In a significant maritime legal development, the Orissa High Court has issued an order for the arrest of a cargo vessel from Jordan, currently anchored at Paradip port. The order came on an urgent plea filed by a Singapore-based shipping company alleging a breach of contract and seeking recovery of dues amounting to $202,000, approximately Rs 1.81 crore.
Urgent Hearing Leads to Arrest Order
The matter was taken up on an urgent basis by a vacation bench of Justice M S Raman on Friday, December 26. The hearing commenced at 4:45 pm after the counsel for the plaintiff, Jaldhi Overseas Pte Ltd, informed the court registry that the vessel, MV 'The Patron' (IMO 9481439), was likely to set sail from the port soon. The court, through a special notice, conducted the hearing to prevent the ship from leaving Indian waters.
The Singaporean company invoked the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017, specifically Section 5. They sought the arrest, detention, and potential sale of the vessel to secure their maritime claim, which also includes an annual interest of 12%.
Alleged Breach of Charter Party Terms
The core of the dispute lies in a charter party agreement, a contract for hiring the vessel. According to the plaintiff's submission, they had chartered MV The Patron to transport a cargo of 75,000 metric tonnes of rock phosphate from Jordan to Paradip port in India.
The agreement stipulated that the vessel should maintain a speed of 12.5 knots when empty (in ballast) and 12 knots when laden. However, the company alleged that an engine failure in August caused a drastic reduction in the ship's speed to about 7.98 knots. This mechanical failure led to a prolonged and costly delay.
As per court records, the voyage from Khor Fakkan to Paradip, which should have taken approximately 8 days, ended up taking about 22 days. This significant delay sparked disputes between the parties over several financial aspects, including revised hire rates, bunker (fuel) calculations, and off-hire claims.
To avoid further losses and ensure the discharge of the crucial cargo, the plaintiff company stated that it made a payment of $182,000 under protest. The total claim, including other costs, now stands at $202,000.
Court's Rationale and Final Order
After examining the plea, Justice Raman's bench observed that the case fell squarely within the definition of a maritime claim under the Admiralty Act. The court noted that perusal of documents showed the vessel was located 5.95 nautical miles off the Paradip coast at the time of the hearing.
The court stated, "With the aforesaid facts, keeping in view Section 1(2) read with Section 4(1)(h) and Section 3 of the Admiralty Act, this court assumes jurisdiction." It added that the plaintiff appeared to have a "genuine grievance".
In its decisive order, the court held, "Unless an order of arrest of defendant no.1 (vessel)… is passed, the cause of action shall stand frustrated." Accordingly, it directed the arrest of MV The Patron at Paradip port. The court, however, clarified that the pendency of the lawsuit would not prevent the unloading of the cargo from the vessel.
The case has been listed for further hearing in the week commencing January 5. The order ensures the vessel remains within the court's jurisdiction as the legal process to recover the alleged dues moves forward.
