JUDGEMENT
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(1.) The time-charterer of the vessel, who had furnished security to enable M.V.
Eugenie to leave these shores, has applied for dismissal of the admiralty action
on the principal ground that the plaintiff has no cause of action against the
owners of the vessel and the plaint discloses none. Three ancillary grounds of
challenge have also been maintained that need to be noticed after the basic facts
are recorded.
(2.) The petitioning time-charterer, Vasteast International Pte Ltd of Singapore,
entered into a voyage-charter with Rainbow Sky Shipping Ltd for carrying the
voyage-charterer 's cargo of 26,000 mt of iron ore fines from either Haldia or
Paradip to the discharge ports specified in the charterparty. The plaintiff had
entered into an agreement with Golden World Enterprise Ltd of Hong Kong for
sale of 28,000 mt of iron ore at a price of US $ 84 per mt free on board. The Hong
Kong buyer of the plaintiff 's goods was to arrange for a vessel to receive the cargo
at the port of Haldia. The plaintiff had the cargo documents processed and filed
the shipping bill for export of 16,500 mt of iron ore fines to be loaded on the
vessel. It appears that the buyer had an arrangement with the voyage-charterer
for the buyer 's cargo to be taken on board the vessel.
(3.) It is the plaintiff 's case that it tendered the cargo to the vessel 's agents at
the relevant jetty in Haldia port and loading commenced on June 21, 2008. The
plaintiff 's affidavit of arrest claims that the vessel 's cranes were defective and
unable to load the cargo resulting in only 15 mt of the cargo being taken on
board. The application says that the vessel 's cranes were not capable of lifting the
grabs with the cargo which was noticed by the port authorities and the master of
the vessel was issued a notice by the port authorities on June 21, 2008. The
plaintiff says that grabs of smaller size were made available by it but the vessel 's
cranes could still not lift the cargo following which a second notice was issued by
the port authorities on the following day. The plaintiff arranged for a survey to be
conducted of the vessel 's cranes. The surveyor filed a report to the effect that the
cranes were unable to lift as per the safe working load declared by the master of
the vessel and recommended that the cranes be repaired with the delay therefor
being to the account of the vessel. The port authorities also suspended loading
operations on the vessel. The plaintiff claims that on June 24, 2008 the master
issued an electronic mail message indicating the vessel 's readiness to resume
loading operations on the basis of a revised stowage plan. The plaintiff asserts
that it then suggested that the vessel choose another berth where shore cranes
could supplement the vessel 's cranes and aid in the loading process. Such
suggestion was apparently made by the plaintiff on June 25, 2008.
It is the plaintiff 's version that the owners of the vessel thereafter
instructed the master to not load any further cargo as the voyage-charter entered
into by Rainbow at the behest of the buyer had apparently been terminated by
the voyage-charterer. The documents that are on record reveal that the voyagecharterer
had put the petitioning time-charterer on notice of breach on June 21,
2008 since the vessel 's cranes were unable to perform as per their declared
capacity. The notice signed off with the assertion that the voyage-charter stood
determined. It does not appear that the termination was immediately accepted by
the time-charterer whereupon the voyage-charterer urged the master to repair
the cranes following which on June 24, 2008 the master prepared a revised
stowage plan and made it available to the plaintiff through the vessel 's local
agents.
At the time that the admiralty action was instituted on July 4, 2008, the
plaintiff claimed that it had suffered loss and damage to the extent of
Rs.1,21,49,700/-. The primary basis of the claim was on account of the
introduction of export duty by the Indian government on iron ore and shipping
charges. The plaintiff claimed that it would incur a liability of Rs.89,39,700/- on
account of the export duty.;
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