by ship master.

The copies of invoices reflected a principal demand of €9.363,45 (EURO) for supply of such services. The plaintiff also demanded an additional amount of €615 towards interest calculated @ 12% per annum from the date of invoices along with cost of litigation of €7.500. In total, the plaintiff raised a claim of €7.478, 45 in (Rs. 15, 56,088.93/-).

The plaintiff submitted that the said demand having not been discharged by the defendant despite several requests, the present case was filed before this Court with a prayer to arrest the ship so as to facilitate recovery of said amounts and therefore, the Maritime Claim can be adjudicated within the scope and ambit of Section 4(1)(l) of the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017.

Notably, the aforesaid clause provides that the High Court may exercise jurisdiction to hear and determine any question on a maritime claim, against any vessel, arising out of any goods, materials, perishable or non-perishable provisions, bunker fuel, equipment (including containers), supplied or services rendered to the vessel for its operation, management, preservation or maintenance including any fee payable or leviable.

It was further submitted that the plaintiff waited for a reasonable time for the defendant to discharge its liability since the date of raising the invoices, i.e., 11.06.2024. But the defendant failed to discharge its liability and it did not respond to its claim/demand as per the invoices.

Counsel appearing for the plaintiff furnished a copy of 'Daily Traffic Update' till 28.12.2024 issued by Traffic Department of Paradeep Port Authority, which revealed that the defendant-vessel was scheduled to leave the territorial waters of Paradeep at around 06.00 A.M. on 31.12.2024.

He vehemently submitted that once the cargo ship leaves the territorial waters of Paradeep Port, the purpose of filing of the case shall be rendered infructuous. Thus, he urged for issuance of order for arrest of the vessel invoking provision of Section 5 of the Admiralty Act.

Upon perusing the material on record and after hearing the counsel for the plaintiff, the Court was satisfied that the claim is maintainable before the High Court under its admiralty jurisdiction. It also prima facie observed that unless the vehicle is arrested, irreparable damage may ensue and the balance of convenience tilts in favour of the plaintiff.

“This Court is, therefore, of the considered opinion that unless order of arrest of defendant vessel-MV PROPEL FORTUNE (IMO 9500699) is passed, case of the plaintiff will be rendered infructuous as it is stated that the vessel is to leave Paradeep Port by tomorrow on 31st December, 2024 at 06.00A.M,” it held.

Hence, the Admiralty Judge had ordered arrest of the defendant vessel at Paradeep Port as per Section 5 of the Admiralty Act and the plaintiff was given liberty to communicate the order along with Letter of the Marshall of the Court as per Rule 2 of the Orissa High Court Admiralty (Jurisdiction and Settlement of Maritime Claims) Rules, 2020.

Pursuant to the aforesaid order, the defendant-vessel entered appearance on 31.12.2024 by way of an urgent mentioning and prayed to recall/modify/cancel the order dated 30.12.2024 and sought for release of the defendant-vessel from arrest.

Counsel appearing for the defendant-ship informed that the payment has already been done with respect to the goods supplied by the plaintiff. It was submitted that the liability as found mentioned in the plaint had already been satisfied by making such deposit. However, the counsel for the plaintiff-agency sought to file objection to such submission.

At this juncture, counsel for the defendant offered to furnish a Demand Draft for an amount of Rs.15,56,100/- to be drawn in the favour of the Registrar (Judicial) of the High Court to secure the amount claimed in the plaint for ensuring release of the vessel from arrest. The plaintiff had no objection to such suggestion.

Accordingly, the Court directed release of the defendant-vessel from the arrest subject to the condition that it will furnish a Demand Draft of Rs.15,56,100/- drawn in favour of the Registrar (Judicial) on the very day.

“…on proper acknowledgement, the defendant-vessel, MV Propel Fortune (IMO 9500699), shall be released forthwith from arrest and the defendant-vessel would be free to sail out of Paradeep Port,” it ordered.

Case Title: MH BLAND S.L. v. MV PROPEL FORTUNE (IMO 9500699)

Case No: ADMLS No.6 of 2024

Date of Order: December 31, 2024

Counsel for the Plaintiff: Mr. Ishwar Mohanty, Advocate

Counsel for the Defendant: M/s. Soumya Jyoti Biswal, A. Mohanty, R. Ray, S. Senapati, A.A. Mishra, S.K. Jajodia, Advocates

Citation: 2025 LiveLaw (Ori) 1

Click Here To Read/Download Order