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Admiralty Court Doesn’t Have Power To Arrest Cargo On Board Ship For Unrelated Claim

In the matter of Pacific Gulf Shipping (Singapore) Pte Ltd v. SRK Chemicals Ltd & Anr,  the Bombay High Court has held that an admiralty court does not have jurisdiction to arrest cargo on board a ship for an unrelated claim.

Justice SC Gupte was hearing a notice of motion filed by the defendants (SRK Chemicals) seeking release of 20,000 MT of salt that was kept as security at an open yard in Kutch, Gujarat, in lieu of cargo belonging to the defendants.

Plaintiffs claimed cost of $221,656.29 for carriage of salt belonging to the defendants in their vessel MV Pacific Pioneer from the load port of Kandla to the discharge port of Chittagong, towards outstanding demurrage charges, interest and other costs.

In an ex-parte order by a single bench of the high court dated February 10, 2017, the defendant’s cargo was arrested. On February 13, following the defendant’s request, the order of arrest was vacated and 20,000 MT of industrial salt belonging to the defendants was taken as security in lieu of the arrested cargo.

Citing the International Arrest Convention of 1952 (for sea-going ships), the court noted that there were 17 claims under which arrest could be made, this list was revived with the Arrest Convention of 1999 and 6 new claims were added.

It was further noted that neither conventions “make any exception to the original principle that no property other than that directly connected to the cause of action could be arrested, save and except the case of a sister ship”.

Therefore, only that ship or cargo can be subjected to arrest, which is directly connected with the cause of action.

Article referred: http://www.livelaw.in/admiralty-court-doesnt-power-arrest-cargo-board-ship-unrelated-claim-bombay-hc-read-judgment/

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