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2022 (9) TMI 997

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..... ch) of the same High Court disposing of Interim Application No. 6531 of 2020 filed by the Appellant M/s NKD Maritime Limited, hereinafter referred to as "NKD". 3. The Vessel M.V. Karnika, hereinafter referred to as the "Vessel" was owned by Jalesh Cruises Mauritius Limited, hereinafter referred to as "Jalesh" and had been sailing under the flag of the Bahamas. 4. At the request of Jalesh, Glander International Bunkering DMCC, hereinafter referred to as "Glander", had supplied bunkers to the Vessel. The charges for the bunkers supplied by Glander to the Vessel were not paid. 5. On 24th September, 2020, Glander filed an Admiralty Suit being Commercial Admiralty (L) Suit No. 3579 of 2020 against the owners and parties interested in the Vess .....

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..... ated 28th October 2020 on Sheriff Report No. 53 of 2020 in Commercial Admiralty Suit (L) No. 3579 of 2020 are, inter alia, set out hereinbelow for convenience :- "10. Needless to clarify that the sale of the defendant vessel having confirmed in favour of M/s. NKD Maritime Limited, it shall be handed over to the said M/s. NKD Maritime Limited, free from all encumbrances. This, of course is subject to the entire sale consideration being received by the office of the Sheriff of Mumbai within the stipulated time as mentioned earlier." 11. It is not in dispute that the Bill of Sale also mentions that the bill was being sold free of all encumbrances. However, the successful bidder would be liable to pay the costs, charges, fees and expenses o .....

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..... ate beyond the 30th day is USD $ 0.0118. In this case, the vessel was at V-1 anchorage with effect from 13th June 2020. It is not in dispute that more than 30 days had elapsed since the Vessel had been brought to the anchorage. At the time of sale, the Vessel was paying anchorage fees at the rate applicable when a vessel is docked for more than 30 days. 15. Disputes arose between NKD and the Port Trust with regard to the anchorage charges claimed by the Port Trust. The Port Trust charged approximately Rs.15,00,000/- per day on the basis that the Vessel had been docked at the anchorage for more than 30 days. If the vessel were to be docked for less than 30 days, the anchorage charges would be approximately Rs.5,00,000/- per day. 16. NKD fi .....

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..... er") shall give an undertaking in the form annexed hereto and complete the purchase according to these conditions and shall also pay the purchase price in accordance with Term No.8 hereinabove, otherwise, the said vessel shall be again put up for sale and re-sold and Earnest Money Deposit of Rs.2,00,00,000/- (Rupees Two Crores only) or equivalent US Dollars and any amount paid towards purchase price shall be forfeited and the defaulting purchases, shall be liable for any deficiency upon such resale together with costs, charges and expenses attending the resale, but shall not be entitled to the benefit of any increase in the purchase money on such resale. The Purchaser(s) shall also subscribe his/their address including e-mail & fax to the s .....

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..... ate of confirmation of the file and the same will be approved by and on behalf of the Sheriff of Mumbai and will be forwarded to the Admiralty Registrar / Prothonotary and Senior Master High Court, Bombay for issuance of the same. The costs of certificate of sale to be issued by the Hon'ble High Court including stamp duty, registration charges etc. Payable in respect thereof shall be borne and paid by the Purchaser(s). 17. All charges, dues including Port dues, tariffs, taxes etc. in respect of the vessel shall be borne and paid by the Purchaser(s) from the date of the sanction of the sale by the Hon'ble High Court of Judicature at Bombay." 18. By an order dated 6th January 2021, the Commercial Division of the High Court (Single Bench) .....

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..... e from all encumbrances. Mr. Bhushan submits that no pre-sale liabilities in respect of the Vessel have been foisted on NKD. Referring to the terms and conditions of sale and in particular, the condition that all charges dues including Port dues, tariffs, taxes, etc. in respect of the vessel, Mr. Jayant Bhushan submits, that it would be borne and paid by the purchaser from the date of sanction of the sale by the High Court. In this case, Mr. Bhushan argued, NKD had only been charged anchorage charges from the date of sanction of the sale till the date of removal of the vessel from the anchorage. 23. In our view, the Division Bench rightly held that the argument was without merit. As held by the Division Bench, it is far-fetched to suggest .....

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