Arrest of foreign ship ordered over financial dispute

Justice K K Sasidharan on hearing a plea moved by Korean based STX corporation, ordered the arrest after holding that the documents available on record prima facie shows that there is a valid claim, which would constitute both a maritime lien and a maritime claim. 

STX Corporation had contended that vessel’s owner, entered into a sales contract for supply of 492.672 metric tons of residual marine fuel. Based on the contract, the required quantity of marine fuel was supplied. 

All the sales were on credit of vessel and the invoice issued also contained a clause to the effect that “Buyer is presumed to have authority to bind vessel with a maritime lien”. It was further indicated that “Disclaimer stamps placed by vessel on bunker receipt will have no effect and do not waive the seller’s lien.” 

STX had also contended that notwithstanding the demand made for payment of US$ 115,038.91, the owners of the vessel failed to pay the amount. A notice issued on March 9, 2016 had failed to evoke any response leading to the present suit. It was also submitted that if the vessel is permitted to leave the Port, it would not be possible to recover the amount due from her owner. 

Justice Sasidharan on observing that since the Vessel would leave the Port immediately after discharge, the balance of convenience is in favour of the vessel’s arrest, appointed two Advocate Commissioners to assist the bailiff to arrest the vessel with her engines, gears, tackles, apparels, machinery and paraphernalia. The case has been posted to March 16 for filing report.