DESTEL MARINE LIMITED Vs. M V STAR 7

JUDGEMENT

(1.) PLAINTIFF is a Company registered in Liberia engaged in the business of supply of bunkers. The defendant -vessel is a Tanzania flagged vessel presently in port and harbour Alang. The plaintiff seeks security from the defendant for a sum of USD 1 million towards security for arbitration in New York arising out of unpaid supply of fuel and bunkers as mentioned in paragraphs 2 to 4 of the plaint.

(2.) IT is not in dispute that the claim made in the present suit is about supply of necessaries and no one disputes that it is not 'maritime claim' and the defendant also accepts the same.

(3.) AT the outset, the learned counsel for the defendant has raised preliminary objection that the suit is not maintainable in view of the claim made only for security pending arbitration and no claim is preferred for any money decree and reliance is placed on the judgment dated 17th February 2011 passed by a Division Bench of this Court in O.J. Appeal No.6 of 2011 confirming the decision dated 24.1.2011 of this Court in Admiralty Suit No.10 of 2010. It is submitted that no arrest can be ordered on the principles akin to Order 38 Rule 5 of the Code of Civil Procedure in view of the aforesaid judgment of the Division Bench and the law laid down by the Apex Court in paragraph 74 of M.V. Elisabeth and others vs. Harwan Investment and Trading Private Limited, 1993 Supp2 SCC 433, that 'these principles of international law, as generally recognised by nations, leave no doubt that, subject to the local laws regulating the competence of courts, all foreign ships lying within the waters of a State, including waters in ports, harbours, roadsteads, and the territorial waters, subject themselves to the jurisdiction of the local authorities in respect of maritime claims and they are liable to be arrested for the enforcement of such claims'.