- (1.) The instant application has been made by M/s. Loyal Shipping Pvt. Ltd, (hereinafter also referred to as 'the defendant') a company incorporated under the laws of the republic of Bangladesh, who is the owner of M.V. Loyal Bird, (hereinafter referred as to the 'said vessel'). M/s. Al-Amin Seatrans Ltd, which is also a company incorporated under the laws of Bangladesh, instituted the above Admiralty Suit and obtained an order dated 7th July, 1994, for arrest of the said vessel M.V. 'Loyal Bird'. Pursuant to the said order the said vessel was arrested while lying at the Haldia Docks. The said vessel was thereafter allowed by this court to be shifted to the Port at Calcutta.
(2.) One of the salient features of this case is that the chairman of the Board of Directors of the plaintiff is also the Chairman of the Board of Directors of the defendant. The Managing Director of the Plaintiff is also the Managing Director of the defendant. The only other two Directors of the plaintiff are also the Directors of the defendant. All the directors of the plaintiff including its chairman and managing director are the directors of the defendant. All the directors of the plaintiff including its chairman and managing director are the director of the defendant. Plaintiffs four directors who are the only directors are the only four members of the plaintiff and they hold 85% of the share holding of the defendant. The defendant has only one extra fifth share holder, who is also the fifth director of the defendant and the said fifth share-holder and director of the defendant holds 153 of the shares of the defendant. The prayers in the above Admiralty Suit are as follows : "(a) A Declaration that the plaintiff is the absolute beneficial owner of the Vessel M.V. Loyal Bird now lying at the Port of Haldia and is entitled to be registered as the legal owner of the same; (b) An order that the defendant to execute a bill and/or Memorandum of Sale transferring ownership of the said Vessel M.V. Loyal Bird to the plaintiff; (c) Alternatively, judgment against the said Vessel M.V. Loyal Bird and each of its tackle apparel and furniture for U.S. Dollars 8,03,534,77 equivalent to Bangladeshi Taka 321,41,340.45 equivalent to Rs. 2,51, 50,639.41 mentioned in paragraph 12 hereof; (d) Judgment against the Vessel M.V. Loyal Bird and each of its tackle apparel and furniture for U.S. Dollars 8,03,534.77 equivalent to Bangladeshi Taka 3,21,41,390.94 equivalent to Rs. 2,51,50,639.41 mentioned in paragraph 15 hereof; (e) Arrest of the said Vessel M.V. Loyal Bird and an order for appraisement of the same its tackle apparel and furniture; (f) Sale of the said Vessl M.V. Loyal Bird and payment out of the proceeds thereof to the plaintiff in protanto satisfaction of its claim in the suit; (g) Interim interest and interest of judgment; (h) Costs; (i)Further and other reliefs."
(3.) In the affidavit of Mohan Sen affirmed by him on the 6th July, 1994 the case made out is inter alia as follows :;