Anchorage Charges Levied From Date Of Sale: Supreme Court
The Supreme Court ruled that the anchorage charges to be levied from the date of sale.
Background
The Vessel M.V. Karnika, was owned by Jalesh Cruises Mauritius Limited, and had been sailing under the flag of the Bahamas. At the request of Jalesh, Glander International Bunkering DMCC, had supplied bunkers to the Vessel. The charges for the bunkers supplied by Glander to the Vessel were not paid.
Further, Glander filed an Admiralty Suit being Commercial Admiralty against the owners and parties interested in the Vessel for recovery of USD $2,213,320, being the charges for the bunkers along with accrued interest before the Commercial Division of the Bombay High Court.
The appeal is against a judgment and order passed by the Commercial Appeal Division of the Bombay High Court (Division Bench) allowing Commercial Appeal filed by the Respondent, “Port Trust” and setting aside an interim order passed by the Commercial Division (Single Bench) of the same High Court disposing of Interim Application filed by the Appellant M/s NKD Maritime Limited.
Arguments
Senior Advocate Siddharth Bhatnagar, appearing for the Appellant, referred to the terms and conditions of sale of the Vessel and argued that the Vessel had been sold free from all encumbrances.
He contended that the Vessel having been sold on “as is, where is” basis, free from all encumbrances, any liability in respect of Anchorage Charges or Light Dues Charges which accrued prior to the date of sale would have to be met by the erstwhile owners of the Vessel and/or met by the Prothonotary and Senior Master of the High Court from out of the sale proceeds of the Vessel lying with him. Such charges cannot be foisted upon NKD.
Senior Advocate Jayant Bhushan, appearing for the Respondents, agreed that the Vessel had been sold on “as is, where is” basis, free from all encumbrances.
He submitted that no pre-sale liabilities in respect of the Vessel have been foisted on NKD.
He contended that the condition that all charges dues including Port dues, tariffs, taxes, etc. in respect of the vessel, would be borne and paid by the purchaser from the date of sanction of the sale by the High Court.
Decision
The division bench of Justice Indira Banerjee and Justice J.K. Maheshwari viewed that the Division Bench rightly held that the argument was without merit.
The court said that as held by the Division Bench, it is far-fetched to suggest that prior anchorage was of the Vessel under sale and the rate that it attracts as a result of such prior anchorage are in the nature of encumbrances for the purposes of anchorage fees to be applied after the date of Bill of Sale and till the Vessel sells at the instance of the purchaser.
“As held by the Division Bench, NKD purchased the Vessel on ‘as is, where is’ basis free from encumbrances in the instant case, anchorage charges have been levied from the date of the sale. The rates were payable on the basis of the number of days for which the Vessel was docked” the court added.
The bench held that the Division Bench rightly allowed the appeal and set aside the order of the Single Bench.
Case title: M/S NKD Maritime Limited v/s The Board of Trustees of the Port of Mumbai & Ors.
Citation: Arising out of SLP (C) NO. 4550 OF 2021
